XML 33 R20.htm IDEA: XBRL DOCUMENT v3.23.3
Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING
We have three reportable business segments:
•Retail Banking
•Corporate & Institutional Banking
•Asset Management Group

Results of individual businesses are presented based on our internal management reporting practices. There is no comprehensive, authoritative body of guidance for management accounting equivalent to GAAP; therefore, the financial results of our individual businesses are not necessarily comparable with similar information for any other company. We periodically refine our internal methodologies as management reporting practices are enhanced. To the extent significant and practicable, retrospective application of new methodologies is made to prior period reportable business segment results and disclosures to create comparability with the current period.

Total business segment financial results differ from total consolidated net income. These differences are reflected in the “Other” category in Table 79. “Other” includes residual activities that do not meet the criteria for disclosure as a separate reportable business, such as asset and liability management activities, including net securities gains or losses, ACL for investment securities, certain trading activities, certain runoff consumer loan portfolios, private equity investments, intercompany eliminations, certain corporate overhead, tax adjustments that are not allocated to business segments, exited businesses and differences between business segment performance reporting and financial statement reporting (GAAP). Assets, revenue and earnings attributable to foreign activities were not material in the periods presented for comparison. The declines in earnings for the three months ended and nine months ended September 30, 2023 when compared to the same periods in 2022 for the “Other” category were primarily due to internal funds transfer pricing impacts between business segments.

Financial results are presented, to the extent practicable, as if each business operated on a standalone basis. Additionally, we have aggregated the results for corporate support functions within “Other” for financial reporting purposes.

Net interest income in business segment results reflects our internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors.

We have allocated the ALLL and the allowance for unfunded lending related commitments based on the loan exposures within each business segment’s portfolio. Key reserve assumptions and estimation processes react to and are influenced by observed changes in loan portfolio performance experience, the financial strength of the borrower and economic conditions. Key reserve assumptions are periodically updated.
Business Segment Results

Table 79: Results of Businesses
Three months ended September 30
In millions		Retail BankingCorporate &
Institutional
Banking		Asset
Management
Group		Other Consolidated (a) 
2023
Income Statement
Net interest income $2,576 $1,390 $139 $(687)$3,418 
Noninterest income784 835 223 (27)1,815 
Total revenue3,360 2,225 362 (714)5,233 
Provision for (recapture of) credit losses42 102 (4)(11)129 
Depreciation and amortization80 52 9 144 285 
Other noninterest expense1,796 843 262 59 2,960 
Income (loss) before income taxes (benefit) and noncontrolling interests1,442 1,228 95 (906)1,859 
Income taxes (benefit) 337 263 22 (333)289 
Net income (loss)1,105 965 73 (573)1,570 
Less: Net income attributable to noncontrolling interests11 5  16 
Net income (loss) excluding noncontrolling interests$1,094 $960 $73 $(573)$1,554 
Average Assets $114,724 $230,082 $16,161 $193,996 $554,963 
2022
Income Statement
Net interest income$2,017 $1,345 $165 $(52)$3,475 
Noninterest income725 887 231 231 2,074 
Total revenue2,742 2,232 396 179 5,549 
Provision for (recapture of) credit losses92 150 4 (5)241 
Depreciation and amortization76 50 6 145 277 
Other noninterest expense1,825 840 268 70 3,003 
Income (loss) before income taxes (benefit) and noncontrolling interests749 1,192 118 (31)2,028 
Income taxes (benefit) 175 258 28 (73)388 
Net income574 934 90 42 1,640 
Less: Net income (loss) attributable to noncontrolling interests14 5  (3)16 
Net income excluding noncontrolling interests$560 $929 $90 $45 $1,624 
Average Assets $114,619 $224,984 $14,820 $192,674 $547,097 
(Continued from previous page)
Nine months ended September 30
In millions		Retail
Banking		Corporate &
Institutional
Banking		Asset
Management
Group		OtherConsolidated (a) 
2023
Income Statement
Net interest income $7,305 $4,122 $391 $(1,305)$10,513 
Noninterest income2,229 2,542 681 164 5,616 
Total revenue9,534 6,664 1,072 (1,141)16,129 
Provision for (recapture of) credit losses266 283 (5)(34)510 
Depreciation and amortization239 159 22 430 850 
Other noninterest expense5,468 2,596 809 215 9,088 
Income (loss) before income taxes (benefit) and noncontrolling interests3,561 3,626 246 (1,752)5,681 
Income taxes (benefit)834 775 58 (750)917 
Net income (loss)2,727 2,851 188 (1,002)4,764 
Less: Net income attributable to noncontrolling interests32 15 3 50 
Net income (loss) excluding noncontrolling interests$2,695 $2,836 $188 $(1,005)$4,714 
Average Assets $114,975 $232,914 $15,578 $194,107 $557,574 
2022
Income Statement
Net interest income$5,210 $3,720 $456 $(56)$9,330 
Noninterest income2,218 2,659 713 437 6,027 
Total revenue7,428 6,379 1,169 381 15,357 
Provision for (recapture of) credit losses66 15 11 (23)69 
Depreciation and amortization233 153 20 437 843 
Other noninterest expense5,473 2,508 775 97 8,853 
Income (loss) before income taxes (benefit) and noncontrolling interests1,656 3,703 363 (130)5,592 
Income taxes (benefit)389 803 85 (250)1,027 
Net income1,267 2,900 278 120 4,565 
Less: Net income (loss) attributable to noncontrolling interests45 12 (5)52 
Net income excluding noncontrolling interests$1,222 $2,888 $278 $125 $4,513 
Average Assets $113,157 $215,163 $14,360 $205,763 $548,443 
(a)There were no material intersegment revenues for the three and nine months ended September 30, 2023 and 2022.
Business Segment Products and Services
Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers who are serviced through our coast-to-coast branch network, digital channels, ATMs, or through our phone-based customer contact centers. Deposit products include checking, savings and money market accounts and time deposits. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to agency and/or third-party standards, and either sold, servicing retained or held on our balance sheet. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts.

Corporate & Institutional Banking provides lending, treasury management, capital markets and advisory products and services to mid-sized and large corporations and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Treasury Management business provides corporations with cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services and access to online/mobile information management and reporting services. Capital markets and advisory includes services and activities primarily related to merger and acquisitions advisory, equity capital markets advisory, asset-backed financing, loan syndication, securities underwriting and customer-related trading. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are provided nationally.

Asset Management Group provides private banking for high net worth and ultra high net worth clients and institutional asset management. The Asset Management group is composed of two operating units:
•PNC Private Bank provides products and services to emerging affluent, high net worth and ultra high net worth individuals and their families, including investment and retirement planning, customized investment management, credit and cash management solutions, trust management and administration. In addition, multi-generational family planning services are also provided to ultra high net worth individuals and their families, which include estate, financial, tax, fiduciary and customized performance reporting through PNC Private Bank Hawthorn.
•Institutional Asset Management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, retirement plan fiduciary investment services to institutional clients, including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.