PNC prioritized expense management in the second quarter in the wake of market uncertainty due to higher interest rates, supply chain disruptions and increasing inflation.

“Our focus is on executing the things we can control and not getting distracted by what is beyond our control,” PNC Chief Executive Bill Demchak said during today’s earnings call, adding that the Pittsburgh-based bank has continued to build its new BBVA and expansion markets and modernize its retail banking technology platform.

PNC posted a net income of $1.5 billion in Q2, up 36% year over year and 7% sequentially, according to the bank’s earnings supplement. The bank did not break out its technology spend; however, its “equipment” expenses rose 8% YoY to $351 million.

“We remain deliberate around our expense management,” Chief Financial Officer Rob Reilly said during the call. “We had a goal to reduce costs by $300 million in 2022 through our continuous improvement program, and we’re confident we’ll achieve our full-year targets.”

Spend related to the bank’s continuous improvement program “funds a significant portion of our ongoing business and technology investments,” Reilly said.

Although PNC is closely managing expenses, in Q2 the bank worked on “offering and building differentiated and responsible capabilities for our retail and commercial customers in the payment space,” Demchak noted.

The bank’s Q2 digital efforts to improve its retail banking platform follow the Q1 launch of its real-time payroll solutions through its partnership with fintech DailyPay.

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Wells Fargo tech spend plunges following a robust Q1

Wells Fargo technology, telecommunications and equipment expenses fell $77 million sequentially and $16 million YoY to $799 million in Q2 following a first quarter of robust technology spend, according to today’s Q2 earnings report.  

Still, the $1.9 trillion bank managed to improve its digital experience with the relaunch of its automated investment service Intuitive Investor, Wells Fargo President and Chief Executive Charlie Scharf said on today’s earnings call. “We simplified the account-opening process and created a faster and better experience for both new and experienced investors,” he added.  

In addition, the bank unveiled Wells Fargo Premier, a suite of products and experiences focused on growing client relationships, Scharf said. “We will be rolling out more enhancements in the coming quarters to provide more compelling offerings for Premier clients,” he said.  

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