trending Market Intelligence /marketintelligence/en/news-insights/trending/8oOGT7PCuPvEP5WyLPWrUw2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

PNC projects 20% increase in reserves from CECL

Street Talk - Ep. 64: Coronavirus jumpstarts digital adoption

Street Talk Podcast

Street Talk - Ep. 63: Deal talks continue amid bank M&A freeze, setting up for strong Q4

Street Talk Podcast

Street Talk - Ep. 62: 'Brutal' outlook for oil demand offers banks in oil patch no relief

Amid Q1 APAC Fintech Funding Slump, Payment Companies Drove Investments


PNC projects 20% increase in reserves from CECL

PNC Financial Services Group Inc. is expecting a 20% increase to its current aggregate reserve levels following implementation of the current expected credit loss standard on Jan. 1, 2020.

There is less than one quarter until CECL will require large banks to estimate the potential losses over their loans' lifetimes and record those losses at origination. During PNC's third-quarter earnings call, CFO Robert Reilly gave clearer insight into CECL's potential impact on the bank's loan loss reserves.

Reilly said the bank has been conducting a parallel run since the beginning of the year and its updated estimate is based on the current economic conditions forecast and its portfolio balance. The 20% reserve build is a more specific estimate than the bank's estimate last quarter of 15% to 25%.

The increase will be driven mostly by its consumer loan portfolio because longer-duration assets will require more reserves, Reilly said on the call.

As the CECL implementation date approaches, banks have been giving more estimates on CECL's effects. Reilly said PNC will "further refine" its allowance estimates through the end of the fourth quarter.