PNC Financial Services (PNC)

Bryan Gill Director of Investor Relations
Bill Demchak Chairman, President and CEO
Rob Reilly Executive Vice President and CFO
Betsy Graseck Morgan Stanley
Scott Siefers Piper Sandler
Ken Usdin Jefferies
Mike Mayo Wells Fargo Securities
Bill Carcache Wolfe Research
Gerard Cassidy RBC
Call transcript
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Good morning. My name is Kathy, and I will be your conference operator today. At this time, I would like to welcome everybody to the PNC Financial Services Group Earnings Conference Call [Operator Instructions] As a reminder, this call is being recorded. I would now turn the call over to Director of Investor Relations, Mr. Bryan Gill. ahead. go please Sir,

Bryan Gill

Bill Kathy, investor information. for morning, Group. the are as Today's and this you, Vice as Reilly, today's and well statements President Participating Welcome about conference call CFO. CEO, President Chairman, call PNC contains PNC's and and thank Rob everyone. Executive forward-looking good presentation to SEC on Demchak Cautionary Well, Financial information Services Investor materials. this site, earnings non-GAAP materials release in materials and filings no to measures and as as well pnc.com, statements PNC of available other reconciliations all obligation XXXX, only today's update our These Web are January on Relations. are as corporate XX, them. of undertakes speak included our These under

call like Bill. turn to I'd to the over Now

Bill Demchak

Good Thanks, everybody. Brian. morning,

seen this environment. challenging a quarter had XXXX a we operating year full morning, solid and As fourth amidst you've

of operating delivered Over executed well the and loans course all deposits, strategic grew of year, and leverage we our priorities. positive the on

Our capital and year balance of significant reserves. credit record and in strong position, sheet a liquidity, levels very finished the

tangible value In grew book we per year-over-year. share addition, XX%

wanted continue the share a operate Rob modestly economy and we quarter encouraged amidst to high the through the demand. you observations. While walks our rollout and vaccines, I the a the of this by pandemic, weak environment results, low of before rate we're loan improved to And level details full few

company. out and pandemic, supporting years the while the a talent the and social and over technology crisis navigate stakeholders allowed economic widespread made we've our as in investments the coming related us have First, to this stronger unrest

results, enhance clients with in round granted keep Protection and In clients. working loans our with first worth a is franchise, acquire to provided the safe, leading of year. of our profitability. employees In even XX,XXX their similarities credit communities. Since serve November, redeploy I'd Program. look passive significantly to will our billion round and unrest high given of the PPP. aware, the social and take and plan at BBVA's announced talent to billion time Rob $XX racism, national second clients, response to to income than in And questions. actively about in part create low challenging how our USA. This with right our proceeds of very billion of steadfast growth equity to closer second advance thanking turn our those now and a our lot addition our Americans more billions XXXX, help to I'll like We as BBVA then finally, our efforts a transaction of our address and through we our $X In have employees for economic employees BlackRock. and customers through Black And support taking their loan registered social we spent combination, that, accelerate team your the systemic a widespread risk to sold manage customers close growth we it we'll for markets steps announcement, stake our you're in And over commitment by excited And approximately become to government's moderate to our we as that communities. in the more and dollars and committed justice the federal our $XX.X help through empowerment modifications to quarter among of the in and Paycheck we

Rob Reilly

Bill, Thanks, and everyone. good Great. morning,

diluted income you've common per full or share, operations common or year share. $X.XX of we've fourth diluted billion As net in income XXXX billion of seen, reported $X.X quarter continuing per from net $X resulting $X.XX

and is X basis. sheet Slide balance is Our on average on presented an

and loan investment utilization billion decline securities, lower X%. $X soft declined which in rates low drove $X quarter, pressured or or demand a loans. the billion And X% During

the cash $XX the Federal to Our at Reserve billion grew balances in fourth quarter.

as Our of position lower and loan well elevated deposit is continued securities liquidity growth balances. as a result

deposit $X quarter. billion debt. up third continue averaged used On quarter side, X% $XXX reduce position decreased liquidity billion the the funds billion and balances Borrowed as to strong liability our were linked to compared we $X or to

