Core Insights - PNC Financial Services Group reported increases in total nonperforming loans and net loan charge-offs in Q2, primarily driven by high commercial nonperforming loans and higher commercial real estate (CRE) net loan charge-offs [1] - The credit environment is evolving as expected, with stable credit quality outside of the CRE office sector [1] Group 1: Loan Performance - Total nonperforming loans increased by 5% in Q2, while total delinquencies remained flat [1] - Net loan charge-offs rose by 8% compared to the previous quarter [1] Group 2: Credit Loss Allowance - The allowance for credit losses was stable at $5.4 billion, with an allowance to total loans ratio of 1.67% at the end of Q2, slightly up from 1.66% at the end of Q1 [2] Group 3: Loan Composition - Average loans remained stable at $319.9 billion, with average commercial loans flat at $219.1 billion and average consumer loans down by 1% to $100.8 billion [2] - The decline in consumer balances was attributed to lower residential real estate and home equity loans [2] Group 4: Deposit Trends - Average deposits were stable at $417.2 billion, with commercial deposits dipping by 1% and consumer deposits remaining flat [3] - The decline in commercial deposits was due to seasonal declines in corporate deposits [3] Group 5: Credit Card Business - PNC launched its first new credit card in several years, the PNC Cash Unlimited card, which offers 2% back on all purchases [3] - The bank plans to introduce several new credit cards over the next year, aiming to increase its market share in the credit card business [3]

Core Insights - The PNC Financial Services Group reported a revenue of $5.41 billion for the quarter ended June 2024, reflecting a 2.2% increase year-over-year and a surprise of +2.08% over the Zacks Consensus Estimate of $5.3 billion [1] - Earnings per share (EPS) for the quarter were $3.30, slightly down from $3.36 in the same quarter last year, but exceeded the consensus estimate of $3.00 by +10.00% [1] Financial Performance Metrics - Efficiency ratio stood at 62%, better than the average estimate of 63.9% from seven analysts [2] - Net interest margin was reported at 2.6%, matching the average estimate from seven analysts [2] - Average balance of total interest-earning assets was $511.62 billion, slightly below the estimated $512.45 billion [2] - Book value per common share was $116.70, exceeding the average estimate of $115.88 [2] - Total nonperforming assets amounted to $2.54 billion, slightly above the average estimate of $2.52 billion [2] - Net charge-offs to average loans were 0.3%, in line with the average estimate [2] - Total nonperforming loans were reported at $2.50 billion, marginally below the estimated $2.51 billion [2] - Tier 1 risk-based ratio was 11.6%, slightly above the average estimate of 11.5% [2] - Leverage ratio was reported at 8.9%, matching the average estimate [2] - Total capital risk-based ratio was 13.5%, exceeding the estimated 13.3% [2] - Total noninterest income reached $2.11 billion, significantly above the average estimate of $1.96 billion [2] - Net interest income (FTE) was $3.34 billion, surpassing the average estimate of $3.27 billion [2] Stock Performance - Shares of The PNC Financial Services Group have increased by +10.6% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - PNC Financial Services Group, Inc. reported a revenue increase of 2% year-over-year to $5.411 billion, slightly missing the consensus of $5.412 billion, while adjusted EPS of $3.30 exceeded the consensus of $2.98 [1] - For FY24, PNC expects net interest income (NII) to decline by 4%, with revenue projected to decrease by 1%-2%, and average loans expected to decline by less than 1% [1] - The updated FY2024 guidance suggests a 2% lower pre-provision net revenue (PPNR) than the Street consensus [1] Group 2 - Analysts anticipate management's comments on the assumptions driving guidance, NII trajectory in H2 2024 and 2025, expense trends, and credit outlook [2] - Net charge-offs (NCOs) for commercial real estate (CRE) rose to 1.28%, an increase of approximately 65 basis points quarter-over-quarter, leading to a rise in the office CRE reserve ratio from 9.7% to 10.3% [2] - PNC shares are currently up 4.66% at $176.89 [3]

