Financial Results
Asset Management Earnings Slide At PNC In Fourth Quarter

The asset management side of the bank's earnings were squeezed by falling noninterest income, higher costs and a provision for credit losses that swung around from a net release a year before.
Earnings at the asset management arm of PNC, the US-based banking and financial services group, slumped by 52 per cent in the fourth quarter of 2022 from a year before. Noninterest income dropped, and noninterest costs rose, while there was a provision for credit losses in Q4, contrasting with a net release of such funds a year ago.
Discretionary client assets under management fell 19 per cent year-on-year to $173 billion at the end of December 2022, reflecting the selloff to global equity and bond markets last year. Non-discretionary client assets under administration fell 23 per cent to $152 billion. Client assets under administration fell 42 per cent year-on-year to $325 billion.
For the PNC group, net income in Q2 2022 slipped to $1.548 billion from $1.64 billion, the group said in a statement yesterday.
Return on average common shareholders’ equity was 14.19 per cent, down from 14.97 per cent at the end of September 2022; its Common Equity Tier 1 ratio – a standard international yardstick of a bank’s capital buffer – was 9.1 per cent, down from 9.3 per cent in the previous quarter.
“Our credit quality metrics remained strong and our solid capital position allowed us to return $6 billion of capital to shareholders throughout the year. As we enter 2023, we are well positioned to continue generating value for our stakeholders,” Bill Demchak, PNC chairman, president and chief executive, said.