The PNC Financial Services Group, Inc. (NYSE:PNC) Q4 2023 Results Conference Call January 16, 2024 11:00 AM ET
Company Participants
Bryan Gill - Director of Investor Relations
Bill Demchak - Chairman, President and CEO
Rob Reilly - Executive Vice President and CFO
Conference Call Participants
John McDonald - Autonomous Research
John Pancari - Evercore
Scott Siefers - Piper Sandler
Manan Gosalia - Morgan Stanley
Gerard Cassidy - RBC
Bill Carcache - Wolfe Research
Erika Najarian - UBS
Ken Usdin - Jefferies
Mike Mayo - Wells Fargo
Ebrahim Poonawala - Bank of America
Matt O'Connor - Deutsche Bank
Dave Rochester - Compass Point
Vivek Juneja - JPMorgan
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 January 16, 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. During a challenging and volatile operating environment for the banking industry, PNC performed well during 2023 and delivered a solid finish in the fourth quarter. For the full year 2023, adjusting for the fourth quarter impact of the FDIC special assessment and expenses related to a staff reduction initiative that we completed in the fourth quarter, we earned $14.10 per diluted share compared to $13.85 per diluted share in 2022. Throughout the year and amidst all the disruption, we continue to grow our customer base and deepen relationships across our coast-to-coast franchise. Importantly, we generated record revenue and controlled core expenses, which allowed us to deliver a modest amount of positive adjusted operating leverage. For the fourth quarter, we reported $883 million in net income or $1.85 diluted per share and $3.16 per share on an adjusted basis. Rob is going to take you through the financials in a moment, but I'd like to highlight a few points. First, as we announced in early October, we closed on the acquisition of the capital commitment loans from Signature, which is immediately accretive to earnings. Secondly, as we expected, we saw meaningful growth from non-interest income during the fourth quarter, driven primarily by a rebound in capital markets and advisory fees. Third, we completed the actions to reduce our workforce and we are positioned to realize $325 million of expense savings in 2024. This is in addition to our CIP savings target for 2024 that Rob will discuss in a few minutes.