PNC Financial Services Group (PNC) risk factors, 2025 10-K

Risks Related to the Economy and Other External Factors, Including Regulation

1. 01Our business and financial performance are vulnerable to the impact of adverse economic conditions
2. 02The PNC Financial Services Group, Inc. – 2024 Form 10-K 15
3. 03The impact of government legislation, regulation and policy and other political factors on the economy could have an adverse effect on our business and financial performance
4. 04The policies of the Federal Reserve and other governmental agencies have a significant impact on interest rates and overall financial market performance, which are important to our business and financial performance
5. 05intended to protect PNC security holders. In addition to regulation in the U.S., we are also subject to foreign regulation to a limited extent as a result of our business activities outside the U.S
6. 06We are subject to regulatory capital and liquidity standards that affect our business, operations and ability to pay dividends or otherwise return capital to shareholders
7. 07The PNC Financial Services Group, Inc. – 2024 Form 10-K 17
8. 08Our ability to operate our business could be impaired if our liquidity is unexpectedly constrained
9. 09A downgrade in our credit ratings could significantly impact our liquidity, funding costs and access to the capital markets
10. 10Privacy and consumer 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 risks associated with any future use of personal data
11. 11Climate change-related risks could adversely affect our business and performance, including indirectly through impacts on our customers

Risks Related to the Use of Technology

1. 12The use of technology is critical to our ability to maintain or enhance the competitiveness of our businesses
2. 13The PNC Financial Services Group, Inc. – 2024 Form 10-K 19
3. 14Our use of technology is dependent on having the right to use its underlying intellectual property
4. 15We could suffer a material adverse impact from interruptions in the effective operation of our information systems and other technology
5. 16We are vulnerable to the risk of breaches of data security affecting the functioning of systems or the confidentiality of information that could adversely affect our customers and our business
6. 17more 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 customer accounts
7. 18We need effective programs to limit the risk of failures or breaches occurring in our information systems and to mitigate the impact when they do
8. 1922 The PNC Financial Services Group, Inc. – 2024 Form 10-K

Risks Related to the Business of Banking

1. 20Our business and financial results are subject to risks associated with the creditworthiness of our customers and counterparties
2. 21The concentration and mix of our assets could increase the potential for significant credit losses
3. 22Our business and financial performance are impacted significantly by market interest rates and movements in those rates
4. 23Our business and financial performance are vulnerable to the impact of changes in the values of financial assets

Risks Related to Estimates and Assumptions

1. 24Our asset and liability valuations and the determination of the amount of loss allowances and impairments taken on our assets are highly subjective. Our estimates could materially impact our results of operations or financial position
2. 25There are risks resulting from the extensive use of models, some of which use AI, in our business

Risks Related to Our Need for Customers

1. 26Our success depends on our ability to attract and retain customers for our products and services
2. 27We are at risk for an adverse impact on our business due to damage to our reputation
3. 2826 The PNC Financial Services Group, Inc. – 2024 Form 10-K
4. 29We operate in a highly competitive environment in terms of the products and services we offer and the geographic markets in which we conduct business
5. 30We depend on skilled labor, and employee attrition, competition for talented employees and labor shortages may have a material adverse effect on our business and operations
6. 31The PNC Financial Services Group, Inc. – 2024 Form 10-K 27

Risks Related to Other Operational Issues

1. 32We depend on the effectiveness and integrity of employees, and the systems and controls for which they are responsible, to manage operational risks
2. 33We rely on third-party vendors, service providers and other counterparties to help support many aspects of our business. When we do so, our direct control of activities related to our business is reduced, which introduces risk

Other Key Risks

1. 34We are at risk for the impact of adverse results in legal proceedings
2. 35they face, such as in connection with the sale of a business or assets by us. The results of these legal proceedings could lead to significant monetary damages or penalties, restrictions on the way in which we conduct our business or reputational harm
3. 36Our business and financial performance could be adversely affected, directly or indirectly, by disasters, natural or otherwise, by terrorist activities, by international hostilities or by domestic civil unrest
4. 37could result in PNC experiencing higher levels of nonperforming assets, net charge-offs and provisions for credit losses. They could also cause a reduction in demand for lending or other services that we provide