PNC Financial Services Group PNC · USD

SEGMENT REPORTINGWe have three reportable business segments: Retail Banking, Corporate & Institutional Banking and the Asset Management Group. Our reportable business segments are defined by the nature of products and services, types of customers, methods used to distribute products or provide services and similar financial performance. Results of our reportable business segments are regularly reviewed by the CODM, our Chief Executive Officer. Specifically, the CODM reviews actual and forecasted quarterly financial reporting results, including net income, to assess performance and allocate resources accordingly. However, the CODM may use other metrics on an ad hoc basis as warranted.The following describes the products and services of each business segment: Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers who are serviced through our coast-to-coast branch network, digital channels, ATMs, or through our phone-based customer contact centers. Deposit products include checking, savings and money market accounts and time deposits. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to agency and/or third-party standards, and either sold, servicing retained or held on our balance sheet. PNC Wealth Management offers brokerage, investment management and cash management products and services which include managed, education, retirement and trust accounts.Corporate & Institutional Banking provides lending, treasury management, capital markets and advisory products and services to mid-sized and large corporations and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Treasury Management business provides corporations with cash and investment management services, receivables and disbursement management services, funds transfer services and access to online/mobile information management and reporting services.

FEE-BASED REVENUE FROM CONTRACTS WITH CUSTOMERSA subset of our noninterest income relates to certain fee-based revenue within the scope of ASC Topic 606 - Revenue from Contracts with Customers (Topic 606). The objective of the standard is to clarify the principles for recognizing revenue from contracts with customers across all industries and to develop a common revenue standard under GAAP. The standard requires the application of a five-step recognition model to contracts, allocating the amount of consideration we expect to be entitled to across distinct promises in the contract, called performance obligations, and recognizing revenue when or as those services are transferred to the customer.Fee-based revenue within the scope of Topic 606 is recognized within our three reportable business segments: Retail Banking, Corporate & Institutional Banking and Asset Management Group. Interest income, income from lease contracts, fair value gains from financial instruments (including derivatives), income from mortgage servicing rights and guarantee products, letter of credit fees, non-refundable fees associated with acquiring or originating a loan and gains from the sale of financial assets are outside of the scope of Topic 606.Table 120 presents the noninterest income recognized within the scope of Topic 606 for each of our three reportable business segments’ principal products and services, along with the relationship to the noninterest income revenue streams reported on our Consolidated Income Statement. A description of the fee-based revenue and how it is recognized for each segment’s principal products and services follows this Table 120.

COMMITMENTSIn the normal course of business, we have various commitments outstanding, certain of which are not included on our Consolidated Balance Sheet. The following table presents our outstanding commitments to extend credit along with other commitments as of December 31, 2025 and 2024. Table 76: Commitments to Extend Credit and Other CommitmentsIn millionsDecember 31, 2025December 31, 2024Commitments to extend creditCommercial$236,142 $209,864 Home equity 23,684 24,086 Credit card39,536 36,447 Other7,798 7,388 Total commitments to extend credit307,160 277,785 Net outstanding standby letters of credit (a)11,452 11,251 Standby bond purchase agreements (b)1,026 1,095 Other commitments (c)6,521 4,969 Total commitments to extend credit and other commitments$326,159 $295,100 (a)Net outstanding standby letters of credit that support remarketing programs were $3.2 billion and $3.7 billion at December 31, 2025 and 2024, respectively.(b)We enter into standby bond purchase agreements to support municipal bond obligations.(c)Includes $3.0 billion and $2.2 billion related to investments that qualify for PAM at December 31, 2025 and 2024, respectively. For additional information on PAM, refer to Note 1 Accounting Policies. Commitments to Extend CreditCommitments to extend credit, or net unfunded loan commitments, represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. These commitments generally have fixed expiration dates, may require payment of a fee and generally contain termination clauses in the event the customer’s credit quality deteriorates.Net Outstanding Standby Letters of CreditWe issue standby letters of credit and share in the risk of standby letters of credit issued by other financial institutions, in each case to support obligations of our customers to third parties, such as insurance requirements and the facilitation of transactions involving capital markets product execution. Approximately 98% of our net outstanding standby letters of credit were rated as Pass at December 31, 2025, with the remainder rated as Criticized. An internal credit rating of Pass indicates the expected risk of loss is currently low, while a rating of Criticized indicates a higher degree of risk.

