pnc-20210115
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
January 15, 2021
Date of Report (Date of earliest event reported)
THE PNC FINANCIAL SERVICES GROUP, INC.
(Exact name of registrant as specified in its charter)
Commission File Number 001-09718
Pennsylvania25-1435979
(State or other jurisdiction of(I.R.S. Employer
incorporation)Identification No.)
The Tower at PNC Plaza
300 Fifth Avenue
Pittsburgh, Pennsylvania 15222-2401
(Address of principal executive offices, including zip code)
(888) 762-2265
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to 12(b) of the Act:
Title of Each ClassTrading Symbol(s)
 Name of Each Exchange
    on Which Registered    
Common Stock, par value $5.00PNCNew York Stock Exchange
Depositary Shares Each Representing a 1/4,000 Interest in a Share of Fixed-to-
Floating Rate Non-Cumulative Perpetual Preferred Stock, Series P		PNC PNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Item 2.02 Results of Operations and Financial Condition.

On January 15, 2021, The PNC Financial Services Group, Inc. (“the Corporation”) issued a press release regarding the Corporation’s earnings and business results for fourth quarter and full year 2020. In connection therewith, the Corporation provided supplementary financial information on its web site. A copy of the Corporation’s supplementary financial information is included in this Report as Exhibit 99.1 and is furnished herewith.
Item 8.01 Other Events
On January 15, 2021, the Corporation held a conference call for investors regarding the Corporation’s earnings and business results for fourth quarter and full year 2020. The Corporation provided electronic presentation slides on its web site used in connection with the related investor conference call. Copies of the electronic presentation slides are included in this Report as Exhibit 99.2 and are furnished herewith.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.  
NumberDescriptionMethod of Filing
99.1Furnished herewith
99.2Furnished herewith
104The cover page of this Current Report on Form 8-K, formatted in Inline XBRL.

- 2 -


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
THE PNC FINANCIAL SERVICES GROUP, INC.
(Registrant)
Date:January 15, 2021By:Gregory H. Kozich
Gregory H. Kozich
Senior Vice President and Controller
 - 3 -


Exhibit 99.1

pncbanklogoa181.jpg



THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT
FOURTH QUARTER 2020
(Unaudited)



THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2020
(UNAUDITED)
Consolidated Results:
Page
7-8
9-10
11-12
Business Segment Results:
15-16
19-21

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on January 15, 2021. We have reclassified certain prior period amounts to be consistent with the current period presentation, which we believe is more meaningful to readers of our consolidated financial statements. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (SEC) filings.

BUSINESS
PNC is one of the largest diversified financial services companies in the United States (U.S) and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, including residential mortgage, corporate and institutional banking and asset management, providing many of its products and services nationally. PNC's retail branch network is located primarily in markets across the Mid-Atlantic, Midwest and Southeast. PNC also has strategic international offices in four countries outside the U.S.

DISCONTINUED OPERATIONS
On May 15, 2020, PNC completed the sale of its 31.6 million shares of BlackRock, Inc., common and preferred stock through a registered secondary offering. In addition, BlackRock repurchased 2.65 million shares from PNC. The total proceeds from the sale were $14.2 billion in cash, net of $.2 billion in expenses, and resulted in a gain on sale of $4.3 billion. Additionally, PNC contributed 500,000 BlackRock shares to the PNC Foundation on May 18, 2020. As a result, PNC has divested its entire holding in BlackRock. PNC and its affiliates only hold shares of BlackRock stock in a fiduciary capacity for clients of PNC and its affiliates. Activity for BlackRock for all periods presented on the Consolidated Income Statement have been reclassified to discontinued operations and prior period BlackRock investment balances have been reclassified to the Asset held for sale line on the Consolidated Balance Sheet in accordance with Accounting Standard Codification (ASC) 205-20, Presentation of Financial Statements - Discontinued Operations.

PENDING ACQUISITION OF BBVA USA BANCSHARES, INC.
On November 16, 2020, PNC announced the signing of a definitive agreement with BBVA, S.A. to acquire BBVA USA Bancshares, Inc., a U.S. financial holding company conducting its business operations primarily through its U.S. banking subsidiary, BBVA USA for a fixed purchase price of $11.6 billion in cash. BBVA USA has over 600 branches in Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. The transaction is expected to add approximately $102 billion in total assets, $86 billion of deposits and $66 billion of loans to PNC's Consolidated Balance Sheet and to close in mid-2021, subject to customary closing conditions, including receipt of regulatory approvals.


THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Fourth Quarter 2020 Financial Supplement (Unaudited)
Financial Supplement Table Reference
TableDescriptionPage
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
15-16
19
20


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 1

Table 1: Consolidated Income Statement (Unaudited)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
In millions, except per share data2020202020202020201920202019
Interest Income
Loans$2,074 $2,116 $2,257 $2,480 $2,573 $8,927 $10,525 
Investment securities442 490 527 582 560 2,041 2,426 
Other60 70 71 138 201 339 811 
Total interest income2,576 2,676 2,855 3,200 3,334 11,307 13,762 
Interest Expense
Deposits53 74 141 375 468 643 1,986 
Borrowed funds99 118 187 314 378 718 1,811 
Total interest expense152 192 328 689 846 1,361 3,797 
Net interest income2,424 2,484 2,527 2,511 2,488 9,946 9,965 
Noninterest Income
Asset management221 215 199 201 216 836 862 
Consumer services387 390 330 377 390 1,484 1,555 
Corporate services 650 479 512 526 499 2,167 1,914 
Residential mortgage99 137 158 210 87 604 368 
Service charges on deposits134 119 79 168 185 500 702 
Other (a)293 457 271 343 456 1,364 1,473 
Total noninterest income1,784 1,797 1,549 1,825 1,833 6,955 6,874 
Total revenue4,208 4,281 4,076 4,336 4,321 16,901 16,839 
Provision For (Recapture of) Credit Losses(254)52 2,463 914 221 3,175 773 
Noninterest Expense
Personnel1,521 1,410 1,373 1,369 1,468 5,673 5,647 
Occupancy215 205 199 207 201 826 834 
Equipment296 292 301 287 348 1,176 1,210 
Marketing64 67 47 58 77 236 301 
Other612 557 595 622 668 2,386 2,582 
Total noninterest expense2,708 2,531 2,515 2,543 2,762 10,297 10,574 
Income (loss) from continuing operations before income taxes and noncontrolling interests1,754 1,698 (902)879 1,338 3,429 5,492 
Income taxes (benefit) from continuing operations298 166 (158)120 195 426 901 
Net income (loss) from continuing operations1,456 1,532 (744)759 1,143 3,003 4,591 
Income from discontinued operations before taxes5,596 181 288 5,777 988 
Income taxes from discontinued operations1,197 25 50 1,222 161 
Net income from discontinued operations4,399 156 238 4,555 827 
Net income1,456 1,532 3,655 915 1,381 7,558 5,418 
Less: Net income attributable to noncontrolling interests14 13 7 7 14 41 49 
Preferred stock dividends (b)48 63 55 63 55 229 236 
Preferred stock discount accretion and
redemptions		1 1 1 1 1 4 4 
Net income attributable to common shareholders$1,393 $1,455 $3,592 $844 $1,311 $7,284 $5,129 
Earnings Per Common Share
Basic earnings (loss) from continuing operations$3.26 $3.40 $(1.90)$1.59 $2.44 $6.37 $9.59 
Basic earnings from discontinued operations 10.28 0.37 0.54 10.62 1.84 
Total basic earnings$3.26 $3.40 $8.40 $1.96 $2.98 $16.99 $11.43 
Diluted earnings (loss) from continuing operations$3.26 $3.39 $(1.90)$1.59 $2.43 $6.36 $9.57 
Diluted earnings from discontinued operations10.28 0.36 0.54 10.60 1.82 
Total diluted earnings$3.26 $3.39 $8.40 $1.95 $2.97 $16.96 $11.39 
Average Common Shares Outstanding
Basic425 426 426 429 437 427 447 
Diluted426 426 426 430 438 427 448 
Efficiency64 %59 %62 %59 %64 %61 %63 %
Noninterest income to total revenue42 %42 %38 %42 %42 %41 %41 %
Effective tax rate from continuing operations (c)17.0 %9.8 %17.5 %13.7 %14.6 %12.4 %16.4 %

(a)Includes net gains on sales of securities of $51 million, $32 million, $40 million, $182 million, and $12 million for the quarters ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively. Amounts for the twelve months ended December 31, 2020 and December 31, 2019 were $305 million and $48 million, respectively.
(b)Dividends are payable quarterly other than Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.
(c)The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 2
Table 2: Consolidated Balance Sheet (Unaudited)
December 31September 30June 30March 31December 31
In millions, except par value20202020202020202019
Assets
Cash and due from banks$7,017 $6,629 $6,338 $7,493 $5,061 
Interest-earning deposits with banks (a)85,173 70,959 50,233 19,986 23,413 
Loans held for sale (b)1,597 1,787 1,443 1,693 1,083 
Asset held for sale (c)8,511 8,558 
Investment securities – available for sale 87,358 89,747 97,052 89,077 69,163 
Investment securities – held to maturity1,441 1,438 1,441 1,469 17,661 
Loans (b)241,928 249,279 258,236 264,643 239,843 
Allowance for loan and lease losses (d)(5,361)(5,751)(5,928)(3,944)(2,742)
Net loans236,567 243,528 252,308 260,699 237,101 
Equity investments6,052 4,938 4,943 4,694 5,176 
Mortgage servicing rights1,242 1,113 1,067 1,082 1,644 
Goodwill9,233 9,233 9,233 9,233 9,233 
Other (b) 30,999 32,445 34,920 41,556 32,202 
Total assets$466,679 $461,817 $458,978 $445,493 $410,295 
Liabilities
Deposits
Noninterest-bearing$112,637 $107,281 $99,458 $81,614 $72,779 
Interest-bearing252,708 247,798 246,539 223,590 215,761 
Total deposits365,345 355,079 345,997 305,204 288,540 
Borrowed funds
Federal Home Loan Bank borrowings3,500 5,500 8,500 23,491 16,341 
Bank notes and senior debt24,271 26,839 27,704 31,438 29,010 
Subordinated debt6,403 6,465 6,500 6,475 6,134 
Other (b)3,021 3,306 4,322 11,995 8,778 
Total borrowed funds37,195 42,110 47,026 73,399 60,263 
Allowance for unfunded lending related commitments (d)584 689 662 450 318 
Accrued expenses and other liabilities9,514 10,629 12,345 17,150 11,831 
Total liabilities412,638 408,507 406,030 396,203 360,952 
Equity
Preferred stock (e)
Common stock - $5 par value
Authorized 800 shares, issued 543 shares2,713 2,712 2,712 2,712 2,712 
Capital surplus15,884 15,836 16,284 16,288 16,369 
Retained earnings46,848 45,947 44,986 41,885 42,215 
Accumulated other comprehensive income2,770 2,997 3,069 2,518 799 
Common stock held in treasury at cost:119, 118, 117, 118 and 109 shares(14,205)(14,216)(14,128)(14,140)(12,781)
Total shareholders’ equity54,010 53,276 52,923 49,263 49,314 
Noncontrolling interests31 34 25 27 29 
Total equity54,041 53,310 52,948 49,290 49,343 
Total liabilities and equity$466,679 $461,817 $458,978 $445,493 $410,295 

