PNC Reports Net Income of $5.6B in 2023

PITTSBURGH, Pa. – PNC Financial Services Group Inc. reported $5.6 billion in net income for 2023, $12.79 diluted earnings per share, or $14.10 as adjusted.

For the fourth quarter of 2023, total revenue was $5.4 billion, an increase of $128 million compared with the third quarter of 2023. Net income was $0.9 billion, a decrease of $687 million, $1.85 diluted earnings per share, or $3.16 as adjusted.

“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,” said Bill Demchak, PNC chairman, president and CEO. “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 business and deliver value for our stakeholders.”

Average loans in the fourth quarter were $324.6 billion, an increase of $5.1 billion over the third quarter. Average commercial loans of $222.6 billion increased by $4.9 billion, driven by the acquisition of capital commitment facilities from Signature Bridge Bank on Oct. 2, 2023. Average consumers loans were reported stable at $102 billion.

During the fourth quarter, delinquencies increased by $97 million to $1.4 billion, an 8% increase due to higher consumer and commercial loan delinquencies. Total nonperforming loans also increased by $57 million to $2.2 billion due to higher commercial nonperforming loans, partially offset by lower consumer nonperforming loans.

Net loan charge-offs of $200 million increased by $79 million.

Average deposits for the fourth quarter of 2023 were $423.9 billion, an increase of $1.4 billion from the third quarter of 2023, as the seasonal growth in commercial deposits more than offset a modest decline in consumer deposits. Compared with the fourth quarter of 2022, the average deposits decreased by $11 billion, which PNC attributes to lower commercial and consumer deposits in part impacted by quantitative tightening by the Federal Reserve and increased customer spending.

Average Federal Reserve Bank balances as of Dec. 31, 2023, were $43.3 billion.

PNC’s average liquidity coverage ratio for the final three months of 2023 was 107%, exceeding the regulatory minimum requirements.

More information on the bank’s report can be viewed HERE.

Published by The Business Journal, Youngstown, Ohio.