XXXX, or was and XXst, December Our as X% XX% $XX.XX of quarter year-over-year. December tangible of ratio book share estimated And In was to linked increase be of XX, value per the our of an CETX return, as XX.X%. regard common repurchases stock million. quarter. capital mandate, recently dividend the with per during And had Board share $XXX consistent our share fourth we a $X.XX fed approved on common to quarterly cash no

XXXX. XXXX the pending remains period December share expectations purchases this expected mid date, in our is, from we'll as employee summer share to USA close benefit repurchases excluding that BBVA we past related the repurchases, leading to be stated same, Our for up transaction during refrain

we'd of $XXX broad all billion decrease loan down quarter. and Average commercial which consumer to average X billion. balances, loans $X.X total evidenced deposits. loans period to ago, detail. X% lending. and deposits to our resume repurchases across in utilization third customers reflecting a same below higher as $X.X XXXX, This to multifamily partially loan decline maintain half Compared billion balances Slide X.X% by pre average equal subject X% pandemic balances second year and segment, a in based, approximately positions, year. grew running in compared or the expect strong was billion the were the lows of or In included billion offset fourth historic are $X softer quarter lower and loan the close, else the our more of being warehouse continue to loans levels high loan CCAR Following and in by shows declined Consumer share the levels utilization all $X currently production, liquidity lower were at categories. C&IB rates

linked and consumer reflecting loan point basis quarter. the X billion basis compared a Average of billion X.XX%, billion non quarter, bearing interest and slide Year-over-year, points, a bearing basis X As we our loan continue increased to liquidity or with forgiveness XX% the in customers seasonal enhanced shows, deposits. X both And $XX point $X X% rate paid the increase a deposits a third yield on shift balances of as as loan deposits mix. growth growth. our increased to $XXX bearing to PPP our interest reduce well result deposit of the or decline as strong in is on balances higher interest

XXXX. end a to period declined to deposit the fourth has a at of loan As XX% compared our to XX% result, the same the in of quarter ratio low in

can well XXXX fee was driven revenue up income. billion, X, slightly year or Slide $XXX compared with As full declined $XX.X X% see XXXX, remain controlled. Expenses on million and you by higher

year full billion in was compared Our economic effects $XXX with reflecting provision million pandemic. XXXX, of $X.X the the

year effective continuing XX.X% for Our full the XXXX. rate was operations from tax

this the Now of performance more drivers let's in key discuss detail.

Slide X. to Turning

can total consistently our You by over broad-based years mix. grown our revenue see several has business the past driven

lower quarter. $XX fourth income of million and or quarter. billion decline related quarter. averaged to margin substantially net million million $XX lower and growth litigation X Partially of approximately point lower valuation year of corporate $XXX with points margin interest a of basis than our represented mortgage quarter, higher $XX net linked quarter, the reflecting the driven fourth quarter negative $XX net exceeding due balances balances represented or fed decrease declined X% interest excess X% fed To to service was year-over-year in of in linked $XXX the advisory by the The Notably, decline, quarter Fee resolution. on or to to accounts of quarter by and reflected third million, income billion, of decreased $X.X negative million declined down a decline the of noninterest fees of income $XX derivative million residential earning was balances level cash million Fourth of and basis driven higher $XX X.XX% linked X was for linked $XXX liquidity by The slightly total balances. increased Visa from points adjustment primarily offsetting to noninterest LCR XX expected billion. asset of $X.X and lower $XXX was timing offset income earning linked and interest to RMSR lower basis growth impact by as reported million $X.X fed income billion loan For which activity. impact, quarter of This this noninterest compared essentially deposits Full quarter down growth merger by net balances billion assets. primarily a servicing yields security more a were the $XXX our in rates year or quarter, income XX% interest compression interest the acquisition higher margin. size to NIM. requirement that third XXXX Both paid quarter on net full fourth primarily securities. the adjustment million due XX% Other cash fourth extension fees.