(a)Amounts include balances held with the Federal Reserve Bank of Cleveland of $84.9 billion, $70.6 billion, $50.0 billion, $19.6 billion and $23.2 billion as of December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively.
(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our third quarter 2020 Form 10-Q included, and our 2020 Form 10-K will include, additional information regarding these items.
(c)Represents our held for sale investment in BlackRock. In the second quarter of 2020, PNC divested its entire holding in BlackRock. Prior period BlackRock investment balances have been reclassified to the Asset held for sale line in accordance with Accounting Standards Codification 205-20, Presentation of Financial Statements - Discontinued Operations. Our second and third quarter 2020 Form 10-Qs included, and our 2020 Form 10-K will include additional information.
(d)Amounts as of December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020 reflect the impact of adopting Accounting Standards Update 2016-13, Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Our 2019 Form 10-K and 2020 Form 10-Qs included, and our 2020 Form 10-K will include, additional information related to our adoption of this standard.
(e)Par value less than $0.5 million at each date.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 3
Table 3: Average Consolidated Balance Sheet (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
In millions2020202020202020201920202019
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency$48,036 $52,215 $52,500 $49,636 $33,937 $50,594 $31,526 
Non-agency1,337 1,4371,5291,6171,5821,4801,746 
Commercial mortgage-backed6,5686,9277,2326,7346,0546,8655,676 
Asset-backed5,0175,0335,3095,0035,0595,0905,199 
U.S. Treasury and government agencies18,78318,72415,45715,93815,96617,23417,642 
Other4,5614,7234,9524,0242,8494,5643,200 
Total securities available for sale84,30289,05986,97982,95265,44785,82764,989
Securities held to maturity
Residential mortgage-backed14,943 15,421 
Commercial mortgage-backed498553 
Asset-backed22515418120 
U.S. Treasury and government agencies793788783779774786767 
Other6506556466401,7946481,816 
Total securities held to maturity1,4431,4431,4511,47018,0631,45218,677
Total investment securities85,74590,50288,43084,42283,51087,27983,666
Loans
Commercial and industrial134,944139,795153,595128,723124,876139,254123,524 
Commercial real estate28,99129,08128,70728,27528,67028,76528,526 
Equipment lease financing6,3806,7717,0357,0667,1996,8127,255 
Consumer52,87254,69256,48557,68056,76555,42355,671 
Residential real estate22,63822,75322,29221,82821,34122,37920,040 
Total loans245,825253,092268,114243,572238,851252,633235,016
Interest-earning deposits with banks (b)76,37460,32734,60017,56923,31647,33316,878 
Other interest-earning assets8,1349,75210,8679,46811,3719,55312,425 
Total interest-earning assets416,078413,673402,011355,031357,048396,798347,985
Noninterest-earning assets48,90148,46655,30257,40554,37152,49752,350 
Total assets$464,979 $462,139 $457,313 $412,436 $411,419 $449,295 $400,335 
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market$62,621 $63,598 $61,346 $53,287 $56,209 $60,229 $55,505 
Demand88,02687,22682,88170,93169,49682,29565,729 
Savings79,43077,47975,34569,97766,82775,57462,938 
Time deposits19,44820,24821,87321,14121,60020,67320,416 
Total interest-bearing deposits249,525248,551241,445215,336214,132238,771204,588
Borrowed funds
Federal Home Loan Bank borrowings4,7617,19612,55913,44018,9449,47022,253 
Bank notes and senior debt24,02225,85828,29829,98827,40327,03026,781 
Subordinated debt5,9365,9365,9375,9345,7605,9365,588 
Other3,4334,3546,4357,8267,9265,5026,906 
Total borrowed funds38,15243,34453,22957,18860,03347,93861,528
Total interest-bearing liabilities287,677291,895294,674272,524274,165286,709266,116
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits109,878101,93193,77674,39673,62695,05572,212 
Accrued expenses and other liabilities14,34815,34116,98916,43714,54115,77413,371 
Equity53,07652,97251,87449,07949,08751,75748,636 
Total liabilities and equity$464,979 $462,139 $457,313 $412,436 $411,419 $449,295 $400,335 

(a)Calculated using average daily balances.
(b)Amounts include average balances held with the Federal Reserve Bank of Cleveland of $76.1 billion, $60.0 billion, $34.2 billion, $17.3 billion and $23.0 billion for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively. Amounts include $47.0 billion and $16.6 billion for the twelve months ended December 31, 2020 and December 31, 2019, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 4
Table 4: Details of Net Interest Margin (Unaudited)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
2020202020202020201920202019
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency1.81 %2.03 %2.29 %2.63 %2.48 %2.19 %2.75 %
Non-agency7.15 %7.26 %7.13 %7.87 %8.09 %7.36 %8.08 %
Commercial mortgage-backed2.66 %2.50 %2.59 %2.95 %2.30 %2.67 %2.85 %
Asset-backed2.04 %2.44 %2.60 %3.05 %3.26 %2.53 %3.31 %
U.S. Treasury and government agencies1.77 %1.64 %1.77 %2.29 %2.31 %1.88 %2.47 %
Other3.45 %3.39 %3.47 %3.69 %3.36 %3.51 %3.34 %
Total securities available for sale2.05 %2.16 %2.39 %2.77 %2.65 %2.35 %2.90 %
Securities held to maturity
Residential mortgage-backed2.63 %2.84 %
Commercial mortgage-backed4.44 %3.80 %
Asset-backed2.38 %2.77 %3.02 %4.17 %
U.S. Treasury and government agencies2.88 %2.86 %2.84 %2.84 %2.86 %2.80 %2.87 %
Other4.20 %4.20 %4.27 %4.48 %4.47 %4.32 %4.41 %
Total securities held to maturity3.47 %3.47 %3.47 %3.56 %2.87 %3.44 %3.03 %
Total investment securities2.08 %2.18 %2.41 %2.78 %2.70 %2.36 %2.93 %
Loans
Commercial and industrial2.87 %2.82 %2.83 %3.62 %3.88 %3.07 %4.17 %
Commercial real estate2.63 %2.65 %2.84 %3.64 %3.89 %2.98 %4.33 %
Equipment lease financing3.90 %3.80 %3.82 %3.93 %3.87 %3.86 %3.93 %
Consumer4.74 %4.69 %4.86 %5.38 %5.45 %4.93 %5.54 %
Residential real estate3.69 %3.74 %3.86 %3.96 %4.10 %3.81 %4.21 %
Total loans3.35 %3.32 %3.37 %4.08 %4.27 %3.55 %4.51 %
Interest-earning deposits with banks0.10 %0.10 %0.10 %1.27 %1.66 %0.21 %2.09 %
Other interest-earning assets1.99 %2.23 %2.26 %3.51 %3.65 %2.50 %3.69 %
Total yield on interest-earning assets2.46 %2.57 %2.85 %3.62 %3.71 %2.87 %3.98 %
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market0.05 %0.07 %0.15 %0.72 %0.93 %0.23 %1.10 %
Demand0.04 %0.05 %0.08 %0.41 %0.51 %0.13 %0.54 %
Savings0.08 %0.11 %0.31 %0.79 %0.97 %0.31 %1.11 %
Time deposits0.41 %0.58 %0.80 %1.34 %1.52 %0.79 %1.60 %
Total interest-bearing deposits0.08 %0.12 %0.23 %0.70 %0.87 %0.27 %0.97 %
Borrowed funds
Federal Home Loan Bank borrowings0.40 %0.47 %1.00 %1.69 %2.11 %1.09 %2.56 %
Bank notes and senior debt1.00 %1.08 %1.56 %2.41 %2.77 %1.58 %3.24 %
Subordinated debt1.38 %1.51 %1.91 %2.73 %3.06 %1.89 %3.83 %
Other
1.39 %1.31 %0.92 %1.69 %1.89 %1.36 %2.30 %
Total borrowed funds1.02 %1.06 %1.39 %2.18 %2.47 %1.50 %2.94 %
Total rate on interest-bearing liabilities0.21 %0.26 %0.44 %1.00 %1.21 %0.47 %1.43 %
Interest rate spread2.25 %2.31 %2.41 %2.62 %2.50 %2.40 %2.55 %
Benefit from use of noninterest bearing sources (b)0.07 0.08 0.11 0.22 0.28 0.13 0.34 
Net interest margin2.32 %2.39 %2.52 %2.84 %2.78 %2.53 %2.89 %

(a)Yields and rates are calculated using the applicable annualized interest income or interest expense divided by the applicable average earning assets or interest-bearing liabilities. Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin 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 generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019 were $17 million, $17 million, $19 million, $22 million and $23 million, respectively. The taxable-equivalent adjustments to net interest income for the years ended December 31, 2020 and December 31, 2019 were $75 million and $103 million, respectively.
(b)Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 5
Table 5: Per Share Related Information (Unaudited)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
In millions, except per share data2020202020202020201920202019
Basic
Net income (loss) from continuing operations$1,456 $1,532 $(744)$759 $1,143 $3,003 $4,591 
Less:
Net income attributable to noncontrolling
interests		14 13 7 7 14 41 49 
Preferred stock dividends48 63 55 63 55 229 236 
Preferred stock discount accretion and
redemptions		1 1 1 1 1 4 4 
Net income (loss) from continuing operations
attributable to common shareholders		1,393 1,455 (807)688 1,073 2,729 4,302 
Less: Dividends and undistributed earnings
allocated to nonvested restricted shares		6 8 1 3 5 13 18 
Net income (loss) from continuing operations
attributable to basic common shareholders		$1,387 $1,447 $(808)$685 $1,068 $2,716 $4,284 
Net income from discontinued operations
attributable to common shareholders		$4,399 $156 $238 $4,555 $827 
Less: Undistributed earnings allocated to
nonvested restricted shares		 21 1 1 22 3 
Net income from discontinued operations
attributable to basic common shareholders		 $4,378 $155 $237 $4,533 $824 
Basic weighted-average common shares
outstanding		425 426 426 429 437 427 447 
Basic earnings (loss) per common share from continuing
operations (a)		$3.26 $3.40 $(1.90)$1.59 $2.44 $6.37 $9.59 
Basic earnings per common share from
discontinued operations (a)		$10.28 $0.37 $0.54 $10.62 $1.84 
Basic earnings per common share$3.26 $3.40 $8.40 $1.96 $2.98 $16.99 $11.43 
Diluted
Net income (loss) from continuing operations attributable
to diluted common shareholders		$1,387 $1,447 $(808)$685 $1,068 $2,716 $4,284 
Net income from discontinued operations
attributable to basic common shareholders		 $4,378 $155 $237 $4,533 $824 
Less: Impact of earnings per share dilution from
discontinued operations		 1 1 3 2 10 
Net income from discontinued operations
attributable to diluted common shareholders		 $4,377 $154 $234 $4,531 $814 
Basic weighted-average common shares
outstanding		425 426 426 429 437 427 447 
Dilutive potential common shares11 1  1 
Diluted weighted-average common shares
outstanding		426 426 426 430 438 427 448 
Diluted earnings (loss) per common share from
continuing operations (a)		$3.26 $3.39 $(1.90)$1.59 $2.43 $6.36 $9.57 
Diluted earnings per common share from
discontinued operations (a)		$10.28 $0.36 $0.54 $10.60 $1.82 
Diluted earnings per common share $3.26 $3.39 $8.40 $1.95 $2.97 $16.96 $11.39 

