PNC Reports Second Quarter 2025 Net Income of $1.6 Billion, $3.85 Diluted EPS
PNC Financial Services (NYSE:PNC) reported strong Q2 2025 results with net income of $1.6 billion and diluted EPS of $3.85. The bank demonstrated solid performance with 4% positive operating leverage and a 10% increase in pre-provision net revenue.
Key highlights include: 2% growth in net interest income to $3.6 billion, 3% increase in fee income to $1.9 billion, and stable noninterest expense at $3.4 billion. The bank's loan portfolio grew by $6.1 billion (2%), primarily driven by commercial and industrial loans. Credit quality remained stable with net loan charge-offs at $198 million (0.25% annualized).
PNC increased its quarterly dividend by 10 cents to $1.70 per share and maintained strong capital positions with a CET1 ratio of 10.5%. The bank returned $1 billion to shareholders through dividends and share repurchases.
PNC Financial Services (NYSE:PNC) ha riportato risultati solidi nel secondo trimestre del 2025 con un utile netto di 1,6 miliardi di dollari e un utile per azione diluito di 3,85 dollari. La banca ha mostrato una buona performance con una leva operativa positiva del 4% e un aumento del 10% dei ricavi netti pre-accantonamenti.
I punti salienti includono: una crescita del 2% del reddito da interessi netti a 3,6 miliardi di dollari, un aumento del 3% delle commissioni a 1,9 miliardi di dollari e spese non da interessi stabili a 3,4 miliardi di dollari. Il portafoglio prestiti della banca 猫 cresciuto di 6,1 miliardi di dollari (2%), principalmente grazie ai prestiti commerciali e industriali. La qualit脿 del credito 猫 rimasta stabile con svalutazioni nette su prestiti pari a 198 milioni di dollari (0,25% su base annua).
PNC ha aumentato il dividendo trimestrale di 10 centesimi, portandolo a 1,70 dollari per azione e ha mantenuto solide posizioni di capitale con un rapporto CET1 del 10,5%. La banca ha restituito 1 miliardo di dollari agli azionisti tramite dividendi e riacquisti di azioni.
PNC Financial Services (NYSE:PNC) report贸 s贸lidos resultados en el segundo trimestre de 2025 con un ingreso neto de 1,6 mil millones de d贸lares y un EPS diluido de 3,85 d贸lares. El banco mostr贸 un desempe帽o s贸lido con una apalancamiento operativo positivo del 4% y un aumento del 10% en los ingresos netos antes de provisiones.
Los aspectos destacados incluyen: un crecimiento del 2% en ingresos netos por intereses hasta 3,6 mil millones de d贸lares, un aumento del 3% en ingresos por comisiones hasta 1,9 mil millones de d贸lares y gastos no relacionados con intereses estables en 3,4 mil millones de d贸lares. La cartera de pr茅stamos del banco creci贸 en 6,1 mil millones de d贸lares (2%), impulsada principalmente por pr茅stamos comerciales e industriales. La calidad crediticia se mantuvo estable con castigos netos por pr茅stamos de 198 millones de d贸lares (0,25% anualizado).
PNC aument贸 su dividendo trimestral en 10 centavos a 1,70 d贸lares por acci贸n y mantuvo s贸lidas posiciones de capital con una ratio CET1 del 10,5%. El banco devolvi贸 1 mil millones de d贸lares a los accionistas mediante dividendos y recompras de acciones.
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PNC電� 攵勱赴 氚半嫻旮堨潉 10靹柬姼 鞚胳儊頃橃棳 欤茧嫻 1.70雼煬搿� 鞓牳鞙茧┌, CET1 牍勳湪 10.5%搿� 臧曤牓頃� 鞛愲掣 靸來儨毳� 鞙犾頄堨姷雼堧嫟. 鞚�頄夓潃 氚半嫻旮堦臣 鞛愳偓欤� 毵れ瀰鞚� 韱淀暣 欤检＜鞐愱矊 10鞏� 雼煬毳� 頇橃洂頄堨姷雼堧嫟.
PNC Financial Services (NYSE:PNC) a publi茅 de solides r茅sultats pour le deuxi猫me trimestre 2025 avec un b茅n茅fice net de 1,6 milliard de dollars et un BPA dilu茅 de 3,85 dollars. La banque a d茅montr茅 une performance solide avec un levier op茅rationnel positif de 4% et une augmentation de 10% des revenus nets avant provisions.
Les points cl茅s incluent : une croissance de 2% des revenus d鈥檌nt茅r锚ts nets 脿 3,6 milliards de dollars, une hausse de 3% des revenus de commissions 脿 1,9 milliard de dollars, et des charges hors int茅r锚ts stables 脿 3,4 milliards de dollars. Le portefeuille de pr锚ts de la banque a augment茅 de 6,1 milliards de dollars (2%), principalement port茅 par les pr锚ts commerciaux et industriels. La qualit茅 du cr茅dit est rest茅e stable avec des pertes nettes sur pr锚ts s鈥櫭﹍evant 脿 198 millions de dollars (0,25% annualis茅).
PNC a augment茅 son dividende trimestriel de 10 cents pour atteindre 1,70 dollar par action et a maintenu de solides positions en capital avec un ratio CET1 de 10,5%. La banque a revers茅 1 milliard de dollars aux actionnaires via dividendes et rachats d鈥檃ctions.
PNC Financial Services (NYSE:PNC) meldete starke Ergebnisse f眉r das zweite Quartal 2025 mit einem Nettogewinn von 1,6 Milliarden US-Dollar und einem verw盲sserten Gewinn je Aktie von 3,85 US-Dollar. Die Bank zeigte eine solide Leistung mit 4% positivem operativem Hebel und einem 10%igen Anstieg der Nettoerl枚se vor R眉ckstellungen.
Wichtige Highlights sind: 2% Wachstum beim Nettozinsertrag auf 3,6 Milliarden US-Dollar, 3% Steigerung der Geb眉hreneinnahmen auf 1,9 Milliarden US-Dollar und stabile nicht-zinsbedingte Aufwendungen von 3,4 Milliarden US-Dollar. Das Kreditportfolio der Bank wuchs um 6,1 Milliarden US-Dollar (2%), haupts盲chlich getrieben durch gewerbliche und industrielle Kredite. Die Kreditqualit盲t blieb stabil mit Nettoabschreibungen auf Kredite in H枚he von 198 Millionen US-Dollar (0,25% annualisiert).
PNC erh枚hte seine viertelj盲hrliche Dividende um 10 Cent auf 1,70 US-Dollar je Aktie und hielt starke Kapitalpositionen mit einer CET1-Quote von 10,5%. Die Bank gab 1 Milliarde US-Dollar an die Aktion盲re durch Dividenden und Aktienr眉ckk盲ufe zur眉ck.
- Net income increased to $1.6 billion with EPS of $3.85, up from $3.51 in Q1
- Generated 4% positive operating leverage with 10% increase in PPNR
- Average loans increased $6.1 billion (2%), driven by 4% growth in commercial loans
- Net interest margin expanded 2 bps to 2.80%
- Quarterly dividend increased by 10 cents to $1.70 per share
- Strong Federal Reserve stress test results with SCB remaining at minimum 2.5%
- Credit quality improved with 8% decrease in nonperforming loans
- Commercial real estate loans declined by $1.2 billion (4%)
- Consumer loan balances remained flat quarter-over-quarter
- Provision for credit losses increased to $254 million from $219 million in Q1
- CET1 capital ratio slightly decreased to 10.5% from 10.6% in Q1
Insights
PNC delivered strong Q2 results with 4% revenue growth, solid loan expansion, and improved efficiency while maintaining stable credit quality.