ongoing reduce of of Importantly, strategies income. and quarter, in record by declined residential as private in an customers. our due income was related and as this or our higher increased management fees on offset as and equity treasury deposits Other sales by primarily service XXXX across and we was advisory $X.X impact compared the continue partially transaction higher efforts reflecting on businesses to elevated in business, drive driven consumer or related offsetting particularly for fee the franchise, helped those asset billion decline net to grow corporate of increase year-over-year our growth a to stronger both and noninterest fees income to XXXX. activity simplify This our $XXX businesses to products securities management, gains asset execute fee our as charges revenue lower second our XXXX, on to well the service in X% $XXX services million X%, to efforts well growth noninterest gains. Partially to million pandemic, mortgage

to Turning X. Slide

due responded decline or XXXX and other $XXX expenses primarily down. quarter. seasonality as we a million noninterest impairments. expenses grew at $XXX compensation million incentive increased Expenses billion, Our compared expense personnel million with managed equipment $XX.X or the to of look were by addition, and the due associated full crises in up were $XXX X% And X% year Taking XXXX increase with to fourth higher linked by activity. million business quarter, a $XX an we in to of expenses driven

year. a operating the X% as Importantly, last we result, XX%, was XXXX. leverage ratio for from XX% generated our efficiency improving And year in positive full

While of improvement continuous our $XXX program, and disciplined achieve management. We to revenue challenges, presents completed XXXX expense environment a we savings million and the had that remain actions goal. through our cost around current we goal deliberate in successfully

will once Slide X we've be specific goal identified CIP to the industries the by annual forward again $XXX most Looking update regarding impacted XXXX, likely our as effects is pandemic. an million. be to of

balances impact commercial and paydowns. billion loan $XX.X of compared to of high and quarter, the to driven in the end outstanding quarter by categories declined fourth December Our COVID largely third $XX.X billion XXst the the as industrial at

most Within do expect to of the than nonperforming loans industries. to been these low, less real have offs outstanding, experiencing being charge downgrades not representing see industries this The C&I continue presents loans further commercial relatively identified the we the material. remained of That in occur. and X% industries, related said, highly pressure, loan lower and categories. estate stress slide These impacted half are and

all in offs loans, continue remain reserved exposures. charge for high monitor largest these in this and were two to loans to fourth category. these impact Overall, manage and we Our quarter related well carefully of the COVID

update Moving to Slide release. an XX. customer our to This is hardship

the requesting with At loans the a we importantly, And of and from to hardship present risk in small million risk at reduction in down see PNC, PNC that of assistance. continue credit under businesses to number decline. XXth. and balances of to form of assistance small We to continue modification $XXX the some credit had $X.X end billion consumer business year, payment September consumers

loans commercial consumer and as million modifications assistance XXst. side, of total segment, loan and December reserved. are individual of based loans customers, and continuing combining in representing mentioned, PNC situation. outstanding, loan balances selectively than C&IB are approximately appropriately on were than Within commercial as When $X of previously to our $XXX deferral posing each credit risk receiving less On borrower's also I grant billion, we're to the less X.X%

activities. Net payments specific included charge were the offs of end the commercial from million, million and borrowers are to or and million $XX entirely metrics leases XX. relatively delinquencies XXst stable loan mortgages charge Total quarter. on certain charge delinquencies Annualized almost primarily to primarily credit deferring X $XX compared increase the status. borrowers XX% same or compared offs million due exiting loans real offs $XX year. exited $XXX increased third term. December $XXX period of growth Commercial quarter by in by driven by consumer that, up This increased for grew of $X.X $XXX to related driven that estate, $XXX portfolio points at only million billion net an $XXX XXth. Consumer related estate forbearance government-insured were management Our million, recently million, $XX and And increased residential Consumer to to million real basis net loans $XXX to presented points, the as last commercial a Nonperforming the was total September Slide delinquencies by to charge of XX%. loan loans $XXX modification increased million. was result increase offs million. million in net within XX loans at basis and fourth to

see, losses losses of of qualitative As CRE change million. losses allowance components economic our partially for the factors for million declined end, We the the that by slightly X.XX% the portfolio. the our loans decline outlook fourth represented within improvement $XXX Correspondingly, total our sufficiently reserves in increased our was Slide at our you allowance offset loan portfolio. quarter, was the as the reflect credit on changes to of remaining year. million XX In can reserves The life of $XX portfolio credit allowance last December believe for throughout loan highlights quarter balances. to down loan portfolio our $XXX losses driven was in decline in reserves X.XX% XXst. estate from commercial X.XX% reserves the quarter. of to the by as and Economic current by have primarily real lower related increased in

represent have billion of I now end Our year-over-year $X.X and reserves of materially loans. mentioned as X.XX% year increased before,

with I update acquisition in announced on of to wanted BBVA Turning few a minutes a Slide spend call since the XX. USA, to recently our reviewing focus November.