(a)Dividends are payable quarterly other than the Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 6
Table 6: Details of Loans (Unaudited)
December 31September 30June 30March 31December 31
In millions20202020202020202019
Commercial
Commercial and industrial
Manufacturing$20,712 $22,551 $25,590 $27,225 $21,540 
Retail/wholesale trade20,21820,28721,74724,40821,565
Service providers19,41920,26021,34719,41116,112
Real estate related (a)13,36914,04014,63414,84312,346
Financial services14,90915,00513,59613,47311,318
Health care8,9879,36810,1099,2388,035
Transportation and warehousing7,0957,2957,7718,1607,474
Other industries27,36428,38129,54132,37326,947
Total commercial and industrial132,073137,187144,335149,131125,337
Commercial real estate28,71629,02828,76328,54428,110
Equipment lease financing6,4146,4797,0977,0617,155
Total commercial167,203172,694180,195184,736160,602
Consumer
Home equity24,08824,53924,87925,08125,085
Residential real estate22,56022,88622,46922,25021,821
Automobile14,21814,97716,15717,19416,754
Credit card6,2156,3036,5757,1327,308
Education2,9463,0513,1323,2473,336
Other consumer4,6984,8294,8295,0034,937
Total consumer74,72576,58578,04179,90779,241
Total loans$241,928 $249,279 $258,236 $264,643 $239,843 

(a) Represents loans to customers in the real estate and construction industries.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 7
Allowance for Credit Losses (Unaudited)

Table 7: Change in Allowance for Loan and Lease Losses
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions2020202020202020201920202019
Allowance for loan and lease losses
Beginning balance$5,751 $5,928 $3,944 $2,742 $2,738 $2,742 $2,629 
Adoption of ASU 2016-03 (a)463 463 
Gross charge-offs:
Commercial and industrial(133)(59)(112)(78)(67)(382)(183)
Commercial real estate(1)(1)(2)(2)(18)
Equipment lease financing(4)(4)(10)(5)(9)(23)(15)
Home equity(11)(12)(8)(11)(16)(42)(68)
Residential real estate(6)(2)(2)(4)(10)(9)
Automobile(55)(57)(69)(84)(78)(265)(261)
Credit card(72)(74)(76)(78)(70)(300)(263)
Education(3)(3)(4)(6)(6)(16)(26)
Other consumer(42)(35)(35)(40)(39)(152)(131)
Total gross charge-offs(327)(247)(314)(304)(291)(1,192)(974)
Recoveries:
Commercial and industrial23 21 13 18 14 75 59 
Commercial real estate3 2 4 3 9 11 
Equipment lease financing3 3 2 2 2 10 8 
Home equity17 15 15 14 18 61 74 
Residential real estate4 4 4 4 3 16 14 
Automobile33 31 29 35 29 128 114 
Credit card9 9 9 8 6 35 27 
Education2 2 2 2 2 8 8 
Other consumer4 5 4 5 5 18 17 
Total recoveries98 92 78 92 82 360 332 
Net (charge-offs) / recoveries:
Commercial and industrial(110)(38)(99)(60)(53)(307)(124)
Commercial real estate2 1 4 1 7 (7)
Equipment lease financing(1)(1)(8)(3)(7)(13)(7)
Home equity6 3 7 3 2 19 6 
Residential real estate(2)2 4 2 (1)6 5 
Automobile(22)(26)(40)(49)(49)(137)(147)
Credit card(63)(65)(67)(70)(64)(265)(236)
Education(1)(1)(2)(4)(4)(8)(18)
Other consumer(38)(30)(31)(35)(34)(134)(114)
Total net (charge-offs)(229)(155)(236)(212)(209)(832)(642)
Provision for (recapture of) credit losses (b)(164)(23)2,220 952 221 2,985 773 
Net (increase) in allowance for unfunded
loan commitments and letters of credit		(14)(33)
Other3 1 (1)6 3 15 
Ending balance$5,361 $5,751 $5,928 $3,944 $2,742 $5,361 $2,742 
Supplemental Information
Net charge-offs
Commercial net charge-offs$(109)$(38)$(107)$(59)$(59)$(313)$(138)
Consumer net charge-offs(120)(117)(129)(153)(150)(519)(504)
Total net charge-offs$(229)$(155)$(236)$(212)$(209)$(832)$(642)
Net charge-offs to average loans (c)0.37 %0.24 %0.35 %0.35 %0.35 %0.33 %0.27 %
Commercial0.25 %0.09 %0.23 %0.14 %0.15 %0.18 %0.09 %
Consumer0.63 %0.60 %0.66 %0.77 %0.76 %0.67 %0.67 %
(a)    Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2020, and our transition from an incurred loss methodology for our reserves to an expected credit loss methodology. Our 2019 Form 10-K and our 2020 Form 10-Qs included, and 2020 Form 10-K will include, additional information related to our adoption of the CECL standard.
(b)    See Table 8 for the components of the Provision for (recapture of) credit losses under CECL being reported on the Consolidated Income Statement.
(c)    Three month period percentages are annualized.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 8
Allowance for Credit Losses (Unaudited) (Continued)

Table 8: Components of the Provision for (Recapture of) Credit Losses Under CECL
Three months endedYear ended
December 31September 30June 30March 31December 31
In millions20202020202020202020
Provision for (recapture of) credit losses
Loans and leases$(164)$(23)$2,220 $952 $2,985 
Unfunded lending related commitments(105)27 212 (47)87 
Investment securities 11 39 30 80 
Other financial assets4 9 1 9 23 
Total provision for (recapture of) credit losses$(254)$52 $2,463 $914 $3,175 

Table 9: Allowance for Credit Losses by Loan Class (a)
December 31, 2020September 30, 2020December 31, 2019

Dollars in millions		Allowance AmountTotal Loans% of Total LoansAllowance AmountTotal Loans% of Total LoansAllowance AmountTotal Loans% of Total Loans
Allowance for loan and lease losses
Commercial
Commercial and industrial$2,300 $132,073 1.74 %$2,735 $137,187 1.99 %$1,489 $125,337 1.19 %
Commercial real estate880 28,716 3.06 %630 29,028 2.17 %278 28,110 0.99 %
Equipment lease financing157 6,414 2.45 %163 6,479 2.52 %45 7,155 0.63 %
Total commercial3,337 167,203 2.00 %3,528 172,694 2.04 %1,812 160,602 1.13 %
Consumer
Home equity313 24,088 1.30 %349 24,539 1.42 %87 25,085 0.35 %
Residential real estate28 22,560 0.12 %28 22,886 0.12 %258 21,821 1.18 %
Automobile379 14,218 2.67 %404 14,977 2.70 %160 16,754 0.95 %
Credit card816 6,215 13.13 %891 6,303 14.14 %288 7,308 3.94 %
Education129 2,946 4.38 %136 3,051 4.46 %17 3,336 0.51 %
Other consumer359 4,698 7.64 %415 4,829 8.59 %120 4,937 2.43 %
Total consumer2,024 74,725 2.71 %2,223 76,585 2.90 %930 79,241 1.17 %
Total
5,361 $241,928 2.22 %5,751 $249,279 2.31 %2,742 $239,843 1.14 %
Allowance for unfunded lending related commitments
584 689 318 
Allowance for credit losses
$5,945 $6,440 $3,060 
Supplemental Information
Allowance for credit losses to total loans
2.46 %2.58 %1.28 %
Commercial2.29 %2.38 %1.33 %
Consumer2.84 %3.04 %1.18 %

(a)    Excludes allowances for investment securities and other financial assets, which together totaled $109 million and $98 million at December 31, 2020 and September 30, 2020,
    respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 9
Details of Nonperforming Assets (Unaudited)

Table 10: Nonperforming Assets by Type
December 31September 30June 30March 31December 31
Dollars in millions20202020202020202019
Nonperforming loans, including TDRs
Commercial
Commercial and industrial
Retail/wholesale trade$61 $90 $117 $121 $74 
Manufacturing81 80 58 79 102 
Service providers90 69 57 63 53 
Real estate related (a)95 140 158 25 24 
Health care20 20 19 14 17 
Transportation and warehousing20 14 20 23 18 
Other industries299 264 264 169 137 
Total commercial and industrial666 677 693 494 425 
Commercial real estate224 217 43 42 44 
Equipment lease financing33 21 22 30 32 
Total commercial923 915 758 566 501 
Consumer (b)
Home equity645 639 636 617 669 
Residential real estate528 339 305 292 315 
Automobile175 171 156 154 135 
Credit card8 13 15 10 11 
Other consumer7 8 6 5 4 
Total consumer1,363 1,170 1,118 1,078 1,134 
Total nonperforming loans (c) (d)2,286 2,085 1,876 1,644 1,635 
OREO and foreclosed assets51 67 79 111 117 
Total nonperforming assets$2,337 $2,152 $1,955 $1,755 $1,752 
Nonperforming loans to total loans0.94 %0.84 %0.73 %0.62 %0.68 %
Nonperforming assets to total loans, OREO and foreclosed assets0.97 %0.86 %0.76 %0.66 %0.73 %
Nonperforming assets to total assets0.50 %0.47 %0.43 %0.39 %0.43 %
Allowance for loan and lease losses to nonperforming loans (e)235 %276 %316 %240 %168 %
(a)Represents loans related to customers in the real estate and construction industries.
(b)Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.
(c)Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale and loans accounted for under the fair value option. Amounts in 2019 also excluded purchased impaired loans.
(d)In connection with the adoption of the CECL standard, nonperforming loan amounts in 2020 include purchased credit deteriorated loans. Our 2019 Form 10-K and 2020 Form 10-Qs included, and our 2020 Form 10-K will include, additional information related to our adoption of this standard.
(e)Ratios in 2020 reflect the transition impact on our allowance for loan and lease losses from the adoption of the CECL standard along with the increases in reserves during 2020 due to the significant economic impact of COVID-19 and loan growth.





THE PNC FINANCIAL SERVICES GROUP, INC.

Page 10
Details of Nonperforming Assets (Unaudited) (Continued)

Table 11: Change in Nonperforming Assets
October 1, 2020 -July 1, 2020 -April 1, 2020 -January 1, 2020 -October 1, 2019 -
In millionsDecember 31, 2020September 30, 2020June 30, 2020March 31, 2020December 31, 2019
Beginning balance$2,152 $1,955 $1,755 $1,752 $1,847 
New nonperforming assets586 512 458 391 357 
Charge-offs and valuation adjustments(97)(75)(104)(145)(218)
Principal activity, including paydowns and payoffs(185)(175)(85)(158)(157)
Asset sales and transfers to loans held for sale(14)(20)(28)(20)(21)
Returned to performing status(105)(45)(41)(65)(56)
Ending balance$2,337 $2,152 $1,955 $1,755 $1,752 


Table 12: Largest Individual Nonperforming Assets (a)
December 31, 2020 - Dollars in millions
RankingOutstandingsIndustry
1$141 Real Estate and Rental and Leasing
246 Real Estate and Rental and Leasing
337 Real Estate and Rental and Leasing
433 Real Estate and Rental and Leasing
532 Mining, Quarrying, and Oil and Gas Extraction
631 Wholesale Trade
731 Real Estate and Rental and Leasing
830 Information
926 Manufacturing
1026 Mining, Quarrying, and Oil and Gas Extraction
Total$433 
As a percent of total nonperforming assets19%

(a)    Amounts shown are not net of related allowance for loan and lease losses, if applicable.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 11
Accruing Loans Past Due (Unaudited)         

Pursuant to the interagency guidance issued in April 2020 and in connection with the credit reporting rules from the U.S. Coronavirus Aid, Relief and Economic Security Act (CARES Act), the delinquency status of loans modified due to COVID-19 related hardships are reported as of December 31, 2020, September 30, 2020 and June 30, 2020 in alignment with the rules set forth for banks to report delinquency status to the credit agencies. These rules require that COVID-19 related loan modifications be reported as follows:
•if current at the time of modification, the loan remains current throughout the modification period,
•if delinquent at the time of modification and the borrower was not made current as part of the modification, the loan maintains its reported as delinquent status during the modification period, or
•if delinquent at the time of modification and the borrower was made current as part of the modification or became current during the modification period, the loan is reported as current.
As a result, certain loans modified due to COVID-19 related hardships are not being reported as past due as of December 31, 2020, September 30, 2020 and June 30, 2020 based on the contractual terms of the loan, even where borrowers may not be making payments on their loans during the modification period. Our second and third quarter 2020 Form 10-Qs included, and our 2020 Form 10-K will include, additional information on COVID-19 related loan modifications.

