Core Insights - PNC Financial Services reported third-quarter earnings per share of $4.35, surpassing Wall Street expectations of $4.05 [1] - The bank's revenue for the quarter was $5.9 billion, exceeding the anticipated $5.8 billion [1] - Compared to the same period last year, PNC's earnings increased from $3.49 per share on revenue of $5.4 billion [1] - Despite strong earnings, PNC's shares fell by 2.2% in premarket trading [1]

[Business Overview](index=2&type=section&id=Business%20Overview) PNC is a leading diversified financial services company in the U.S., expanding its national presence through core services and a significant acquisition [Company Profile](index=2&type=section&id=Company%20Profile) PNC is a leading diversified financial services company in the U.S., offering retail banking, corporate and institutional banking, and asset management services nationally and through strategic international offices - PNC is **one of the largest diversified financial services companies** in the United States, headquartered in Pittsburgh, Pennsylvania[4](index=4&type=chunk) - PNC's businesses include **retail banking, corporate and institutional banking, and asset management**, providing products and services nationally with a coast-to-coast retail branch network and strategic international offices in four countries[4](index=4&type=chunk) [Pending Acquisition of FirstBank Holding Company](index=2&type=section&id=Pending%20Acquisition%20of%20FirstBank%20Holding%20Company) PNC announced a definitive agreement to acquire FirstBank Holding Company for an implied consideration of $4.1 billion, significantly expanding its branch network in Colorado and Arizona - On September 8, 2025, PNC announced a definitive agreement to acquire FirstBank Holding Company, including its banking subsidiary FirstBank, for an implied consideration of **$4.1 billion**[5](index=5&type=chunk) - FirstBank operates **95 branches**, with a leading position in Colorado and a substantial presence in Arizona, and had **$26.8 billion in assets** as of June 30, 2025[5](index=5&type=chunk) - The acquisition is expected to more than **triple** PNC's branch network in Colorado to **120** and increase its presence in Arizona to **over 70 branches**, with closing anticipated in early 2026[5](index=5&type=chunk) [Consolidated Financial Results](index=4&type=section&id=Consolidated%20Financial%20Results) PNC reported strong Q3 2025 financial results with increased revenue and net income, balance sheet growth, and improved net interest margin YoY [Consolidated Income Statement](index=4&type=section&id=Consolidated%20Income%20Statement) PNC reported a strong third quarter 2025, with total revenue increasing by 4.49% QoQ and 8.89% YoY, driven by growth in both net interest income and noninterest income. Net income saw a significant increase of 10.90% QoQ and 21.06% YoY, while the provision for credit losses decreased Consolidated Income Statement Highlights (Q3 2025 vs. Q2 2025 vs. Q3 2024) | Metric (in millions) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Net Interest Income | $3,648 | $3,555 | $3,410 | 2.62% | 6.98% | | Noninterest Income | $2,267 | $2,106 | $2,022 | 7.64% | 12.12% | | Total Revenue | $5,915 | $5,661 | $5,432 | 4.49% | 8.89% | | Provision For Credit Losses | $167 | $254 | $243 | -34.25% | -31.28% | | Net Income | $1,822 | $1,643 | $1,505 | 10.90% | 21.06% | | Diluted EPS | $4.35 | $3.85 | $3.49 | 13.00% | 24.64% | | Efficiency Ratio | 59% | 60% | 61% | -1 pp | -2 pp | - Net income attributable to common shareholders increased to **$1,735 million** in Q3 2025, up from $1,542 million in Q2 2025 and $1,406 million in Q3 2024[7](index=7&type=chunk) - The effective tax rate for Q3 2025 was **20.3%**, compared to 18.8% in Q2 2025 and 19.2% in Q3 2024[7](index=7&type=chunk) [Consolidated Balance Sheet](index=6&type=section&id=Consolidated%20Balance%20Sheet) PNC's total assets grew by 1.73% QoQ and 0.69% YoY to $568.77 billion as of September 30, 2025. This growth was supported by increases in total loans and deposits, while total equity also saw a healthy increase Consolidated Balance Sheet Highlights (as of Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024) | Metric (in millions) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Total Assets | $568,767 | $559,107 | $564,881 | 1.73% | 0.69% | | Total Loans | $326,616 | $326,340 | $321,381 | 0.08% | 1.63% | | Total Deposits | $432,749 | $426,696 | $423,966 | 1.42% | 2.07% | | Total Liabilities | $509,729 | $501,452 | $509,152 | 1.65% | 0.11% | | Total Equity | $59,038 | $57,655 | $55,729 | 2.40% | 5.94% | - Interest-earning deposits with banks increased to **$33.32 billion** as of September 30, 2025, from $24.46 billion as of June 30, 2025[9](index=9&type=chunk) - Noninterest-bearing deposits decreased slightly to **$91.21 billion** as of September 30, 2025, from $93.25 billion as of June 30, 2025[9](index=9&type=chunk) [Average Consolidated Balance Sheet](index=7&type=section&id=Average%20Consolidated%20Balance%20Sheet) The average consolidated balance sheet for Q3 2025 showed an increase in total assets and interest-earning assets QoQ, while average total loans and interest-bearing deposits also increased, reflecting overall balance sheet expansion Average Consolidated Balance Sheet Highlights (Q3 2025 vs. Q2 2025 vs. Q3 2024) | Metric (in millions) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Total Assets | $571,533 | $561,686 | $569,513 | 1.75% | 0.35% | | Total Interest-Earning Assets | $518,129 | $507,607 | $516,144 | 2.07% | 0.38% | | Total Loans | $325,932 | $322,754 | $319,602 | 0.98% | 1.98% | | Total Interest-Bearing Deposits | $339,072 | $329,833 | $326,311 | 2.79% | 3.91% | | Total Equity | $57,768 | $56,476 | $53,913 | 2.29% | 7.15% | - Average interest-earning deposits with banks increased to **$35.00 billion** in Q3 2025 from $31.57 billion in Q2 2025[11](index=11&type=chunk) - Average noninterest-bearing deposits decreased slightly to **$92.76 billion** in Q3 2025 from $93.14 billion in Q2 2025[11](index=11&type=chunk) [Details of Net Interest Margin](index=8&type=section&id=Details%20of%20Net%20Interest%20Margin) PNC's net interest margin slightly decreased QoQ to 2.79% in Q3 2025, but improved significantly YoY. This was primarily due to a larger decrease in the rate on interest-bearing liabilities compared to the yield on interest-earning assets on a YoY basis, despite a slight compression in interest rate spread QoQ Net Interest Margin Highlights (Q3 2025 vs. Q2 2025 vs. Q3 2024) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (pp) | YoY Change (pp) | | :------------------- | :----------- | :----------- | :----------- | :-------------- | :-------------- | | Total Yield on Interest-Earning Assets | 4.99% | 4.93% | 5.25% | 0.06 | -0.26 | | Total Rate on Interest-Bearing Liabilities | 2.81% | 2.74% | 3.34% | 0.07 | -0.53 | | Interest Rate Spread | 2.18% | 2.19% | 1.91% | -0.01 | 0.27 | | Net Interest Margin | 2.79% | 2.80% | 2.64% | -0.01 | 0.15 | - The yield on total investment securities increased to **3.36%** in Q3 2025 from 3.26% in Q2 2025, but decreased from 3.08% in Q3 2024[14](index=14&type=chunk) - The rate on total interest-bearing deposits increased to **2.32%** in Q3 2025 from 2.24% in Q2 2025, but decreased from 2.72% in Q3 2024[14](index=14&type=chunk) [Credit Quality](index=9&type=section&id=Credit%20Quality) PNC's credit quality showed stable loan portfolio, reduced allowance for credit losses, mixed nonperforming assets, and decreased accruing loans past due [Details of Loans](index=9&type=section&id=Details%20of%20Loans) PNC's total loan portfolio remained stable QoQ at $326.62 billion as of September 30, 2025, showing a slight increase YoY. Commercial loans constitute the majority, with consumer loans also maintaining a significant portion Loan Portfolio Breakdown (as of Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024) | Loan Category (in millions) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :-------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Total Commercial | $227,375 | $227,008 | $220,721 | 0.16% | 3.01% | | Commercial and industrial | $190,196 | $188,830 | $178,891 | 0.72% | 6.33% | | Commercial real estate | $30,281 | $31,250 | $35,104 | -3.10% | -13.74% | | Total Consumer | $99,241 | $99,332 | $100,660 | -0.09% | -1.41% | | Residential real estate | $44,637 | $45,257 | $46,972 | -1.37% | -4.97% | | Home equity | $25,942 | $25,928 | $25,970 | 0.05% | -0.11% | | Automobile | $16,272 | $15,892 | $15,135 | 2.39% | 7.51% | | Credit card | $6,636 | $6,570 | $6,827 | 1.00% | -2.79% | | Total Loans | $326,616 | $326,340 | $321,381 | 0.08% | 1.63% | - Within commercial and industrial loans, financial services (**$33.35 billion**) and manufacturing (**$30.26 billion**) were the largest categories as of September 30, 2025[16](index=16&type=chunk) [Allowance