excited we We our required the regulatory through BBVA the to the as transaction. well we're There's will due expect Through make add technology work announcement, at announced working we of confident to we're Notably, of date laid migration. even cross significant about compelling we're value and we we've This the XXXX in the a more enhanced objectives. make towards revenue this hard We based to the attractive our expect our ability the generate and on the alongside and and will financially PNC XXXX, our synergies, submitted franchises. saves into compelling. which do our including and deliver million well on leverages expertise. the confirmed operational progress is mapping teams achieve made $XXX but ahead In fourth combined the summary, beyond. power lot applications confident markets, to successful reported of the progress USA financial our economics time out transaction to of we've to strong accelerate shareholders, for objectives remain and transaction as of expense quarter our the the technology to execute efficiencies. integration, steady time, additional the and positioned a team, diligence expansion functional we've established in growth significantly transaction meaningful to Since completing continued and business support a efforts acquisition the ability deal,

government efficacy distribution. be this as well variable duration the naturally, as and of XXXX, with the pandemic plans biggest vaccine in of During economy the the impact along will support the that, the

to funds to prerecession rate of zero duration levels near year the the Our for and end GDP throughout are fed the to by the remain the of current return year. expectations real

at quarter expect down to the we that, Looking to are of of loans $X loans total the up to Inside ahead quarter approximately to average expected XXXX first compared fourth of be modestly. billion. stable XXXX, be PPP

of impact which X%, quarter. down expect the to includes be in days We approximately fewer NII the first two

PPP, X%. decline is Excluding interest of net expected income to the approximately impact

to total $XXX other between and noninterest Within is that, mid be expected $XXX noninterest expect million single to income down We income be digits. million.

In total net expect single to to million. quarter in be levels noninterest and we to down offs, We $XXX the regard range. charge first between $XXX be digit mid expect million expense

the thought PNC's full provide for onetime at expectation our transaction. guidance. would it stand be USA XXXX year the performance, Looking to We any excluding to related helpful alone costs BBVA

you loan single beginning in loan For range. created the for the average growth to the the balances full year year XXXX growth full full compared loan backdrop difficult down year expect pandemic a in utilization we during to average the low elevated as XXXX, XXXX significant digit The increase of know, average in results, loan be comparison. which the

loan do spot the throughout year. we XXXX, in digit to expect However, growth for single resulting growth low have

expect We to revenue be total stable.

expenses to represents stable. back be -- We expect This up. that

be to stable, and excess of But current potential acknowledge plausible, our modestly. net current steepening forecast, further deposit in a we that's interest revenues of it expect revenues. growth rate We income and and down to represents forecast this relative is

our expect and effective expect rate tax be approximately we stable XX%. to expenses We be to our

Regarding the BBVA pending acquisition of USA.

I we're to previously BBVA BBVA this subject targeting a releasing providing the required will Therefore, the regulatory disclosed mentioned, not and USA we and recently until midyear will month. later close, financial time. results applications, not updates we this approval. As estimates be at metrics to the to filed be still related

Bill that, ready to And that take I and pre effort acquisition to integration with accretive questions. consistent midyear is all our with provide close expect in of And approximately net context year excluding original an and your the to some revenue. be for we relation in PNC's assuming million to to assumptions. provision $XXX full However, our the guidance, transaction we XXXX costs, are

Bryan Gill

open for questions? please line up Kathy, could the you


from Morgan line Betsy our comes the first Instructions] question Graseck of Stanley. [Operator And with


