Fee-Based Revenue from Contracts with Customers

9 Months Ended

Sep. 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 in our 2022 Form 10-K.

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 September 30, 2023						Three Months Ended September 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					$	217					$	224
Brokerage fees	$	129			2		$	131			2
Total asset management and brokerage	129				219		131				226
Card and cash management
Treasury management fees	10		$	351			11		$	328
Debit card fees	175						175
Net credit card fees (a)	54						60
Merchant services	42		20				48		16
Other	24						23
Total card and cash management	305		371				317		344
Lending and deposit services
Deposit account fees	170						146
Other	18		8				16		8
Total lending and deposit services	188		8				162		8
Residential and commercial mortgage (b)			32						36
Capital markets and advisory			124						155
Other			22						11
Total in-scope noninterest income	622		557		219		610		554		226
Out-of-scope noninterest income (c)	162		278		4		115		333		5
Noninterest income by business segment	$	784	$	835	$	223	$	725	$	887	$	231
Reconciliation to consolidated noninterest income
Total in-scope business segment noninterest income					$	1,398					$	1,390
Out-of-scope business segment noninterest income (c)					444						453
Noninterest income from other segments					(27)						231
Noninterest income as shown on the Consolidated Income Statement					$	1,815					$	2,074

(Continued from previous page)	Nine Months Ended September 30, 2023						Nine Months Ended September 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					$	663					$	693
Brokerage fees	$	383			6		$	400			6
Total asset management and brokerage	383				669		400				699
Card and cash management
Treasury management fees	31		$	1,024			30		$	957
Debit card fees	518						513
Net credit card fees (a)	173						178
Merchant services	126		58				141		47
Other	73						73
Total card and cash management	921		1,082				935		1,004
Lending and deposit services
Deposit account fees	476						433
Other	54		24				50		25
Total lending and deposit services	530		24				483		25
Residential and commercial mortgage (b)			114						100
Capital markets and advisory			410						564
Other			44						33
Total in-scope noninterest income	1,834		1,674		669		1,818		1,726		699
Out-of-scope noninterest income (c)	395		868		12		400		933		14
Noninterest income by business segment	$	2,229	$	2,542	$	681	$	2,218	$	2,659	$	713
Reconciliation to consolidated noninterest income
Total in-scope business segment noninterest income					$	4,177					$	4,243
Out-of-scope business segment noninterest income (c)					1,275						1,347
Noninterest income from other segments					164						437
Noninterest income as shown on the Consolidated Income Statement					$	5,616					$	6,027

(a)Net credit card fees consists of interchange fees of $169 million for both the three months ended September 30, 2023 and 2022. Credit card reward costs totaled $115 million and $109 million for the three months ended September 30, 2023 and 2022, respectively. Net credit card fees consists of interchange fees of $502 million and $489 million and credit card reward costs of $329 million and $311 million for the nine months ended September 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.