for Credit Losses](index=10&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for loan and lease losses decreased slightly QoQ and YoY, reflecting a decrease in total net charge-offs and a significant reduction in the provision for credit losses. The overall allowance for credit losses to total loans ratio also saw a minor decline Allowance for Credit Losses Highlights (Q3 2025 vs. Q2 2025 vs. Q3 2024) | Metric (in millions) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Allowance for loan and lease losses (Ending Balance) | $4,478 | $4,523 | $4,589 | -1.00% | -2.42% | | Total Net Charge-offs | $(179) | $(198) | $(286) | -9.60% | -37.41% | | Provision for credit losses | $167 | $254 | $243 | -34.25% | -31.28% | | Allowance for credit losses to total loans | 1.61% | 1.62% | 1.65% | -0.01 pp | -0.04 pp | - Commercial net charge-offs decreased to **$(72) million** in Q3 2025 from $(102) million in Q2 2025 and $(172) million in Q3 2024[17](index=17&type=chunk) - Consumer net charge-offs decreased to **$(107) million** in Q3 2025 from $(96) million in Q2 2025, but increased from $(114) million in Q3 2024[17](index=17&type=chunk) [Nonperforming Assets](index=12&type=section&id=Nonperforming%20Assets) Total nonperforming assets increased QoQ but decreased YoY, reaching $2.30 billion as of September 30, 2025. The ratio of nonperforming loans to total loans remained stable QoQ, while the coverage by allowance for loan and lease losses improved significantly YoY Nonperforming Assets Highlights (as of Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024) | Metric (in millions) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Total Nonperforming Assets | $2,299 | $2,141 | $2,609 | 7.38% | -11.90% | | Total Nonperforming Loans | $2,137 | $2,108 | $2,578 | 1.38% | -17.11% | | Nonperforming loans to total loans | 0.65% | 0.65% | 0.80% | 0 pp | -0.15 pp | | Allowance for loan and lease losses to nonperforming loans | 210% | 215% | 178% | -5 pp | 32 pp | | New nonperforming assets (QoQ) | $653 | $367 | $661 | 77.93% | -1.21% | - Commercial nonperforming loans decreased to **$1,282 million** in Q3 2025 from $1,251 million in Q2 2025, but decreased from $1,729 million in Q3 2024[20](index=20&type=chunk) - Consumer nonperforming loans remained stable at **$855 million** in Q3 2025 compared to $857 million in Q2 2025, and increased from $849 million in Q3 2024[20](index=20&type=chunk) [Accruing Loans Past Due](index=13&type=section&id=Accruing%20Loans%20Past%20Due) Total accruing loans past due decreased QoQ and YoY to $1.23 billion as of September 30, 2025, representing 0.38% of total loans. This decline was observed across both commercial and consumer categories Total Accruing Loans Past Due (as of Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024) | Metric (in millions) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Total Accruing Loans Past Due | $1,233 | $1,303 | $1,275 | -5.37% | -3.29% | | Commercial | $309 | $362 | $286 | -14.64% | 8.04% | | Consumer | $924 | $941 | $989 | -1.81% | -6.57% | | Total accruing loans past due to total loans | 0.38% | 0.40% | 0.40% | -0.02 pp | -0.02 pp | [Accruing Loans Past Due 30 to 59 Days](index=13&type=section&id=Accruing%20Loans%20Past%20Due%2030%20to%2059%20Days) Accruing loans past due 30 to 59 days remained stable QoQ at $635 million, but increased YoY. Commercial loans in this category decreased QoQ, while consumer loans remained relatively stable Accruing Loans Past Due 30 to 59 Days (as of Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024) | Category (in millions) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :--------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Commercial | $170 | $176 | $137 | -3.41% | 24.09% | | Consumer | $465 | $459 | $477 | 1.31% | -2.49% | | Total | $635 | $635 | $614 | 0.00% | 3.42% | | Total to total loans | 0.19% | 0.19% | 0.19% | 0 pp | 0 pp | - Commercial and industrial loans past due 30-59 days decreased to **$147 million** in Q3 2025 from $118 million in Q2 2025[23](index=23&type=chunk) [Accruing Loans Past Due 60 to 89 Days](index=14&type=section&id=Accruing%20Loans%20Past%20Due%2060%20to%2089%20Days) Accruing loans past due 60 to 89 days decreased QoQ to $251 million as of September 30, 2025, remaining stable YoY. Both commercial and consumer categories contributed to the QoQ decline Accruing Loans Past Due 60 to 89 Days (as of Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024) | Category (in millions) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :--------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Commercial | $67 | $107 | $52 | -37.38% | 28.85% | | Consumer | $184 | $190 | $200 | -3.16% | -8.00% | | Total | $251 | $297 | $252 | -15.50% | -0.40% | | Total to total loans | 0.08% | 0.09% | 0.08% | -0.01 pp | 0 pp | - Commercial and industrial loans past due 60-89 days decreased to **$60 million** in Q3 2025 from $91 million in Q2 2025[24](index=24&type=chunk) [Accruing Loans Past Due 90 Days or More](index=15&type=section&id=Accruing%20Loans%20Past%20Due%2090%20Days%20or%20More) Accruing loans past due 90 days or more decreased QoQ and YoY to $347 million as of September 30, 2025. Both commercial and consumer segments showed a decline in this category Accruing Loans Past Due 90 Days or More (as of Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024) | Category (in millions) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :--------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Commercial | $72 | $79 | $97 | -8.86% | -25.80% | | Consumer | $275 | $292 | $312 | -5.82% | -11.86% | | Total | $347 | $371 | $409 | -6.50% | -15.26% | | Total to total loans | 0.11% | 0.11% | 0.13% | 0 pp | -0.02 pp | - Commercial and industrial loans past due 90 days or more decreased to **$71 million** in Q3 2025 from $79 million in Q2 2025[25](index=25&type=chunk) [Business Segment Results](index=17&type=section&id=Business%20Segment%20Results) PNC's business segments, including Retail Banking, Corporate & Institutional Banking, and Asset Management Group, showed varied performance with overall revenue growth and improved efficiency [Business Segment Descriptions](index=17&type=section&id=Business%20Segment%20Descriptions) PNC operates through three primary business segments: Retail Banking, Corporate & Institutional Banking, and Asset Management Group, each providing a distinct range of financial products and services to diverse client bases - Retail Banking offers deposit, lending, brokerage, insurance, investment management, and cash management products to consumer and small business customers through various channels[26](index=26&type=chunk) - Corporate & Institutional Banking provides lending, treasury management, capital markets, and advisory products to mid-sized and large corporations, government, and not-for-profit entities[27](index=27&type=chunk) - Asset Management Group serves high net worth and ultra high net worth clients through PNC Private Bank, and institutional clients via Institutional Asset Management, offering investment, credit, and trust services[28](index=28&type=chunk)[31](index=31&type=chunk) [Period End Employees](index=17&type=section&id=Period%20End%20Employees) PNC's total employee count slightly decreased QoQ and YoY to 54,938 as of September 30, 2025, primarily driven by a reduction in part-time employees, while full-time employees saw a minor increase QoQ Period End Employees (as of Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024) | Employee Type | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :----------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Full-time employees | 53,523 | 53,175 | 53,749 | 0.65% | -0.42% | | Part-time employees | 1,415 | 1,872 | 1,500 | -24.41% | -5.67% | | Total employees | 54,938 | 55,047 | 55,249 | -0.20% | -0.56% | - Retail Banking full-time employees decreased to **26,126** in Q3 2025 from 26,291 in Q2 2025 and 27,740 in Q3 2024[29](index=29&type=chunk) [Summary of Business Segment Net Income and Revenue](index=18&type=section&id=Summary%20of%20Business%20Segment%20Net%20Income%20and%20Revenue) All three business segments (Retail Banking, Corporate & Institutional Banking, and Asset Management Group) contributed positively to PNC's total revenue and net income in Q3 2025. Corporate & Institutional Banking showed the strongest QoQ growth in both net income and revenue, while Retail Banking and Asset Management Group also demonstrated YoY revenue growth Business Segment Net Income and Revenue (Q3 2025 vs. Q2 2025 vs. Q3 2024) | Segment (in millions) | Sep 30, 2025 Net Income | Jun 30, 2025 Net Income | Sep 30, 2024 Net Income | QoQ Change (%) | YoY Change (%) | | :-------------------- | :---------------------- | :---------------------- | :---------------------- | :------------- | :------------- | | Retail Banking | $1,324 | $1,359 | $1,172 | -2.58% | 