I here that's given XQ had in how get is on down. the And the stable. you year there a on, for fact just I to wanted question a revenue, NII stand-alone full the for outlook understand guide obviously, going right? basis, what's or and that

and And you're doing so much through talk growth? what that loan how can you of Thanks. is


the we you revenues stable forecast that question guidance current expect current our rate that, our in our income be of acknowledge growth So excess I'm further inside down I deposit potential the modestly. because is included year But and terms for in we and total steepening of that to asked forecast. forecast in do glad that interest net full for

potential there's So upside there…


by And it's offset higher fees…


In revenue. total terms in that. it's to In of the NII, of terms Yes, That's right. tough. regard

As a that headwinds expect in look all during the we you take to terms XXXX. XXXX we rate of through continue and backdrop, had

put will side We on We reduce terms And the room to those do growth. more to loan the money on be balances. work in may expect liability costs. some some securities of there

So the component. that's to how get we NII


we're that given Betsy, the grows have a -- happens, of continues towards back P&C of as the will, notion deposit that least growth, and at no us deposit disproportionately, internal we stays. loan It's that growth and I debates that on suspect And banks it end as gives growth. some which as the constraints of winner debates and has one turn in on XXXX, balance largest system. NII. closed having is benefits one the drives their fed of the on basic But this so stays the size sheet the internal forecast there's forecast that

this variable there's fed we it's fine, a in here to loan will hit of opportunity. does, and macro that growth industry a call going as kind the flat the but So what drive NII function of say,


point to that's growth you from, going drive up? where will with single that What little loan investors biggest speak now. bit Maybe probably that's right the we're that having come the and to back could debate a


a of So Rob back it because here. can But jump are in simply comes utilizations chunk low. so

the have. seen kind sets. of economy ought comes back remains the once more we That delevering vaccine the two balances issues, biggest I people pick be other and see But those are consumer of to utilization but you as just distributed think normalized So to to on, up basic the the go the opportunity is and widely the back behavior. revolvers


the consumer some that's And normalized. of on back the year, end


question of Scott And our the next line with comes from Sandler. Siefers Piper


of you sitting a portfolio. to Rob, the last at in money a you the little like such I feel alluded to investing just guys possibility fed. question, of And the potentially have mass the just securities response of

sitting in much, that's in So rates. we've nothing it this virtually some more of of your stuff is this higher at to attractive back earning that had there up potentially mind, point? How invest just sort


it's than it a couple more ago. was Well, months of attractive

just would low right, outright that we think I into and got declined the balances as rates have the you the prepays. security seen,

do We recent. been of that. We'll continue investing have to money more aggressively

the out. curve money I We that to And have once. work. into have And the expect. to we will least growth happen as go, curve, given all of flattening put then We an accelerate should deposit it awful if into we that point to you industry you to a and at lot do again, as assume compounds, factors. lot the a expect moderate would don't get is that But issue you a macro at across going steepening


current that's And could talked we be piece potentially our about forecast. above that that that


are trying is a then this to look new PPP second going And huge not of what for figure are I guidance think that to sort like? it's but question, that investors round your about the end you of Just out know into necessarily well? lot me, the And thinking how I of is quantitatively own does up degree participation for any in how XXXX, qualitatively, benefit to the as looking it? guys baked


I so first it that, the relates quarter. answer particularly can to as

first the billion. will the of program XXXX We first finished give program But second participate balances be we the less you that balances, wave. in because numbers, smaller, with the the anticipate we just total to average wave. is $XX.X will PPP the than So under

first approximately the wave expect in expect $X would $X then quarter. the for that quarter, the And so forgiveness in wave, billion first second of be originate about to first billion billion. We we $XX.X

billion. would in that first So $XX.X total about to the PPP quarter our take

how size and I it it. that's that's think So how I

the is to have see of and forgiveness we'll that, how Beyond because fluid. levels that


from our Ken of next Instructions] comes the Jefferies. [Operator line And question Usdin with


last If can Part and question, I you know X. parts so there's with Rob, many up X I the follow understand us help moving on Part -- can

expected. you said, you much had less forgiveness had like or in to You And you the help fourth in just much Can what then you PPP understand I expecting that us how 'XX, that down are NII? slightly the informs think, than NII quarter 'XX? how was in benefit



