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Fee-based Revenue from Contracts with Customers | 12 Months Ended
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Dec. 31, 2023
Revenue from Contract with Customer [Abstract] |
Fee-based Revenue from Contracts with Customers | FEE-BASED R EVENUE FROM C ONTRACTS WITH C USTOMERS A subset of our noninterest income relates to certain fee-based revenue within the scope of ASC Topic 606 - Revenue from Contracts with Customers (Topic 606). The objective of the standard is to clarify the principles for recognizing revenue from contracts with customers across all industries and to develop a common revenue standard under GAAP. The standard requires the application of a five-step recognition model to contracts, allocating the amount of consideration we expect to be entitled to across distinct promises in the contract, called performance obligations, and recognizing revenue when or as those services are transferred to the customer. Fee-based revenue within the scope of Topic 606 is recognized within our three reportable business segments: Retail Banking, Corporate & Institutional Banking and Asset Management Group. Interest income, income from lease contracts, fair value gains from financial instruments (including derivatives), income from mortgage servicing rights and guarantee products, letter of credit fees, non-refundable fees associated with acquiring or originating a loan and gains from the sale of financial assets are outside of the scope of Topic 606. Effective for the first quarter of 2022, PNC updated the presentation of its noninterest income categorization to be based on product and service type, and accordingly, has changed the basis of presentation of its noninterest income revenue streams to: (i) Asset management and brokerage, (ii) Capital markets related, (iii) Card and cash management, (iv) Lending and deposit services, (v) Residential and commercial mortgage and (vi) Other noninterest income. Additionally, in the fourth quarter of 2022, PNC updated the name of the noninterest income line item “Capital markets related” to “Capital markets and advisory.” This update did not impact the components of the category. All periods presented herein reflect these changes. For a description of each updated noninterest income revenue stream, see Note 1 Accounting Policies. Table 113 presents the noninterest income recognized within the scope of Topic 606 for each of our three reportable business segments’ principal products and services, along with the relationship to the noninterest income revenue streams shown on our Consolidated Income Statement. A description of the fee-based revenue and how it is recognized for each segment’s principal products and services follows this Table 113. Table 113: Noninterest Income by Business Segment and Reconciliation to Consolidated Noninterest Income
Year ended December 31 In millions |  | Retail Banking |  | Corporate & Institutional Banking |  | Asset Management Group
2023 |  |  |  |  |  |
Asset management and brokerage |  |  |  |  |  |
Asset management fees |  |  |  |  |  | $ | 882 |
Brokerage fees |  | $ | 523 |  |  |  |  | 7 |
Total asset management and brokerage |  | 523 |  |  |  |  | 889 |
Card and cash management |  |  |  |  |  |
Treasury management fees |  | 41 |  |  | $ | 1,377 |  |  |
Debit card fees |  | 691 |  |  |  |  |
Net credit card fees (a) |  | 228 |  |  |  |  |
Merchant services |  | 168 |  |  | 77 |  |  |
Other |  | 96 |  |  |  |  |
Total card and cash management |  | 1,224 |  |  | 1,454 |  |  |
Lending and deposit services |  |  |  |  |  |
Deposit account fees |  | 637 |  |  |  |  |
Other |  | 73 |  |  | 34 |  |  |
Total lending and deposit services |  | 710 |  |  | 34 |  |  |
Residential and commercial mortgage (b) |  |  |  | 140 |  |  |
Capital markets and advisory |  |  |  | 653 |  |  |
Other |  |  |  | 68 |  |  |
Total in-scope noninterest income |  | 2,457 |  |  | 2,349 |  |  | 889 |
Out-of-scope noninterest income (c) |  | 494 |  |  | 1,188 |  |  | 16 |
Noninterest income by business segment |  | $ | 2,951 |  |  | $ | 3,537 |  |  | $ | 905 |
Reconciliation to consolidated noninterest income |  | For the year ended December 31, 2023
Total in-scope business segment noninterest income |  |  |  |  |  | $ | 5,695 |
Out-of-scope business segment noninterest income (c) |  |  |  |  |  | 1,698 |
Noninterest income from other segments |  |  |  |  |  | 181 |
