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Segment Reporting | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Segment Reporting | SEGMENT R EPORTING We have three reportable business segments: Retail Banking, Corporate & Institutional Banking and Asset Management Group: 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 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, cash and fixed income client solutions and retirement plan fiduciary investment services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits. The remaining corporate operations are reflected in Other: 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, corporate overhead net of allocations, tax adjustments that are not allocated to business segments, exited businesses and the residual impact from FTP operations. Other earnings declined in both the quarterly and year-to-date comparisons. Amounts for the third quarter of 2024 were driven by the residual impacts from FTP due to the interest rate environment. Other earnings for the first nine months of 2024 also included the loss related to the repositioning of the investment securities portfolio, along with expenses related to the increase in the FDIC's expected losses and a PNC Foundation contribution Basis of Presentation 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. Funds Transfer Pricing Net interest income in business segment results reflects our internal FTP methodology, which is designed to consider interest rate and liquidity risks. Under our methodology, assets receive a funding charge while liabilities and capital receive a funding credit based on market interest rates, product characteristics and other factors. Our FTP framework considers the application of funding curves and methodologies consistently across the balance sheet. A residual gain or loss from FTP operations is retained within Other. This residual gain or loss is reviewed by management quarterly, in accordance with the interagency guidance of the FDIC, Federal Reserve and OCC. Segment Allocations Financial results are presented, to the extent practicable, as if each business operated on a standalone basis, and includes expense allocations for corporate overhead services used by the business segments. Certain costs are retained within Other. These costs are not allocated to our business segments because they (i) are transitory or highly irregular in nature, (ii) exist solely to support corporate activities unrelated to business segment operations, or (iii) reflect residual costs for an exited business. During the first nine months of 2024, Other noninterest expense for the Other category included expenses related to the increase in the FDIC’s expected losses, as well as a PNC Foundation contribution. These costs were not allocated to our business segments as the FDIC special assessment expense was irregular in nature, and the contribution expense supported corporate activities. We have allocated the ALLL and the allowance for unfunded lending related commitments based on the loan exposures within each business segment’s portfolio. Business Segment Results Table 79: Results of Businesses
Three months ended September 30 In millions |  | Retail Banking |  | Corporate & Institutional Banking |  | Asset Management Group |  | Other |  | Consolidated (a)
2024 |  |  |  |  |  |  |  |  |  |
Income Statement |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 2,783 |  |  | $ | 1,588 |  |  | $ | 161 |  |  | $ | (1,122) |  |  | $ | 3,410 |
Noninterest income |  | 701 |  |  | 1,030 |  |  | 242 |  |  | 49 |  |  | 2,022 |
Total revenue |  | 3,484 |  |  | 2,618 |  |  | 403 |  |  | (1,073) |  |  | 5,432 |
Provision for (recapture of) credit losses |  | 111 |  |  | 134 |  |  | (2) |  |  |  |  |  | 243 |
Depreciation and amortization |  | 78 |  |  | 50 |  |  | 6 |  |  | 147 |  |  | 281 |
Other noninterest expense |  | 1,764 |  |  | 900 |  |  | 264 |  |  | 118 |  |  | 3,046 |
Income (loss) before income taxes (benefit) and noncontrolling interests |  | 1,531 |  |  | 1,534 |  |  | 135 |  |  | (1,338) |  |  | 1,862 |