Table 13: Accruing Loans Past Due 30 to 59 Days (a) (b)
AmountPercent of Total Outstandings
Dec. 31Sept. 30Jun. 30Mar. 31Dec. 31Dec. 31Sept. 30Jun. 30Mar. 31Dec. 31
Dollars in millions2020202020202020201920202020202020202019
Commercial and industrial$106 $56 $49 $97 $102 0.08 %0.04 %0.03 %0.07 %0.08 %
Commercial real estate6 6 51 6 4 0.02 %0.02 %0.18 %0.02 %0.01 %
Equipment lease financing31 7 8 42 49 0.48 %0.11 %0.11 %0.59 %0.68 %
Home equity50 48 70 65 58 0.21 %0.20 %0.28 %0.26 %0.23 %
Residential real estate
Non government insured89 99 135 121 90 0.39 %0.43 %0.60 %0.54 %0.41 %
Government insured92 89 63 52 50 0.41 %0.39 %0.28 %0.23 %0.23 %
Automobile134 116 105 177 178 0.94 %0.77 %0.65 %1.03 %1.06 %
Credit card43 44 53 59 60 0.69 %0.70 %0.81 %0.83 %0.82 %
Education
Non government insured
5 6 3 7 7 0.17 %0.20 %0.10 %0.22 %0.21 %
Government insured
50 51 36 45 48 1.70 %1.67 %1.15 %1.39 %1.44 %
Other consumer14 17 17 17 15 0.30 %0.35 %0.35 %0.34 %0.30 %
Total$620 $539 $590 $688 $661 0.26 %0.22 %0.23 %0.26 %0.28 %
Table 14: Accruing Loans Past Due 60 to 89 Days (a) (b)
AmountPercent of Total Outstandings
Dec. 31Sept. 30Jun. 30Mar. 31Dec. 31Dec. 31Sept. 30Jun. 30Mar. 31Dec. 31
Dollars in millions2020202020202020201920202020202020202019
Commercial and industrial$26 $37 $28 $22 $30 0.02 %0.03 %0.02 %0.01 %0.02 %
Commercial real estate1 6 4 1 1 0.00 %0.02 %0.01 %0.00 %0.00 %
Equipment lease financing5 4 9 2 5 0.08 %0.06 %0.13 %0.03 %0.07 %
Home equity21 22 27 28 24 0.09 %0.09 %0.11 %0.11 %0.10 %
Residential real estate
Non government insured16 22 34 30 16 0.07 %0.10 %0.15 %0.13 %0.07 %
Government insured62 58 59 52 53 0.27 %0.25 %0.26 %0.23 %0.24 %
Automobile34 32 34 49 47 0.24 %0.21 %0.21 %0.28 %0.28 %
Credit card30 33 38 37 37 0.48 %0.52 %0.58 %0.52 %0.51 %
Education
Non government insured
2 2 2 4 3 0.07 %0.07 %0.06 %0.12 %0.09 %
Government insured
27 24 21 26 31 0.92 %0.79 %0.67 %0.80 %0.93 %
Other consumer10 11 8 10 11 0.21 %0.23 %0.17 %0.20 %0.22 %
Total$234 $251 $264 $261 $258 0.10 %0.10 %0.10 %0.10 %0.11 %


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 12
Accruing Loans Past Due (Unaudited) (Continued)

Table 15: Accruing Loans Past Due 90 Days or More (a) (b)
AmountPercent of Total Outstandings
Dec. 31Sept. 30Jun. 30Mar. 31Dec. 31Dec. 31Sept. 30Jun. 30Mar. 31Dec. 31
Dollars in millions2020202020202020201920202020202020202019
Commercial and industrial$30 $36 $34 $51 $85 0.02 %0.03 %0.02 %0.03 %0.07 %
Residential real estate
Non government insured27 28 19 18 14 0.12 %0.12 %0.08 %0.08 %0.06 %
Government insured292 241 245 282 301 1.29 %1.05 %1.09 %1.27 %1.38 %
Automobile12 12 19 19 18 0.08 %0.08 %0.12 %0.11 %0.11 %
Credit card60 60 61 70 67 0.97 %0.95 %0.93 %0.98 %0.92 %
Education
Non government insured
2 1 1 2 2 0.07 %0.03 %0.03 %0.06 %0.06 %
Government insured
75 62 65 82 89 2.55 %2.03 %2.08 %2.53 %2.67 %
Other consumer11 8 12 10 9 0.23 %0.17 %0.25 %0.20 %0.18 %
Total$509 $448 $456 $534 $585 0.21 %0.18 %0.18 %0.20 %0.24 %

(a) Excludes loans held for sale, amounts in 2019 also excluded purchased impaired loans.
(b) In connection with the adoption of the CECL standard, accruing loans past due amounts in 2020 include purchased credit deteriorated loans. Our 2019 Form 10-K and 2020 Form 10-Qs included, and our 2020 Form 10-K will include, additional information related to our adoption of this standard.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 13
Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. The branch network is located primarily in markets across the Mid-Atlantic, Midwest and Southeast. In 2018, Retail Banking launched its national expansion strategy designed to grow customers with digitally-led banking and a thin branch network in markets outside of our existing retail branch network. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to agency and/or third-party standards, and either sold, servicing retained, or held on our balance sheet. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Treasury Management business provides payables, receivables, deposit and account services, liquidity and investments, and online and mobile banking products and services to our clients. Capital markets-related products and services include foreign exchange, derivatives, securities underwriting, loan syndications, mergers and acquisitions advisory and equity capital markets advisory related services. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are provided nationally.

Asset Management Group provides personal wealth management for high net worth and ultra high net worth clients and institutional asset management. The Asset Management group is comprised of three distinct operating units:
•Wealth management provides products and services to individuals and their families including investment and retirement planning, customized investment management, private banking, and trust management and administration for individuals and their families.
•Our Hawthorn unit provides multi-generational family planning including estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth clients.
•Institutional asset management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and fiduciary retirement advisory services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.

Table 16: Period End Employees
December 31September 30June 30March 31December 31
20202020202020202019
Full-time employees
Retail Banking27,621 27,808 29,051 28,737 28,270 
Other full-time employees21,928 21,997 21,752 21,776 21,747 
Total full-time employees49,549 49,805 50,803 50,513 50,017 
Part-time employees
Retail Banking1,611 1,593 1,854 1,780 1,759 
Other part-time employees97 104 476 129 142 
Total part-time employees1,708 1,697 2,330 1,909 1,901 
Total51,257 51,502 53,133 52,422 51,918 


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 14
Table 17: Summary of Business Segment Income and Revenue (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
In millions2020202020202020201920202019
Income
Retail Banking$336 $530 $(223)$201 $277 $844 $1,213 
Corporate & Institutional Banking992 670 (358)370 649 1,674 2,448 
Asset Management Group82 91 28 54 91 255 262 
Other46 241 (191)134 126 230 668 
Net income (loss) from continuing
operations		$1,456 $1,532 $(744)$759 $1,143 $3,003 $4,591 
  
Revenue
Retail Banking$1,853 $2,056 $1,975 $2,244 $2,054 $8,128 $8,168 
Corporate & Institutional Banking1,913 1,748 1,790 1,660 1,615 7,111 6,251 
Asset Management Group316 310 293 292 352 1,211 1,279 
Other126 167 18 140 300 451 1,141 
Total revenue$4,208 $4,281 $4,076 $4,336 $4,321 $16,901 $16,839 

(a)Our business information is presented based on our internal management reporting practices. Net interest income in business segment results reflects PNC’s internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors.


THE PNC FINANCIAL SERVICES GROUP, INC.

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Table 18: Retail Banking (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions2020202020202020201920202019
Income Statement
Net interest income$1,380 $1,383 $1,390 $1,456 $1,402 $5,609 $5,520 
Noninterest income473 673 585 788 652 2,519 2,648 
Total revenue1,853 2,056 1,975 2,244 2,054 8,128 8,168 
Provision for (recapture of) credit losses(81)(157)761 445 161 968 517 
Noninterest expense1,482 1,512 1,497 1,528 1,516 6,019 6,011 
Pretax earnings (loss)452 701 (283)271 377 1,141 1,640 
Income taxes (benefit)105 162 (63)62 86 266 377 
Noncontrolling interest 11 9 3 8 14 31 50 
Earnings (loss)$336 $530 $(223)$201 $277 $844 $1,213 
Average Balance Sheet
Loans held for sale$672 $700 $829 $779 $747 $745 $627 
Loans
Consumer
Home equity$22,366 $22,647 $22,790 $22,736 $22,590 $22,633 $22,657 
Residential real estate 18,042 18,435 18,244 17,964 17,352 18,171 16,196 
Automobile14,536 15,573 16,688 17,096 16,427 15,968 15,510 
Credit card6,218 6,408 6,690 7,207 6,985 6,629 6,550 
Education3,027 3,119 3,218 3,343 3,428 3,176 3,611 
Other consumer2,086 2,262 2,454 2,533 2,418 2,334 2,244 
Total consumer 66,275 68,444 70,084 70,879 69,200 68,911 66,768 
Commercial 13,391 13,356 13,612 10,524 10,323 12,573 10,410 
Total loans$79,666 $81,800 $83,696 $81,403 $79,523 $81,484 $77,178 
Total assets$94,303 $98,731 $102,103 $97,062 $94,967 $97,643 $92,959 
Deposits
Noninterest-bearing demand$43,818 $43,752 $39,134 $32,225 $32,674 $39,754 $31,675 
Interest-bearing demand50,702 49,274 47,339 42,865 41,689 47,557 42,077 
Money market24,112 23,816 22,942 22,866 23,927 23,436 25,317 
Savings72,041 70,236 67,947 62,781 59,877 68,267 56,722 
Certificates of deposit10,156 10,852 11,661 12,233 12,598 11,222 12,613 
Total deposits$200,829 $197,930 $189,023 $172,970 $170,765 $190,236 $168,404 
Performance Ratios
Return on average assets1.41 %2.13 %(0.88)%0.84 %1.16 %0.86 %1.30 %
Noninterest income to total revenue26 %33 %30 %35 %32 %31 %32 %
Efficiency80 %74 %76 %68 %74 %74 %74 %
(a)See note (a) on page 14.

THE PNC FINANCIAL SERVICES GROUP, INC.

