PNC to spend $425M on improvement plan in 2024
Headcount fell to 56,411, down from 61,545 in Q4 2022
PNC Financial plans to spend $425 million this year on its ongoing improvement plan, which funds business and technology investments.
As the Pittsburgh-based bank looks to continue to improve operations, it is pulling back on spending in other areas, including headcount, Chief Financial Officer Robert Reilly said during today’s fourth-quarter earnings call.
In 2023, the bank’s improvement budget totaled $450 million, Reilly said.
BIGGER PICTURE: As the bank spends to enhance operations, headcount reduction has resulted in $325 million in savings for 2024, Reilly said.
The $558 billion bank reduced its headcount in Q4 to 56,411, down from 61,545 during the corresponding period in 2022, according to the earnings supplement.
Headcount reduction contributed to overall cost savings in Q4. The following financial institutions also pulled back on their workforces in Q4:
- Bank of America reduced its headcount 1.7% YoY to 212,984;
- Citi expects to cut 20,000 jobs through 2026 to reduce overhead costs; and
- Wells Fargo headcount fell 5% YoY to 225,869.
BY THE NUMBERS: PNC reported for Q4:
- Interest income increased 27% YoY to $6.5 billion;
- Noninterest expense totaled $4.1 billion, up 17% YoY;
- Total revenue fell 7% YoY to $5.4 billion;
- Digital retail customer usership remained flat sequentially at 78%; and
- Equipment spend fell 1% YoY to $365 million.
FLASHBACK: PNC rolled out the earned-wage access tool PNC Earned It in February 2022 and the cash-forecasting tool PINACLE Cash Forecasting in November 2021.
FORWARD LOOK: PNC technology leaders Scott Kinross and Anuj Shah will speak at Bank Automation Summit U.S. 2024 on March 18-19, at the Omni Nashville in Nashville, Tenn.
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Get ready for the Bank Automation Summit U.S. 2024 in Nashville on March 18-19! Discover the latest advancements in AI and automation in banking. Register now.