PNC reported a robust second quarter with net income of
Revenue performance was particularly strong, increasing
PNC's loan portfolio showed significant momentum, with average loans increasing
On the expense front, PNC demonstrated excellent cost discipline, keeping noninterest expenses flat at
Capital management remains a strength, with PNC announcing a
The combination of accelerating loan growth, expanding margins, effective expense management, and strong capital position demonstrates PNC's successful execution of its national growth strategy in a challenging macroeconomic environment. The improved credit metrics also suggest that PNC's underwriting standards remain sound despite the expansion in lending.
Strong loan growth;
Quarterly common stock dividend increased
For the quarter | |||||||||||
In millions, except per share data and as noted | 2Q25 | 1Q25 | 2Q24 | Second Quarter Highlights | |||||||
Financial Results | Comparisons reflect 2Q25 vs. 1Q25 | ||||||||||
Net interest income (NII) | $听听听 3,555 | $听听听 3,476 | $听听听 3,302 | 听 听 听 听 听 听 听 Income Statement 鈻� Generated 鈻� Revenue increased 鈥撎� NII increased 鈥撎� Fee income increased 鈥撎� Other noninterest income of 鈻� Noninterest expense was stable 鈥撎� Efficiency ratio improved to 听 听 听 听 听 听 听 听 听Balance Sheet 鈻� Average loans increased 鈻� Average deposits grew 鈻� Net loan charge-offs were 鈻� AOCI improved 鈻� TBV per share increased 鈻� Maintained strong capital position 鈥撎� CET1 capital ratio of 鈥撎� Returned 鈥撎� Strong Federal Reserve stress test | |||||||
Fee income (non-GAAP) | 1,894 | 1,839 | 1,777 | ||||||||
Other noninterest income | 212 | 137 | 332 | ||||||||
Noninterest income | 2,106 | 1,976 | 2,109 | ||||||||
Revenue | 5,661 | 5,452 | 5,411 | ||||||||
Noninterest expense | 3,383 | 3,387 | 3,357 | ||||||||
Pretax, pre-provision earnings (PPNR) (non-GAAP) | 2,278 | 2,065 | 2,054 | ||||||||
Provision for credit losses | 254 | 219 | 235 | ||||||||
Net income | 1,643 | 1,499 | 1,477 | ||||||||
Per Common Share | |||||||||||
Diluted earnings per share (EPS) | $听听听听听 3.85 | $听听听听听 3.51 | $听听听听听 3.39 | ||||||||
Average diluted common shares outstanding | 397 | 398 | 400 | ||||||||
Book value | 131.61 | 127.98 | 116.70 | ||||||||
Tangible book value (TBV) (non-GAAP) | 103.96 | 100.40 | 89.12 | ||||||||
Balance Sheet & Credit Quality | |||||||||||
Average loans 听听听In billions | $听听听 322.8 | $听听听 316.6 | $听听听 319.9 | ||||||||
Average securities听听听 In billions | 141.9 | 142.2 | 141.3 | ||||||||
Average deposits听听 听In billions | 423.0 | 420.6 | 417.2 | ||||||||
Accumulated other comprehensive income (loss) (AOCI) In billions | (4.7) | (5.2) | (7.4) | ||||||||
Net loan charge-offs | 198 | 205 | 262 | ||||||||
Allowance for credit losses to total loans | 1.62听% | 1.64听% | 1.67听% | ||||||||
Selected Ratios | |||||||||||
Return on average common shareholders' equity | 12.20听% | 11.60听% | 12.16听% | ||||||||
Return on average assets | 1.17 | 1.09 | 1.05 | ||||||||
Net interest margin (NIM) (non-GAAP) | 2.80 | 2.78 | 2.60 | ||||||||
Noninterest income to total revenue | 37 | 36 | 39 | ||||||||
Efficiency | 60 | 62 | 62 | ||||||||
Effective tax rate | 18.8 | 18.8 | 18.8 | ||||||||
Common equity Tier 1 (CET1) capital ratio | 10.5 | 10.6 | 10.2 | ||||||||
See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release. Totals | |||||||||||
From Bill Demchak, PNC Chairman and Chief Executive Officer:
"Our national growth strategy continues to deliver results. New customer acquisition is accelerating, while we continue to deepen relationships with our existing customers across businesses. The strength of our franchise resulted in strong loan and revenue growth even through an uncertain macro environment, while expenses remained well controlled. Overall, we had a great quarter."
Income Statement Highlights
Second quarter 2025听compared with first quarter 2025
- Total revenue of
$5.7 billion $209 million 4% , driven by growth in both noninterest income and net interest income.- Net interest income of
$3.6 billion $79 million 2% , driven by loan growth, the continued benefit of fixed rate asset听repricing and one additional day in the quarter.- Net interest margin of
2.80% increased 2 basis points.
- Net interest margin of
- Fee income of
$1.9 billion $55 million 3% , primarily due to higher card and cash management revenue and an increase in capital markets and advisory fees. - Other听noninterest income of
$212 million $75 million
- Net interest income of
- Noninterest expense of
$3.4 billion - Provision for credit losses was
$254 million - The effective tax rate was
18.8% for both the second quarter and first quarter.
Balance Sheet Highlights
Second quarter 2025听compared with first quarter 2025 or June听30, 2025 compared with March听31, 2025
- Average loans of
$322.8 billion $6.1 billion 2% , driven by growth in the commercial and industrial portfolio of$7.4 billion 4% , reflecting strong new production and increased utilization of loan commitments, partially offset by a decline in commercial real estate loans of$1.2 billion 4% . Consumer loan balances were stable. - Credit quality performance:
- Delinquencies of
$1.3 billion $128 million 9% , as a result of lower consumer and commercial loan delinquencies. - Total听nonperforming loans of
$2.1 billion $184 million 8% , driven by lower commercial nonperforming loans, including lower commercial real estate nonperforming loans. - Net loan charge-offs of
$198 million $7 million - The allowance for credit losses increased
$0.1 billion $5.3 billion 1.62% at June 30, 2025 and1.64% at March 31, 2025.
- Delinquencies of
- Average investment securities of
$141.9 billion - Investment securities at June 30, 2025 of
$142.3 billion $4.6 billion 3% , reflecting net purchase activity, primarily of agency residential mortgage-backed securities.
- Investment securities at June 30, 2025 of
- Average deposits of
$423.0 billion $2.3 billion $93.1 billion $0.8 billion - Average borrowed funds of
$65.3 billion - PNC maintained a strong capital and liquidity position:
- Based on the results of the Federal Reserve's 2025 annual stress test,听PNC's SCB for the four-quarter period beginning October 1, 2025 will remain at the regulatory minimum of
2.5% . - On July 3, 2025, the PNC board of directors raised the quarterly cash dividend on common stock to
$1.70 10 cents per share. The dividend is payable on August 5, 2025 to shareholders of record at the close of business July 15, 2025. - PNC returned
$1.0 billion $0.6 billion $0.3 billion - The听Basel III common equity Tier 1 capital ratio was an estimated
10.5% at June 30, 2025 and was10.6% at March 31, 2025. - PNC's average LCR for the three months ended June 30, 2025 was
107% , exceeding the regulatory minimum requirement throughout the quarter.