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Retail Banking (Unaudited) (Continued)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions, except as noted2020202020202020201920202019
Supplemental Noninterest Income
Information
Consumer services$369 $371 $315 $372 $382 $1,427 $1,530 
Residential mortgage$99 $137 $158 $210 $87 $604 $368 
Service charges on deposits$133 $118 $80 $166 $183 $497 $687 
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)$121 $119 $122 $118 $120 
Serviced portfolio acquisitions$12 $8 $11 $2 $3 $33 $12 
MSR asset value (b)$0.7 $0.6 $0.6 $0.6 $1.0 
MSR capitalization value (in basis points) (b)56 50 47 51 83 
Servicing income: (in millions)
Servicing fees, net (c)$13 $25 $36 $44 $39 $118 $178 
Mortgage servicing rights valuation, net of
economic hedge		$(1)$17 $20 $101 $9 $137 $47 
Residential mortgage loan statistics
Loan origination volume (in billions)$3.7 $4.0 $4.2 $3.2 $3.5 $15.1 $11.5 
Loan sale margin percentage3.75 %3.62 %3.67 %3.16 %2.42 %3.57 %2.41 %
Percentage of originations represented by:
Purchase volume (d)45 %44 %34 %36 %40 %40 %47 %
Refinance volume55 %56 %66 %64 %60 %60 %53 %
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)66 %67 %65 %59 %58 %64 %57 %
Digital consumer customers (f)77 %75 %73 %71 %71 %74 %69 %
Credit-related statistics
Nonperforming assets$1,211 $1,077 $1,037 $1,011 $1,046 
Net charge-offs - loans and leases $136 $125 $142 $166 $154 $569 $534 
Other statistics
ATMs8,900 9,058 9,058 9,048 9,091 
Branches (g)2,162 2,207 2,256 2,277 2,296 
Brokerage account client assets (in billions) (h)$59 $55 $53 $49 $54 

(a)Represents mortgage loan servicing balances for third parties and the related income.
(b)Presented as of period end, except for average customer-related statistics and net charge-offs, which are both shown for the three months and year ended, respectively.
(c)Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan payments, prepayments, and loans that were paid down or paid off during the period.
(d)Mortgages with borrowers as part of residential real estate purchase transactions.
(e)Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application.
(f)Represents consumer checking relationships that process the majority of their transactions through non-teller channels.
(g)Excludes stand-alone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.
(h)Includes cash and money market balances.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 17
Table 19: Corporate & Institutional Banking (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions2020202020202020201920202019
Income Statement
Net interest income$994 $1,025 $1,064 $966 $969 $4,049 $3,714 
Noninterest income919 723 726 694 646 3,062 2,537 
Total revenue1,913 1,748 1,790 1,660 1,615 7,111 6,251 
Provision for (recapture of) credit losses(166)211 1,585 458 65 2,088 284 
Noninterest expense801 663 670 722 726 2,856 2,813 
Pretax earnings (loss)1,278 874 (465)480 824 2,167 3,154 
Income taxes (benefit)282 201 (110)110 175 483 706 
Noncontrolling interest 4 3 3 10 
Earnings (loss)$992 $670 $(358)$370 $649 $1,674 $2,448 
Average Balance Sheet
Loans held for sale$1,039 $904 $704 $395 $616 $762 $505 
Loans
Commercial
Commercial and industrial $120,297 $125,187 $138,992 $117,288 $114,113 $125,426 $112,809 
Commercial real estate27,509 27,511 27,106 26,589 26,586 27,180 26,340 
Equipment lease financing6,381 6,772 7,036 7,066 7,200 6,813 7,255 
Total commercial 154,187 159,470 173,134 150,943 147,899 159,419 146,404 
Consumer10 11 8 9 11 10 15 
Total loans$154,197 $159,481 $173,142 $150,952 $147,910 $159,429 $146,419 
Total assets$177,792 $183,266 $199,254 $172,502 $167,555 $183,189 $164,243 
Deposits
Noninterest-bearing demand$64,334 $56,433 $53,157 $40,651 $39,513 $53,681 $39,141 
Interest-bearing demand28,793 29,730 27,674 21,101 20,851 26,838 19,487 
Money market36,705 38,015 36,595 28,468 30,264 34,959 28,091 
Other8,928 8,956 9,546 7,868 7,916 8,825 6,676 
Total deposits$138,760 $133,134 $126,972 $98,088 $98,544 $124,303 $93,395 
Performance Ratios
Return on average assets2.21 %1.45 %(0.72)%0.87 %1.54 %0.91 %1.49 %
Noninterest income to total revenue48 %41 %41 %42 %40 %43 %41 %
Efficiency42 %38 %37 %43 %45 %40 %45 %
Other Information
Consolidated revenue from:
Treasury Management (b)$472 $452 $469 $491 $494 $1,884 $1,866 
Capital Markets (b)$530 $345 $388 $344 $291 $1,607 $1,140 
Commercial mortgage banking activities
Commercial mortgage loans held for
sale (c)		$45 $46 $42 $29 $24 $162 $97 
Commercial mortgage loan servicing
income (d)		82 76 67 69 71 294 261 
Commercial mortgage servicing rights
    valuation, net of economic hedge (e)
14 16 22 20 2 72 19 
Total$141 $138 $131 $118 $97 $528 $377 
MSR asset value (f)$569 $515 $490 $477 $649 
Average loans by C&IB business
Corporate Banking$76,664 $81,617 $91,634 $78,057 $75,665 $81,977 $74,016 
Real Estate41,427 40,592 42,124 37,368 36,908 40,381 37,149 
Business Credit21,337 21,845 23,943 23,251 22,900 22,589 22,586 
Commercial Banking11,375 11,770 10,708 7,784 7,793 10,415 7,984 
Other3,394 3,657 4,733 4,492 4,644 4,067 4,684 
Total average loans$154,197 $159,481 $173,142 $150,952 $147,910 $159,429 $146,419 
Credit-related statistics
Nonperforming assets (f)$827 $832 $674 $508 $444 
Net charge-offs - loans and leases $99 $32 $99 $50 $47 $280 $105 

(a)See note (a) on page 14.
(b)Amounts reported in net interest income and noninterest income.
(c)Represents other noninterest income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, originations fees, gains on sale of loans held for sale and net interest income on loans held for sale.
(d)Represents net interest income and noninterest income (primarily in corporate service fees) from loan servicing net of reduction in commercial mortgage servicing rights due to amortization expense and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.
(e)Amounts are reported in corporate service fees.
(f)Presented as of period end.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 18
Table 20: Asset Management Group (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions, except as noted2020202020202020201920202019
Income Statement
Net interest income$91 $89 $89 $88 $80 $357 $288 
Noninterest income225 221 204 204 272 854 991 
Total revenue316 310 293 292 352 1,211 1,279 
Provision for (recapture of) credit losses (2)(19)39 3 1 21 (1)
Noninterest expense211 211 217 219 232 858 939 
Pretax earnings107 118 37 70 119 332 341 
Income taxes25 27 9 16 28 77 79 
Earnings$82 $91 $28 $54 $91 $255 $262 
Average Balance Sheet
Loans
Consumer
Residential real estate $3,326 $2,976 $2,636 $2,385 $2,193 $2,832 $1,923 
Other consumer4,077 4,065 3,975 4,052 4,145 4,042 4,232 
Total consumer 7,403 7,041 6,611 6,437 6,338 6,874 6,155 
Commercial774 810 883 856 793 831 759 
Total loans$8,177 $7,851 $7,494 $7,293 $7,131 $7,705 $6,914 
Total assets$8,615 $8,361 $7,958 $7,801 $7,697 $8,186 $7,360 
Deposits
Noninterest-bearing demand$1,689 $1,692 $1,421 $1,468 $1,407 $1,568 $1,360 
Interest-bearing demand8,404 8,101 7,742 6,850 6,846 7,777 4,060 
Money market1,606 1,542 1,597 1,709 1,773 1,613 1,832 
Savings7,388 7,243 7,398 7,197 6,950 7,307 6,216 
Other482 554 722 847 898 650 822 
Total deposits$19,569 $19,132 $18,880 $18,071 $17,874 $18,915 $14,290 
Performance Ratios
Return on average assets3.78 %4.32 %1.41 %2.81 %4.69 %3.12 %3.56 %
Noninterest income to total revenue71 %71 %70 %70 %77 %71 %77 %
Efficiency67 %68 %74 %75 %66 %71 %73 %
Other Information
Nonperforming assets (b)$66 $39 $38 $34 $39 
Net charge-offs (recoveries) - loans and leases $1 $1 $(1)$4 $1 $5 
Client Assets Under Administration (in billions)
(b) (c)
Discretionary client assets under management$170 $158 $151 $136 $154 
Nondiscretionary client assets under administration154 142 138 128 143 
Total$324 $300 $289 $264 $297 
Discretionary client assets under management
Personal$108 $99 $94 $84 $99 
Institutional62 59 57 52 55 
Total$170 $158 $151 $136 $154 
(a)See note (a) on page 14.
(b)As of period end.
(c)Excludes brokerage account client assets.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 19
Glossary of Terms

Amortized cost basis - Amount at which a financial asset is originated or acquired, adjusted for applicable accretion or amortization of premiums, discounts and net deferred fees or costs, collection of cash, charge-offs, foreign exchange and fair value hedge accounting adjustments.

Adjusted average total assets - Primarily consisted of total average quarterly (or annual) assets plus/less unrealized losses (gains) on investment securities, less goodwill and certain other intangible assets (net of eligible deferred taxes).

Basel III common equity Tier 1 capital - Common stock plus related surplus, net of treasury stock, plus retained earnings, plus accumulated other comprehensive income for securities currently, and those transferred from, available for sale and pension and other postretirement benefit plans, subject to phase-in limits, less goodwill, net of associated deferred tax liabilities, less other disallowed intangibles, net of deferred tax liabilities and plus/less other adjustments. Significant common stock investments in unconsolidated financial institutions, as well as mortgage servicing rights and deferred tax assets, must then be deducted to the extent such items individually exceed 10%, or in the aggregate exceed 15%, of our adjusted Basel III common equity Tier 1 capital.

Basel III common equity Tier 1 capital (Tailoring Rules) - Common stock plus related surplus, net of treasury stock, plus retained earnings, less goodwill, net of associated deferred tax liabilities, less other disallowed intangibles, net of deferred tax liabilities and plus/less other adjustments. Investments in unconsolidated financial institutions, as well as mortgage servicing rights and deferred tax assets, must then be deducted to the extent such items individually exceed 25% of our adjusted Basel III common equity Tier 1 capital.

Basel III common equity Tier 1 capital ratio - Common equity Tier 1 capital divided by period-end risk-weighted assets (as applicable).

Basel III Tier 1 capital - Common equity Tier 1 capital, plus qualifying preferred stock, plus certain trust preferred capital securities, plus certain noncontrolling interests that are held by others and plus/less other adjustments.

Basel III Tier 1 capital ratio - Tier 1 capital divided by period-end risk-weighted assets (as applicable).

Basel III Total capital - Tier 1 capital plus qualifying subordinated debt, plus certain trust preferred securities, plus, under the Basel III transitional rules and the standardized approach, the allowance for loan and lease losses included in Tier 2 capital and other.

Basel III Total capital ratio - Basel III Total capital divided by period-end risk-weighted assets (as applicable).

