PNC Financial Services (PNC) Risk Factor Changes

The PNC Financial Services Group, Inc.

The PNC Financial Services Group, Inc.

The PNC Financial Services Group, Inc.

The PNC Financial Services Group, Inc.

The PNC Financial Services Group, Inc.

The PNC Financial Services Group, Inc.

The PNC Financial Services Group, Inc.

Our ability to mitigate the adverse consequences of such occurrences is in part dependent on the quality of our resiliency planning.

Neither the occurrence nor the potential impact of natural and other disasters (including severe weather events), health emergencies, dislocations, geopolitical instabilities, terrorist activities, international hosti…

24 The PNC Financial Services Group, Inc.

Many aspects of our business involve substantial risk of legal liability.

financial institutions can compensate their officers and employees may make it more difficult for regulated financial institutions, including PNC, to compete with other companies for talent.

Our performance and competitive position depend on our ability to attract, develop and retain high-performing employees.

We are subject to intense competition both from other financial institutions and from non-bank entities, including financial technology companies (often referred to as “fintech”).

our business, with the risk that their conduct can affect our reputation regardless of the degree to which we are responsible for it.

22 The PNC Financial Services Group, Inc.

Financial services companies are highly vulnerable to reputational damage when they are found to have harmed customers, particularly retail customers, through conduct that is seen as illegal, unfair, deceptive, abusiv…

We are at risk of an adverse impact on our business due to damage to our reputation.

Models generally predict or infer certain financial outcomes, leveraging historical data and assumptions as to the future, often with respect to macroeconomic conditions.

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Our accounting policies are key to how we report our financial condition and results of operations.

In the ordinary course of business, we often have heightened credit exposure to a particular industry, geography, asset class or financial market.

with the adverse consequences likely greater the longer it takes to discover the problem.

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We have policies, procedures, systems and programs (including cybersecurity and business continuity programs) designed to prevent, mitigate and remediate the effect of failures, interruptions and security breaches in…

We need effective programs to limit the risk of failures, interruptions and security breaches occurring in our technology and to mitigate and remediate the impact when they do.

Cyber attacks and breaches often are not recognized until launched against a target and may go undetected for a period of time (or remain undetected), with the adverse consequences likely greater the longer it takes t…

In addition to threats from external sources, insider threats represent a significant risk to us.

public disclosure of confidential information.

As our customers regularly use PNC-issued credit and debit cards to pay for transactions with retailers and other businesses, there is also the risk of cyber attacks and other data security breaches at those other bus…

Our customers often use their own devices, such as computers, smartphones and tablets, to do business with us and may provide their customer information (including passwords and other confidential information) to a th…

We are faced with ongoing, nearly continual, efforts by others to breach data security at financial institutions or with respect to financial transactions.

16 The PNC Financial Services Group, Inc.

Most corporate and commercial financial transactions are now handled electronically, and our customers increasingly use online access as well as mobile and cloud technologies to access our products and services.

We are vulnerable to the risk of cyber attacks and breaches affecting the functioning of technology or the confidentiality of information that could adversely affect our customers and our business.

The occurrence of any failure or interruption of any of our information or communications systems or other system, or those of other companies on which we rely, including those where there is not a reasonably availabl…

We rely on technology maintained by other companies.

The need to ensure proper functioning and resiliency of our information and communications systems and other technology has become more important and challenging, and the costs involved in that effort continue to be h…

We could suffer a material adverse impact from failures and interruptions in the effective operation of our technology.

In some cases, we develop internally the intellectual property embedded in the technology we use.

In response to actual and anticipated customer behavior and expectations, as well as competitive pressures, we continue to invest in technology.

As a large financial services company, we handle a substantial volume of customer and other financial transactions.

14 The PNC Financial Services Group, Inc.

There continues to be concern, including on the part of certain stakeholders and in certain jurisdictions where we do business or have operations, regarding climate-related risks and impacts (including physical risk a…

Privacy and personal data rights initiatives have imposed and will continue to impose additional operational burdens on PNC, and they may limit our ability to pursue desirable business initiatives and increase the ris…

Regulatory capital and liquidity requirements are subject to review and revision by the Basel Committee and the U.S.

PNC and PNC Bank are subject to regulatory capital and liquidity requirements established by the Federal Reserve and the OCC, respectively.

We also rely on third parties who may expose us to compliance risk.

Applicable laws and regulations restrict our permissible activities and require compliance with provisions designed to protect loan, deposit, brokerage, fiduciary, and other customers, and for the protection of custom…

12 The PNC Financial Services Group, Inc.

The PNC Financial Services Group, Inc.

An important function of the Federal Reserve is to monitor the national supply of bank credit and set certain interest rates.

Concern regarding high and rising federal debt levels and federal budgetary matters (including the debt ceiling), or prolonged stalemates leading to total or partial government shutdowns, also can create the risk of e…

Congress and the current presidential administration have introduced and may continue to introduce changes in the laws or policies applicable to us and the agencies that regulate us, including their interpretations of…

Our foreign business activities and operations continue to be a relatively small part of our overall business.

The PNC Financial Services Group, Inc.

could result in PNC experiencing higher levels of nonperforming assets, net charge-offs and provisions for credit losses.

they face, such as in connection with the sale of a business or assets by us.

negatively impact our customers or our ability to comply with applicable laws and regulations could negatively affect our reputation or result in fines and penalties from our regulators.

Methods used by others to attack information systems change frequently (with generally increasing sophistication).

more consumer confidential information becomes available to bad actors through the cumulative effect of data breaches at companies generally, bad actors may find it easier to use such information to gain access to our…

respect to technology, whether because we fail to anticipate customer expectations, because our technological developments fail to perform as desired or are not rolled out in a timely manner, or because we fail to kee…

We have been and may continue to be subject to conflicting pressure from individuals, groups and governmental entities to cease doing business, or to maintain business, with certain companies or sectors, in particular…

We are currently subject to climate-related regulatory expectations and could be subject to additional regulatory restrictions or costs associated with providing products or services to certain companies or sectors.

Requirements to maintain specified levels of capital and liquidity, and regulatory expectations as to the quality of our capital and liquidity, impact our business activities and may prevent us from taking advantage o…

PNC and PNC Bank are subject to regulatory capital and liquidity requirements established by the Federal Reserve and the OCC, respectively.

intended to protect PNC security holders.

We operate in an uncertain economic environment due to sustained inflationary pressures, including higher prices and lower housing affordability, and structural and secular changes arising from the pandemic for certai…

materially affect our financial statements.

We may be unable to implement adequate preventive or mitigating measures to address failures, interruptions and security breaches in advance.

Other cyber attacks and data security breaches are not focused on gaining access to credit card or user credential information, but instead seek access to a range of other types of confidential information, such as in…

to support identity theft and includes personal health information, as well as information regarding business plans and financial performance that has not been made public.

We have been and may continue to be subject to conflicting pressure from stakeholders and activists regarding how or when we take climate-related risks and impacts into account in our business practices or risk manage…

Additionally, the federal government has altered and may continue to alter climate policies or requirements in a way that conflicts with certain state-level policies or investor expectations.

not support the environmental goals of our customers, or increased losses due to the impact of climate change on the collateral that secures customer borrowings.

enforcement authorities.

depending on the nature and severity of the adverse economic conditions.

We operate in an uncertain economic environment due to sustained inflationary pressures, including higher prices and lower housing affordability, and fluctuating trade policies (including tariffs), combined with geopo…