PNC FINANCIAL SERVICES GROUP, INC.
For the period ended Mar 31, 2026. Filed May 5, 2026.
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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.
Mar 31, 2026 · Filed May 5, 2026
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Key Macroeconomic Variables in CECL Weighted-Average Scenarios
Table 37: Key Macroeconomic Variables in CECL Weighted-Average Scenarios
| Assumptions as of March 31, 2026 | |||
|---|---|---|---|
| 2026 | 2027 | 2028 | |
| U.S. real GDP (a) | 1.2% | 1.6% | 2.0% |
| U.S. unemployment rate (b) | 4.8% | 5.0% | 4.6% |
| Assumptions as of December 31, 2025 | |||
| 2026 | 2027 | 2028 | |
| U.S. real GDP (a) | 0.5% | 2.0% | 2.0% |
| U.S. unemployment rate (b) | 5.1% | 4.9% | 4.4% |
(a)Represents year-over-year growth rates.
(b)Represents quarterly average rate at December 31, 2026, 2027 and 2028, respectively.
Real GDP growth is expected to end 2026 at 1.2% on a weighted average basis, up from the 0.5% assumed at December 31, 2025. Growth continues through 2027, reaching 1.6% in the fourth quarter of 2027 before increasing to 2.0% in 2028. Unemployment is expected to increase slightly over the next year. The weighted-average unemployment rate will end 2026 at 4.8%, peaking at 5.1% in mid-2027, before improving to 4.6% by the end of 2028.
Qualitative Component
As discussed in the Allowance for Credit Losses section of Note 1 Accounting Policies in our 2025 Form 10-K, we incorporate qualitative reserves in the ACL that reflect our best estimate of expected losses that may not be adequately represented in our quantitative methods or economic assumptions. Qualitative factors may include, but are not limited to, inherent forecasting limitations, model imprecision, timing of available information, and/or emerging and ongoing credit risks. At March 31, 2026, the qualitative framework considers PNC’s view of the current state of the economy, which continues to reflect uncertainty due to the fundamental change in office demand, tariff and trade driven pressures and stress on consumers. Our most significant qualitative factor was related to the office portfolio of the commercial real estate loan class.
See the following for additional information related to our ACL:
Allowance for Credit Losses in the Credit Risk Management section of this Financial Review,
Note 3 Investment Securities and Note 4 Loans and Related Allowance for Credit Losses in this Report, and
Note 1 Accounting Policies in our 2025 Form 10-K.
40 The PNC Financial Services Group, Inc. –Form 10-Q
Recently Issued Accounting Standards
| Accounting Standards Update | Description | Financial Statement Impact |
|---|---|---|
| Disaggregation of Income Statement Expenses - ASU 2024-03Issued November 2024 | • Required with issuance of 2027 Form 10-K; early adoption is permitted.• Requires public business entities to disclose, in the notes to financial statements and on an annual and interim basis, specified information about certain costs and expenses (including, if relevant: inventory purchases, employee compensation, depreciation, intangible asset amortization, and depreciation from oil and gas-producing activities).• Requires qualitative descriptions of amounts not separately disaggregated to be disclosed.• Requires disclosure of the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses.• Allows for either a prospective or retrospective transition approach. | • We are currently evaluating the disclosure requirements within this ASU and do not plan to early adopt.• This ASU will not impact our Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity or Consolidated Statement of Cash Flows.• We expect to provide additional disaggregated income statement expense disclosures in accordance with this ASU. |
| Targeted Improvements to the Accounting for Internal-Use Software - ASU 2025-06 Issued September 2025 | • Required with issuance of 2028 Form 10-K; early adoption is permitted. • Removes all references to project stages throughout Subtopic 350-40. • Requires entities to start capitalizing software costs when both of the following occur: (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function(s) intended. • Clarifies that (1) the disclosures in Subtopic 360-10, Property, Plant, and Equipment – Overall, are required for all capitalized internal-use software costs and (2) the intangibles disclosures in paragraphs 350-30-50-1 through 50-3 are not required for capitalized internal-use software costs. • Supersedes Subtopic 350-50, Intangibles – Goodwill and Other – Website Development Costs, and incorporates relevant and incremental guidance unique to website-specific development costs into Subtopic 350-40. • Allows for either a prospective, modified prospective, or retrospective transition approach. | • We do not plan to early adopt. • This ASU will not impact our Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows. |
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