The PNC Financial Services Group, Inc. (NYSE:PNC) Q4 2019 Earnings Conference Call - Final Transcript

Jan 15, 2020 • 09:30 am ET

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The PNC Financial Services Group, Inc. (NYSE:PNC) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Executive
William S. Demchak

off the lower FICO-scored consumer.

Analyst
Saul Martinez

Yeah.

Executive
William S. Demchak

If we shift to secured products and C&I versus unsecured products, it shifts. If we do more card than we do resi mortgage, it's -- this thing is going to be really hard to predict. And what we have to do and we will do is give you an effect, a provision attribution each quarter so that you understand [Speech Overlap].

Executive
Robert Q. Reilly

Which is part of the disclosure. That's right.

Analyst
Saul Martinez

All right. And look, like the loss content...

Executive
Robert Q. Reilly

I think to remember is, we have more reserves right here, day one...

Executive
William S. Demchak

So, that 1.14% is now going to 1%.

Executive
Robert Q. Reilly

Yeah, yeah. We got lot of reserves.

Analyst
Saul Martinez

Got it. Not, fair. But like, to the extent mix is changing and there is no change in our strategy in the trajectory, which has seen auto cards grow disproportionately you'll be it from a lower base, I would think that if that trend continues. Your loss content and your expected losses over time. Assuming all else equal, which I know is unrealistic. I mean shouldn't we assume that your ALLL, given current trends should move higher from here?

Executive
William S. Demchak

The challenge with that is the assumption that the absolute growth in consumer will somehow keep pace with the absolute growth in C&I which it weren't, simply because C&I is disproportionately larger. So, yes, consumer will grow, but you got to remember that that's balanced by a larger C&I book, growing just past.

Executive
Robert Q. Reilly

Right. That's right.

Analyst
Saul Martinez

Right. So the balance growth is much bigger just from -- okay.

Executive
William S. Demchak

Yeah.

Analyst
Saul Martinez

Got it. Okay. All right. That's very helpful. Thanks.

Executive
Robert Q. Reilly

Sure.

Executive
William S. Demchak

Thank you.

Operator
Operator

There are no further questions.

Executive
William S. Demchak

All right, well thank you everybody. And we'll see you in the first quarter.

Executive
Robert Q. Reilly

Thank you.

Operator
Operator

[Operator Closing Remarks]