- Based on the results of the Federal Reserve's 2025 annual stress test,听PNC's SCB for the four-quarter period beginning October 1, 2025 will remain at the regulatory minimum of
Earnings Summary | ||||||
In millions, except per share data | 2Q25 | 1Q25 | 2Q24 | |||
Net income | $听听听听听 1,643 | $听听听听听 1,499 | $听听听听听 1,477 | |||
Net income attributable to diluted common shareholders | $听听听听听 1,532 | $听听听听听 1,399 | $听听听听听 1,355 | |||
Diluted earnings per common share | $听 听 听 听 3.85 | $听 听 听 听 3.51 | $听 听 听 听 3.39 | |||
Average diluted common shares outstanding | 397 | 398 | 400 | |||
Cash dividends declared per common share | $听 听 听 听 1.60 | $听 听 听 听 1.60 | $听 听 听 听 1.55 | |||
The Consolidated Financial Highlights accompanying this news release include additional information regarding reconciliations of non-GAAP financial measures to reported (GAAP) amounts. This information supplements results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, GAAP results. Information in this news release, including the financial tables, is unaudited.
CONSOLIDATED REVENUE REVIEW | |||||||
Revenue | Change | Change | |||||
2Q25 vs | 2Q25 vs | ||||||
In millions | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Net interest income | $听听听听听听听听 3,555 | $听听听听听听听听 3,476 | $听听听听听听听听 3,302 | 2听% | 8听% | ||
Noninterest income | 2,106 | 1,976 | 2,109 | 7听% | 鈥� | ||
Total revenue | $听听听听听听听听 5,661 | $听听听听听听听听 5,452 | $听听听听听听听听 5,411 | 4听% | 5听% | ||
Total revenue for the second quarter of 2025 increased
Net interest income of
Noninterest Income | Change | Change | |||||
2Q25 vs | 2Q25 vs | ||||||
In millions | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Asset management and brokerage | $听听听听听听听听听 391 | $听听听听听听听听听 391 | $听听听听听听听听听 364 | 鈥� | 7听% | ||
Capital markets and advisory | 321 | 306 | 272 | 5听% | 18听% | ||
Card and cash management | 737 | 692 | 706 | 7听% | 4听% | ||
Lending and deposit services | 317 | 316 | 304 | 鈥� | 4听% | ||
Residential and commercial mortgage | 128 | 134 | 131 | (4)听% | (2)听% | ||
Fee income (non-GAAP) | 1,894 | 1,839 | 1,777 | 3听% | 7听% | ||
Other | 212 | 137 | 332 | 55听% | (36)听% | ||
Total noninterest income | $听听听听听 2,106 | $听听听听听 1,976 | $听听听听听 2,109 | 7听% | 鈥� | ||
Noninterest income for the second quarter of 2025 increased
Noninterest income for the second quarter of 2025 was stable from the second quarter of 2024, as broad-based fee income growth was offset by lower other noninterest income, reflecting
CONSOLIDATED EXPENSE REVIEW | |||||||
Noninterest Expense | Change | Change | |||||
2Q25 vs | 2Q25 vs | ||||||
In millions | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Personnel | $听听听听听听 1,889 | $听听听听听听 1,890 | $听听听听听听 1,782 | 鈥� | 6听% | ||
Occupancy | 235 | 245 | 236 | (4)听% | 鈥� | ||
Equipment | 394 | 384 | 356 | 3听% | 11听% | ||
Marketing | 99 | 85 | 93 | 16听% | 6听% | ||
Other | 766 | 783 | 890 | (2)听% | (14)听% | ||
Total noninterest expense | $听听听听听听 3,383 | $听听听听听听 3,387 | $听听听听听听 3,357 | 鈥� | 1听% | ||
Noninterest expense for the second quarter of 2025 was stable compared to the first quarter of 2025, reflecting a continued focus on expense management, partially offset by seasonally higher marketing spend and continued technology investments.
Noninterest expense for the second quarter of 2025 increased
The effective tax rate was
CONSOLIDATED BALANCE SHEET REVIEW | |||||||
Loans | Change | Change | |||||
2Q25 vs | 2Q25 vs | ||||||
In billions | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Average | |||||||
Commercial | $听听听听听听听听听听听听听听听听听听听听听听 223.4 | $听听听听听听听听听听听听听听听听听听听听听听 217.1 | $听听听听听听听听听听听听听听听听听听听听听听 219.1 | 3听% | 2听% | ||
Consumer | 99.4 | 99.5 | 100.8 | 鈥� | (1)听% | ||
Average loans | $听听听听听听听听听听听听听听听听听听听听听听 322.8 | $听听听听听听听听听听听听听听听听听听听听听听 316.6 | $听听听听听听听听听听听听听听听听听听听听听听 319.9 | 2听% | 1听% | ||
Quarter end | |||||||
Commercial | $听听听听听听听听听听听听听听听听听听听听听听 227.0 | $听听听听听听听听听听听听听听听听听听听听听听 219.6 | $听听听听听听听听听听听听听听听听听听听听听听 220.8 | 3听% | 3听% | ||
Consumer | 99.3 | 99.3 | 100.6 | 鈥� | (1)听% | ||
Total loans | $听听听听听听听听听听听听听听听听听听听听听听 326.3 | $听听听听听听听听听听听听听听听听听听听听听听 318.9 | $听听听听听听听听听听听听听听听听听听听听听听 321.4 | 2听% | 2听% | ||
Totals may not sum due to rounding | |||||||
Average loans increased
In comparison to the second quarter of 2024, average loans increased
Loans at June 30, 2025 increased
Investment Securities | Change | Change | |||||
2Q25 vs | 2Q25 vs | ||||||
In billions | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Average | |||||||
Available for sale | $听听听听听听听听听听听听听听听听听听听听 67.8 | $听听听听听听听听听听听听听听听听听听听听听听 65.7 | $听听听听听听听听听听听听听听听听听听听听 53.4 | 3听% | 27听% | ||
Held to maturity | 74.2 | 76.5 | 87.9 | (3)听% | (16)听% | ||
Average investment securities | $听听听听听听听听听听听听听听听听听听 141.9 | $听听听听听听听听听听听听听听听听听听听听 142.2 | $听听听听听听听听听听听听听听听听听听 141.3 | 鈥� | 鈥� | ||
Quarter end | |||||||
Available for sale | $听听听听听听听听听听听听听听听听听听听听 67.1 | $听听听听听听听听听听听听听听听听听听听听听听 63.3 | $听听听听听听听听听听听听听听听听听听听听 51.2 | 6听% | 31听% | ||
Held to maturity | 75.2 | 74.5 | 87.5 | 1听% | (14)听% | ||
Total investment securities | $听听听听听听听听听听听听听听听听听听 142.3 | $听听听听听听听听听听听听听听听听听听听听 137.8 | $听听听听听听听听听听听听听听听听听听 138.6 | 3听% | 3听% | ||
Totals may not sum due to rounding | |||||||
Average investment securities of
Total investment securities of
Average Federal Reserve Bank balances for the second quarter of 2025 were
Average Deposits | Change | Change | |||||
2Q25 vs | 2Q25 vs | ||||||
In billions | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Commercial | $听听听听听听听听听听听听听听听听听 205.8 | $听听听听听听听听听听听听听听听听听 206.5 | $听听听听听听听听听听听听听听听听听 199.7 | 鈥� | 3听% | ||
Consumer | 210.5 | 209.5 | 208.5 | 鈥� | 1听% | ||
Brokered time deposits | 6.7 | 4.7 | 9.1 | 43听% | (26)听% | ||
Total | $听听听听听听听听听听听听听听听听听 423.0 | $听听听听听听听听听听听听听听听听听 420.6 | $听听听听听听听听听听听听听听听听听 417.2 | 1听% | 1听% | ||
IB % of total avg. deposits | 78听% | 78听% | 77听% | ||||
NIB % of total avg. deposits | 22听% | 22听% | 23听% | ||||
IB - Interest-bearing NIB - Noninterest-bearing | |||||||
Totals may not sum due to rounding | |||||||
Second quarter 2025听average deposits of