12.97% | | Corporate & Institutional Banking | $1,459 | $1,229 | $1,197 | 18.71% | 21.89% | | Asset Management Group | $117 | $129 | $96 | -9.30% | 21.88% | | | | | | | | | Segment (in millions) | Sep 30, 2025 Revenue | Jun 30, 2025 Revenue | Sep 30, 2024 Revenue | QoQ Change (%) | YoY Change (%) | | :-------------------- | :---------------------- | :---------------------- | :---------------------- | :------------- | :------------- | | Retail Banking | $3,806 | $3,756 | $3,494 | 1.33% | 8.93% | | Corporate & Institutional Banking | $2,909 | $2,720 | $2,645 | 6.95% | 10.00% | | Asset Management Group | $430 | $423 | $393 | 1.65% | 9.41% | - Net income excluding noncontrolling interests for Q3 2025 was **$1,808 million**, up from $1,627 million in Q2 2025 and $1,490 million in Q3 2024[32](index=32&type=chunk) [Retail Banking](index=19&type=section&id=Retail%20Banking) Retail Banking's net income slightly decreased QoQ but significantly increased YoY, reaching $1.32 billion in Q3 2025. Total revenue grew QoQ and YoY, while the efficiency ratio improved YoY. Brokerage account client assets also showed consistent growth Retail Banking Performance Highlights (Q3 2025 vs. Q2 2025 vs. Q3 2024) | Metric (in millions, except as noted) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :------------------------------------ | :----------- | :----------- | :----------- | :------------- | :------------- | | Net Income | $1,324 | $1,359 | $1,172 | -2.58% | 12.97% | | Total Revenue | $3,806 | $3,756 | $3,494 | 1.33% | 8.93% | | Return on average assets | 4.60% | 4.78% | 3.99% | -0.18 pp | 0.61 pp | | Efficiency | 51% | 50% | 53% | 1 pp | -2 pp | | Branches | 2,219 | 2,218 | 2,242 | 0.05% | -1.03% | | Brokerage account client assets (in billions) | $89 | $87 | $84 | 2.30% | 5.95% | - Retail Banking's net interest income increased to **$3,016 million** in Q3 2025 from $2,974 million in Q2 2025 and $2,793 million in Q3 2024[34](index=34&type=chunk) - Residential mortgage loan origination volume was **$1.5 billion** in Q3 2025, a decrease from $1.7 billion in Q2 2025 and $1.8 billion in Q3 2024[35](index=35&type=chunk) [Corporate & Institutional Banking](index=21&type=section&id=Corporate%20%26%20Institutional%20Banking) Corporate & Institutional Banking demonstrated strong performance in Q3 2025, with net income increasing by 18.71% QoQ and 21.89% YoY to $1.46 billion. Total revenue also grew significantly, and the efficiency ratio improved. Treasury Management revenue continued its upward trend Corporate & Institutional Banking Performance Highlights (Q3 2025 vs. Q2 2025 vs. Q3 2024) | Metric (in millions, except as noted) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :------------------------------------ | :----------- | :----------- | :----------- | :------------- | :------------- | | Net Income | $1,459 | $1,229 | $1,197 | 18.71% | 21.89% | | Total Revenue | $2,909 | $2,720 | $2,645 | 6.95% | 10.00% | | Return on average assets | 2.43% | 2.10% | 2.09% | 0.33 pp | 0.34 pp | | Efficiency | 34% | 35% | 36% | -1 pp | -2 pp | | Treasury Management revenue | $1,120 | $1,077 | $974 | 3.99% | 14.99% | | Commercial mortgage servicing portfolio balance (in billions) | $293 | $295 | $289 | -0.68% | 1.38% | - Net interest income for Corporate & Institutional Banking increased to **$1,777 million** in Q3 2025 from $1,698 million in Q2 2025 and $1,615 million in Q3 2024[41](index=41&type=chunk) - Noninterest income for Corporate & Institutional Banking increased to **$1,132 million** in Q3 2025 from $1,022 million in Q2 2025 and $1,030 million in Q3 2024[41](index=41&type=chunk) [Asset Management Group](index=24&type=section&id=Asset%20Management%20Group) The Asset Management Group's net income decreased QoQ but saw a significant YoY increase, reaching $117 million in Q3 2025. Total revenue grew QoQ and YoY, and the efficiency ratio improved YoY. Client assets under management and administration both experienced QoQ and YoY growth Asset Management Group Performance Highlights (Q3 2025 vs. Q2 2025 vs. Q3 2024) | Metric (in millions, except as noted) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :------------------------------------ | :----------- | :----------- | :----------- | :------------- | :------------- | | Net Income | $117 | $129 | $96 | -9.30% | 21.88% | | Total Revenue | $430 | $423 | $393 | 1.65% | 9.41% | | Return on average assets | 3.18% | 3.54% | 2.59% | -0.36 pp | 0.59 pp | | Efficiency | 63% | 63% | 69% | 0 pp | -6 pp | | Total discretionary client assets under management (in billions) | $228 | $217 | $214 | 5.07% | 6.54% | | Total client assets under administration (in billions) | $440 | $421 | $430 | 4.51% | 2.33% | - Net interest income for the Asset Management Group was **$176 million** in Q3 2025, compared to $179 million in Q2 2025 and $151 million in Q3 2024[46](index=46&type=chunk) - Noninterest income for the Asset Management Group was **$254 million** in Q3 2025, compared to $244 million in Q2 2025 and $242 million in Q3 2024[46](index=46&type=chunk) [Glossary of Terms](index=25&type=section&id=Glossary%20of%20Terms) This section provides definitions for key financial and banking terms used throughout the Financial Supplement, covering concepts such as Allowance for Credit Losses, Basel III capital ratios, Charge-offs, Efficiency, Fair Value, Nonperforming Assets, and various other industry-specific terminology

Core Insights - PNC Financial Services Group reported record revenue of $5.9 billion for the third quarter of 2025, marking a 4% increase from the previous quarter and a 9% increase year-over-year [9][6][4] - The company announced an agreement to acquire FirstBank for an implied consideration of $4.1 billion, expected to close in early 2026, which will significantly expand PNC's presence in Colorado and Arizona [5][2] Financial Performance - Net interest income (NII) reached $3.6 billion, up 3% from the second quarter of 2025, driven by loan growth and fixed-rate asset repricing [10][6] - Noninterest income totaled $2.3 billion, reflecting a 9% increase from the previous quarter, with strong growth across various categories [12][9] - The efficiency ratio improved to 59%, indicating better cost management despite a 2% increase in noninterest expenses [6][14] Balance Sheet Highlights - Average loans increased by $3.2 billion, or 1%, primarily due to a 2% growth in commercial and industrial loans [16][18] - Average deposits grew by $8.9 billion, or 2%, driven by commercial deposit growth [30][7] - The Common Equity Tier 1 (CET1) capital ratio improved to 10.6%, reflecting a strong capital position [15][28] Credit Quality - Net loan charge-offs decreased to $179 million, down from $198 million in the previous quarter, indicating improved credit quality [32][29] - Total delinquencies fell by 5% to $1.2 billion, driven by lower commercial and consumer loan delinquencies [34][29] - The allowance for credit losses remained stable at $5.3 billion, representing 1.61% of total loans [33][31] Business Segment Results - Retail Banking reported net income of $1.3 billion, a slight decrease from the previous quarter, impacted by higher noninterest expenses [36][37] - Corporate & Institutional Banking showed strong performance with net income of $1.5 billion, up from $1.2 billion in the previous quarter [36] - The Asset Management Group generated $117 million in net income, reflecting a year-over-year increase [36]

Company Overview - The PNC Financial Services Group, Inc is based in Pittsburgh and operates in the Finance sector, with a year-to-date share price change of -3.07% [3] - The company currently pays a dividend of $1.70 per share, resulting in a dividend yield of 3.64%, which is significantly higher than the Financial - Investment Bank industry's yield of 1.1% and the S&P 500's yield of 1.51% [3] Dividend Performance - The current annualized dividend of $6.80 represents a 7.9% increase from the previous year [4] - Over the past five years, the company has increased its dividend three times, achieving an average annual increase of 8.49% [4] - The current payout ratio is 44%, indicating that the company paid out 44% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, PNC anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $15.60 per share, reflecting a year-over-year growth rate of 12.15% [5] - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [5] Investment Considerations - High-yielding stocks may face challenges during periods of rising interest rates, making PNC a compelling investment opportunity due to its strong dividend profile [6] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a stable investment outlook [6]

