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Jun 30, 2023
PNC Q2 2023 Earnings Report
Reported a solid financial performance with strong credit quality metrics.
Key Takeaways
PNC Financial Services Group reported a net income of $1.5 billion for Q2 2023, with diluted EPS of $3.36. The company's capital position remained strong, and the board increased the quarterly common stock dividend by 5 cents to $1.55 per share.
Net income was $1.5 billion, and diluted EPS was $3.36.
Tangible book value increased to $77.80.
CET1 capital ratio increased 30 basis points to 9.5%.
The quarterly dividend was raised 5 cents to $1.55 per share.
PNC
PNC
PNC Revenue by Segment
Revenue by Segment
Retail Banking Revenue
CapyFin.comCorporate & Institutional Revenue
CapyFin.comAsset Management Revenue
CapyFin.com Forward Guidance
The economy is expected to continue expanding in the first half of 2023, but economic growth is slowing in response to the ongoing Federal Reserve monetary policy tightening to slow inflation. PNC's baseline outlook is for a mild recession starting in late 2023 or early 2024.
Positive Outlook
- The economy continues to expand in the first half of 2023.
- Inflation will slow with weaker demand, moving back to the Federal Reserve's 2% objective by next year.
- PNC expects federal funds rate cuts in response to the recession.
- PNC's SCB for the four-quarter period beginning October 1, 2023 will improve to the regulatory minimum of 2.5%.
- PNC maintained a strong capital position.
Challenges Ahead
- Economic growth is slowing in response to the ongoing Federal Reserve monetary policy tightening to slow inflation.
- The housing market is already in contraction, with steep drops in existing home sales and single-family housing starts, and a modest decline in house prices.
- PNC's baseline outlook is for a mild recession starting in late 2023 or early 2024, with a small contraction in real GDP of less than 1%, lasting into mid-2024.
- The unemployment rate will increase in the second half of this year, ending 2023 at above 4%, and then peak slightly above 5% in early 2025.
- Share repurchase activity is expected to be reduced in the third quarter of 2023 compared to recent prior quarters.
Revenue & Expenses
Visualization of income flow from segment revenue to net income