PNC Records 5.5% Quarterly Decrease in Revenue for Q2 2023

The PNC Financial Services Group, Inc. has released its financial results for the second quarter of 2023 (Q2 2023), recording the revenue of $5,293 million with a 5.5% quarterly decrease.

Financial key points for Q2 2023:

• The revenue amounted to $5,293 million, 5.5% lower than $5,603 million in Q1 2023 and 3.5% higher than $5,116 million in Q2 2022.

• Net income totaled $1,500 million, 11.5% lower than $1,694 million in Q1 2023 and 0.3% higher than $1,496 million in Q2 2022.

• Net interest income of $3.5 billion, decreasing by 2% on a quarterly basis. Net interest margin (NIM) came in at 2.79%, decreasing 5 basis points on a quarterly basis and increasing 29 basis points on a yearly basis.

• Noninterest income of $1.8 billion, decreasing by 12% on a quarterly basis. Noninterest expense of $3,372 million, increasing by 1.5% on a quarterly basis and increasing by 3.9% on a yearly basis.

• Average loans recorded $324.5 billion, 0.3% lower than $325.5 billion in Q2 2023 and 6.5% higher than $304.8 billion in Q2 2022.

• Average deposits recorded $425.7 billion, 2.4% lower than $436.2 billion in Q2 2023 and 4.7% lower than $446.5 billion in Q2 2022.

• Dilute earning dropped by 15.6% from $3.98 in last quarter to $3.36 per common share, while the metric in the same period of last year was $3.39.

• Provision for credit losses of $146 million in the second quarter reflected portfolio activity and changes in macroeconomic variables. The first quarter of 2023 included a provision for credit losses of $235 million.

• The effective tax rate was 15.5% for the second quarter and 17.2% for the first quarter.

From Bill Demchak, PNC Chairman, President and Chief Executive Officer: "For the second quarter, PNC delivered solid financial results and maintained strong credit quality metrics, reflecting the power of our national franchise and the competitive positioning of our balance sheet in the current environment. The Federal Reserve's annual stress test recently demonstrated PNC's through-the-cycle financial strength and stability, and starting in the fourth quarter, our stress capital buffer requirement will improve to the regulatory minimum of 2.5%. In consideration of our strong capital levels and the board's confidence in our strategy and outlook, in July the board approved a 5 cent increase to our quarterly stock dividend."