PNC FINANCIAL SERVICES GROUP, INC.

Regulatory Capital Requirements

Stress Capital Buffer

In April 2025, the Federal Reserve issued a proposal to revise the calculation of the SCB to reduce the volatility of the stress testing requirements for large firms, including for Category III firms such as PNC. Under the proposal, the annual SCB would be calculated based on an average of two consecutive annual supervisory stress tests. The proposed changes would become effective January 1, 2026. The comment period on the proposal ended on June 23, 2025.

In June 2025, the Federal Reserve announced the results of its supervisory stress tests conducted as part of the 2025 CCAR process. PNC remained well above its regulatory minimum capital requirements in the supervisory stress tests, and PNC’s SCB will remain at the regulatory minimum of 2.5%. See the Liquidity and Capital Management portion of the Risk Management section in this Financial Review for a discussion of PNC’s capital actions.

Enhanced Supplementary Leverage Ratio Proposal

In June 2025, the federal banking agencies issued a proposal to modify the enhanced Supplementary Leverage Ratio Standards for U.S. global systemically important bank holding companies and their subsidiary depository institutions (“US GSIBs”). The proposal is designed to reduce disincentives for banking organizations to engage in lower-risk activities and promote the smooth functioning of U.S. Treasury markets. The main proposed revisions would reduce the level of regulatory capital that U.S. GSIBs are required to hold based on their total leverage exposure. The proposal also seeks comments on additional alternatives and modifications to the supplementary leverage ratio, including the exclusion of U.S. Treasury securities and central bank reserves from total leverage exposure, which, if adopted, could apply to all Category I-III firms, including PNC. Comments on the proposal are due by August 26, 2025.

Other Developments

One Big Beautiful Bill Act

In July 2025, the President signed into law the One Big Beautiful Bill Act (the “Act”). The Act contains several business tax provisions. PNC is evaluating the impacts of the Act to PNC.