Charge-off - Process of removing a loan or portion of a loan from our balance sheet because it is considered uncollectible. We also record a charge-off when a loan is transferred from portfolio holdings to held for sale by reducing the loan carrying amount to the fair value of the loan, if fair value is less than carrying amount.

Current Expected Credit Loss (CECL) - Methodology for estimating the allowance for credit losses on in-scope financial assets held at amortized cost and unfunded lending related commitments which uses a combination of expected losses over a reasonable and supportable forecast period, a reversion period and long run average credit losses for their estimated contractual term.

Combined loan-to-value ratio (CLTV) - This is the aggregate principal balance(s) of the mortgages on a property divided by its appraised value or purchase price.

Common shareholders’ equity - Total shareholders' equity less the liquidation value of preferred stock.

Credit valuation adjustment - Represents an adjustment to the fair value of our derivatives for our own and counterparties’ non-performance risk.

Criticized commercial loans - Loans with potential or identified weaknesses based upon internal risk ratings that comply with the regulatory classification definitions of “Special Mention,” “Substandard” or “Doubtful.”

Discretionary client assets under management - Assets over which we have sole or shared investment authority for our customers/clients. We do not include these assets on our Consolidated Balance Sheet.

Duration of equity - An estimate of the rate sensitivity of our economic value of equity. A negative duration of equity is associated with asset sensitivity (i.e., positioned for rising interest rates), while a positive value implies liability sensitivity (i.e., positioned for declining interest rates). For example, if the duration of equity is -1.5 years, the economic value of equity increases by 1.5% for each 100 basis point increase in interest rates.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 20

Earning assets - Assets that generate income, which include: interest-earning deposits with banks; loans held for sale; loans; investment securities; and certain other assets.

Effective duration - A measurement, expressed in years, that, when multiplied by a change in interest rates, would approximate the percentage change in value of on- and off- balance sheet positions.

Efficiency - Noninterest expense divided by total revenue.

Fair value - The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fee income - Refers to the following categories within Noninterest income: Asset management; Consumer services; Corporate services; Residential mortgage; and Service charges on deposits.

FICO score - A credit bureau-based industry standard score created by Fair Isaac Co. which predicts the likelihood of borrower default. We use FICO scores both in underwriting and assessing credit risk in our consumer lending portfolio. Lower FICO scores indicate likely higher risk of default, while higher FICO scores indicate likely lower risk of default. FICO scores are updated on a periodic basis.

Futures and forward contracts - Contracts in which the buyer agrees to purchase and the seller agrees to deliver a specific financial instrument at a predetermined price or yield. May be settled either in cash or by delivery of the underlying financial instrument.

GAAP - Accounting principles generally accepted in the United States of America.

Impaired loans - Loans are determined to be impaired when, based on current information and events, it is probable that all contractually required payments will not be collected. Impaired loans include commercial nonperforming loans and consumer and commercial TDRs, regardless of nonperforming status. Excluded from impaired loans are nonperforming leases, loans held for sale, loans accounted for under the fair value option, smaller balance homogenous type loans and purchased impaired loans.

Leverage ratio - Basel III Tier 1 capital divided by average quarterly adjusted total assets.

LIBOR - Acronym for London InterBank Offered Rate. LIBOR is the average interest rate charged when banks in the London wholesale money market (or interbank market) borrow unsecured funds from each other. LIBOR rates are used as a benchmark for interest rates on a global basis. Our product set includes loans priced using LIBOR as a benchmark.

Loan-to-value ratio (LTV) - A calculation of a loan's collateral coverage that is used both in underwriting and assessing credit risk in our lending portfolio. LTV is the sum total of loan obligations secured by collateral divided by the market value of that same collateral. Market values of the collateral is based on an independent valuation of the collateral. For example, a LTV of less than 90% is better secured and has less credit risk than a LTV of greater than or equal to 90%.

Loss given default (LGD) - Assuming a credit obligor enters default status, an estimate of loss, based on collateral type, collateral value, loan exposure, and other factors. LGD is net of recovery, through any means, including but not limited to the liquidation of collateral or deficiency judgments rendered from foreclosure or bankruptcy proceedings.

Nonaccrual loans - Loans for which we do not accrue interest income. Nonaccrual loans include nonperforming loans, in addition to loans accounted for under fair value option and loans accounted for as held for sale for which full collection of contractual principal and/or interest is not probable.

Nondiscretionary client assets under administration - Assets we hold for our customers/clients in a nondiscretionary, custodial capacity. We do not include these assets on our Consolidated Balance Sheet.

Nonperforming assets - Nonperforming assets include nonperforming loans, OREO and foreclosed asserts. We do not accrue interest income on assets classified as nonperforming.

Nonperforming loans - Loans accounted for at amortized cost whose credit quality has deteriorated to the extent that full collection of contractual principal and interest is not probable, including TDRs which have not returned to performing status. Interest income is not recognized on nonperforming loans. Nonperforming loans exclude certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest, loans held for sale and loans accounted for under the fair value option.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 21
Notional amount - A number of currency units, shares, or other units specified in a derivative contract.

Off-balance sheet credit exposures - Standby letters of credit, financial guarantees, commitments to extend credit and similar unfunded obligations that are not unilaterally, unconditionally, cancelable at PNC’s option.

Operating leverage - The period to period dollar or percentage change in total revenue less the dollar or percentage change in noninterest expense. A positive variance indicates that revenue growth exceeded expense growth (i.e., positive operating leverage) while a negative variance implies expense growth exceeded revenue growth (i.e., negative operating leverage).

Options - Contracts that grant the purchaser, for a premium payment, the right, but not the obligation, to either purchase or sell the associated financial instrument at a set price during a specified period or at a specified date in the future.

Other real estate owned (OREO) and foreclosed assets - Assets taken in settlement of troubled loans primarily through deed-in-lieu of foreclosure or foreclosure. Foreclosed assets include real and personal property. Certain assets that have a government-guarantee which are classified as other receivables are excluded.

Probability of default (PD) - An estimate of the likelihood that a credit obligor will enter into default status.

Purchased credit deteriorated assets - Acquired loans or debt securities that, at acquisition, are determined to have experienced a more-than-insignificant deterioration in credit quality since origination or issuance.

Recovery - Cash proceeds received on a loan that we had previously charged off. We credit the amount received to the allowance for loan and lease losses.

Reasonable and supportable forecast period (RSFP) - In context of CECL, the period for which forecasts and projections of macroeconomic variables have been determined to be reasonable and supportable, and are used as inputs for ACL measurement.

Risk-weighted assets - Computed by the assignment of specific risk-weights (as defined by the Board of Governors of the Federal Reserve System) to assets and off-balance sheet instruments.

Servicing rights - An intangible asset or liability created by an obligation to service assets for others. Typical servicing rights include the right to receive a fee for collecting and forwarding payments on loans and related taxes and insurance premiums held in escrow.

Supplementary leverage ratio - Basel III Tier 1 capital divided by Supplementary leverage exposure.

Taxable-equivalent interest income - The interest income earned on certain assets that is completely or partially exempt from federal income tax. These tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, 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 other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement.

Troubled debt restructuring (TDR) - A loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties.

Yield curve - A graph showing the relationship between the yields on financial instruments or market indices of the same credit quality with different maturities. For example, a “normal” or “positive” yield curve exists when long-term bonds have higher yields than short-term bonds. A “flat” yield curve exists when yields are the same for short-term and long-term bonds. A “steep” yield curve exists when yields on long-term bonds are significantly higher than on short-term bonds. An “inverted” or “negative” yield curve exists when short-term bonds have higher yields than long-term bonds.


The PNC Financial Services Group Fourth Quarter 2020 Earnings Conference Call January 15, 2021 Exhibit 99.2

 
Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information 2 Our earnings conference call presentation is not intended as a full business or financial review and should be viewed in the context of all of the information made available by PNC in its SEC filings and on our corporate website. The presentation contains forward-looking statements regarding our outlook for earnings, revenues, expenses, tax rates, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting PNC and its future business and operations. Forward-looking statements are necessarily subject to numerous assumptions, risks and uncertainties, which change over time. The forward-looking statements in this presentation are qualified by the factors affecting forward-looking statements identified in the more detailed Cautionary Statement included in the Appendix. We provide greater detail regarding these as well as other factors in our 2019 Form 10-K and subsequent Form 10-Qs, and in our other subsequent SEC filings. In particular, our forward-looking statements are subject to risks and uncertainties related to the COVID-19 pandemic and the resulting governmental and societal responses. Our forward- looking statements may also be subject to risks and uncertainties including those we may discuss in this presentation or in our SEC filings. Future events or circumstances may change our outlook and may also affect the nature of the assumptions, risks and uncertainties to which our forward-looking statements are subject. Forward-looking statements in this presentation speak only as of the date of this presentation. We do not assume any duty and do not undertake to update those statements. Actual results or future events could differ, possibly materially, from those anticipated in forward- looking statements, as well as from historical performance. As a result, we caution against placing undue reliance on any forward-looking statements. We include non-GAAP financial information in this presentation. Non-GAAP financial information includes financial metrics such as fee income, tangible book value, pretax, pre-provision earnings and return on tangible common equity. Reconciliations for such financial information may be found in our presentation, in these slides, including the Appendix, in other materials on our corporate website, and in our SEC filings. This information supplements our results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, our GAAP results. We believe that this information and the related reconciliations may be useful to investors, analysts, regulators and others to help understand and evaluate our financial results, and with respect to adjusted metrics, because we believe they better reflect the ongoing financial results and trends of our businesses and increase comparability of period-to-period results. We may also use annualized, pro forma, estimated or third party numbers for illustrative or comparative purposes only. These may not reflect actual results. References to our corporate website are to www.pnc.com under “About Us - Investor Relations.” Our SEC filings are available both on our corporate website and on the SEC’s website at www.sec.gov. We include web addresses here as inactive textual references only. Information on these websites is not part of this presentation.

 
2020 Highlights 3  Solid financial results: – Broad based businesses drove record revenue – Positive operating leverage – Strong capital, liquidity, and reserve positions  Strategically positioned for the future: – Sold stake in BlackRock – Announced plans to redeploy proceeds into the acquisition of BBVA USA – Continued to execute on strategic priorities  Supported customers, communities, and employees: – Provided customers relief through PPP loans, loan modifications, and fee waivers – Committed $1 billion to advance economic empowerment and social justice − Growth rates compared to 2019. Net Income $7.6 billion Diluted Earnings Per Share (EPS) $16.96 Average Loan Growth 7% Average Deposit Growth 21% Positive Operating Leverage 3% Diluted EPS From Continuing Ops. $6.36 Net Income From Continuing Ops. $3.0 billion

 
Change vs. Average balances, $ billions 4Q20 3Q20 4Q19 Highlights Commercial $170.3 ($5.3) $9.5  Linked quarter decline reflects lower utilization, partially offset by higher multifamily warehouse lending Consumer 75.5 (2.0) (2.6)  Linked quarter decline primarily reflects lower auto and home equity loans Total loans $245.8 ($7.3) $6.9  3% linked quarter decline; 3% year-over-year growth Investment securities $85.7 ($4.8) $2.2  Agency RMBS prepayments drove linked quarter decline Federal Reserve Bank balances $76.1 $16.1 $53.1  Linked quarter increase reflects liquidity from deposit growth and lower loan and securities balances Deposits $359.4 $8.9 $71.6  3% linked quarter growth; 25% year-over-year growth Borrowed funds $38.2 ($5.1) ($21.8)  Deployed excess liquidity to reduce borrowed funds Common shareholders’ equity $49.5 $0.4 $4.4 Basel III common equity Tier 1 capital ratio 12.1% 11.7% 9.5%  Capital at record high Tangible book value per common share $97.43 $95.71 $83.30  2% linked quarter growth; 17% year-over-year growth Balance Sheet: Significant Liquidity and Record Capital in 2020 4 − Basel III common equity Tier 1 capital ratio – Dec. 31, 2020 ratio is estimated. Details of the calculation presented in the capital table in the financial highlights. − Tangible book value per common share (Non-GAAP) – See Reconciliation in Appendix.

