PNC FINANCIAL SERVICES GROUP INC
For the period ended Mar 31, 2024. Filed May 2, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 2, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Noninterest Income
Table 4: Noninterest Income
| Three months ended · Three months ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| March 31 · December 31 · Change · March 31 · March 31 · Change | ||||||||
| Dollars in millions | 2024 | 2023 | $ | % | 2024 | 2023 | $ | % |
| Noninterest income | ||||||||
| Asset management and brokerage | $364 | $360 | $4 | 1% | $364 | $356 | $8 | 2% |
| Capital markets and advisory | 259 | 309 | (50) | (16)% | 259 | 262 | (3) | (1)% |
| Card and cash management | 671 | 688 | (17) | (2)% | 671 | 659 | 12 | 2% |
| Lending and deposit services | 305 | 314 | (9) | (3)% | 305 | 306 | (1) | — |
| Residential and commercial mortgage | 147 | 149 | (2) | (1)% | 147 | 177 | (30) | (17)% |
| Other | 135 | 138 | (3) | (2)% | 135 | 258 | (123) | (48)% |
| Total noninterest income | $1,881 | $1,958 | $(77) | (4)% | $1,881 | $2,018 | $(137) | (7)% |
Noninterest income as a percentage of total revenue was 37% for both the first quarter of 2024 and the fourth quarter of 2023, compared to 36% for the first quarter of 2023.
Asset management and brokerage fees increased compared to the fourth quarter of 2023 and the first quarter of 2023, primarily driven by the impact of higher average equity markets. PNC’s discretionary client assets under management increased $6 billion and $18 billion compared to December 31, 2023 and March 31, 2023, respectively. In both comparisons, the increase was primarily driven by higher spot equity markets.
Capital markets and advisory fees declined compared to the fourth quarter of 2023, driven by lower merger and acquisition advisory activity, partially offset by higher underwriting fees. The decrease compared to the first quarter of 2023 was primarily due to lower trading revenue, partially offset by higher underwriting fees.
Card and cash management revenue decreased compared to the fourth quarter of 2023, as seasonally lower consumer transaction volumes were partially offset by higher treasury management fees. The increase compared to the first three months of 2023 was primarily due to higher treasury management product revenue.
Lending and deposit services decreased compared to the fourth quarter of 2023, reflecting the reduction of certain checking product fees. Lending and deposit services were stable compared to the first quarter of 2023.
Residential and commercial mortgage decreased compared to the fourth quarter of 2023, and included lower residential mortgage activity. The decrease compared to the first quarter of 2023 was driven by lower revenue from commercial mortgage loans held for sale.
Other noninterest income decreased compared to the fourth quarter of 2023, and included lower gains on sales. The decrease compared to the first quarter of 2023 was primarily driven by a decline in private equity revenue. In both comparisons, the decrease was offset by lower negative Visa Class B-1 derivative fair value adjustments. Visa Class B-1 fair value adjustments were negative $7 million for the first quarter of 2024 compared to negative $100 million for the fourth quarter of 2023 and negative $45 million for the first quarter of 2023.
The PNC Financial Services Group, Inc. –Form 10-Q 7
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.