The PNC Financial Services Group, Inc. (PNC) Q4 2022 Earnings Call Transcript

The PNC Financial Services Group, Inc. (NYSE:PNC) Q4 2022 Results Conference Call January 18, 2023 9:00 AM ET

Company Participants

Bryan Gill - SVP, Director-IR

Bill Demchak - Chairman, President & CEO

Rob Reilly - EVP, CFO

Conference Call Participants

John Pancari - Evercore

John McDonald - Autonomous Research

Gerard Cassidy - RBC

Bill Carcache - Wolfe Research

Betsy Graseck - Morgan Stanley

Ken Usdin - Jefferies

Mike Mayo - Wells Fargo Securities

Ebrahim Poonawala - Bank of America

Matt O'Conor - Deutsche Bank

Vivek Juneja - JPMorgan

Bryan Gill

Good morning. Welcome to today's conference call for the PNC Financial Services Group. Participating on this call are PNC's Chairman, President and CEO, Bill Demchak; and Rob Reilly, Executive Vice President and CFO.

Today's presentation contains forward-looking information. Cautionary statements about this information as well as reconciliations of non-GAAP measures are included in today's earnings release materials as well as our SEC filings and other investor materials. These are all available on our corporate website, pnc.com, under Investor Relations. These statements speak only as of January 18, 2023, and PNC undertakes no obligation to update them.

Now, I'd like to turn the call over to Bill.

Bill Demchak

Thanks, Bryan, and good morning, everybody. 2022 is a successful year for our company, and our strong performance during the year reflects the power of our Main Street bank model and our coast-to-coast franchise.

For the full year, we reported $6.1 billion in net income or $13.85 per share. Inside of that, we grew loans and generated record revenue during a rapidly rising rate environment while at the same time we controlled expenses, resulting in substantial positive operating leverage for the full year 2022.

Turning to our results for the fourth quarter, we generated $1.5 billion of net income or $3.47 per share. Growth in both net interest income and fee income contributed to a 4% increase in revenue. Our expenses were up 6% this quarter, primarily due to increased compensation from elevated business activity, particularly in our advisory businesses.

Rob is going to provide more detail on our fourth quarter expenses as well as our outlook in a few minutes. Average loans grew 3% during the quarter, driven by growth in both commercial and consumer. For the full year, average loans were up 15%, and we continue to grow our loan book in a disciplined manner.