Noninterest-bearing deposits were
Average Borrowed Funds | Change | Change | |||||
2Q25 vs | 2Q25 vs | ||||||
In billions | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||
Total | $听听听听听听听听听听听听听 65.3 | $听听听听听听听听听听听听听 64.5 | $听听听听听听听听听听听听听 77.5 | 1听% | (16)听% | ||
Avg. borrowed funds to avg. liabilities | 13听% | 13听% | 15听% | ||||
Average borrowed funds of
Capital | June 30, 2025 | March 31, 2025 | June 30, 2024 | ||
Common shareholders' equity听听听 In billions | $听听听听听听听听听听听听 51.9 | $听听听听听听听听听听听听听听听听 50.7 | $听听听听听听听听听听听 46.4 | ||
Accumulated other comprehensive income (loss)听 In billions | $听听听听听听听听听听听听听 (4.7) | $听听听听听听听听听听听听听听听听听 (5.2) | $听听听听听听听听听听听 (7.4) | ||
Basel III common equity Tier 1 capital ratio * | 10.5听% | 10.6听% | 10.2听% | ||
*June听30, 2025 ratio is estimated. June听30, 2024 ratio reflects PNC's election to adopt the optional five-year CECL transition provision. | |||||
PNC maintained a strong capital position. Common shareholders' equity at June听30, 2025 increased
As a Category III institution, PNC has elected to exclude accumulated other comprehensive income related to both available-for-sale securities and pension and other post-retirement plans from CET1 capital. Accumulated other comprehensive income of negative
In the second quarter of 2025, PNC returned
Share repurchase activity in the third quarter of 2025 is expected to be generally consistent with our second quarter of 2025 share repurchase levels and approximate
Based on the results of the Federal Reserve's 2025 annual stress test, PNC's SCB for the four-quarter period听beginning October 1, 2025 will remain at the regulatory minimum of
On July 3, 2025, the PNC board of directors raised the quarterly cash dividend on common stock to
At June听30, 2025, PNC was considered "well capitalized" based on applicable
CREDIT QUALITY REVIEW | |||||
Credit Quality | Change | Change | |||
June 30, 2025 | March 31, 2025 | June 30, 2024 | 06/30/25 vs | 06/30/25 vs | |
In millions | 03/31/25 | 06/30/24 | |||
Provision for credit losses (a) | $听 听 听 听 听 听 听254 | $听听听听听听听听听听听听听听 219 | $听 听 听 听 听 听 听235 | $听听听听听听听听听听听听 35 | $听听听听听听听听听听听听 19 |
Net loan charge-offs (a) | $听 听 听 听 听 听 听198 | $听听听听听听听听听听听听听听 205 | $听 听 听 听 听 听 听262 | (3)听% | (24)听% |
Allowance for credit losses (b) | $听听听听听听听听听 5,282 | $听听听听听听听听听听听 5,218 | $听听听听听听听听听 5,353 | 1听% | (1)听% |
Total delinquencies (c) | $听听听听听听听听听 1,303 | $听听听听听听听听听听听 1,431 | $听听听听听听听听听 1,272 | (9)听% | 2听% |
Nonperforming loans | $听听听听听听听听听 2,108 | $听听听听听听听听听听听 2,292 | $听听听听听听听听听 2,503 | (8)听% | (16)听% |
Net charge-offs to average loans | 0.25听% | 0.26听% | 0.33听% | ||
Allowance for credit losses to total loans | 1.62听% | 1.64听% | 1.67听% | ||
Nonperforming loans to total loans | 0.65听% | 0.72听% | 0.78听% | ||
(a) Represents amounts for the three months ended for each respective period (b) Excludes allowances for investment securities and other financial assets (c) Total delinquencies represent accruing loans 30 days or more past due | |||||
Provision for credit losses was
Net loan charge-offs were
The allowance for credit losses was
Delinquencies at June 30, 2025 were
Nonperforming loans at June听30, 2025 were
BUSINESS SEGMENT RESULTS | |||||
Business Segment Income (Loss) | |||||
In millions | 2Q25 | 1Q25 | 2Q24 | ||
Retail Banking | $听听听听 1,359 | $听听听听 1,121 | $听听听听 1,719 | ||
Corporate & Institutional Banking | 1,229 | 1,244 | 1,046 | ||
Asset Management Group | 129 | 105 | 95 | ||
Other | (1,090) | (989) | (1,401) | ||
Net income excluding noncontrolling interests | $听听听听 1,627 | $听听听听 1,481 | $听听听听 1,459 | ||
听
Retail Banking | Change | Change | |||||||
2Q25 vs | 2Q25 vs | ||||||||
In millions | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||||
Net interest income | $听听听听 2,974 | $听听听听 2,836 | $听听听听 2,715 | $听听听听听听听听听听 138 | $听听听听听听听听听听 259 | ||||
Noninterest income | $听听听听听听听 782 | $听听听听听听听 706 | $听听听听 1,409 | $听听听听听听听听听听听听 76 | $听听听听听听听听 (627) | ||||
Noninterest expense | $听听听听 1,890 | $听听听听 1,902 | $听听听听 1,841 | $听听听听听听听听听听 (12) | $听听听听听听听听听听听听 49 | ||||
Provision for credit losses | $听听听听听听听听听 83 | $听听听听听听听 168 | $听听听听听听听听听 27 | $听听听听听听听听听听 (85) | $听听听听听听听听听听听听 56 | ||||
Earnings | $听听听听 1,359 | $听听听听 1,121 | $听听听听 1,719 | $听听听听听听听听听听 238 | $听听听听听听听听 (360) | ||||
In billions | |||||||||
Average loans | $听听听听听听 97.5 | $听听听听听听 97.8 | $听听听听听听 98.7 | $听听听听听听听听听 (0.3) | $听听听听听听听听听 (1.2) | ||||
Average deposits | $听听听听 243.5 | $听听听听 240.9 | $听听听听 241.2 | $听听听听听听听听听听听 2.6 | $听听听听听听听听听听听 2.3 | ||||
Net loan charge-offs听听听 In millions | $听听听听听听听 120 | $听听听听听听听 144 | $听听听听听听听 138 | $听听听听听听听听听听 (24) | $听听听听听听听听听听 (18) | ||||
During the second quarter of 2025, certain operations were transferred into and out of the Retail Banking segment to better align products, services | |||||||||
Retail Banking Highlights
Second quarter 2025听compared with first quarter 2025
- Earnings increased
21% , driven by higher revenue, a lower provision for credit losses and lower noninterest expense.- Noninterest income increased
11% , primarily reflecting Visa related activity and seasonally higher card and cash management revenue. - Noninterest expense decreased
1% . - Provision for credit losses of
$83 million
- Noninterest income increased
- Average loans were stable.
- Average deposits increased
1% , primarily due to higher noninterest-bearing and consumer time deposits.
Second quarter 2025 compared with second quarter 2024
- Earnings decreased
21% , driven by lower noninterest income, a higher provision for credit losses and higher noninterest expense, partially offset by increased net interest income.- Noninterest income decreased
44% , primarily reflecting a gain of$754 million - Noninterest expense increased
3% , due to technology investments, increased personnel costs and higher marketing spend.
- Noninterest income decreased
- Average loans decreased
1% , primarily due to lower residential mortgage loans. - Average deposits increased
1% , due to higher consumer time deposits.
