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Segment Reporting
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING

We have three reportable business segments:
•
Retail Banking
•
Corporate & Institutional Banking
•
Asset Management Group

Results of individual businesses are presented based on our internal management reporting practices. There is no comprehensive, authoritative body of guidance for management accounting equivalent to GAAP; therefore, the financial results of our individual businesses are not necessarily comparable with similar information for any other company. We periodically refine our internal methodologies as management reporting practices are enhanced. To the extent significant and practicable, retrospective application of new methodologies is made to prior period reportable business segment results and disclosures to create comparability with the current period.

During the second quarter, we divested our entire 22.4% investment in BlackRock. See Note 2 Discontinued Operations for additional information on the sale and details on our results and cash flows for the three and six months ended June 30, 2020 and 2019. Following the sale and donation, PNC and its affiliates only hold shares of BlackRock stock in a fiduciary capacity for clients of PNC and its affiliates.

Total business segment financial results differ from total consolidated net income. These differences are reflected in the “Other” category in the business segment tables. “Other” includes residual activities that do not meet the criteria for disclosure as a separate reportable business, such as asset and liability management activities including net securities gains or losses, other-than-temporary impairment of investment securities, certain trading activities, certain runoff consumer loan portfolios, private equity investments, intercompany eliminations, certain corporate overhead, tax adjustments that are not allocated to business segments, exited businesses and differences between business segment performance reporting and financial statement reporting (GAAP), including the presentation of net income attributable to noncontrolling interests as the segments’ results exclude their portion of net income attributable to noncontrolling interests. The “Other” category also includes our BlackRock held for sale asset. Assets, revenue and earnings attributable to foreign activities were not material in the period presented for comparison.

Financial results are presented, to the extent practicable, as if each business operated on a stand-alone basis. Additionally, we have aggregated the results for corporate support functions within “Other” for financial reporting purposes.

Net interest income in business segment results reflects our internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors.

We have allocated the ALLL and the allowance for unfunded lending related commitments based on the loan exposures within each business segment’s portfolio. Key reserve assumptions and estimation processes react to and are influenced by observed changes in loan portfolio performance experience, the financial strength of the borrower and economic conditions. Key reserve assumptions are periodically updated.
Business Segment Results

Table 81: Results of Businesses
Three months ended June 30
In millions
 
Retail Banking

 
Corporate &
Institutional
Banking

 
Asset
Management
Group

 
Other

 
Consolidated (a) 

2020
 
 
 
 
 
 
 
 
 
 
Income Statement
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
1,390

 
$
1,052

 
$
89

 
$
(4
)
 
$
2,527

Noninterest income
 
585

 
726

 
204

 
34

 
1,549

Total revenue
 
1,975

 
1,778

 
293

 
30

 
4,076

Provision for credit losses
 
761

 
1,585

 
39

 
78

 
2,463

Depreciation and amortization
 
67

 
51

 
12

 
121

 
251

Other noninterest expense
 
1,433

 
622

 
205

 
4

 
2,264

Income (loss) from continuing operations before income taxes (benefit) and
 noncontrolling interests
 
(286
)
 
(480
)
 
37

 
(173
)
 
(902
)
Income taxes (benefit)
 
(63
)
 
(122
)
 
9

 
18

 
(158
)
Net income (loss) from continuing operations
 
$
(223
)
 
$
(358
)
 
$
28

 
$
(191
)
 
$
(744
)
Average Assets
 
$
102,103

 
$
199,254

 
$
7,958

 
$
147,998

 
$
457,313

2019
 
 
 
 
 
 
 
 
 
 
Income Statement
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
1,376

 
$
897

 
$
68

 
$
157

 
$
2,498

Noninterest income
 
657

 
661

 
286

 
113

 
1,717

Total revenue
 
2,033

 
1,558

 
354

 
270

 
4,215

Provision for credit losses (benefit)
 
81

 
100

 


 
(1
)
 
180

Depreciation and amortization
 
59

 
50

 
28

 
120

 
257

Other noninterest expense
 
1,468

 
648

 
221

 
17

 
2,354

Income from continuing operations before income taxes (benefit) and
noncontrolling interests
 
