Fee-Based Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Fee-Based Revenue from Contracts with Customers

FEE-BASED REVENUE FROM CONTRACTS WITH CUSTOMERS

As more fully described in Note 24 Fee-based Revenue from Contracts with Customers in our 2022 Form 10-K, a subset of our noninterest income relates to certain fee-based revenue within the scope of ASC Topic 606 - Revenue from Contracts with Customers (Topic 606).

Fee-based revenue within the scope of Topic 606 is recognized within our three reportable business segments: Retail Banking, Corporate & Institutional Banking and Asset Management Group. Interest income, income from lease contracts, fair value gains from financial instruments (including derivatives), income from mortgage servicing rights and guarantee products, letter of credit fees, non-refundable fees associated with acquiring or originating a loan and gains from the sale of financial assets are outside of the scope of Topic 606.

In the fourth quarter of 2022, PNC updated the name of the noninterest income line item “Capital markets related” to “Capital markets and advisory.” This update did not impact the components of the category. All periods presented herein reflect these changes. For a description of each updated noninterest income revenue stream, see Note 1 Accounting Policies.

Table 80 presents the noninterest income recognized within the scope of Topic 606 for each of our three reportable business segments’ principal products and services, along with the relationship to the noninterest income revenue streams shown on our Consolidated Income Statement. For a description of the fee-based revenue and how it is recognized for each segment’s principal products and services, see Note 24 Fee-based Revenue from Contracts with Customers in our 2022 Form 10-K.

Table 80: Noninterest Income by Business Segment and Reconciliation to Consolidated Noninterest Income

	Three Months Ended June 30, 2023						Three Months Ended June 30, 2022
In millions	Retail Banking		Corporate & Institutional Banking		Asset Management Group		Retail Banking		Corporate & Institutional Banking		Asset Management Group
Asset management and brokerage
Asset management fees					$	222					$	228
Brokerage fees	$	124			2		$	135			2
Total asset management and brokerage	124				224		135				230
Card and cash management
Treasury management fees	11		$	345			10		$	327
Debit card fees	178						177
Net credit card fees (a)	61						63
Merchant services	45		19				52		14
Other	25						27
Total card and cash management	320		364				329		341
Lending and deposit services
Deposit account fees	151						145
Other	18		8				17		9
Total lending and deposit services	169		8				162		9
Residential and commercial mortgage (b)			40						33
Capital markets and advisory			130						272
Other			14						9
Total in-scope noninterest income	613		556		224		626		664		230
Out-of-scope noninterest income (c)	89		265		4		122		304		4
Noninterest income by business segment	$	702	$	821	$	228	$	748	$	968	$	234
Reconciliation to consolidated noninterest income
Total in-scope business segment noninterest income					$	1,393					$	1,520
Out-of-scope business segment noninterest income (c)					358						430
Noninterest income from other segments					32						115
Noninterest income as shown on the Consolidated Income Statement					$	1,783					$	2,065

(Continued from previous page)	Six Months Ended June 30, 2023						Six Months Ended June 30, 2022
In millions	Retail Banking		Corporate & Institutional Banking		Asset Management Group		Retail Banking		Corporate & Institutional Banking		Asset Management Group
Asset management and brokerage
Asset management fees					$	446					$	469
Brokerage fees	$	254			4		$	269			4
Total asset management and brokerage	254				450		269				473
Card and cash management
Treasury management fees	21		$	673			19		$	629
Debit card fees	343						338
Net credit card fees (a)	119						118
Merchant services	84		38				93		31
Other	49						50
Total card and cash management	616		711				618		660
Lending and deposit services
Deposit account fees	306						287
Other	36		16				34		17
Total lending and deposit services	342		16				321		17
Residential and commercial mortgage (b)			82						64
Capital markets and advisory			286						409
Other			22						22
Total in-scope noninterest income	1,212		1,117		450		1,208		1,172		473
Out-of-scope noninterest income (c)	233		590		8		285		600		9
Noninterest income by business segment	$	1,445	$	1,707	$	458	$	1,493	$	1,772	$	482
Reconciliation to consolidated noninterest income
Total in-scope business segment noninterest income					$	2,779					$	2,853
Out-of-scope business segment noninterest income (c)					831						894
Noninterest income from other segments					191						206
Noninterest income as shown on the Consolidated Income Statement					$	3,801					$	3,953

(a)Net credit card fees consists of interchange fees of $173 million and $172 million and credit card reward costs of $112 million and $109 million for the three months ended June 30, 2023 and 2022, respectively. Net credit card fees consists of interchange fees of $333 million and $320 million and credit card reward costs of $214 million and $202 million for the six months ended June 30, 2023 and 2022, respectively.

(b)Residential mortgage noninterest income falls under the scope of other accounting and disclosure requirements outside of Topic 606 and is included within the out-of-scope noninterest income line for the Retail Banking segment.

(c)Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606.