Corporate & Institutional Banking | Change | Change | |||||||
2Q25 vs | 2Q25 vs | ||||||||
In millions | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||||
Net interest income | $听听听听 1,698 | $听听听听 1,652 | $听听听听 1,560 | $听听听听听听听听听听听听 46 | $听听听听听听听听听听 138 | ||||
Noninterest income | $听听听听 1,022 | $听听听听听听听 978 | $听听听听听听听 942 | $听听听听听听听听听听听听 44 | $听听听听听听听听听听听听 80 | ||||
Noninterest expense | $听听听听听听听 950 | $听听听听听听听 956 | $听听听听听听听 911 | $听听听听听听听听听听听听 (6) | $听听听听听听听听听听听听 39 | ||||
Provision for credit losses | $听听听听听听听 184 | $听听听听听听听听听 49 | $听听听听听听听 228 | $听听听听听听听听听听 135 | $听听听听听听听听听听 (44) | ||||
Earnings | $听听听听 1,229 | $听听听听 1,244 | $听听听听 1,046 | $听听听听听听听听听听 (15) | $听听听听听听听听听听 183 | ||||
In billions | |||||||||
Average loans | $听听听听 208.6 | $听听听听 202.2 | $听听听听 204.0 | $听听听听听听听听听听听 6.4 | $听听听听听听听听听听听 4.6 | ||||
Average deposits | $听听听听 146.5 | $听听听听 148.0 | $听听听听 139.9 | $听听听听听听听听听 (1.5) | $听听听听听听听听听听听 6.6 | ||||
Net loan charge-offs听听 In millions听 | $听听听听听听听听听 83 | $听听听听听听听听听 64 | $听听听听听听听 129 | $听听听听听听听听听听听听 19 | $听听听听听听听听听听 (46) | ||||
Corporate & Institutional Banking Highlights
Second quarter 2025听compared with first quarter 2025
- Earnings decreased
1% , driven by a higher provision for credit losses, partially offset by higher net interest income and noninterest income.- Noninterest income increased
4% , reflecting higher other income and higher treasury management product revenue. - Noninterest expense decreased
1% , and included a decline in personnel costs, reflecting seasonally lower incentive compensation. - Provision for credit losses of
$184 million
- Noninterest income increased
- Average loans increased
3% , driven by strong new production and increased utilization of loan commitments in PNC's corporate banking and business credit businesses. - Average deposits decreased
1% , reflecting seasonal declines in corporate deposits.
Second quarter 2025听compared with second quarter 2024
- Earnings increased
17% , reflecting higher net interest income and noninterest income as well as a lower provision for credit losses, partially offset by higher noninterest expense.- Noninterest income increased
8% , reflecting broad-based growth. - Noninterest expense increased
4% , due to continued investments to support business growth and higher variable compensation associated with increased business activity.
- Noninterest income increased
- Average loans increased
2% , driven by growth in PNC's corporate banking and business credit businesses, partially offset by a decline in the PNC real estate business. - Average deposits increased
5% , due to growth in interest-bearing deposits.
Asset Management Group | Change | Change | |||||||
2Q25 vs | 2Q25 vs | ||||||||
In millions | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||||
Net interest income | $听听听听听听 179 | $听听听听听听 174 | $听听听听听听 153 | $听 听 听 听 听 听 听5 | $听听听听听听听听听听 26 | ||||
Noninterest income | $听听听听听听 244 | $听听听听听听 243 | $听听听听听听 235 | $听 听 听 听 听 听 听1 | $听 听 听 听 听 听 听9 | ||||
Noninterest expense | $听听听听听听 268 | $听听听听听听 279 | $听听听听听听 261 | $听听听听听听听听听 (11) | $听 听 听 听 听 听 听7 | ||||
Provision for (recapture of) credit losses | $听听听听听听 (13) | $听听听听听听听听听听 1 | $听听听听听听听听听听 2 | $听听听听听听听听听 (14) | $听听听听听听听听听 (15) | ||||
Earnings | $听听听听听听 129 | $听听听听听听 105 | $听听听听听听听听 95 | $听听听听听听听听听听 24 | $听听听听听听听听听听 34 | ||||
In billions听听听听听听听听 听 | |||||||||
Discretionary client assets under management | $听听听听听听 217 | $听听听听听听 210 | $听听听听听听 196 | $听听听听听听听听听听听听听 7 | $听听听听听听听听听听 21 | ||||
Nondiscretionary client assets under administration | $听听听听听听 204 | $听听听听听听 201 | $听听听听听听 208 | $听听听听听听听听听听听听听 3 | $听听听听听听听听听听听 (4) | ||||
Client assets under administration at quarter end | $听听听听听听 421 | $听听听听听听 411 | $听听听听听听 404 | $听 听 听 听 听 听 10 | $听听听听听听听听听听 17 | ||||
In billions | |||||||||
Average loans | $听听听听 14.2 | $听听听听 14.0 | $听听听听 14.3 | $听听听听听听听听听 0.2 | $听听听听听听听听 (0.1) | ||||
Average deposits | $听听听听 26.9 | $听听听听 27.6 | $听听听听 27.4 | $听听听听听听听听 (0.7) | $听听听听听听听听 (0.5) | ||||
Net loan charge-offs听听 In millions | $听听听听听听听听 (1) | 鈥� | 鈥� | $听听听听听听听听听听听 (1) | $听听听听听听听听听听听 (1) | ||||
During the second quarter of 2025, certain loans and deposits, and the associated income statement impact, were transferred from the Asset | |||||||||
Asset Management Group Highlights
Second quarter 2025听compared with first quarter 2025
- Earnings increased
23% , due to a provision recapture, lower noninterest expense and higher net interest income.- Noninterest income was stable.
- Noninterest expense decreased
4% , primarily driven by lower personnel expense, reflecting seasonally lower incentive compensation.
- Discretionary client assets under management increased
3% and included the impact from higher spot equity markets and positive net flows. - Average loans increased
1% . - Average deposits decreased
3% , driven by the timing of annual client income tax payments.
Second quarter 2025 compared with second quarter 2024
- Earnings increased
36% , due to higher revenue and a provision recapture, partially offset by higher noninterest expense.- Noninterest income increased
4% , reflecting higher average equity markets. - Noninterest expense increased
3% , due to continued investments to support business growth.
- Noninterest income increased
- Discretionary client assets under management increased
11% and included the impact from higher spot equity markets and positive net flows. - Average loans decreased
1% , primarily reflecting declines in residential mortgage and commercial loans. - Average deposits decreased
2% , driven by lower interest-bearing deposits.
Other
The "Other" category, for the purposes of this release, includes residual activities that do not meet the criteria for disclosure as a separate reportable business, such as asset and liability management activities, including net securities gains or losses, ACL for investment securities, certain trading activities, certain runoff consumer loan portfolios, private equity investments, intercompany eliminations, corporate overhead net of allocations, tax adjustments that are not allocated to business segments, exited businesses and the residual impact from funds transfer pricing operations.
CONFERENCE CALL AND SUPPLEMENTAL FINANCIAL INFORMATION
PNC Chairman and Chief Executive Officer William S. Demchak and Executive Vice President and Chief Financial Officer Robert Q.