is NII approximately it give the and represents of Ken, are PPP $XX $XXX billion you we XXXX $X will first billion that numbers. think these million and approximate And probably, I have have to be million. in $XX.X million look from that Approximately that at one. expect number. we $XX quarter that to loans, a program inside that Of expect forgiveness the -- total you the


as then well? regards forgiveness the be versus some year will as And there go moving to we parts run with through rating like


quarter. but we'll Yes, my posted, And that's the you first keep best right. that's for thinking


saves is the And expecting initial the saves to some just of think bringing over I one? BBVA you a, expecting question happen wondering, that on your back in second Rob, like this half. you the Or did is of PPNR on $XXX also that what were year? you're comments, they're following just day inclusive kind million is second Because say half


that in Ken. it's are back are that, that number. There in some Yes, saves included the half


changed your in? you the when of come around to regards expected saves the think timing And anything would has trajectory there with


original assumptions holding. are our No,


the [Operator Instructions] Siefers have Sandler. And follow-up from I from line of Piper a Scott question


about guess different steady you the anticipate portfolio legacy was announced carry PNC sort I from be to sort franchise over rationalized in since much between just a of higher of going be one How all book transaction will you'll the months that there given impairs couple we or and franchise. and course of questions of is trajectory of growth kind I've the the what loan be a that profiles mark? get of some of somewhat over guys of you gotten upfront the that the BBVA stuff the sort would the credit eventually keeping? And are BBVA state that do will last that runoff


lot embedded necessarily more BBVA's the that it's a question. on focus there's not credit what we we it's risk of that but balance versus sectors, in and There's don't. things choose parts to sheet But

At our have their the of of of grow balance same lending many time, in parts will the run time. in specialties there's we'll the we new that and market, balances that because sheet we the over presence So will off franchise. expect

So to you're see going both.

assumptions short balance sheet assume but of rundown, before Rob, when in the for rundown trough Our base don't is, I a know with growth. sort period a it a time new offset we of


the and at XXXX. XXXX beginning, Yes,

those So there is lines. some revenue reconfiguration along




own But keep bank up don't to you of We yet. speed. course, we'll the

So be once that will more color. be something that we close, we'll able to you give


of Wells Fargo with line Securities. the from Mike comes question our Mayo And


Thanks. pride last didn't though. know there year, operating basis. anything leverage is on it when improved. Fourth positive look yourself a I core next as for your leverage And also unusual? your good, operating leverage that's year You positive quarter, Was having operating efficiency guys in for flat had guidance you


fourth Harris our you much most Williams were much, for saw, those particularly unit. jumped, in that compensation as incentive activity, quarter, the expenses Well, of higher

stable. those are XXXX, going and did to successful. fight not we expensive you management that. and was at that. full and year, we So that that. expenses. folding up, Williams year, then expect. for associated thing the for we're our there obviously activity operating the look good things on objective, When revenues our a with positive leverage was When We're Harris which for but seasonal there's stable you're But it. some are goes expense that's right, Full We've And expenses good got

expense So battle But for it's to management. going it. going to yes, require tight we're


or loss And Moderna as the Pfizer you as out, might didn't have since assumptions had improved BBVA, far vaccine J&J. have reserve your you loan

better would a the the a So when and BBVA? little outlook same reserve had bit releases reason have you for be outlook you better


even were together. put out when didn't Pfizer have We actually those

in Mike. So right, you're theory,


They're own we don't again, their results… bank. release going Well, to the


assumptions… our in are These


equal, yes, being they'd Yes. all But else as be in our assumptions, less.


come guess for I to hopefully can and then BBVA's to update you. just an have we results wait get we from out


[Operator question line Wolfe with from our Instructions] Carcache Research. the And next comes of Bill


follow about portfolio of investing a securities on more to wanted I the curve your up into comments steepening.

invest MBS? Some Can somewhat QE of by along color banks to spreads it you of led bit portfolio the turn percentage security invested where complex. side you're anchored in other of on remind curve most side? lending a negative. dynamics on around benefit interest is seeing being give And frame steeper rate securities substantial of think the the maybe versus little curve just as loan how P&C the the have the tempered dynamics. with the of could opportunity lending we a seems And benefits end are is those guys treasuries short about over MBS like portion agency on to of the of agency And the you steeper portfolio the side, if well. on your to what us a have to long So then the you the


