PNC Financial Services Group, Inc. (PNC) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 14, 2023 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks：

Bryan Gill

Good morning, and 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 April 14, 2023, and PNC undertakes no obligation to update them.

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

William Demchak

Thank you, Bryan, and good morning, everybody. As you can see on the slide, our quarterly results were strong, and we reported $1.7 billion in net income or $3.98 per share. Inside of this, we grew deposits and loans, increased our capital and liquidity positions generated positive operating leverage and maintain strong credit quality.

For the past month, we've seen market volatility across the broader industry. And while we take this situation seriously and are closely monitoring the environment, it's important to note that these events have taken place within a few banks with very unique business models. Inside of our company, we really haven't seen any meaningful impacts from the events of the past month. Our balance sheet remains strong and stable, and we are operating the company in the same way we were at the beginning of March.

Ultimately, over time, we expect the dynamics playing out in the banking system today to contribute to changes in the competitive landscape. And while it's still early innings, we believe that PNC will be a beneficiary from this process.

That said, in the near term, we're not immune to the competitive environment and the deposit dynamics that will ultimately impact our NII in the near term, and Rob is going to cover that in more detail in a second. We remain focused on growing relationships across our lines of business, and we continue to execute on key priorities, including the expansion in the BBVA legacy markets.

Rob will provide more details on our financial performance in a moment. However, for this particular call, he'll review our first quarter earnings in a slightly condensed manner to allow time to also cover key balance sheet focus points that have been top of mind for our investors in the last couple of weeks. And of course, following that, we'll be able to discuss your specific questions in the Q&A segment.