PNC FINANCIAL SERVICES GROUP INC
For the period ended Dec 31, 2023. Filed Feb 21, 2024.
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FY2023 · Filed Feb 21, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Asset Management Group Table
Asset Management Group
The Asset Management Group strives to be a leading relationship-based provider of investment, planning, credit and cash management solutions and fiduciary services to affluent individuals and institutions by endeavoring to proactively deliver value-added ideas, solutions and exceptional service. The Asset Management Group’s priorities are to serve our clients’ financial objectives, grow and deepen customer relationships and deliver solid financial performance with prudent risk and expense management.
Table 14: Asset Management Group Table
| (Unaudited) | ||||
|---|---|---|---|---|
| Year ended December 31 | Change | |||
| Dollars in millions, except as noted | 2023 | 2022 | $ | % |
| Income Statement | ||||
| Net interest income | $547 | $608 | $(61) | (10)% |
| Noninterest income | 905 | 936 | (31) | (3)% |
| Total revenue | 1,452 | 1,544 | (92) | (6)% |
| Provision for (recapture of) credit losses | (3) | 28 | (31) | * |
| Noninterest expense | 1,115 | 1,086 | 29 | 3% |
| Pretax earnings | 340 | 430 | (90) | (21)% |
| Income taxes | 80 | 100 | (20) | (20)% |
| Earnings | $260 | $330 | $(70) | (21)% |
| Average Balance Sheet | ||||
| Loans | ||||
| Consumer | ||||
| Residential real estate | $10,280 | $8,029 | $2,251 | 28% |
| Other consumer | 4,003 | 4,550 | (547) | (12)% |
| Total consumer | 14,283 | 12,579 | 1,704 | 14% |
| Commercial | 1,107 | 1,505 | (398) | (26)% |
| Total loans | $15,390 | $14,084 | $1,306 | 9% |
| Total assets | $15,812 | $14,505 | $1,307 | 9% |
| Deposits | ||||
| Noninterest-bearing | $1,782 | $2,664 | $(882) | (33)% |
| Interest-bearing | 25,928 | 27,830 | (1,902) | (7)% |
| Total deposits | $27,710 | $30,494 | $(2,784) | (9)% |
| Performance Ratios | ||||
| Return on average assets | 1.64% | 2.28% | ||
| Noninterest income to total revenue | 62% | 61% | ||
| Efficiency | 77% | 70% | ||
| Supplemental Noninterest Income Information | ||||
| Asset management fees | $882 | $908 | $(26) | (3)% |
| Brokerage fees | 7 | 8 | (1) | (13)% |
| Total | $889 | $916 | $(27) | (3)% |
| Other Information | ||||
| Nonperforming assets (a) | $39 | $56 | $(17) | (30)% |
| Net charge-offs (recoveries) - loans and leases | $(3) | $17 | $(20) | (118)% |
| Client Assets Under Administration (in billions) (a) (b) | ||||
| Discretionary client assets under management | ||||
| PNC Private Bank | $117 | $105 | $12 | 11% |
| Institutional Asset Management | 72 | 68 | 4 | 6% |
| Total discretionary client assets under management | $189 | $173 | $16 | 9% |
| Nondiscretionary client assets under administration | 179 | 152 | 27 | 18% |
| Total | $368 | $325 | $43 | 13% |
- -Not Meaningful
(a)As of December 31.
(b)Excludes brokerage account client assets.
The PNC Financial Services Group, Inc. –2023 Form 10-K 53
The Asset Management Group consists of two primary businesses: PNC Private Bank and Institutional Asset Management.
The PNC Private Bank is focused on being a premier private bank in each of the markets it serves. This business seeks to deliver high quality banking, trust, and investment management services to our emerging affluent, high net worth and ultra-high net worth clients through a broad array of products and services.
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, municipalities and non-profits.
Asset Management Group earnings decreased $70 million in 2023 compared with 2022, driven by lower net interest income and noninterest income and higher noninterest expense, partially offset by provision recapture.
Net interest income decreased in the comparison due to decline in average deposits as well as narrower interest rate spreads on the value of loans, partially offset by higher average loans and wider interest rate spreads on the value of deposits.
Noninterest income decreased in the comparison driven by lower asset management fees due to the impact of client activity.
Noninterest expense increased in the comparison, reflecting continued investments to support business growth.
Average loans increased compared with 2022, driven by growth in residential real estate lending, partially offset by a decrease in security based lending lines of credit.
Average deposits decreased in the comparison due to competitive pricing pressures as clients continue to seek higher yielding returns, including deploying funds into discretionary client assets under management.
Discretionary client assets under management increased in comparison to the prior year, primarily due to higher spot equity markets as of December 31, 2023, partially offset by client activity.
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