Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q3 2022 Earnings Presentation
20 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Oct 14, 2022
Slide 1: Third Quarter 2022 Earnings Conference Call
Exhibit 99.1 Third Quarter 2022 Earnings Conference Call October 14, 2022 The PNC Financial Services Group © PNC
Slide 2: Cautionary Statement Regarding Forward-Looking and non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking and @®PNC non-GAAP Financial Information Our earnings conference call presentation is not intended as a full business or financial review and should be viewed in the context of all of the information made available by PNC in its SEC filings and on our c
Slide 3: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights ®© PNC Net Income Delivered st fi ial perf wi = Delivered strong financial performance $1.6 billion — Generated record revenue with higher net interest and noninterest income Diluted Earnings Per Share — Net interest margin increased 32 basis points — Disciplined expens
Slide 4: Balance Sheet: Well-Positioned Balance Sheet
Balance Sheet: Well-Positioned Balance Sheet ®PNC % Change 3Q22 vs. Average balances, $ billions 3022 2022 3Q21 2022 3021 Commercial $214.1 $207.6 $196.3 3% 9% Consumer $98.9 $97.2 $95.0 2% 4% Total loans $313.0 $304.8 $291.3 3% 7% Investment securities $137.0 $134.7 $120.6 2% 14% Federal Reserve Ba
Slide 5: Balance Sheet: Supporting Customer Loan Growth
Balance Sheet: Supporting Customer Loan Growth PNC Average Loans Linked Quarter Change in Spot Loans $304.8 $313.0 +$1.5 $315.4 $291.3 $288.9 $290.7 $310.8 + $3.1 —— $207.6 e == $196.3 $193.8 $195.6 4 $95.0 $95.1 $95.1 $97.2 4 ag2t) 4c2! 1a22 2022 022 6/30/2022 Commercial Consumer 9/30/2022 m™ Consu
Slide 6: Balance Sheet: Strong Core Deposit Base
Average balances, $ billions Balance Sheet: Strong Core Deposit Base Average Deposits $454.4 $452.8 $453.3 $446.5 $439.2 olololo|° Spot balances, $ billions 3Q21 4021 1Q22 2022 3022 Noninterest-bearing Interest-bearing O Rate Paid PNC Linked Quarter Change in Spot Deposits $440.8 +$1.7 ‘ee ($4.3) 6/
Slide 7: Balance Sheet: Well-Positioned Securities Portfolio
Balance Sheet: Well-Positioned Securities Portfolio PNC Reinvesting Maturing Securities at Higher Rates Securities Portfolio Overview $133.9 $134.7 $137.0 $127.8 $120.6 Held to Maturity 66.4% 1.89% : fs] fs] ; Available for Sale 33.6% Third quarter securities activity: 3021 4021 1022 2022 3022 80% o
Slide 8: Income Statement: Generated 7% Positive Operating Leverage
Income Statement: Generated 7% Positive Operating Leverage @PNC % Change 3022 vs. $ millions 3Q22 2022 3021 2022 3021 Revenue $5,549 $5,116 $5,197 8% 7% Noninterest expense 3,280 3,244 3,587 1% (9%) Pretax, pre-provision earnings (non-GAAP) $2,269 $1,872 $1,610 21% 41% Provision for (recapture of) c
Slide 9: Income Statement: Diversified Business Mix
Income Statement: Diversified Business Mix Total Revenue Record Quarterly Revenue $5,549 $5,116 $5,127 3021 4Q21 1022 2022 3Q22 Net Interest Income mNoninterest Income ONet Interest Margin @©PNC Details of Revenue +8% Linked Quarter 3022 vs. 2022 $ millions 3022 2022 $Chg. %Chg. Net interest income
Slide 10: Income Statement: Focused On Controlling Expenses
Income Statement: Focused On Controlling Expenses Noninterest Expense Detail +1% Linked Quarter Noninterest Expense Expenses Remain Well Controlled @©PNC 3022 vs. 2022 $Chg. % Chg. $3,791 $3,587 $3,172 $3,264 $3,280 3,400 $3,352 $ aie $3,235 $3,280 © © 3021 421 1022 2022 3022 l® Integration Expense
Slide 11: Credit: Strong Credit Quality Performance
Credit: Strong Credit Quality Performance ®© PNC Credit Quality Metrics 3021 4021 1022 2022 3022 Nonperforming Loans (NPLs) NPLs / Total Loans (Period End) 0.87% 0.86% 0.78% 0.66% 0.66% Delinquencies / Total Loans (Period End) 0.51% 0.69% 0.58% 0.49% 0.52% 8 NCOs / Average Loans 0.11% 0.17% 0.19% 0.
Slide 12: Outlook: Fourth Quarter 2022 Compared to Third Quarter 2022
Outlook: Fourth Quarter 2022 Compared to Third Quarter 2022 (PNC ($ millions; except average loans, $ billions) 3022 4Q22 Guidance Average loans $313.0 Up ~1% Net interest income $3,475 Up 6% - 8% Fee income $1,757 Stable to Down 1% Other noninterest income $317 $200 million - $250 million Revenue $
Slide 13: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking @®PNC Information We make statements in this presentation, and we may from time to time make other statements, regarding our outlook for financial performance, such as earnings, revenues, expenses, tax rates, capital and liquidity levels and r
Slide 14: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking @®PNC Information "Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account potential lega
Slide 15: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking @®PNC Information = Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insura
Slide 16: Integration Costs Incurred Since Announcement
Appendix: Integration Costs Incurred Since Announcement @®PNC Acquisition Integration Cost Update Approximately 99% of Integration Costs Incurred as of 9/30/22 Total Since $ millions 4020 1021 2021 3021 4021 1022 2022 3022 Announcement Write-offs $~ = $120 $= $e $= _ $= $120 Contra-revenue Fee incom
Slide 17: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share (non-GAAP) ®PNC For the three months ended $ millions, except per share data Sept. 30, 2022 June 30, 2022 Sept. 30, 2021 Book value per common share $97.59 $101.39 $121.16 Tangible book value per common share Common share
Slide 18: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation @®PNC Adjusted Income Statement Results (non-GAAP) For the three months ended $ millions, except per share data Sept. 30, 2022 June 30, 2022 Sept. 30, 2021 Net interest income $3,475 $3,051 $2,856 Noninterest income 2,074 2,065 2,341 Total Revenue $5,549 $5,
Slide 19: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation @®PNC Taxable-Equivalent Net Interest Income (non-GAAP) For the three months ended $ millions Sept. 30, 2022 June 30, 2022 Mar. 31, 2022 Dec. 31, 2021 Sept. 30, 2021 Net interest income $3,475 $3,051 $2,804 $2,862 $2,856 Taxable-equivalent adjustments 29 25
Slide 20: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation ®PNC Noninterest Expense excluding Integration Expense and Adjusted Efficiency (non-GAAP) For the three months ended For the year ended $ millions Sept. 30, 2022 June 30, 2022 Sept. 30, 2021 Dec. 31, 2021 Noninterest expense $3,280 $3,244 $3,587 $13,002 Inte
PNC Financial Services Group — Q3 2022 Earnings Presentation on 6ix