PNC FINANCIAL SERVICES GROUP INC
For the period ended Sep 30, 2024. Filed Nov 1, 2024.
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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.
Sep 30, 2024 · Filed Nov 1, 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 and 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) | ||||
|---|---|---|---|---|
| Nine months ended September 30 | Change | |||
| Dollars in millions, except as noted | 2024 | 2023 | $ | % |
| Income Statement | ||||
| Net interest income | $481 | $391 | $90 | 23% |
| Noninterest income | 707 | 681 | 26 | 4% |
| Total revenue | 1,188 | 1,072 | 116 | 11% |
| Provision for (recapture of) credit losses | (5) | (5) | — | |
| Noninterest expense | 796 | 831 | (35) | (4)% |
| Pretax earnings | 397 | 246 | 151 | 61% |
| Income taxes | 93 | 58 | 35 | 60% |
| Earnings | $304 | $188 | $116 | 62% |
| Average Balance Sheet | ||||
| Loans | ||||
| Consumer | ||||
| Residential real estate | $11,929 | $9,932 | $1,997 | 20% |
| Other consumer | 3,730 | 4,040 | (310) | (8)% |
| Total consumer | 15,659 | 13,972 | 1,687 | 12% |
| Commercial | 792 | 1,188 | (396) | (33)% |
| Total loans | $16,451 | $15,160 | $1,291 | 9% |
| Total assets | $16,891 | $15,578 | $1,313 | 8% |
| Deposits | ||||
| Noninterest-bearing | $1,646 | $1,796 | $(150) | (8)% |
| Interest-bearing | 26,291 | 25,742 | 549 | 2% |
| Total deposits | $27,937 | $27,538 | $399 | 1% |
| Performance Ratios | ||||
| Return on average assets | 2.41% | 1.61% | ||
| Noninterest income to total revenue | 60% | 64% | ||
| Efficiency | 67% | 78% | ||
| Supplemental Noninterest Income Information | ||||
| Asset management fees | $694 | $663 | $31 | 5% |
| Brokerage fees | 6 | (6) | * | |
| Total | $694 | $669 | $25 | 4% |
| Other Information (a) | ||||
| Nonperforming assets | $36 | $39 | $(3) | (8)% |
| Net charge-offs (recoveries) - loans and leases | $(2) | $2 | * | |
| Client Assets Under Administration (in billions) (a) (b) | ||||
| Discretionary client assets under management | ||||
| PNC Private Bank | $132 | $109 | $23 | 21% |
| Institutional Asset Management | 82 | 67 | 15 | 22% |
| Total discretionary clients assets under management | 214 | 176 | $38 | 22% |
| Nondiscretionary client assets under administration | 216 | 170 | 46 | 27% |
| Total | $430 | $346 | $84 | 24% |
*- Not Meaningful
(a)As of September 30.
(b)Excludes brokerage account client assets.
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.
20 The PNC Financial Services Group, Inc. –Form 10-Q
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 in the first nine months of 2024 increased $116 million compared to the same period in 2023, primarily driven by higher revenue and a decline in noninterest expense.
Net interest income increased in the comparison primarily due to wider interest rate spreads on the value of deposits and an increase in average loan balances, partially offset by narrower interest rate spreads on the value of loans.
Noninterest income increased in the comparison primarily driven by higher average equity markets, partially offset by the impact of client activity.
Noninterest expense decreased in the comparison, reflecting a continued focus on expense management.
Average total loans increased compared with the nine months ended September 30, 2023, primarily driven by growth in residential mortgage loans.
Average total deposits were stable in the comparison as growth in CD and deposit sweep balances was partially offset by declines in savings and noninterest bearing deposits.
Discretionary client assets under management increased in comparison to the prior year, primarily due to higher equity and fixed income markets as of September 30, 2024.
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