 
5 Balance Sheet: Well Positioned with Substantial Low Cost Funding A ve ra ge b al an ce s, $ b ill io n s $238.9 $243.6 $268.1 $253.1 $245.8 $287.8 $289.7 $335.2 $350.5 $359.4 83% 87% 75% 70% 66% 50% 60% 70% 80% 90% 100% 110% 120% 130% 0 50 100 150 200 250 300 350 400 4Q19 1Q20 2Q20 3Q20 4Q20 Loans Deposits Spot Loan / Deposit Ratio Loan Yield Deposit Cost 4.27% 4.08% 3.37% 3.32% 3.35% 0.87% 0.70% 0.23% 0.12% 0.08% Loans and Deposits 3% YoY Growth in Loans; 25% YoY Growth in Deposits

 
Income Statement: Solid Results in a Challenging Environment 6 Change vs. Change vs. $ millions 4Q20 3Q20 FY20 FY19 Full Year Highlights Revenue $4,208 ($73) $16,901 62  Record full year revenue Noninterest expense $2,708 $177 $10,297 ($277)  Full year expenses well-controlled; down 3% Pretax, pre-provision earnings $1,500 ($250) $6,604 $339  Grew pretax, pre-provision earnings 5% Provision for (recapture of) credit losses ($254) ($306) $3,175 $2,402  Bolstered reserves in response to COVID-19 impacts on the economic environment Net income from continuing ops. $1,456 ($76) $3,003 ($1,588)  Revenue growth and expense control more than offset by significant increase in provision 4Q20 3Q20 FY20 FY19 Efficiency ratio 64% 59% 61% 63%  Positive operating leverage of 3% Net interest margin 2.32% 2.39% 2.53% 2.89%  Lower rates and higher balances held at the Fed Diluted EPS from continuing ops. $3.26 $3.39 $6.36 $9.57  Decline is a result of significant increase in provision − Pretax, pre-provision earnings (Non-GAAP) – See Reconciliation in Appendix. − FY – Full Year.

 
$6,144 $6,469 $6,874 $6,955 $9,108 $9,721 $9,965 $9,946 $15,252 $16,190 $16,839 $16,901 2.87% 2.97% 2.89% 2.53% 1.80% 2.00% 2.20% 2.40% 2.60% 2.80% 3.00% 3.20% 3.40% 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 2017 2018 2019 2020 Noninterest Income NII NIM 7 Income Statement: Broad Based Businesses Drove Record Revenue Total Revenue − NII – Net Interest Income. − NIM – Net Interest Margin. 3% Compound Annual Growth Rate Details of Total Revenue Full Year Increase Led by 4% Growth in Fee Income $ m ill io n s Change vs. Change vs. $ millions 4Q20 3Q20 FY20 FY19 Net interest income $2,424 ($60) $9,946 ($19) Asset management $221 $6 $836 ($26) Consumer services 387 (3) 1,484 (71) Corporate services 650 171 2,167 253 Residential mortgage 99 (38) 604 236 Service charges on deposits 134 15 500 (202) Fee income $1,491 $151 $5,591 $190 Other noninterest income 293 (164) 1,364 (109) Noninterest income $1,784 ($13) $6,955 $81 Total revenue $4,208 ($73) $16,901 $62 $62

 
$10,398 $10,296 $10,574 $10,297 68% 64% 63% 61% 50.00% 55.00% 60.00% 65.00% 70.00% 75.00% 0 2000 4000 6000 8000 10000 2017 2018 2019 2020 Noninterest Expense Efficiency Ratio 8 Income Statement: Well Controlled Expenses Noninterest Expense Improving Efficiency Ratio Details of Noninterest Expense $ m ill io n s Change vs. Change vs. $ millions 4Q20 3Q20 FY20 FY19 Personnel $1,521 $111 $5,673 $26 Occupancy 215 10 826 (8) Equipment 296 4 1,176 (34) Marketing 64 (3) 236 (65) Other 612 55 2,386 (196) Noninterest expense $2,708 $177 $10,297 ($277) Decrease of 3% in 2020

 
Credit: COVID-19 High Impact Industries 9 $9.7 billion Commercial & Industrial Loans ($7.8 billion excluding PPP Loans) $7.5 billion Commercial Real Estate and Related Loans Leisure Recreation: Restaurants, casinos, hotels, convention centers Healthcare Facilities: Elective, private practices Other Impacted Areas: Shipping, senior living, specialty education Consumer Services: Religious organizations, childcare $4.5 billion / 64% Utilization Includes $0.7 billion in PPP Loans $1.8 billion / 83% Utilization Includes $0.4 billion in PPP Loans $0.8 billion / 46% Utilization Includes $0.1 billion in PPP Loans Non-Essential Retail & Restaurants: Malls, lifestyle centers, outlets, restaurants Hotel: Full service, limited service, extended stay Seniors Housing: Assisted living, independent living $2.9 billion / 66% Utilization $2.9 billion / 87% Utilization $1.7 billion / 61% Utilization $0.9 billion / 78% Utilization Includes $0.4 billion in PPP Loans Leisure Travel: Cruise, airlines, other travel / transportation $0.7 billion / 61% Utilization Includes $0.1 billion in PPP Loans − PPP Lending within the Commercial Real Estate and Related Loans category is not material. − Balances as of 12/31/20; excludes securitizations. − Commercial & Industrial loans exclude PNC Real Estate business loans. Commercial real estate and related loans include commercial loans in the PNC Real Estate business. $17.2 billion Outstanding Loan Balances ($15.2 billion excluding PPP Loans) Retail (non-essential): Retail excluding auto, gas, staples $1.0 billion / 21% Utilization Includes $0.2 billion in PPP Loans

 
10 Credit: Customer Need for Hardship Relief Declining Consumer and Retail Small Business Customer Balances in Hardship Assistance − Govt. guaranteed / investor owned includes govt. insured or guaranteed loans and investor owned mortgages; $2.9 billion and 57,000 accounts remain in assistance. − Exited Assistance includes loans that were paid-off or charged-off, representing $89 million or approximately 27,000 accounts. − Balances include auto, credit card, personal, home equity, resi-mortgage, private education and small business loans, and exclude loans serviced by others. Received Assistance As of 12/29/20 $0.9bn 25,000 Accounts $0.4 billion Scheduled to exit assistance in the next 6 weeks 60% Accounts made a payment in last payment cycle 1% Of Consumer and Retail Small Business Loans 91% Accounts current or less than 30 days past due 77% Of balances are secured with collateral Govt Guaranteed / Investor Owned Exited Assistance Still In Assistance with Credit Risk As of 12/29/20 1 2 3 4 $8.1bn 155,000 Accounts $14.8bn 355,000 Accounts $5.8bn 175,000 Accounts

 
11 Credit: Well Reserved for the Current Environment − NCO / Average Loans represents annualized net charge-offs (NCO) to average loans for the three months ended. − Allowance for Credit Losses (ACL) is Allowance for Loan and Lease Losses plus Allowance for Unfunded Lending Related Commitments. − Delinquencies represents accruing loans past due 30 days or more. Delinquencies to Total Loans represents delinquencies divided by spot loans. $ m ill io n s $ m ill io n s $ m ill io n s $ m ill io n s Delinquencies Nonperforming Loans Net Loan Charge-Offs Allowance for Credit Losses $209 $155 $229 0.35% 0.24% 0.37% 0 0.002 0.004 0.006 0.008 0.01 0 50 100 150 200 250 4Q19 3Q20 4Q20 Net Loan Charge-Offs NCO / Average Loans $3,060 $6,440 $5,945 1.28% 2.58% 2.46% 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0 1000 2000 3000 4000 5000 6000 12/31/2019 9/30/2020 12/31/2020 ACL ACL to Total Loans $1,504 $1,238 $1,363 0.63% 0.50% 0.56% -0.001 0.001 0.003 0.005 0.007 0.009 0.011 0.013 0.015 0 200 400 600 800 1000 1200 1400 1600 12/31/2019 9/30/2020 12/31/2020 Delinquencies Delinquencies to Total Loans $1,635 $2,085 $2,286 0.68% 0.84% 0.94% 0 0.005 0.01 0.015 0.02 0 500 1000 1500 2000 12/31/2019 9/30/2020 12/31/2020 Nonperforming Loans (NPLs) NPLs to Total Loans

 
$3,702 $6,590 $6,440 $5,945 $753 $2,135 $158 $8 $97 $398 1 2 3 4 5 6 7 8 9 10 12 Credit: Attribution of Change in Reserve Levels Under CECL − Figures in millions. − Excludes Allowances for Investment Securities and Other Financial Assets. − ACL at 1/1/20 is Allowance for Credit Losses inclusive of $642 million, Day 1 CECL Impact, divided by 12/31/19 total loans. Allowance for Credit Losses ACL 1/1/20 ACL 12/31/20 ACL 9/30/20 ACL 6/30/20 Portfolio Changes Portfolio Changes Portfolio Changes Economic / Qualitative Factors Economic / Qualitative Factors Economic / Qualitative Factors Portfolio Changes: Portfolio changes primarily represent the impact of increases / decreases in loan balances, age and mix due to new originations / purchases, as well as credit quality and net charge-off activity. Economic / Qualitative Factors: Primarily represent our evaluation and determination of an economic forecast applied to our loan portfolio, as well as updates to qualitative factor adjustments. ACL to Total Loans 2.46% ACL to Total Loans 2.55% ACL to Total Loans 2.58% ACL to Total Loans 1.54% 1H20 2H20

 
Update on BBVA USA Acquisition 13 Progress to Date Next Steps  Formed Enterprise Integration Working Group comprised of business and functional leads across PNC  Held multiple virtual town hall meetings with BBVA team members  Filed key regulatory applications in December  Confirmed system and application mapping, with vast majority migrating to PNC technology, reducing complexity  Conduct listening sessions with community organizations in PNC and BBVA markets  Finalize organizational alignment and employee mapping  Submit combined capital plan / stress test  Transaction expected to close mid-2021  Planning for system and bank conversion in 4Q21 On Track to Build Coast-to-Coast National Franchise

 
Outlook: First Quarter 2021 Compared to Fourth Quarter 2020 14 − Refer to Cautionary Statement in the Appendix, including economic and other assumptions. Does not take into account impact of potential legal and regulatory contingencies. − Average loans, net interest income, noninterest income, and noninterest expense outlook represents estimated percentage change for first quarter 2021 compared to fourth quarter 2020. Balance Sheet Net interest income Down approximately 1% Noninterest income Down mid-single digits Other noninterest income $275 - $325 million Noninterest expense Down mid-single digits Net loan charge-offs $200 - $250 million Average loans Stable to down modestly Income Statement