The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in
CONTACTS | |||
MEDIA: | INVESTORS: | ||
Kristen Pillitteri | Bryan Gill | ||
(412) 762-4550 | (412) 768-4143 | ||
听[TABULAR MATERIAL FOLLOWS]
听
The PNC Financial Services Group, Inc. | Consolidated Financial Highlights (Unaudited) | |||||||||||
FINANCIAL RESULTS | Three months ended | Six months ended | ||||||||||
Dollars in millions, except per share data | June 30 | March 31 | June 30 | June 30 | June 30 | |||||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||||
Revenue | ||||||||||||
Net interest income | $听听听听 3,555 | $听听听听 3,476 | $听听听听 3,302 | $听听听听 7,031 | $听听听听 6,566 | |||||||
Noninterest income | 2,106 | 1,976 | 2,109 | 4,082 | 3,990 | |||||||
听 听Total revenue | 5,661 | 5,452 | 5,411 | 11,113 | 10,556 | |||||||
Provision for credit losses | 254 | 219 | 235 | 473 | 390 | |||||||
Noninterest expense | 3,383 | 3,387 | 3,357 | 6,770 | 6,691 | |||||||
Income before income taxes and noncontrolling interests | $听听听听 2,024 | $听听听听 1,846 | $听听听听 1,819 | $听听听听 3,870 | $听听听听 3,475 | |||||||
Income taxes | 381 | 347 | 342 | 728 | 654 | |||||||
Net income | $听听听听 1,643 | $听听听听 1,499 | $听听听听 1,477 | $听听听听 3,142 | $听听听听 2,821 | |||||||
Less: | ||||||||||||
Net income attributable to noncontrolling interests | 16 | 18 | 18 | 34 | 32 | |||||||
Preferred stock dividends (a) | 83 | 71 | 95 | 154 | 176 | |||||||
Preferred stock discount accretion and redemptions | 2 | 2 | 2 | 4 | 4 | |||||||
Net income attributable to common shareholders | $听听听听 1,542 | $听听听听 1,408 | $听听听听 1,362 | $听听听听 2,950 | $听听听听 2,609 | |||||||
Less: Dividends and undistributed earnings allocated to | 10 | 9 | 7 | 19 | 14 | |||||||
Net income attributable to diluted common shareholders | $听听听听 1,532 | $听听听听 1,399 | $听听听听 1,355 | $听听听听 2,931 | $听听听听 2,595 | |||||||
Per Common Share | ||||||||||||
Basic | $听听听听听听 3.86 | $听听听听听听 3.52 | $听听听听听听 3.39 | $听听听听听听 7.37 | $听听听听听听 6.49 | |||||||
Diluted | $听听听听听听 3.85 | $听听听听听听 3.51 | $听听听听听听 3.39 | $听听听听听听 7.37 | $听听听听听听 6.48 | |||||||
Cash dividends declared per common share | $听听听听听听 1.60 | $听听听听听听 1.60 | $听听听听听听 1.55 | $听听听听听听 3.20 | $听听听听听听 3.10 | |||||||
Effective tax rate (b) | 18.8听% | 18.8听% | 18.8听% | 18.8听% | 18.8听% | |||||||
PERFORMANCE RATIOS | ||||||||||||
Net interest margin (c) | 2.80听% | 2.78听% | 2.60听% | 2.79听% | 2.58听% | |||||||
Noninterest income to total revenue | 37听% | 36听% | 39听% | 37听% | 38听% | |||||||
Efficiency (d) | 60听% | 62听% | 62听% | 61听% | 63听% | |||||||
Return on: | ||||||||||||
Average common shareholders' equity | 12.20听% | 11.60听% | 12.16听% | 11.91听% | 11.78听% | |||||||
Average assets | 1.17听% | 1.09听% | 1.05听% | 1.13听% | 1.01听% | |||||||
(a) | Dividends are payable quarterly, other than Series S preferred stock, which is payable semiannually. |
(b) | The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax. |
(c) | Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended June听30, 2025, March听31, 2025 and June听30, 2024 were听 |
(d) | Calculated as noninterest expense divided by total revenue. |
听
The PNC Financial Services Group, Inc. | Consolidated Financial Highlights (Unaudited) | ||||
June 30 | March 31 | June 30 | |||
2025 | 2025 | 2024 | |||
BALANCE SHEET DATA | |||||
Dollars in millions, except per share data and as noted | |||||
Assets | $听听听听听听听听听听 559,107 | $听听听听听听听听听听 554,722 | $听听听听听听听听听听 556,519 | ||
Loans (a) | $听听听听听听听听听听 326,340 | $听听听听听听听听听听 318,850 | $听听听听听听听听听听 321,429 | ||
Allowance for loan and lease losses | $听听听听听听听听听听听听听听 4,523 | $听听听听听听听听听听听听听听 4,544 | $听听听听听听听听听听听听听听 4,636 | ||
Interest-earning deposits with banks | $听听听听听听听听听听听听 24,455 | $听听听听听听听听听听听听 32,298 | $听听听听听听听听听听听听 33,039 | ||
Investment securities | $听听听听听听听听听听 142,348 | $听听听听听听听听听听 137,775 | $听听听听听听听听听听 138,645 | ||
Total deposits (a) | $听听听听听听听听听听 426,696 | $听听听听听听听听听听 422,915 | $听听听听听听听听听听 416,391 | ||
Borrowed funds (a) | $听听听听听听听听听听听听 60,424 | $听听听听听听听听听听听听 60,722 | $听听听听听听听听听听听听 71,391 | ||
Allowance for unfunded lending related commitments | $听 听 听 听 听 听 听 听 听 759 | $听 听 听 听 听 听 听 听 听 674 | $听 听 听 听 听 听 听 听 听 717 | ||
Total shareholders' equity | $听听听听听听听听听听听听 57,607 | $听听听听听听听听听听听听 56,405 | $听听听听听听听听听听听听 52,642 | ||
Common shareholders' equity | $听听听听听听听听听听听听 51,854 | $听听听听听听听听听听听听 50,654 | $听听听听听听听听听听听听 46,397 | ||
Accumulated other comprehensive income (loss) | $听 听 听 听 听 听 听 (4,682) | $听 听 听 听 听 听 听 (5,237) | $听 听 听 听 听 听 听 (7,446) | ||
Book value per common share | $听听听听听听听听听听听听 131.61 | $听听听听听听听听听听听听 127.98 | $听听听听听听听听听听听听 116.70 | ||
Tangible book value per common share (non-GAAP) (b) | $听听听听听听听听听听听听 103.96 | $听听听听听听听听听听听听 100.40 | $听听听听听听听听听听听听听听 89.12 | ||
Period end common shares outstanding (In millions) | 394 | 396 | 398 | ||
Loans to deposits | 76听% | 75听% | 77听% | ||
Common shareholders' equity to total assets | 9.3听% | 9.1听% | 8.3听% | ||
CLIENT ASSETS (In billions) | |||||
Discretionary client assets under management | $听听听听听听听听听听听听听听听听 217 | $听听听听听听听听听听听听听听听听 210 | $听听听听听听听听听听听听听听听听 196 | ||
Nondiscretionary client assets under administration | 204 | 201 | 208 | ||
Total client assets under administration | 421 | 411 | 404 | ||
Brokerage account client assets | 89 | 86 | 83 | ||
Total client assets | $听听听听听听听听听听听听听听听听 510 | $听听听听听听听听听听听听听听听听 497 | $听听听听听听听听听听听听听听听听 487 | ||
CAPITAL RATIOS | |||||
Basel III (c) (d) | |||||
听 Common equity Tier 1 | 10.5听% | 10.6听% | 10.2听% | ||
听 Tier 1 risk-based | 11.9听% | 11.9听% | 11.6听% | ||
听 Total capital risk-based | 13.6听% | 13.7听% | 13.5听% | ||
听 Leverage | 9.3听% | 9.2听% | 8.8听% | ||
听 Supplementary leverage | 7.6听% | 7.6听% | 7.4听% | ||
ASSET QUALITY | |||||
Nonperforming loans to total loans | 0.65听% | 0.72听% | 0.78听% | ||
Nonperforming assets to total loans, OREO and foreclosed assets | 0.66听% | 0.73听% | 0.79听% | ||
Nonperforming assets to total assets | 0.38听% | 0.42听% | 0.46听% | ||
Net charge-offs to average loans (for the three months ended) (annualized) | 0.25听% | 0.26听% | 0.33听% | ||
Allowance for loan and lease losses to total loans | 1.39听% | 1.43听% | 1.44听% | ||
Allowance for credit losses to total loans (e) | 1.62听% | 1.64听% | 1.67听% | ||
Allowance for loan and lease losses to nonperforming loans | 215听% | 198听% | 185听% | ||
Total delinquencies (In millions) (f) | $听听听听听听听听听听听听听听 1,303 | $听听听听听听听听听听听听听听 1,431 | $听听听听听听听听听听听听听听 1,272 | ||
(a) | Amounts include assets and liabilities for which we have elected the fair value option. Our first quarter 2025 Form 10-Q included, and our second quarter 2025 Form 10-Q will include, additional information regarding these Consolidated Balance Sheet line items. |
(b) | See the Tangible Book Value per Common Share table on page 17 for additional information.听 |
(c) | All ratios are calculated using the regulatory capital methodology applicable to PNC during each period presented and calculated based on the standardized approach. See Capital Ratios on page 16 for additional information. The ratios as of June 30, 2025 are estimated. |
(d) | The June 30, 2025 and March 31, 2025 ratios are calculated to reflect the full impact of CECL. The June听30, 2024 ratios are calculated to reflect PNC's election to adopt the CECL optional five-year transition provisions. The impact of the provisions was phased-in to regulatory capital through December 31, 2024. |
(e) | Excludes allowances for investment securities and other financial assets. |
(f) | Total delinquencies represent accruing loans 30 days or more past due. |
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The PNC Financial Services Group, Inc. | Consolidated Financial Highlights (Unaudited) |
CAPITAL RATIOS
PNC's regulatory risk-based capital ratios in 2025 are calculated using the standardized approach for determining risk-weighted assets. Under the standardized approach for determining credit risk-weighted assets, exposures are generally assigned a pre-defined risk weight. Exposures to high volatility commercial real estate, past due exposures and equity exposures are generally subject to higher risk weights than other types of exposures.
