PNC Reports Second Quarter 2021 Net Income Of $1.1 Billion, $2.43 Diluted EPS

PITTSBURGH, July 14, 2021 /PRNewswire/ — The PNC Financial Services Group, Inc. (NYSE: PNC) today reported: For the quarter In millions, except per share data and as noted 2Q21 1Q21 2Q20 Second Quarter Highlights   ▪  Closed the acquisition of BBVA USA on June 1, 2021 ▪  Second quarter results include one month impact of BBVA USA ▪  Adjusted EPS was $4.50, excluding the initial provision for credit losses and integration costs related to BBVA USA ▪  Revenue increased 11% linked quarter driven by the BBVA USA acquisition and strong PNC legacy noninterest income growth ▪  Expenses increased 18% linked quarter including integration expenses, increased business activity and litigation reserves ▪  Provision for credit losses was $302 million, as a provision recapture of $704 million was more than offset by a $1.0 billion initial provision for BBVA USA ▪  Total loans and deposits increased 24% and 21%, respectively, linked quarter due to the BBVA USA acquisition ▪  Solid credit performance; acquired net loan charge-offs of  $248 million were primarily due to purchase accounting       Financial Results Revenue $ 4,667 $ 4,220 $ 4,076 Noninterest expense 3,050 2,574 2,515 Pretax, pre-provision earnings (non-GAAP) 1,617 1,646 1,561 Provision for (recapture of) credit losses 302 (551) 2,463 Net income (loss) from continuing operations 1,103 1,826 (744) Per Common Share Diluted earnings (loss) from continuing operations – as reported $ 2.43 $ 4.10 $ (1.90) Diluted earnings (loss) from continuing operations – as adjusted (non-GAAP) 4.50 NA NA Book value 120.25 118.47 115.26 Tangible book value (non-GAAP) 93.83 96.57 93.54 Balance Sheet & Credit Quality Total loans (in billions) $ 294.7 $ 237.0 $ 258.2 Total deposits (in billions) 452.9 375.1 346.0 PNC legacy net loan charge-offs 58 146 236 Acquired net loan charge-offs 248 NA NA Allowance for credit losses to total loans 2.16 % 2.20 % 2.55 % Selected Ratios Return on average common equity 8.32 % 14.31 % 30.11 % Return on average assets 0.88 1.58 3.21 Net interest margin (non-GAAP) 2.29 2.27 2.52 Noninterest income to total revenue 45 44 38 Efficiency 65 61 62 Common Equity Tier 1 capital ratio 10.0 12.6 11.3 Adjusted EPS is a non-GAAP measure calculated by excluding the initial provision for credit losses for BBVA USA recorded on June 1, 2021 and integration costs. See this and other non-GAAP financial measures in the consolidated financial highlights accompanying this news release.

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