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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Noninterest Income
Table 4: Noninterest Income
| Three months ended · Nine months ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| September 30 · June 30 · Change · September 30 · September 30 · Change | ||||||||||
| Dollars in millions · 2024 · 2024 · $ · % · 2024 · 2023 · $ · % | ||||||||||
| Noninterest income | ||||||||||
| Asset management and brokerage | $383 | $364 | $19 | 5% | $1,111 | $1,052 | $59 | 6% | ||
| Capital markets and advisory | 371 | 272 | 99 | 36% | 902 | 643 | 259 | 40% | ||
| Card and cash management | 698 | 706 | (8) | (1)% | 2,075 | 2,045 | 30 | 1% | ||
| Lending and deposit services | 320 | 304 | 16 | 5% | 929 | 919 | 10 | 1% | ||
| Residential and commercial mortgage | 181 | 131 | 50 | 38% | 459 | 476 | (17) | (4)% | ||
| Other income | ||||||||||
| Gain on Visa shares exchange program | 754 | (754) | * | 754 | 754 | * | ||||
| Securities gains (losses) | 1 | (499) | 500 | * | (498) | (2) | (496) | * | ||
| Other | 68 | 77 | (9) | (12)% | 280 | 483 | (203) | (42)% | ||
| Total other income | 69 | 332 | (263) | (79)% | 536 | 481 | 55 | 11% | ||
| Total noninterest income | $2,022 | $2,109 | $(87) | (4)% | $6,012 | $5,616 | $396 | 7% | ||
*- Not Meaningful
Noninterest income as a percentage of total revenue was 37% for the third quarter of 2024 compared to 39% for the second quarter of 2024, and 38% for the first nine months of 2024 compared to 35% for the same period in 2023.
8 The PNC Financial Services Group, Inc. –Form 10-Q
Asset management and brokerage fees increased compared to the second quarter of 2024, reflecting higher average equity markets. The increase in the year-to-date comparison reflected the impact of higher average equity markets as well as higher annuity sales. PNC’s discretionary client assets under management of $214 billion at September 30, 2024 increased from $196 billion and $176 billion at June 30, 2024 and September 30, 2023, respectively. In both comparisons, the increase was primarily due to higher spot equity and fixed income markets.
Capital markets and advisory fees increased compared to the second quarter of 2024, and included higher merger and acquisition advisory activity, increased asset backed financing revenue and higher underwriting fees. The increase in the year-to-date comparison was primarily due to higher merger and acquisition advisory activity and increased underwriting fees.
Card and cash management revenue decreased compared to the second quarter of 2024 reflecting the impact of credit card origination incentives, partially offset by higher treasury management product revenue. The increase compared to the first nine months of 2023 was primarily due to higher treasury management product revenue.
Lending and deposit services grew in both the quarterly and year-to-date comparisons primarily due to increased customer activity.
Residential and commercial mortgage increased compared to the second quarter of 2024 driven by higher residential mortgage servicing rights valuation, net of economic hedge. The decrease compared to the first nine months of 2023 was driven by lower residential and commercial mortgage banking activities.
Other noninterest income decreased compared to the second quarter of 2024 reflecting Visa derivative fair value adjustments of negative $128 million in the third quarter of 2024, primarily related to litigation escrow funding, while the second quarter of 2024 included the benefit of $141 million of significant items. Compared to the first nine months of 2023, the increase was driven by the benefit of significant items in the second quarter of 2024.
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