PNC elected a five-year transition provision effective March 31, 2020 to delay until December 31, 2021 the full impact of the CECL standard on regulatory capital, followed by a three-year transition period. Effective for the first quarter of 2022, PNC entered a three-year transition period, and the full impact of the CECL standard was phased-in to regulatory capital through December 31, 2024. Beginning in the first quarter of 2025, CECL is fully reflected in regulatory capital. See the table below for the March 31, 2025, June 30, 2024 and estimated June 30, 2025 ratios.
Our Basel III capital ratios may be impacted by changes to the regulatory capital rules and additional regulatory guidance or analysis.
Basel III | |||||
June 30 2025 (estimated) (b) | March 31 2025 (b) | June 30 听2024 (c) | |||
Dollars in millions | |||||
Common stock, related surplus and retained earnings, net of treasury stock | $听听听 56,536 | $听听听 55,891 | $听听听 54,084 | ||
Less regulatory capital adjustments: | |||||
Goodwill and disallowed intangibles, net of deferred tax liabilities | (10,896) | (10,914) | (10,965) | ||
All other adjustments | (81) | (84) | (102) | ||
Basel III Common equity Tier 1 capital | $听听听 45,559 | $听听听 44,893 | $听听听 43,017 | ||
Basel III standardized approach risk-weighted assets (d) | $听 432,904 | $听 423,931 | $听 423,503 | ||
Basel III Common equity Tier 1 capital ratio | 10.5听% | 10.6听% | 10.2听% | ||
(a) | All ratios are calculated using the regulatory capital methodology applicable to PNC during each period presented. |
(b) | The June 30, 2025 and March 31, 2025 ratios are calculated to reflect the full impact of CECL. |
(c) | The June 30, 2024 ratio is calculated to reflect PNC's election to adopt the CECL optional five-year transition provisions. The impact of the provisions was phased-in to regulatory capital through December 31, 2024. |
(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. |
听
The PNC Financial Services Group, Inc. | Consolidated Financial Highlights (Unaudited) | ||||
NON-GAAP MEASURES | |||||
Fee Income (non-GAAP) | Three months ended | ||||
June 30 | March 31 | June 30 | |||
Dollars in millions | 2025 | 2025 | 2024 | ||
Noninterest income | |||||
Asset management and brokerage | $听听听听听听听听听听听听听听 391 | $听听听听听听听听听听听听听听 391 | $听听听听听听听听听听听听听听听 364 | ||
Capital markets and advisory | 321 | 306 | 272 | ||
Card and cash management | 737 | 692 | 706 | ||
Lending and deposit services | 317 | 316 | 304 | ||
Residential and commercial mortgage | 128 | 134 | 131 | ||
听 听Fee income (non-GAAP) | $听听听听听听听听听听听 1,894 | $听听听听听听听听听听听 1,839 | $听听听听听听听听听听听听 1,777 | ||
Other income | 212 | 137 | 332 | ||
听 听Total noninterest income | $听听听听听听听听听听听 2,106 | $听听听听听听听听听听听 1,976 | $听听听听听听听听听听听听 2,109 | ||
Fee income is a non-GAAP measure and is comprised of听noninterest income in the following categories: asset management and brokerage, capital markets and advisory, card and cash management, lending and deposit services, and residential and commercial mortgage. We believe this non-GAAP measure serves as a useful tool for comparison of noninterest income related to fees.
Pretax Pre-Provision Earnings (non-GAAP) | Three months ended | ||||
June 30 | March 31 | June 30 | |||
Dollars in millions | 2025 | 2025 | 2024 | ||
Income before income taxes and noncontrolling interests | $听听听听听听听听听听听听 2,024 | $听听听听听听听听听听听听 1,846 | $听听听听听听听听听听听听 1,819 | ||
Provision for credit losses | 254 | 219 | 235 | ||
Pretax pre-provision earnings (non-GAAP) | $听听听听听听听听听听听听 2,278 | $听听听听听听听听听听听听 2,065 | $听听听听听听听听听听听听 2,054 | ||
Pretax pre-provision earnings is a non-GAAP measure and is based on adjusting income before income taxes and noncontrolling interests to exclude provision for credit losses. We believe that pretax, pre-provision earnings is a useful tool to help evaluate the ability to provide for credit costs through operations and provides an additional basis to compare results between periods by isolating the impact of provision for credit losses, which can vary significantly between periods.
Tangible Book Value per Common Share (non-GAAP) | |||||
June 30 | March 31 | June 30 | |||
Dollars in millions, except per share data | 2025 | 2025 | 2024 | ||
Book value per common share | $听听听听听听听听听 131.61 | $听听听听听听听听听 127.98 | $听听听听听听听听听听 116.70 | ||
Tangible book value per common share | |||||
Common shareholders' equity | $听听听听听听听听听 51,854 | $听听听听听听听听听 50,654 | $听听听听听听听听听听 46,397 | ||
Goodwill and other intangible assets | (11,137) | (11,154) | (11,206) | ||
Deferred tax liabilities on goodwill and other intangible assets | 242 | 239 | 241 | ||
听 听Tangible common shareholders' equity | $听听听听听听听听听 40,959 | $听听听听听听听听听 39,739 | $听听听听听听听听听听 35,432 | ||
Period-end common shares outstanding (In millions) | 394 | 396 | 398 | ||
Tangible book value per common share (non-GAAP) | $听听听听听听听听听 103.96 | $听听听听听听听听听 100.40 | $听听听听听听听听听听听听 89.12 |
Tangible book value per common share is a non-GAAP measure and is calculated based on tangible common shareholders' equity divided by period-end common shares outstanding. We believe this non-GAAP measure serves as a useful tool to help evaluate the strength and discipline of a company's capital management strategies and as an additional, conservative measure of total company value.
