PNC to reduce costs by $400M in 2023

PNC continued its improvement plan in the first quarter of 2023 as efforts to reduce costs by $400 million this year stay on target. “This program funds a significant portion of our ongoing business and technology investment,” PNC Chief Financial Officer Rob Reilly said today during the $557 billion bank’s earnings call. [caption id="attachment_220088" align="alignright" width="300"] Photo by Bloomberg Mercury [/caption] BY THE NUMBERS: PNC reported for Q1: Revenue increased 19% year over year to $5.6 billion; Equipment expenses grew 6% YoY to $369 million; and Net income increased 18% to $1.7 billion. NOTEWORTHY: Non-interest expenses in Q1 increased 4% YoY to $3.3 billion, according to the bank’s earnings supplement. The increase is related to higher personnel costs, an increase in FDIC assessment rate and investment in technology. Personnel costs increased 6% YoY to $1.8 million, following a decline in personnel-related expenses in Q4 2022 , when the bank announced it was reducing its workforce in preparation for an economic downturn. FLASHBACK: The bank launched PNC Earned It in February 2022 to address the needs for an earned wage access (EWA) tool, Tom Lang , executive vice president and head of treasury management product and operations, previously told Bank Automation News . PNC Earned It, launched in collaboration with EWA fintech DailyPay , allows clients access to their paychecks during any point of the payment cycle. MARKET REACTION: PNC stock was up 0.36% to $121.85 at market close today, compared with $121.41 at market close Thursday. FUTURE LOOK: The bank expects a recession in the second half of 2023 and is assuming a 25-basis point increase from the Federal Reserve Board in May, Reilly said. “At this point, visibility remains challenging. And our full year [net interest income] guidance assumes the continuation of the recent intensity on deposit pricing, which has been driven by recent events,” he said. [stock_market_widget type="inline" template="generic" assets="PNC" markup="{name} ({symbol}) is trading at {price} ({change_pct}) as of {last_update}" display_currency_symbol="true" api="yf"]

PNC to reduce costs by $400M in 2023

Bank’s revenue grew 19% YoY to $5.6B in Q1

Wells Fargo prioritizes efficiency initiatives

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PNC to reduce costs by $400M in 2023

Bank’s revenue grew 19% YoY to $5.6B in Q1

Wells Fargo prioritizes efficiency initiatives

JPMorgan Chase tech spend falls 7% YoY to $2.1B

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