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10-KPeriod: FY2018

PNC FINANCIAL SERVICES GROUP, INC. Annual Report, Year Ended Dec 31, 2018

Filed March 1, 2019For Securities:PNC

Summary

PNC Financial Services Group, Inc. (PNC) reported solid performance for the year ended December 31, 2018. The company experienced a modest increase in net income to $5.3 billion, or $10.71 per diluted common share, compared to $5.4 billion, or $10.36 per diluted common share, in 2017. This was primarily driven by a 5% increase in total revenue to $17.1 billion, with net interest income rising 7% due to higher yields and balances, and a 1% decrease in noninterest expense to $10.3 billion. The company maintained a strong capital position, with its Basel III common equity Tier 1 capital ratio at 9.6% at year-end. PNC returned $4.4 billion in capital to shareholders through share repurchases and dividends, reflecting its commitment to shareholder value while supporting business growth and investment. Key balance sheet highlights include a slight increase in total assets to $382.3 billion and total deposits to $267.8 billion. Credit quality remained strong, with nonperforming assets decreasing by 11% and net charge-offs declining by 8%. The company's strategic priorities include expanding its banking franchise digitally and geographically, deepening customer relationships, and leveraging technology for innovation. PNC's outlook for 2019 anticipates loan growth between 3% and 4%, revenue growth in the low single digits, and controlled noninterest expense growth.

Financial Statements
Beta
Revenue$16.19B
Operating Income$4.51B
Interest Expense$2.86B
Net Income$5.35B
EPS (Basic)$10.79
EPS (Diluted)$10.71
Shares Outstanding (Basic)467.00M
Shares Outstanding (Diluted)470.00M

Key Highlights

  • 1PNC Financial Services Group, Inc. reported net income of $5.3 billion ($10.71 per diluted share) for the year ended December 31, 2018, a slight decrease from $5.4 billion ($10.36 per diluted share) in 2017.
  • 2Total revenue increased 5% to $17.1 billion, with net interest income up 7% to $9.7 billion, driven by higher loan and securities yields and balances.
  • 3Noninterest expense decreased 1% to $10.3 billion, primarily due to specific charges in the prior year being lapped.
  • 4The company maintained a strong capital position, with its Basel III Common Equity Tier 1 capital ratio at 9.6% at December 31, 2018.
  • 5PNC returned $4.4 billion of capital to shareholders in 2018 through $2.8 billion in share repurchases and $1.6 billion in common share dividends.
  • 6Total assets grew slightly to $382.3 billion, and total deposits increased to $267.8 billion.
  • 7Credit quality remained robust, with nonperforming assets decreasing 11% and net charge-offs decreasing 8% compared to the prior year.

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