The PNC Financial Services Group, Inc.听听 | Consolidated Financial Highlights (Unaudited) | ||||
Taxable-Equivalent Net Interest Income (non-GAAP) | Three months ended | ||||
June 30 | March 31 | June 30 | |||
Dollars in millions | 2025 | 2025 | 2024 | ||
Net interest income | $听听听听听听听听听听听 3,555 | $听听听听听听听听听听听听 3,476 | $听听听听听听听听听听听听 3,302 | ||
Taxable-equivalent adjustments | 28 | 28 | 34 | ||
Net interest income (Fully Taxable-Equivalent - FTE) (non-GAAP) | $听听听听听听听听听听听 3,583 | $听听听听听听听听听听听听 3,504 | $听听听听听听听听听听听听 3,336 | ||
The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP. Taxable-equivalent net interest income is only used for calculating net interest margin. Net interest income shown elsewhere in this presentation is GAAP net interest income.
Cautionary Statement Regarding Forward-Looking Information
We make statements in this news release and related conference call, and we may from time to time make other statements, regarding our outlook for financial performance, such as earnings, revenues, expenses, tax rates, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting us and our future business and operations, including our sustainability strategy, that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as "believe," "plan," "expect," "anticipate," "see," "look," "intend," "outlook," "project," "forecast," "estimate," "goal," "will," "should" and other similar words and expressions.
Forward-looking statements are necessarily subject to numerous assumptions, risks and uncertainties, which change over time. Future events or circumstances may change our outlook and may also affect the nature of the assumptions, risks and uncertainties to which our forward-looking statements are subject. Forward-looking statements speak only as of the date made. We do not assume any duty and do not undertake any obligation to update forward-looking statements. Actual results or future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as from historical performance. As a result, we caution against placing undue reliance on any forward-looking statements.
Our forward-looking statements are subject to the following principal risks and uncertainties.
- Our businesses, financial results and balance sheet values are affected by business and economic conditions, including:
- Changes in interest rates and valuations in debt, equity and other financial markets,
- Disruptions in the
U.S. and global financial markets, - Actions by the Federal Reserve Board,
U.S. Treasury and other government agencies, including those that impact money supply, market interest rates and inflation, - Changes in customer behavior due to changing business and economic conditions or legislative or regulatory initiatives,
- Changes in customers', suppliers' and other counterparties' performance and creditworthiness,
- Impacts of sanctions, tariffs and other trade policies of the
U.S. and its global trading partners, - Impacts of changes in federal, state and local governmental policy, including on the regulatory landscape, capital markets, taxes, infrastructure spending and social programs,
- Our ability to attract, recruit and retain skilled employees, and
- Commodity price volatility.
- Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account potential legal and regulatory contingencies. These statements are based on our views that:
- The economic fundamentals remain solid in mid-2025. The labor market has eased but job growth continues, and job and income gains have supported consumer spending growth in the first half of 2025. However, downside risks have materially increased with recent substantial changes to
U.S. tariffs and corresponding policy changes byU.S. trading partners. - PNC's baseline forecast remains for continued expansion, but slower economic growth in 2025 than in 2024. Tariffs and the uncertainty surrounding them will weigh on consumer spending and business investment. High interest rates remain a drag on the economy, consumer spending growth will slow to a pace more consistent with household income growth, and government's contribution to economic growth will be smaller.
- The baseline forecast is for real GDP growth of around
1.5% in 2025 and 2026, respectively, with the unemployment rate increasing to around4.5% over the next year. However, the recent turbulence in trade policy indicates that growth may be significantly weaker than in this forecast and the unemployment rate higher. The higher tariffs are, the longer they remain in place, and the more uncertainty around them, the weaker growth will be and the higher the unemployment rate. The longer trade disputes persist, the greater the likelihood of near-term recession. - The baseline forecast is for one federal funds rate cut of 25 basis points this year, at the last Federal Open Market Committee (FOMC) meeting of 2025, with additional rate cuts of 25 basis points at each of the first two FOMC meetings of 2026. This would put the federal funds rate in a range of
3.50% to3.75% by the spring of next year. High inflation could mean less monetary easing than in the forecast, but if the economy enters recession the Federal Reserve could cut the federal funds rate more aggressively this year.
- The economic fundamentals remain solid in mid-2025. The labor market has eased but job growth continues, and job and income gains have supported consumer spending growth in the first half of 2025. However, downside risks have materially increased with recent substantial changes to
- PNC's ability to take certain capital actions, including returning capital to shareholders, is subject to PNC meeting or exceeding minimum capital levels, including a stress capital buffer established by the Federal Reserve Board in connection with the Federal Reserve Board's Comprehensive Capital Analysis and Review (CCAR) process.
- PNC's regulatory capital ratios in the future will depend on, among other things, PNC's financial performance, the scope and terms of final capital regulations then in effect and management actions affecting the composition of PNC's balance sheet. In addition, PNC's ability to determine, evaluate and forecast regulatory capital ratios, and to take actions (such as capital distributions) based on actual or forecasted capital ratios, will be dependent at least in part on the development, validation and regulatory review of related models and the reliability of and risks resulting from extensive use of such models.
- Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities. Reputational impacts could affect matters such as business generation and retention, liquidity, funding, and ability to attract and retain employees. These developments could include:
- Changes to laws and regulations, including changes affecting oversight of the financial services industry, changes in the enforcement and interpretation of such laws and regulations, and changes in accounting and reporting standards.
- Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries resulting in monetary losses, costs, or alterations in our business practices, and potentially causing reputational harm to PNC.
- Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies.
- Costs associated with obtaining rights in intellectual property claimed by others and of adequacy of our intellectual property protection in general.
- Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, derivatives, and capital management techniques, and to meet evolving regulatory capital and liquidity standards.
- Our reputation and business and operating results may be affected by our ability to appropriately meet or address environmental, social or governance targets, goals, commitments or concerns that may arise.
- We grow our business in part through acquisitions and new strategic initiatives. Risks and uncertainties include those presented by the nature of the business acquired and strategic initiative, including in some cases those associated with our entry into new businesses or new geographic or other markets and risks resulting from our inexperience in those new areas, as well as risks and uncertainties related to the acquisition transactions themselves, regulatory issues, the integration of the acquired businesses into PNC after closing or any failure to execute strategic or operational plans.
- Competition can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect market share, deposits and revenues. Our ability to anticipate and respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands.
- Business and operating results can also be affected by widespread manmade, natural and other disasters (including severe weather events), health emergencies, dislocations, geopolitical instabilities or events, terrorist activities, system failures or disruptions, security breaches, cyberattacks, international hostilities, or other extraordinary events beyond PNC's control through impacts on the economy and financial markets generally or on us or our counterparties, customers or third-party vendors and service providers specifically.
We provide greater detail regarding these as well as other factors in our most recent Form 10-K and in any subsequent Form 10-Qs, including in the Risk Factors and Risk Management sections and the Legal Proceedings and Commitments Notes of the Notes To Consolidated Financial Statements in those reports, and in our other subsequent SEC filings. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in our SEC filings, accessible on the SEC's website at听 and on our corporate website at . We have included these web addresses as inactive textual references only. Information on these websites is not part of this document.
听
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FAQ
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