PNC FINANCIAL SERVICES GROUP INC
For the period ended Dec 31, 2024. Filed Feb 21, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Feb 21, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Summarized Average Balances and Net Interest Income
Net Interest Income
Table 3: Summarized Average Balances and Net Interest Income (a)
| 2024 · 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Year ended December 31Dollars in millions · AverageBalances · AverageYields/Rates · InterestIncome/Expense · AverageBalances · AverageYields/Rates · InterestIncome/Expense | ||||||||
| Assets | ||||||||
| Interest-earning assets | ||||||||
| Investment securities | $140,742 | 2.94% | $4,144 | $140,351 | 2.54% | $3,568 | ||
| Loans | 319,794 | 6.08% | 19,456 | 323,520 | 5.69% | 18,423 | ||
| Interest-earning deposits with banks | 43,145 | 5.34% | 2,303 | 36,645 | 5.19% | 1,902 | ||
| Other | 9,135 | 6.70% | 612 | 8,884 | 6.33% | 562 | ||
| Total interest-earning assets/interest income | $512,816 | 5.17% | 26,515 | $509,400 | 4.80% | 24,455 | ||
| Liabilities | ||||||||
| Interest-bearing liabilities | ||||||||
| Interest-bearing deposits | $324,435 | 2.59% | 8,401 | $315,393 | 2.10% | 6,609 | ||
| Borrowed funds | 74,061 | 6.05% | 4,484 | 67,282 | 5.62% | 3,783 | ||
| Total interest-bearing liabilities/interest expense | $398,496 | 3.23% | 12,885 | $382,675 | 2.72% | 10,392 | ||
| Net interest margin/income (non-GAAP) | 2.66% | 13,630 | 2.76% | 14,063 | ||||
| Taxable-equivalent adjustments | (131) | (147) | ||||||
| Net interest income (GAAP) | $13,499 | $13,916 | ||||||
(a)Interest income calculated as taxable-equivalent interest income. To provide more meaningful comparisons of interest income and yields for all interest-earning assets, as well as net interest margins, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement. For more information, see the Reconciliation of Taxable-Equivalent Net Interest Income (non-GAAP) of this Item 7.
Changes in net interest income and margin result from the interaction of the volume and composition of interest-earning assets and related yields, interest-bearing liabilities and related rates paid, and noninterest-bearing sources of funding. See the Average Consolidated Balance Sheet and Net Interest Analysis section of this Item 7 for additional information.
Net interest income decreased $0.4 billion, or 3%, and net interest margin decreased 10 basis points in 2024 compared with 2023 as the benefit of higher interest-earning asset yields and balances were more than offset by increased funding costs.
Average investment securities were stable as net purchase activity of available-for-sale securities was offset by portfolio paydowns and maturities of held-to-maturity securities. Average investment securities represented 27% of average interest-earning assets in 2024 compared to 28% in 2023.
Average loans decreased $3.7 billion, or 1%, primarily due to lower average utilization of commercial loan commitments. Average loans represented 62% of average interest-earning assets in 2024 compared to 64% in 2023.
The PNC Financial Services Group, Inc. –2024 Form 10-K 41
Average interest-earning deposits with banks increased $6.5 billion, or 18%, primarily due to higher borrowed funds and lower loan balances, partially offset by lower deposits.
Average interest-bearing deposits increased $9.0 billion, or 3%, reflecting growth in commercial deposits, partially offset by a decline in consumer balances. In total, average interest-bearing deposits represented 81% of average interest-bearing liabilities in 2024 compared to 82% in 2023.
Average borrowed funds increased $6.8 billion, or 10%, primarily due to parent company senior debt issuances, partially offset by lower FHLB advances.
Further details regarding average loans and deposits are included in the Business Segments Review section of this Item 7.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.