PNC to boost tech spend after staff cuts

PNC is planning to increase spending for its technology development program this year after reducing noninterest expenses through workforce cuts in the fourth quarter of 2022 in preparation for an economic downturn. WHY IT MATTERS: Personnel-related expenses were down 5% year over year to $1.9 billion in Q4 but were up 8% sequentially, driven by costs in areas of “variable compensation related to increased business activity,” PNC Chief Financial Officer Rob Reilly said today during the bank’s Q4 earnings call. The $557 billion bank increased its equipment spend by 7% sequentially to $369 million, as PNC acquired facilities such as buildings for its growth needs moving forward, Reilly added. [caption id="attachment_220088" align="alignright" width="300"] Photo by Bloomberg Mercury [/caption] THE BIG PICTURE: Pittsburgh-based PNC achieved its Q2 goal of cutting costs by the end of last year. “We had a 2022 goal of $300 million in cost savings through our continuous improvement program, and we exceeded that goal,” Reilly said during today’s call. BY THE NUMBERS: PNC reported for Q4: Total noninterest expenses fell 8% YoY to $3.4 billion; and Net income dipped 6% YoY to $1.5 billion; FLASHBACK: Having merged with BBVA in October 2021, PNC continues to expand into new geographic areas with greater customer reach, Chief Executive Bill Demchak said during today’s call, noting that “progress within the BBVA-influenced markets continues to exceed expectations.” The bank also acquired point-of-sale and payments solution firm Linga during Q3 to expand its digital resources to help clients “keep up with ever-changing consumer expectations,” Emma Loftus, executive vice president and head of PNC Treasury Management, previously said. FUTURE LOOK: PNC aims to continue increasing its technology investments this year despite a potential economic downturn and personnel cuts, according to Reilly. “Looking forward to 2023, we will be increasing our annual [technology development program] goal to $400 million,” he said. “This program funds a significant portion of our ongoing business and technology investments.” [stock_market_widget type="inline" template="generic" assets="PNC" markup="Shares of {name} ({symbol}) are trading at {price} ({change_pct}) as of {last_update}" api="yf"]. Bank Automation Summit US 2023, taking place March 2-3 in Charlotte, is a crucial event on automation and automation technology in banking. <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home" href="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1673636584390.1673642239848.712&__hssc=41615677.3.1673642239848&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link Learn more">Learn more and <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register" href="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1673636584390.1673642239848.712&__hssc=41615677.3.1673642239848&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link register for Bank Automation Summit US 2023">register for Bank Automation Summit US 2023 .

PNC to boost tech spend after staff cuts

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PNC to boost tech spend after staff cuts

The bank posted a 5% YoY reduction in personnel-related expenses in Q4

Discover execs join Bank Automation Summit US 2023

Microsoft joins wave of tech layoffs as slowdown spreads

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