425

 
760

 
105

 
134

 
1,424

Income taxes (benefit)
 
100

 
158

 
25

 
(44
)
 
239

Net income from continuing operations
 
$
325

 
$
602

 
$
80

 
$
178

 
$
1,185

Average Assets
 
$
92,350

 
$
163,897

 
$
7,150

 
$
133,565

 
$
396,962

Six months ended June 30
In millions
 
Retail
Banking

 
Corporate &
Institutional
Banking

 
Asset
Management
Group

 
Other

 
Consolidated (a) 

2020
 
 
 
 
 
 
 
 
 
 
Income Statement
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
2,846

 
$
2,002

 
$
177

 
$
13

 
$
5,038

Noninterest income
 
1,373

 
1,420

 
408

 
173

 
3,374

Total revenue
 
4,219

 
3,422

 
585

 
186

 
8,412

Provision for credit losses
 
1,206

 
2,043

 
42

 
86

 
3,377

Depreciation and amortization
 
124

 
99

 
23

 
245

 
491

Other noninterest expense
 
2,912

 
1,296

 
413

 
(54
)
 
4,567

Income (loss) from continuing operations before income taxes (benefit) and
noncontrolling interests
 
(23
)
 
(16
)
 
107

 
(91
)
 
(23
)
Income taxes (benefit)
 
(1
)
 
(28
)
 
25

 
(34
)
 
(38
)
Net income (loss) from continuing operations
 
$
(22
)
 
$
12

 
$
82

 
$
(57
)
 
$
15

Average Assets
 
$
99,583

 
$
185,878

 
$
7,880

 
$
141,533

 
$
434,874

2019
 
 
 
 
 
 
 
 
 
 
Income Statement
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
2,725

 
$
1,774

 
$
138

 
$
336

 
$
4,973

Noninterest income
 
1,252

 
1,237

 
503

 
311

 
3,303

Total revenue
 
3,977

 
3,011

 
641

 
647

 
8,276

Provision for credit losses (benefit)
 
209

 
171

 
(1
)
 
(10
)
 
369

Depreciation and amortization
 
110

 
100

 
40

 
241

 
491

Other noninterest expense
 
2,885

 
1,284

 
439

 
90

 
4,698

Income from continuing operations before income taxes (benefit) and
noncontrolling interests
 
773

 
1,456

 
163

 
326

 
2,718

Income taxes (benefit)
 
184

 
302

 
38

 
(73
)
 
451

Net income from continuing operations
 
$
589

 
$
1,154

 
$
125

 
$
399

 
$
2,267

Average Assets
 
$
91,805

 
$
160,551

 
$
7,204

 
$
131,901

 
$
391,461

(a)
There were no material intersegment revenues for the three and six months ended June 30, 2020 and 2019.

Business Segment Products and Services
   
Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. The branch network is located primarily in markets across the Mid-Atlantic, Midwest and Southeast. In 2018, Retail Banking launched its national expansion strategy designed to grow customers with digitally-led banking and an ultra-thin branch network in markets outside of our existing retail branch network. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to agency and/or third-party standards, and either sold, servicing retained, or held on our balance sheet. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts.

Corporate & Institutional Banking provides lending, treasury management and capital markets-related products and services to mid-sized and large corporations, and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Treasury Management business provides payables, receivables, deposit and account services, liquidity and investments, and online and mobile banking products and services to our clients. Capital markets-related products and services include foreign exchange, derivatives, securities underwriting, loan syndications, mergers and acquisitions advisory and equity capital markets advisory related services. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are provided nationally.

Asset Management Group provides personal wealth management for high net worth and ultra high net worth clients and institutional asset management. The Asset Management group is composed of three distinct operating units:
•
Wealth Management provides products and services to individuals and their families including investment and retirement planning, customized investment management, private banking, and trust management and administration for individuals and their families.
•
Our Hawthorn unit provides multi-generational family planning including estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth clients.
•
Institutional asset management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and fiduciary retirement advisory services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.