News Release Details
Financial Press Release
PNC Releases Results Of Annual Dodd-Frank Company-Run Stress Test
"The results of the stress test confirm PNC's ability to withstand the challenges of a severe economic environment, while upholding our commitment to our customers, communities and employees," said PNC Chairman, President and Chief Executive Officer
Under the hypothetical severely adverse scenario provided by the agencies, PNC estimates that its ending and minimum regulatory capital ratios would be as follows:
Basel III Regulatory Capital Ratios:
Common Equity Tier 1
Tier 1 Leverage
Ending Q1 2022
These results are the product of a forward-looking regulatory exercise using hypothetical macroeconomic assumptions and, as such, these results do not represent a forecast of PNC's future capital levels or anticipated economic conditions. In addition, these results do not reflect the benefits of PNC's recent sale of its equity investment in BlackRock, Inc. and the five-year transition period, which PNC has elected to apply for incorporating the effects of the Current Expected Credit Loss (CECL) standard into regulatory capital. Together these items provide a material benefit to PNC's regulatory capital ratios that is not included in the projections as presented.
The supervisory severely adverse scenario for the 2020 company-run stress test was released by the
As required by applicable regulations, capital ratios are calculated (a) for the first quarter of 2020 using the actual capital actions expected to be undertaken in that quarter and (b) for the remaining eight quarters of the stress period, assuming that (i) there are no repurchases or redemptions of regulatory capital instruments; (ii) there are no issuances of common stock or preferred stock (other than equity issuances pursuant to expensed employee compensation programs); (iii) the dollar amount of quarterly common stock dividends is equal to the quarterly average dollar amount of common stock dividends paid during the second, third, and fourth quarters of 2019 and first quarter of 2020 (for PNC, the quarterly average amount of common dividends during this period was
The Basel III risk-based ratios were determined using the standardized approach for risk weights included in the Basel III rules.
Results of PNC's company-run stress test, including PNC's estimates of pre-provision net revenue, other revenue, loan and other losses, net income before taxes, and regulatory capital ratios for PNC, as well as additional information on the methodologies used in conducting the stress test, may be found at www.pnc.com/regulatorydisclosures.
PNC Media Relations
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