Income taxes (benefit) |  | 358 |  |  | 332 |  |  | 31 |  |  | (364) |  |  | 357 |
Net income (loss) |  | 1,173 |  |  | 1,202 |  |  | 104 |  |  | (974) |  |  | 1,505 |
Less: Net income attributable to noncontrolling interests |  | 9 |  |  | 5 |  |  |  |  | 1 |  |  | 15 |
Net income (loss) excluding noncontrolling interests |  | $ | 1,164 |  |  | $ | 1,197 |  |  | $ | 104 |  |  | $ | (975) |  |  | $ | 1,490 |
Average Assets |  | $ | 114,257 |  |  | $ | 227,277 |  |  | $ | 16,928 |  |  | $ | 211,051 |  |  | $ | 569,513 |
2023 |  |  |  |  |  |  |  |  |  |
Income Statement |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 2,576 |  |  | $ | 1,390 |  |  | $ | 139 |  |  | $ | (687) |  |  | $ | 3,418 |
Noninterest income |  | 784 |  |  | 835 |  |  | 223 |  |  | (27) |  |  | 1,815 |
Total revenue |  | 3,360 |  |  | 2,225 |  |  | 362 |  |  | (714) |  |  | 5,233 |
Provision for (recapture of) credit losses |  | 42 |  |  | 102 |  |  | (4) |  |  | (11) |  |  | 129 |
Depreciation and amortization |  | 80 |  |  | 52 |  |  | 9 |  |  | 144 |  |  | 285 |
Other noninterest expense |  | 1,796 |  |  | 843 |  |  | 262 |  |  | 59 |  |  | 2,960 |
Income (loss) before income taxes (benefit) and noncontrolling interests |  | 1,442 |  |  | 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 interests |  | 11 |  |  | 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 |
(Continued from previous page) |  |  |  |  |  |  |  |  |  |
Nine months ended September 30 In millions |  | Retail Banking |  | Corporate & Institutional Banking |  | Asset Management Group |  | Other |  | Consolidated (a)
2024 |  |  |  |  |  |  |  |  |  |
Income Statement |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 8,109 |  |  | $ | 4,639 |  |  | $ | 481 |  |  | $ | (3,253) |  |  | $ | 9,976 |
Noninterest income |  | 2,874 |  |  | 2,860 |  |  | 707 |  |  | (429) |  |  | 6,012 |
Total revenue |  | 10,983 |  |  | 7,499 |  |  | 1,188 |  |  | (3,682) |  |  | 15,988 |
Provision for (recapture of) credit losses |  | 256 |  |  | 409 |  |  | (5) |  |  | (27) |  |  | 633 |
Depreciation and amortization |  | 237 |  |  | 151 |  |  | 22 |  |  | 436 |  |  | 846 |
Other noninterest expense |  | 5,283 |  |  | 2,632 |  |  | 774 |  |  | 483 |  |  | 9,172 |
Income (loss) before income taxes (benefit) and noncontrolling interests |  | 5,207 |  |  | 4,307 |  |  | 397 |  |  | (4,574) |  |  | 5,337 |
Income taxes (benefit) |  | 1,215 |  |  | 928 |  |  | 93 |  |  | (1,225) |  |  | 1,011 |
Net income (loss) |  | 3,992 |  |  | 3,379 |  |  | 304 |  |  | (3,349) |  |  | 4,326 |
Less: Net income attributable to noncontrolling interests |  | 28 |  |  | 15 |  |  |  |  | 4 |  |  | 47 |
Net income (loss) excluding noncontrolling interests |  | $ | 3,964 |  |  | $ | 3,364 |  |  | $ | 304 |  |  | $ | (3,353) |  |  | $ | 4,279 |
Average Assets |  | $ | 114,522 |  |  | $ | 228,518 |  |  | $ | 16,891 |  |  | $ | 205,215 |  |  | $ | 565,146 |
2023 |  |  |  |  |  |  |  |  |  |
Income Statement |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 7,305 |  |  | $ | 4,122 |  |  | $ | 391 |  |  | $ | (1,305) |  |  | $ | 10,513 |
Noninterest income |  | 2,229 |  |  | 2,542 |  |  | 681 |  |  | 164 |  |  | 5,616 |
Total revenue |  | 9,534 |  |  | 6,664 |  |  | 1,072 |  |  | (1,141) |  |  | 16,129 |
Provision for (recapture of) credit losses |  | 266 |  |  | 283 |  |  | (5) |  |  | (34) |  |  | 510 |
Depreciation and amortization |  | 239 |  |  | 159 |  |  | 22 |  |  | 430 |  |  | 850 |
Other noninterest expense |  | 5,468 |  |  | 2,596 |  |  | 809 |  |  | 215 |  |  | 9,088 |
Income (loss) before income taxes (benefit) and noncontrolling interests |  | 3,561 |  |  | 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 interests |  | 32 |  |  | 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 |
(a)There were no material intersegment revenues for the three and nine months ended September 30, 2024 and 2023.

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- Definition The entire disclosure for reporting segments including data and tables. 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