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10-QPeriod: Q3 FY2020

PNC FINANCIAL SERVICES GROUP, INC. Quarterly Report for Q3 Ended Sep 30, 2020

Filed November 3, 2020For Securities:PNC

Summary

PNC Financial Services Group, Inc. (PNC) filed its third-quarter 2020 10-Q report on November 3, 2020. The filing indicates that the company has temporarily suspended its common stock repurchase program in conjunction with the Federal Reserve's efforts to support the U.S. economy during the pandemic. This suspension is expected to continue through the fourth quarter of 2020, aligning with extended Federal Reserve capital distribution restrictions. While the broad repurchase program is paused, PNC did repurchase $99 million of common shares during the third quarter to offset shares issued in connection with employee benefit plans, a move permitted by Federal Reserve guidance. Investors should note that there were no material changes to the previously disclosed risk factors from the first quarter 2020 10-Q and the 2019 10-K. The company also reported no unregistered sales of equity securities during the period. The primary focus for investors in this filing lies in the company's capital management strategies amidst the ongoing economic uncertainty and regulatory directives.

Financial Statements
Beta
Revenue$4.28B
Operating Income$1.52B
Interest Expense$192.00M
Net Income$1.53B
EPS (Basic)$3.40
EPS (Diluted)$3.39
Shares Outstanding (Basic)426.00M
Shares Outstanding (Diluted)426.00M

Key Highlights

  • 1PNC temporarily suspended its common stock repurchase program through Q4 2020 due to Federal Reserve capital distribution restrictions related to the pandemic.
  • 2The company repurchased $99 million of common shares in Q3 2020 to offset employee benefit plan-related issuances, as permitted by the Federal Reserve.
  • 3There were no material changes to previously disclosed risk factors compared to prior filings.
  • 4No unregistered sales of equity securities were reported during the third quarter of 2020.
  • 5The company repurchased a total of 927 shares in Q3 2020, primarily to cover employee benefit plan requirements.
  • 6The maximum number of shares that may yet be purchased under existing programs stood at 75,109 as of September 30, 2020, although the primary repurchase program is suspended.

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