Financial Data and Key Metrics Changes - The company reported a net income of $1.5 billion, or $3.39 diluted earnings per share, for the second quarter of 2024, marking a strong performance [6][21] - Net interest income (NII) grew by $38 million, or 1%, and net interest margin (NIM) increased by 3 basis points to 2.6% [21][22] - Total revenue increased by $266 million, or 5%, compared to the first quarter of 2024, driven by higher non-interest income and net interest income [21][22] Business Line Data and Key Metrics Changes - Average loan balances remained stable at $320 billion, with commercial loans flat and consumer loans declining by approximately $600 million [11][14] - The investment securities portfolio increased by $6 billion, or 4%, reflecting the deployment of excess liquidity into higher-yielding securities [11][15] - Non-interest income increased by $228 million, or 12%, including significant items related to Visa gains [21][22] Market Data and Key Metrics Changes - Average deposits declined by $3 billion, or less than 1%, primarily due to seasonal declines in corporate balances [11][18] - The rate paid on interest-bearing deposits increased by only 1 basis point to 2.61%, indicating stabilization in deposit pricing [18][44] - The credit environment showed an increase in charge-offs within the commercial real estate (CRE) office portfolio, while credit quality outside of this segment remained stable [9][25] Company Strategy and Development Direction - The company is focused on achieving record NII in 2025 and has launched new credit card products to enhance its retail business [7][10] - A continuous improvement program has been initiated, with an increased target for 2024 to enhance expense discipline [8][24] - The company aims to manage its exposure in the CRE office portfolio while maintaining adequate reserves [26] Management's Comments on Operating Environment and Future Outlook - Management expects continued economic growth in the second half of 2024, with real GDP growth projected at approximately 2% [27] - The company anticipates two rate cuts by the Fed in 2024, which may influence loan growth and net interest income [27] - Management expressed confidence in the stability of credit quality, despite some fluctuations in the commercial sector [58] Other Important Information - The board approved a $0.05 increase in the quarterly cash dividend, raising it to $1.60 per share [12][13] - The company returned approximately $700 million of capital to shareholders during the quarter, including $600 million in common dividends and $100 million in share repurchases [12][13] Q&A Session Summary Question: Insights on NII and securities restructuring - Management indicated that the securities restructuring should be viewed as a one-off event, with no current plans for further restructuring [31][32] Question: Expectations on deposit pricing and levels - The expectation is for deposits to remain stable to down, with an emphasis on stability [32][33] Question: NII outlook and loan growth impact - Management clarified that the guidance for NII improved despite muted loan growth assumptions, attributing this to positive deposit dynamics [36][37] Question: Capital buybacks and CET1 ratio - The company plans to maintain its current pace of buybacks, contingent on loan growth and capital generation [39][40] Question: Credit quality and potential risks - Management noted that credit quality remains stable outside of the CRE office portfolio, with no significant concerns identified [58][59] Question: Strategy for credit card business - The company aims to expand its consumer lending products, including credit cards, to better serve its clients [53][90]

Key TakeawaysPNC Financial shares surged Tuesday after the bank reported second-quarter earnings and revenue that beat analysts' estimates.PNC benefitted from higher fees, as well as an exchange of Visa stock.The bank also gave a stronger outlook for the full year, expecting a narrower decline in net interest income than it projected previously. PNC Financial (PNC) shares surged over 4% Tuesday after the bank reported second-quarter profit and revenue that beat analysts' estimates. The bank also gave a stro ...

The PNC Financial Services Group, Inc.’s (PNC) second-quarter 2024 earnings per share of $3.39 surpassed the Zacks Consensus Estimate of $3. In the prior-year quarter, the company reported earnings per share of $3.36.PNC shares have gained 1.2% in the pre-market trading on better-than-expected results.Results were aided by a rise in fee income and higher loan balance, along with reduced expenses. However, a decline in net interest income (NII) and an increase in provisions for credit losses acted as spoilsp ...

Financial Performance - Net income was $1477 million, and diluted EPS was $339[37] - Net interest income grew to $3302 million[37] - Total revenue increased by 5% compared to 1Q24, reaching $5411 million[39] - Noninterest income increased 12% compared to 1Q24, reaching $2109 million[38] Balance Sheet and Capital - Average total loans were $3199 billion, a decrease of 1% compared to 2Q23[10] - Investment securities increased by 4% compared to 1Q24, reaching $1413 billion[10] - The Basel III CET1 capital ratio increased to 102%[10] - Common shareholders' equity increased by 1% compared to 1Q24, reaching $449 billion[10] Credit Quality - Allowance for credit losses to total loans was 167%[7] - NCOs(Net Loan Charge-Offs) / Average Loans was 033%[46] - Office CRE portfolio's total loans was $75 billion, with 110% classified as NPL(Nonperforming Loans)[79] Outlook - The company expects net interest income to increase by 1%-2% in 3Q24 compared to 2Q24[54] - The company expects fee income to increase by 1%-2% in 3Q24 compared to 2Q24[54] - The company expects core noninterest expense to increase by 3%-4% in 3Q24 compared to 2Q24[54]

The PNC Financial Services Group, Inc (PNC) came out with quarterly earnings of $3.30 per share, beating the Zacks Consensus Estimate of $3 per share. This compares to earnings of $3.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this company would post earnings of $3.09 per share when it actually produced earnings of $3.36, delivering a surprise of 8.74%.Over the last four quarters ...

THE PNC FINANCIAL SERVICES GROUP, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2024 (Unaudited) Exhibit 99.2 THE PNC FINANCIAL SERVICES GROUP, INC. FINANCIAL SUPPLEMENT SECOND QUARTER 2024 (UNAUDITED) | --- | --- | |--------------------------------|-------| | Consolidated Results: | Page | | Income Statement | 1 | | Balance Sheet | 2 | | Average Balance Sheet | 3 | | Details of Net Interest Margin | 4 | | Loans | 5 | | Allowance for Credit Losses | 6-7 | | Nonperforming Assets | 8 | | Accruing Loans Past Due | ...

Generated positive operating leverage; grew NII and NIM; maintained 2.5% SCB requirementIncreased quarterly common stock dividend 5 cents to $1.60 per share on July 2, 2024PITTSBURGH, July 16, 2024 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported:For the quarter In millions, except per share data and as noted 2Q24 1Q24 2Q23 Second Quarter Highlights Financial Results Comparisons reflect 2Q24 vs. 1Q24 Net interest income (NII) $    3,302 $    3,264 $    3,510 Income Statement ...