INCOME TAXESThe following disclosures reflect the adoption of ASU 2023-09. Refer to Note 1 Accounting Policies for additional information related to our adoption of this ASU.The income from continuing operations before income tax expense, disaggregated between domestic and foreign sources, along with the components of income tax expense are as follows:Table 106: Income from Continuing Operations Before Income Tax Expense and Components of Income Tax Expense Year ended December 31In millions202520242023Income from continuing operations before income tax expenseDomestic$8,378 $7,033 $6,624 Foreign108 209 112 Total$8,486 $7,242 $6,736 Components of income tax expenseCurrentFederal$1,346 $1,046 $992 State173 221 320 Foreign10 52 29 Total current1,529 1,319 1,341 DeferredFederal(6)— (145)State(36)(29)(103)Foreign2 (1)(4)Total deferred(40)(30)(252)Total $1,489 $1,289 $1,089 Significant components of deferred tax assets and liabilities are as follows:Table 107: Deferred Tax Assets and Liabilities In millionsDecember 31, 2025December 31, 2024Deferred tax assetsNet unrealized losses on securities and financial instruments$1,137 $2,098 Allowance for loan and lease losses1,072 1,105 Lease obligations494 475 Compensation and benefits312 312 Allowance for unfunded lending related commitments201 177 Accrued expenses65 188 Other238 340 Total gross deferred tax assets3,519 4,695 Valuation allowance(24)(23)Total deferred tax assets$3,495 $4,672 Deferred tax liabilitiesLeasing798 919 Fixed assets324 397 Right of use assets434 412 Mortgage servicing rights424 434 Goodwill and intangibles246 249 Other455 472 Total deferred tax liabilities$2,681 $2,883 Net deferred tax asset$814 $1,789 A reconciliation between the statutory and effective tax rates follows:Table 108: Reconciliation of Statutory and Effective Tax Rates Year ended December 31Dollars in millions202520242023AmountPercentAmountPercentAmountPercentStatutory tax rate$1,782 21.0 %$1,521 21.0 %$1,415 21.0 %State and local income tax, net of federal (national) income tax effect (a)198 2.3 200 2.8 162 2.4 Foreign tax effects(12)(0.1)12 0.2 (1)— Tax creditsLIHTC(138)(1.6)(102)(1.4)(97)(1.4)NMTC(35)(0.4)(76)(1.1)(130)(1.9)Other(84)(1.0)(92)(1.3)(65)(1.0)Nontaxable or nondeductible itemsTax-exempt interest(93)(1.1)(103)(1.4)(117)(1.7)Other(39)(0.5)(77)(1.1)1 — Changes in unrecognized tax benefits(69)(0.8)11 0.2 51 0.8 Other (b)(21)(0.3)(5)(0.1)(51)(0.8)Tax claims and adjustments— — — — (79)(1.

LEASESPNC enters into both lessor and lessee arrangements. For more information on lease accounting, see Note 1 Accounting Policies. For additional details on our equipment lease financing receivables, see Note 3 Loans and Related Allowance for Credit Losses.Lessor ArrangementsPNC’s lessor arrangements primarily consist of direct financing, sales-type and operating leases for equipment. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. The following table provides details on our income from lessor arrangements:Table 64: Lessor IncomeYear ended December 31In millions202520242023Sales-type and direct financing leases (a)$350 $355 $300 Operating leases (b)33 26 46 Lease income$383 $381 $346 (a)Included in Loans interest income on the Consolidated Income Statement.(b)Included in Lending and deposit services noninterest income on the Consolidated Income Statement.The following table provides the components of our equipment lease financing assets:Table 65: Sales-Type and Direct Financing LeasesIn millionsDecember 31, 2025December 31, 2024Lease receivables$6,637 $6,229 Unguaranteed residual asset values (a)1,449 1,395 Unearned income(911)(869)Equipment lease financing $7,175 $6,755 (a)In certain cases, PNC obtains third-party residual value insurance to reduce its residual risk. The carrying value of residual assets with third-party residual value insurance for at least a portion of the asset value was $0.6 billion at both December 31, 2025 and 2024.Operating lease assets were $0.3 billion and accumulated depreciation was $0.2 billion at December 31, 2025, compared to operating lease assets of $0.4 billion and accumulated depreciation of $0.2 billion at December 31, 2024. We had no lease transactions with related parties or deferred selling profits at December 31, 2025 and 2024.The future minimum lessor receivable arrangements at December 31, 2025 were as follows:Table 66: Future Minimum Lessor Receivable ArrangementsIn millionsOperating LeasesSales-type and Direct Financing Leases2026$28 $1,706 202725 1,678 202816 1,178 202912 826 20308 733 2031 and thereafter3 516 Total future minimum lease receivable arrangements $92 $6,637 Lessee Arrangements We lease retail branches, datacenters, office space, land and equipment under operating and finance leases.