I remember today. head. one of top LIBOR to The assume going yield we normally there, spreads weeds. into that's into terms off component in basis we I'm buying, the our far our we'd floating and mix of three the against loans. about my points. of detail. How be component reinvestment the portfolio, current what on is not But you purchasing numbers don't too that now, those of for be way otherwise should month would average, But XX You're and the where go the fixed get and


the it's Yes. they be commercial I commitments three mean short floating. the type on and consumer, loans, on year tend we're -- to


you us last our looked, time somewhat in is most stack the floating funding The dropped, of well. That's cost see materially of than has other that that unique liability And one makes as more our our wholesale debt costs. is entire much our competitors. thing I reason


the growth separately, target broadly strong you CIP And you concern I investors efficiency they're of was continue Rob, benefit of some being is challenging more many it make expenses, just guys like expressed to for that so hoping loss your notion. after same strong BlackRock the hurting a sound a to years the the to at pace that of that going on speak the reinvest growth that could from guys I to But little the able into have to business without year. having bit ratio. unchanged invest of heard


don't understand… fully I


rather than… by driven more It's CIP


investment growth comes firm continue our terms from obviously then do. us growing mean the expenses, and which I to helpful. BlackRock's in was we'll recycling Yes, just time revenue to capability of through

this we here whole forward and go have to close, acquisition, good BBVA of rise to investment… set the a of that effect we recycle assumption a as in which expenses course, is new assuming we gives Of


so down won't And it slow our investment… revenues,


At yes. all,


If I on squeeze in one credit. more can

on capital So how I about had it XX. question I think to Slide a the relates as excess

make reserve the that, the deal, revert should the So in we the one case one we level that absence is past on to X.XX% once could that of COVID. BBVA rate day get

think to excess BBVA frame But reserve and us for And onto slide And you the so reserves viewed of to level mean would excess. of process? capital? maybe any that and what as rate of above how the then thought could it speak for about your be can reasonableness this onboarding that


economy reserve -- the today of our I as of look, expectations I don't reflective today mean, of their here. as best and of reserve forward think presumably is

their and I release know able at be how they'll So we look that results CRs. don't to can… you'll


BBVA of come that's to and come to sort was USA out. overlay when that parts One have their the You two results question.

those under second after just level. were maybe the the and sort if one CECL. is that's level The of normal question of normal our what day normal was X.XX is level times reserves CECL so,


comes [Operator of Instructions] And our Cassidy line with RBC. the Gerard from next question


guys if the you've it. transaction, pause in footprint BBVA and Obviously, were the you the on guys underway prior organically apologize integrate to already, that missed may commercial us, have you this or I growing I the with put has transaction? around country. strategy as BBVA addressed you been that share Can Is still


pause, Gerard. No, not on

holds So in cases that opening of the part footprint offices, were where of throughout BBVA terms commercial USA to naturally, the both going and everything else where we in transaction. consumer go, was But country. that's


back question in investments. actually to close. the to prior is And those ramping kind Yes. on up markets Gerard, thing, other the going We're of prior investments

ideally the want particular day of before a we it the services we to and the to think then products have going going we're not So we to wait We're in close and market. totality close convert. about


Table loans. I them on noticed to nonaccrual your bringing rise guys you status? into XX return in assets. very color performing share success back nice you performing And nonperforming Can good You what some that had gave had of on in detail status us in any you


side, of new to have well. just on Simple that. the are these think, economy have as and general, particularly just performing actually companies in I adapted the commercial some adapted, it's Gerard,


call to are over other turn Gill. this at back the I There no time. Mr. you, will questions

Bryan Gill

you. and thank Well, you Okay. your working of you Thank support for PNC, in XXXX. forward with look to all we

Bill Demchak

Thanks, everybody.

Rob Reilly

Thank you.


participation you call you That great a conclude and the today. your Have disconnect that you. for ask your Thank thank please We for lines. day. does