Noninterest income as shown on the Consolidated Income Statement |  |  |  |  |  | $ | 7,574 |
(Continued from previous page) |  |  |  |  |  |
Year ended December 31 In millions |  | Retail Banking |  | Corporate & Institutional Banking |  | Asset Management Group
2022 |  |  |  |  |  |
Asset management and brokerage |  |  |  |  |  |
Asset management fees |  |  |  |  |  | $ | 908 |
Brokerage fees |  | $ | 528 |  |  |  |  | 8 |
Total asset management and brokerage |  | 528 |  |  |  |  | 916 |
Card and cash management |  |  |  |  |  |
Treasury management fees |  | 40 |  |  | $ | 1,284 |  |  |
Debit card fees |  | 684 |  |  |  |  |
Net credit card fees (a) |  | 237 |  |  |  |  |
Merchant services |  | 186 |  |  | 66 |  |  |
Other |  | 97 |  |  |  |  |
Total card and cash management |  | 1,244 |  |  | 1,350 |  |  |
Lending and deposit services |  |  |  |  |  |
Deposit account fees |  | 583 |  |  |  |  |
Other |  | 67 |  |  | 33 |  |  |
Total lending and deposit services |  | 650 |  |  | 33 |  |  |
Residential and commercial mortgage (b) |  |  |  | 140 |  |  |
Capital markets and advisory |  |  |  | 790 |  |  |
Other |  |  |  | 59 |  |  |
Total in-scope noninterest income |  | 2,422 |  |  | 2,372 |  |  | 916 |
Out-of-scope noninterest income (c) |  | 545 |  |  | 1,249 |  |  | 20 |
Noninterest income by business segment |  | $ | 2,967 |  |  | $ | 3,621 |  |  | $ | 936 |
Reconciliation to consolidated noninterest income |  | For the year ended December 31, 2022
Total in-scope business segment noninterest income |  |  |  |  |  | $ | 5,710 |
Out-of-scope business segment noninterest income (c) |  |  |  |  |  | 1,814 |
Noninterest income from other segments |  |  |  |  |  | 582 |
Noninterest income as shown on the Consolidated Income Statement |  |  |  |  |  | $ | 8,106 |
(Continued from previous page) |  |  |  |  |  |
Year ended December 31 In millions |  | Retail Banking |  | Corporate & Institutional Banking |  | Asset Management Group
2021 |  |  |  |  |  |
Asset management and brokerage |  |  |  |  |  |
Asset management fees |  |  |  |  |  | $ | 964 |
Brokerage fees |  | $ | 464 |  |  |  |  | 9 |
Total asset management and brokerage |  | 464 |  |  |  |  | 973 |
Card and cash management |  |  |  |  |  |
Treasury management fees |  | 46 |  |  | $ | 1,097 |  |  |
Debit card fees |  | 665 |  |  |  |  |
Net credit card fees (a) |  | 221 |  |  |  |  |
Merchant services |  | 174 |  |  | 62 |  |  |
Other |  | 115 |  |  |  |  |
Total card and cash management |  | 1,221 |  |  | 1,159 |  |  |
Lending and deposit services |  |  |  |  |  |
Deposit account fees |  | 542 |  |  |  |  |
Other |  | 58 |  |  | 40 |  |  |
Total lending and deposit services |  | 600 |  |  | 40 |  |  |
Residential and commercial mortgage (b) |  |  |  | 141 |  |  |
Capital markets and advisory |  |  |  | 1,110 |  |  |
Other |  |  |  | 50 |  |  |
Total in-scope noninterest income |  | 2,285 |  |  | 2,500 |  |  | 973 |
Out-of-scope noninterest income (c) |  | 511 |  |  | 1,283 |  |  | 14 |
Noninterest income by business segment |  | $ | 2,796 |  |  | $ | 3,783 |  |  | $ | 987 |
Reconciliation to consolidated noninterest income |  | For the year ended December 31, 2021
Total in-scope business segment noninterest income |  |  |  |  |  | $ | 5,758 |
Out-of-scope business segment noninterest income (c) |  |  |  |  |  | 1,808 |
Noninterest income from other segments |  |  |  |  |  | 998 |
Noninterest income as shown on the Consolidated Income Statement |  |  |  |  |  | $ | 8,564 |
(a)Net credit card fees consists of interchange fees of $673 million, $662 million, and $582 million and credit card reward costs of $445 million, $425 million and $361 million for the years ended December 31, 2023, 2022 and 2021, respectively. (b)Residential mortgage noninterest income falls under the scope of other accounting and disclosure requirements outside of Topic 606 and is included within the out-of-scope noninterest income line for the Retail Banking segment. (c)Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606. Retail Banking Brokerage Fees Retail Banking earns fee revenue by providing its customers a wide range of investment options through its brokerage services including mutual funds, annuities, stocks, bonds, long-term care and insurance products and managed accounts. We earn fee revenue for transaction-based brokerage services, such as the execution of market trades once the transaction has been completed as of the trade date. In