 
Outlook: PNC Standalone FY 2021 Compared to FY 2020 15 − Refer to Cautionary Statement in the Appendix, including economic and other assumptions. Does not take into account impact of potential legal and regulatory contingencies. − Average loans, revenue and noninterest expense outlook represents estimated percentage change for PNC standalone full year 2021 compared to full year 2020. Income Statement Revenue Stable Noninterest expense Stable Effective tax rate 17% Average loans Down low-single digitsBalance Sheet

 
This presentation includes “snapshot” information about PNC used by way of illustration and is not intended as a full business or financial review. It should not be viewed in isolation but rather in the context of all of the information made available by PNC in its SEC filings. We also make statements in this presentation, and we may from time to time make other statements, regarding our outlook for earnings, revenues, expenses, tax rates, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting PNC and its future business and operations that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as “believe,” “plan,” “expect,” “anticipate,” “see,” “look,” “intend,” “outlook,” “project,” “forecast,” “estimate,” “goal,” “will,” “should” and other similar words and expressions. Forward-looking statements are necessarily subject to numerous assumptions, risks and uncertainties, which change over time. Future events or circumstances may change our outlook and may also affect the nature of the assumptions, risks and uncertainties to which our forward-looking statements are subject. Forward-looking statements speak only as of the date made. We do not assume any duty and do not undertake to update forward-looking statements. Actual results or future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as from historical performance. As a result, we caution against placing undue reliance on any forward-looking statements. Our forward-looking statements are subject to the following principal risks and uncertainties.  Our businesses, financial results and balance sheet values are affected by business and economic conditions, including the following: − Changes in interest rates and valuations in debt, equity and other financial markets. − Disruptions in the U.S. and global financial markets. − Actions by the Federal Reserve Board, U.S. Treasury and other government agencies, including those that impact money supply and market interest rates. − Changes in customer behavior due to changing business and economic conditions or legislative or regulatory initiatives. − Changes in customers’, suppliers’ and other counterparties’ performance and creditworthiness. − Impacts of tariffs and other trade policies of the U.S. and its global trading partners. − The length and extent of the economic impact of the COVID-19 pandemic. − The impact of the results of the recent U.S. elections on the regulatory landscape, capital markets, and the response to and management of the COVID-19 pandemic. − Commodity price volatility. 16 Appendix: Cautionary Statement Regarding Forward-Looking Information

 
 Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account potential legal and regulatory contingencies. These statements are based on our view that: − The U.S. economy is in an economic recovery, following a very severe but very short economic contraction in the first half of 2020 due to the COVID-19 pandemic and public health measures to contain it. − Despite the improvement in the economy in recent months, economic activity remains far below its pre-pandemic level and unemployment remains elevated. − Growth will be much weaker in early 2021 because of record coronavirus cases and a tightening of government restrictions of economic activity. Growth should then pick up in the spring of 2021 as vaccines are more widely distributed and the federal government provides aid to households and small and medium-sized businesses. PNC does not expect real GDP to return to its pre-pandemic level until late 2021, and does not expect employment to return to its pre-pandemic level until at least 2023. − PNC expects the Federal Open Market Committee to keep the fed funds rate in its current range of 0.00 to 0.25 percent through at least mid-2024.  Our forward-looking statements are subject to the risk that conditions will be substantially different than we are currently expecting. If efforts to contain COVID-19 are unsuccessful and restrictions on businesses and activities continue in place for extended periods or are increased, the recovery would likely be much weaker and the economy could fall back into recession. While several vaccines have been approved for use and others remain in development or clinical trials, significant uncertainty remains regarding the speed with which effective vaccines can be manufactured and widely distributed. As a result, there is still a great deal of uncertainty about the length and severity of the pandemic and the strength or reversal of the economic rebound.  PNC's ability to take certain capital actions, including returning capital to shareholders, is subject to PNC meeting or exceeding a stress capital buffer established by the Federal Reserve Board in connection with the Federal Reserve Board's Comprehensive Capital Analysis and Review (CCAR) process. The Federal Reserve also has imposed additional limitations on capital distributions through the first quarter of 2021 by CCAR-participating bank holding companies and may extend these limitations, potentially in modified form.  PNC’s regulatory capital ratios in the future will depend on, among other things, the company’s financial performance, the scope and terms of final capital regulations then in effect and management actions affecting the composition of PNC’s balance sheet. In addition, PNC’s ability to determine, evaluate and forecast regulatory capital ratios, and to take actions (such as capital distributions) based on actual or forecasted capital ratios, will be dependent at least in part on the development, validation and regulatory review of related models.  Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities. Reputational impacts could affect matters such as business generation and retention, liquidity, funding, and ability to attract and retain management. These developments could include: − Changes to laws and regulations, including changes affecting oversight of the financial services industry, consumer protection, bank capital and liquidity standards, pension, bankruptcy and other industry aspects, and changes in accounting policies and principles. − Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries. These matters may result in monetary judgments or settlements or other remedies, including fines, penalties, restitution or alterations in our business practices, and in additional expenses and collateral costs, and may cause reputational harm to PNC. 17 Appendix: Cautionary Statement Regarding Forward-Looking Information

 
− Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies. − Impact on business and operating results of any costs associated with obtaining rights in intellectual property claimed by others and of adequacy of our intellectual property protection in general.  Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, derivatives, and capital management techniques, and to meet evolving regulatory capital and liquidity standards.  Our planned acquisition of BBVA USA Bancshares, Inc. presents us with risks and uncertainties related both to the acquisition transaction itself and to the integration of the acquired business into PNC after closing: − The business of BBVA USA Bancshares, Inc., including its U.S. banking subsidiary, BBVA USA, going forward may not perform as we currently project or in a manner consistent with historical performance. As a result, the anticipated benefits, including estimated cost savings, of the transaction may be significantly harder or take longer to achieve than expected or may not be achieved in their entirety as a result of unexpected factors or events, including those that are outside of our control. − The combination of BBVA USA Bancshares, Inc., including its U.S. banking subsidiary, BBVA USA, with that of PNC and PNC Bank may be more difficult to achieve than anticipated or have unanticipated adverse results relating to BBVA USA Bancshares, Inc., including its U.S. banking subsidiary, BBVA USA, or our existing businesses. − Completion of the transaction is dependent on the satisfaction of customary closing conditions, which cannot be assured. The timing of completion of the transaction is dependent on various factors that cannot be predicted with precision at this point.  In addition to the planned BBVA USA Bancshares, Inc. transaction, we grow our business in part through acquisitions and new strategic initiatives. Risks and uncertainties include those presented by the nature of the business acquired and strategic initiative, including in some cases those associated with our entry into new businesses or new geographic or other markets and risks resulting from our inexperience in those new areas, as well as risks and uncertainties related to the acquisition transactions themselves, regulatory issues, and the integration of the acquired businesses into PNC after closing.  Competition can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect market share, deposits and revenues. Our ability to anticipate and respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands.  Business and operating results can also be affected by widespread natural and other disasters, pandemics, dislocations, terrorist activities, system failures, security breaches, cyberattacks or international hostilities through impacts on the economy and financial markets generally or on us or our counterparties specifically. We provide greater detail regarding these as well as other factors in our 2019 Form 10-K and subsequent Form 10-Qs, including in the Risk Factors and Risk Management sections and the Legal Proceedings and Commitments Notes of the Notes To Consolidated Financial Statements in those reports, and in our other subsequent SEC filings. In particular, our forward-looking statements are subject to risks and uncertainties related to the COVID-19 pandemic and the resulting governmental and societal responses. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in our SEC filings, accessible on the SEC’s website at www.sec.gov and on our corporate website at www.pnc.com/secfilings. We have included these web addresses as inactive textual references only. Information on these websites is not part of this document. 18 Appendix: Cautionary Statement Regarding Forward-Looking Information

 
Appendix: Oil & Gas Loans 19 1.4% $241.9 billion − Excludes securitizations. Total Loans As of 12/31/20 $ billions $0.9 billion Exploration & Production (0.4% of Loans) Utilization Rate 29% $3.4 billion Outstanding Loan Balance Oil / Gas Mix 46% / 54% Reserve-Based Structure 84% $1.6 billion Midstream and Downstream (0.7% of Loans) $0.9 billion Services (0.4% of Loans) Utilization Rate 46% Asset-Based Structure 78% Utilization Rate 31% Midstream Oil / Gas Mix 36% / 64% Asset-Based Structure 16%

 
Appendix: Non-GAAP to GAAP Reconciliation 20 Return on Tangible Common Equity (Non-GAAP) $ millions Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2020 Sep. 30, 2020 Return on average common shareholders' equity 15.21% 11.50% 11.16% 11.76% Average common shareholders' equity 47,892$ 44,606$ 49,525$ 49,099$ Average Goodwill and Other intangible assets (9,409) (9,452) (9,387) (9,401) Average deferred tax liabilities on Goodwill and Other intangible assets 188 190 188 188 Average tangible common equity 38,671$ 35,344$ 40,326$ 39,886$ Net income attributable to common shareholders 7,284$ 5,129$ 1,393$ 1,455$ Net income attributable to common shareholders, if annualized 7,284$ 5,129$ 5,526$ 5,772$ Return on average tangible common equity 18.84% 14.51% 13.70% 14.47% Return on average tangible common equity is a non-GAAP financial measure and is calculated based on annualized net income attributable to common shareholders divided by tangible common equity. We believe that return on average tangible common equity is useful as a tool to help measure and assess a company's use of common equity. For the three months endedFor the year ended

 
Appendix: Non-GAAP to GAAP Reconciliation 21 Tangible Book Value per Common Share (Non-GAAP) $ millions, except per share data Dec. 31, 2020 Sept. 30, 2020 Dec. 31, 2019 12/31/20 vs. 9/30/20 12/31/20 vs. 12/31/19 Book value per common share $119.11 $117.44 $104.59 1% 14% Tangible book value per common share Common shareholders' equity $50,493 $49,760 $45,321 Goodwill and Other intangible assets (9,381) (9,396) (9,441) Deferred tax liabilities on Goodwill and Other intangible assets 188 187 187 Tangible common shareholders' equity $41,300 $40,551 $36,067 Period-end common shares outstanding (in millions) 424 424 433 Tangible book value per common share (Non-GAAP) $97.43 $95.71 $83.30 2% 17% % Change Tangible book value per common share is a non-GAAP financial measure and is calculated based on tangible common shareholders’ equity divided by period-end common shares outstanding. We believe this non-GAAP measure serves as a useful tool to help evaluate the strength and discipline of a company's capital management strategies and as an additional, conservative measure of total company value.

 
Appendix: Non-GAAP to GAAP Reconciliation 22 % Change % Change Dec. 31, 2020 Dec. 31, 2019 2020 vs. 2019 Dec. 31, 2020 Sep. 30, 2020 4Q20 vs. 3Q20 $9,946 $9,965 (0%) $2,424 $2,484 (2%) 6,955 6,874 1% 1,784 1,797 (1%) $16,901 $16,839 0% $4,208 $4,281 (2%) 10,297 10,574 (3%) 2,708 2,531 7% $6,604 $6,265 5% $1,500 $1,750 (14%) $3,003 $4,591 (35%) $1,456 $1,532 (5%) For the three months ended Pretax, Pre-Provision Earnings (Non-GAAP) We believe that pretax, pre-provision earnings, a non-GAAP financial measure, is useful as a tool to help evaluate the ability to provide for credit costs through operations. $ millions Net interest income Noninterest income Total revenue Noninterest expense Pretax pre-provision earnings Net income from continuing operations For the year ended