Our consolidated assets included the following for which we have elected the fair value option: Loans held for sale of $1.7 billion, Loans held for investment of $1.1 billion and Other assets of $0.2 billion at December 31, 2025. Comparable amounts at December 31, 2024 were $0.8 billion, $1.2 billion and $0.1 billion, respectively.

PNC’s Board of Directors maintains governance and oversight of the risks posed by cybersecurity threats through the Board-level Technology and Risk Committees. The Technology Committee meets no less than quarterly, and its purpose is to (i) assist the Board with the oversight of technology strategy and significant technology initiatives and programs, including those that can position the use of technology to drive strategic advantages and (ii) fulfill oversight responsibilities with respect to technology risk, information management and security risks (including cyber security, cyber fraud and physical security risks), and the adequacy of PNC’s business recovery, resiliency and contingency plans and test results.The Technology Committee is informed of cyber threats and risks through multiple mechanisms. PNC’s Chief Information Security Officer presents quarterly to the Technology Committee on such topics as threat intelligence and assessment reports, incident and event reporting from other institutions, governance and regulatory exam statuses, and the status of other key program deliverables, among other content.The Risk Committee meets no less than quarterly and provides oversight of PNC’s ERM framework. Cybersecurity risk is integrated into PNC’s overall ERM framework, and is represented as the Information Security domain, alongside seven other operational risk domains. See the Risk Management section in Item 7 of this Report for more details on our ERM framework. PNC’s inherent information security risks, the maturity and completeness of the control environment and measurements against our risk appetite are presented quarterly to the Technology Committee by the firm’s Chief Technology Risk Officer. Overall risks across the Enterprise Risk Framework are then reported quarterly to the Risk Committee by the Chief Risk Officer. Communication to the Board occurs more frequently than quarterly when dictated by incident and event management policies and procedures based on the criticality and urgency of the communication.Role of Management Management is directly involved in assessing and managing PNC’s risks from cybersecurity threats.

EQUITYPreferred StockThe following table provides the number of preferred shares issued and outstanding, the liquidation value per share and the number of authorized preferred shares:Table 77: Preferred Stock - Authorized, Issued and Outstanding (a) Preferred SharesDecember 31Shares in thousandsLiquidationvalue per share20252024Authorized$1 par value20,000 20,000 Issued and outstandingSeries B$40 1 1 Series S$100,000 5 5 Series T$100,000 15 15 Series U$100,000 10 10 Series V$100,000 12 12 Series W$100,000 15 15 Total issued and outstanding 58 58 (a) See Note 24 Subsequent Events for information related to the preferred stock issuance in connection with the acquisition of FirstBank. The following table discloses information related to the preferred stock outstanding as of December 31, 2025:Table 78: Terms of Outstanding Preferred Stock Preferred StockIssueDateNumber ofDepositaryShares Issued and Outstanding Fractional Interest in a Share of Preferred Stock Represented by Each Depositary ShareDividend Dates (a)Annual Per Share Dividend RateOptionalRedemptionDate (b)Series B (c)(c)N/AN/AQuarterly$1.80 NoneSeries S (d)November 1, 2016525,000 1/100thSemi-annuallyuntil November 1, 2026 Quarterly beginning on February 1, 20275.00% until November 1, 2026 3 Mo. CME Term SOFR plus 0.26161% plus 3.30% beginning November 1, 2026November 1, 2026Series T (d)September 13, 20211.5 million1/100th Quarterly3.40% until September 15, 2026 5 Yr. U.S. Treasury plus 2.595% per annum beginning September 15, 2026 September 15, 2026Series U (d)April 26, 20221 million1/100th Quarterly6.00% until May 15, 2027 5 Yr. U.S. Treasury plus 3.00% per annum beginning May 15, 2027May 15, 2027Series V (d)August 19, 20221.25 million1/100th Quarterly6.20% until September 15, 2027 5 Yr. U.S. Treasury plus 3.238% per annum beginning September 15, 2027September 15, 2027Series W (d)February 7, 20231.5 million1/100thQuarterly6.25% until March 15, 20307 Yr. U.S. Treasury plus 2.808% per annum beginning March 15, 2030March 15, 2030(a)Dividends are payable when, as, and if declared by our Board of Directors or an authorized committee of our Board of Directors.(b)Redeemable at our option on or after the date stated. With the exception of the Series B preferred stock, also redeemable at our option within 90 days of a regulatory capital treatment event as defined in the designations.(c)Cumulative preferred stock.