other cases, such as investment management services, we earn fee revenue over the term of the customer contract. Treasury Management Fees Retail Banking earns fee revenue by providing customers with receivables and payables management services, funds transfer services, and access to online/mobile information management and reporting services. Treasury management fees are primarily recognized over time as we perform these services. Debit Card and Net Credit Card Fees As an issuing bank, Retail Banking earns interchange fee revenue from debit and credit card transactions. By offering card products, we maintain and administer card-related services, such as credit card reward programs, account data and statement information, card activation, card renewals, and card suspension and blockage. Interchange fees are earned when cardholders make purchases and are presented in Table 113 net of credit card reward costs, which are earned by customers when they make purchases. Merchant Services Retail Banking earns fee revenue for debit and credit card processing services and products. We provide these services to merchant businesses including point-of-sale payment acceptance capabilities and customized payment processing built around the merchant’s specific requirements. We earn fee revenue as the merchant’s customers make purchases. Deposit Account Fees Retail Banking provides demand deposit, money market and savings account products for consumer and small business customers. Services include online and branch banking, overdraft and wire transfer services, imaging services and cash alternative services, such as money orders and cashier’s checks. We recognize fee income at the time these services are performed for the customer. Other Other noninterest income primarily includes ATM fees earned from our customers and non-PNC customers. These fees are recognized as transactions occur. Corporate & Institutional Banking Treasury Management Fees Corporate & Institutional Banking 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. Treasury management fees are primarily recognized over time as we perform these services. Merchant Services Corporate & Institutional Banking earns fee revenue for debit and credit card processing services and products. We provide these services to merchant businesses including point-of-sale payment acceptance capabilities and customized payment processing built around the merchant’s specific requirements. We earn fee revenue as the merchant’s customers make purchases. Commercial Mortgage Commercial mortgage banking activities include servicing responsibilities where we do not own the servicing rights. Servicing responsibilities typically consist of collecting and remitting monthly borrower principal and interest payments, maintaining escrow deposits, performing loss mitigation and foreclosure activities, and, in certain instances, funding of servicing advances. We recognize servicing fees over time as we perform these activities. Capital Markets and Advisory Capital markets and advisory fees include securities underwriting fees, merger and acquisition advisory fees and other advisory-related fees. We generally recognize these fees when the Company’s performance obligation related to the underlying transaction is met. Other Other noninterest income within Corporate & Institutional Banking is primarily comprised of fees from collateral management and asset management services. We earn these fees over time as we perform these services. Asset Management Group Asset Management Fees Asset Management Group provides both personal wealth and institutional asset management services including investment management, custody services, retirement planning, family planning, trust management and retirement plan fiduciary investment services. Asset management fees are recognized over the term of the customer contract based on the value of assets under management at a point in time. Brokerage Fees Asset Management Group provides a wide range of investment options through its brokerage services including mutual funds, annuities, stocks, bonds, insurance products, and managed accounts. Brokerage fees are recognized over the term of the customer contract either based on the value of brokerage assets at a point in time or based on transactions executed on behalf of the customer.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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