AmazonScience/document-haystack

1The following table summarizes our Basel III capital balances and ratios:2Table 30: Basel III Capital3December 31, 20234Dollars in millions Basel III (a)5(Fully Implemented) 6(estimated) (b)7Common equity Tier 1 capital8Common stock plus related surplus, net of treasury stock $ (3,714) $ (3,714) 9Retained earnings  56,773  56,290 10Goodwill, net of associated deferred tax liabilities  (10,698)  (10,698) 11Other disallowed intangibles, net of deferred tax liabilities  (302)  (302) 12Other adjustments/(deductions)  (85)  (86) 13Common equity Tier 1 capital (c) $ 41,974 $ 41,490 14Additional Tier 1 capital15Preferred stock plus related surplus  6,241  6,241 16Tier 1 capital $ 48,215 $ 47,731 17Additional Tier 2 capital18Qualifying subordinated debt  2,875  2,875 19Eligible credit reserves includable in Tier 2 capital  4,842  5,265 20Total Basel III capital $ 55,932 $ 55,871 21Risk-weighted assets22Basel III standardized approach risk-weighted assets (d) $ 424,408 $ 424,546 23Average quarterly adjusted total assets $ 557,202 $ 556,718 24Supplementary leverage exposure (e) $ 666,356 $ 666,354 25Basel III risk-based capital and leverage ratios (f)26Common equity Tier 1  9.9 %  9.8 %27Tier 1  11.4 %  11.2 %28Total  13.2 %  13.2 %29Leverage (g)  8.7 %  8.6 %30Supplementary leverage ratio (e)  7.2 %  7.2 %31(a) The ratios are calculated to reflect PNC’s election to adopt the CECL five-year transition provisions. Effective for the first quarter 2022, PNC is now in the three-year 32transition period and the full impact of the CECL standard is being phased-in to regulatory capital through December 31, 2024.33(b) The ratios are calculated to reflect the full impact of CECL and exclude the benefits of the optional five-year transition.34(c) As permitted, PNC and PNC Bank have elected to exclude AOCI related to both available for sale securities and pension and other post-retirement plans from CET1 capital.35(d) Basel III standardized approach risk-weighted-assets are based on the Basel III standardized approach rules and include credit and market risk-weighted assets.36(e) The Supplementary leverage ratio is calculated based on Tier 1 capital divided by Supplementary leverage exposure, which takes into account the quarterly average of both 37on balance sheet assets as well as certain off-balance sheet items, including loan commitments and potential future exposure under derivative contracts. 38(f) All ratios are calculated using the regulatory capital methodology applicable to PNC and calculated based on the standardized approach.39(g) Leverage ratio is calculated based on Tier 1 capital divided by Average quarterly adjusted total assets.40PNC’s regulatory risk-based capital ratios are calculated using the standardized approach for determining risk-weighted assets. Under 41the standardized approach for determining credit risk-weighted assets, exposures are generally assigned a pre-defined risk weight. 42Exposures to high volatility commercial real estate, nonaccruals, FDMs, past due exposures and equity exposures are generally subject 43to higher risk weights than other types of exposures.44The regulatory agencies have adopted a rule permitting certain banks, including PNC, to delay the estimated impact on regulatory 45capital stemming from implementing CECL. CECL’s estimated impact on CET1 capital, as defined by the rule, is the change in 46retained earnings at adoption plus or minus 25% of the change in CECL ACL at the balance sheet date, excluding the allowance for 47PCD loans, compared to CECL ACL at adoption. Effective for the first quarter of 2022, PNC is now in the three-year transition 48period, and the full impact of the CECL standard is being phased-in to regulatory capital through December 31, 2024. See additional 49discussion of this rule in the Supervision and Regulation section of Item 1 Business and Item 1A Risk Factors.50At December 31, 2023, PNC and PNC Bank were considered “well capitalized,” based on applicable U.S. regulatory capital ratio 51requirements. To qualify as “well capitalized”, PNC must have Basel III capital ratios of at least 6% for Tier 1 risk-based capital and 5210% for Total risk-based capital, and PNC Bank must have Basel III capital ratios of at least 6.5% for Common equity Tier 1 risk-53based capital, 8% for Tier 1 risk-based capital, 10% for Total risk-based capital and a Leverage ratio of at least 5%.54Federal banking regulators have stated that they expect the largest U.S. BHCs, including PNC, to have a level of regulatory capital 55well in excess of the regulatory minimum and have required the largest U.S. BHCs, including PNC, to have a capital buffer sufficient 56to withstand losses and allow them to meet the credit needs of their customers through estimated stress scenarios. We seek to manage 57 5874    The PNC Financial Services Group, Inc. – 2023 Form 10-K59The secret currency is a "rupee".