Core Viewpoint - PNC Financial Services Group is expected to report strong quarterly earnings driven by increased net interest income and stable lending demand, despite facing higher expenses and challenges in fee income [2][3][4]. Financial Performance - PNC is projected to release earnings per share (EPS) of $4.05, representing a 16.1% increase year-over-year [2][6]. - Revenue is anticipated to be approximately $5.81 billion, reflecting a 7.3% rise from the previous year [2][6]. Growth Drivers - The anticipated growth in earnings is attributed to an increase in net interest income (NII), stable interest rates, and steady lending demand [3][6]. - Fee income is expected to rise due to improved performance in capital markets, asset management, and card services [3]. Financial Metrics - PNC has a price-to-earnings (P/E) ratio of approximately 11.95, indicating the price investors are willing to pay for each dollar of earnings [5]. - The debt-to-equity ratio stands at about 1.05, showing the proportion of debt used to finance the company's assets relative to shareholders' equity [5].

Core Insights - PNC Financial Services Group is set to release its third-quarter earnings on October 15, with expected earnings of $4.04 per share, an increase from $3.49 per share in the same period last year [1] - The company projects quarterly revenue of $5.81 billion, up from $5.43 billion a year earlier [1] Dividend Information - On October 2, PNC declared a quarterly dividend of $1.70 per share on common stock [2] - PNC shares increased by 1.6%, closing at $186.92 on the preceding Monday [2] Analyst Ratings and Price Targets - Piper Sandler upgraded PNC from Neutral to Overweight, raising the price target from $211 to $220 [4] - UBS maintained a Buy rating and increased the price target from $224 to $229 [4] - Wells Fargo maintained an Overweight rating, raising the price target from $230 to $240 [4] - Evercore ISI Group maintained an Outperform rating, increasing the price target from $220 to $230 [4] - Oppenheimer maintained an Outperform rating but reduced the price target from $238 to $235 [4]

Market Overview - The market is experiencing significant downturns, with the NASDAQ down 800 points (3.5%) and the Dow down nearly 900 points, indicating a substantial sell-off [1] - This downturn is characterized by a "sea of red" in the market, causing concern among investors [1] US-China Relations - There remains a possibility for a meeting between President Trump and President Xi at the end of the month, despite recent tensions [2] - President Trump has only threatened tariffs, which have not yet been implemented, suggesting that negotiations between the US and China may still progress [2] Economic Uncertainty - The current market conditions are influenced by a combination of factors, including the government shutdown and associated layoffs, which contribute to economic uncertainty [3][4] - This uncertainty is causing businesses to reconsider hiring and expansion plans, leading to a pause in economic activity [4] Market Sentiment - Despite the current sell-off, some analysts believe that the downturn may be short-lived, with a strong macroeconomic picture and ongoing growth in AI adoption and innovation providing a potential floor for the market [5]

Core Insights - Analysts project that The PNC Financial Services Group, Inc (PNC) will report quarterly earnings of $4.05 per share, reflecting a 16.1% year-over-year increase [1] - Revenue is expected to reach $5.83 billion, marking a 7.3% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 0.2% over the past 30 days, indicating a collective reassessment by analysts [2] - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock [3] Key Financial Metrics - Total interest-earning assets are estimated to average $512.89 billion, down from $516.14 billion a year ago [5] - Book value per common share is projected at $134.52, up from $124.56 in the same quarter last year [5] - Total nonperforming assets are expected to be $2.21 billion, down from $2.61 billion a year ago [6] - The efficiency ratio is forecasted at 59.3%, improved from 61.0% in the same quarter last year [6] - Total nonperforming loans are estimated at $2.21 billion, down from $2.58 billion a year ago [6] Capital Ratios - The leverage ratio is expected to reach 9.3%, up from 8.9% a year ago [7] - The Tier 1 risk-based ratio is projected at 11.9%, slightly up from 11.8% in the same quarter last year [7] - Total capital risk-based is estimated at 14.1%, compared to 13.6% a year ago [7] Income Projections - Net interest income (Fully Taxable-Equivalent - FTE) is expected to be $3.69 billion, up from $3.44 