The PNC Financial Services Group, Inc. (NYSE:PNC) Q3 2023 Earnings Conference Call October 13, 2023 11:00 AM ET

Company Participants

Bryan Gill - Director of Investor Relations

Bill Demchak - Chairman, President and Chief Executive Officer

Rob Reilly - Executive Vice President and Chief Financial Officer

Conference Call Participants

John Pancari - Evercore

Nate Stein - Deutsche Bank

Scott Siefers - Piper Sandler

Gerard Cassidy - RBC

Bill Carcache - Wolfe Research

Peter Troisi - Barclays

Mike Mayo - Wells Fargo Securities

Ken Usdin - Jefferies

Bryan Gill

Good morning, and welcome to today's conference call for The PNC Financial Services Group.

I am Bryan Gill, the Director of Investor Relations for PNC. And 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 October 13, 2023, and PNC undertakes no obligation to update them.

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

Bill Demchak

Thank you, Bryan, and good morning, everyone.

As you can see on the slide, we delivered strong results in the third quarter, generating $1.6 billion in net income, or $3.60 in diluted earnings per share. Rob is going to take you through the numbers in a moment, but I'd like to touch on a few highlights.

First, in a challenging operating environment, we generated 3 points of positive operating leverage through disciplined expense management. Our credit quality remained strong during the quarter, reflecting our thoughtful approach to managing risk, customer selection, and long-term relationship development, all of which have historically served us well in challenging economic cycles.

Next, we strengthened our capital and liquidity positions even further during the quarter. While we continue to monitor discussions regarding regulatory changes in these areas, based on our current estimates, we are well positioned to meet the proposed requirements without meaningful changes to how we operate. We continue to execute on our key strategic priorities, including our expansion market efforts in upgrading our digital capabilities. And we leveraged our strong balance sheet to take advantage of opportunities such as the Signature Bank loans that we recently acquired.