PNC Reports Stable Growth in Revenue for Q4 and Full Year 2023

The PNC Financial Services Group, Inc. has released its financial results for the fourth quarter (Q4) and the full year of 2023, reporting a stable growth in total revenue.

Financial Overview for Q4 2023

• Revenue totaled $5,361 million for the period, up 2.4% compared to $5,233 million in Q3 2023.

• Net interest income came in at $3,403 million, basically unchanged compared to $3,418 million in the prior quarter. Net interest margin was 2.66%, decreased 5 basis points on a quarter-on-quarter basis (QoQ).

• Noninterest income reached $1,958 million, rising 7.9% from $1,815 million in the previous quarter. Among them, fee income accounted for $1,820 million, up 5.8% compared to $1,721 million in Q3 2023.

• Noninterest expense amounted to $4,074 million, rising 25.5% compared to $3,245 million in the prior quarter.

• Net income dropped from $1,570 million to $883 million, down 43.8% QoQ.

• Average loans recorded $324.6 billion, up 1.6% QoQ compared to $319.5 billion.

• Average deposits recorded $423.9 billion, basically unchanged compared to $422.5 billion in the prior quarter.

• Provision for credit losses was $232 million, jumping 79.8% compared to $129 million on a quarterly basis.

• Diluted earnings for the quarter stood at $1.85 per common share, decreasing 48.6% compared to $3.60 per share in Q3.

• The effective tax rate was 16.3% for the fourth quarter and 15.5% for the third quarter.

Financial Overview for the Full Year 2023

• Total revenue was $21.490 billion for the year, a slight increase compared to $21.120 billion in 2022.

• Net interest income was $13.916 billion, increasing 6.9% compared to $13.014 billion in 2022. Net interest margin stood at 2.76% in the year, a great growth compared to 2.65% in 2022.

• Noninterest income was $7.574 billion, decreasing 6.6% compared to $8.106 billion in 2022.

• Noninterest expense rose by 6.4% YoY from $13.170 billion to $$14.012 billion.

• Provision for credit losses rose by 55.6% YoY from $477 million to 742 million.

• Net income came in at $5.647 billion, down 7.6% from $6.113 billion in 2022.

• Diluted earnings for the year recorded $12.79 per share, decreasing 7.7% compared to $13.85 per share in 2022.

• The effective tax rate was 16.2% for 2023 and 18.2% for 2022.

Bill Demchak, Chairman, President and CEO at PNC, commented: "During a challenging year for the banking industry, PNC demonstrated its strength and stability by growing customers, deepening relationships and managing the balance sheet for long-term success. We grew revenue, controlled core expenses, added to our loan portfolio and maintained strong credit metrics. We are well positioned for the year ahead to grow our businesses and deliver value for our stakeholders."