billion in the same quarter last year [8] - Total Noninterest Income is projected at $2.13 billion, compared to $2.02 billion in the same quarter last year [8] Segment Performance - Capital markets and advisory revenue is expected to be $357.77 million, down from $371.00 million in the same quarter last year [9] - Card and cash management revenue is projected at $749.79 million, up from $698.00 million a year ago [9] Stock Performance - PNC shares have decreased by 6% over the past month, contrasting with a 3.5% increase in the Zacks S&P 500 composite [10] - PNC holds a Zacks Rank 3 (Hold), indicating expected performance in line with the overall market [10]

Core Viewpoint - PNC Financial Services Group is expected to report improved revenues and earnings for Q3 2025, driven by higher net interest income and stable loan growth, despite rising expenses and credit loss provisions [2][12]. Financial Performance Expectations - PNC is scheduled to report Q3 2025 earnings on October 15, with a consensus estimate for earnings per share (EPS) at $4.05, reflecting a year-over-year increase of 16.1% [19]. - The consensus estimate for quarterly revenues is $5.83 billion, indicating a 7.3% year-over-year increase [19]. - The company anticipates total revenues to rise by 2-3% from the $5.7 billion reported in Q2 2025 [19]. Net Interest Income (NII) and Loan Growth - NII is projected to increase by 3% sequentially in Q3 2025, with the Zacks Consensus Estimate for NII at $3.66 billion, a sequential rise of 2.9% [4][5]. - Average loans are expected to grow by 1% sequentially, aligning with the company's guidance [6]. Non-Interest Revenues - Mortgage revenues are estimated to rise sequentially, with the consensus for residential and commercial mortgage revenues at $129.6 million, reflecting a 1.6% increase [8]. - Asset management and brokerage income is expected to grow, with a consensus estimate of $397.9 million, indicating a 1.8% sequential rise [9]. - Capital markets and advisory income is projected to reach $357.7 million, reflecting an 11.4% sequential increase [11]. Expense Management - PNC's expenses are anticipated to rise by 2% sequentially, driven by investments in franchise expansion and technology [15]. - Adjusted non-interest expenses are estimated to increase by 2.7% sequentially, reaching $3.47 billion [15]. Asset Quality and Credit Loss Provisions - The company is likely to maintain higher reserves for potential delinquent loans, with net charge-offs expected to be between $275 million and $300 million, up from $198 million in Q2 2025 [16]. - The consensus estimate for non-performing assets (NPAs) is $2.21 billion, indicating a 3.2% increase from the previous quarter [17].

Core Viewpoint - PNC Financial Services Group has shown strong fundamental performance through consistent loan growth, prudent credit management, and stable operating trends, leading to an upgrade from Piper Sandler from Neutral to Overweight with a price forecast increase to $220 from $211, reflecting about 12 times the firm's 2026 EPS estimate of $17.81 [1][2][5] Group 1: Analyst Upgrades and Market Sentiment - Piper Sandler's upgrade aligns with improving investor sentiment ahead of earnings season and a stronger large-bank M&A backdrop [2] - Despite solid fundamentals, PNC shares have underperformed, remaining largely flat year-to-date and ranking among the weakest large regional banks followed by the firm [3] Group 2: Financial Projections and Guidance - Piper Sandler believes PNC's near-term guidance is conservative and achievable, with expectations for modest loan growth and manageable higher credit costs [4] - Projected third quarter 2025 net charge-offs are estimated to be between $275 million and $300 million, up from $198 million in the second quarter of 2025, consistent with PNC's history of outperforming conservative forecasts [4] - Management expects steady revenue momentum, with net interest income projected to grow about 7% in 2026, supported by ongoing asset repricing as a multi-year tailwind [5] Group 3: Strategic Acquisitions and Valuation - PNC's pending FirstBank acquisition is viewed as a strategic positive, providing immediate scale in Colorado, low-cost deposits, and cross-selling potential [5] - Following share underperformance, PNC's valuation has become more attractive, trading below 11 times 2026 EPS estimates, with the potential for a return to a valuation premium over time [6]