Company Overview - The PNC Financial Services Group, Inc is headquartered in Pittsburgh and operates in the Finance sector [3] - The stock has experienced a price change of 1.91% since the beginning of the year [3] Dividend Information - PNC currently pays a dividend of $1.6 per share, resulting in a dividend yield of 3.26% [3] - The Financial - Investment Bank industry's average yield is 0.88%, while the S&P 500's yield is 1.51% [3] - The company's annualized dividend of $6.40 has increased by 1.6% from the previous year [4] - Over the past five years, PNC has raised its dividend four times, averaging an annual increase of 9.10% [4] - The current payout ratio is 48%, indicating that PNC paid out 48% of its trailing 12-month EPS as dividends [4] Earnings Expectations - PNC is anticipating earnings growth for the fiscal year, with the Zacks Consensus Estimate for 2025 at $14.96 per share, reflecting a 7.55% increase from the previous year [5] Investment Considerations - PNC is considered a compelling investment opportunity due to its strong dividend performance and current Zacks Rank of 3 (Hold) [7]

Core Insights - PNC Financial Service Group is set to launch a new online banking platform to enhance its digital services alongside expanding its physical branch network [1][2] - The new platform will be cloud-native and micro service-based, aimed at improving customer navigation and self-service capabilities [2][3] - PNC plans to open 200 new branches and renovate 1,400 existing branches over the next five years, an increase from previous plans of 100 new branches and 1,200 renovations [3][4] Expansion Plans - Currently, PNC operates over 2,200 branches and 60,000 ATMs, with ongoing efforts to expand in high-growth regions [4] - The bank is entering new markets, including Salt Lake City, and expanding in South Florida, Texas, Arizona, and Colorado [4] - The investment in new branches and technology is positioned as a strategy for organic growth rather than a response to past shortcomings [5]

Financial Data and Key Metrics Changes - For the full year 2024, the company earned $6 billion, or $13.74 per share, achieving record revenue [5][6] - Net interest income grew by $113 million or 3% in Q4, with a net interest margin of 2.75%, an increase of 11 basis points [25][26] - The tangible book value per share increased by 12% compared to the previous year, reaching $95.33 [16][7] - The company returned approximately $900 million of capital to shareholders during the quarter through dividends and share repurchases [16][7] Business Line Data and Key Metrics Changes - Fee income grew by 6% for the year, with record revenue in the Corporate and Institutional Banking (CNIB) segment [6][8] - Retail banking saw consumer DDA growth at its highest in eight years, with record brokerage revenue at PNC Investments [9] - Non-interest income for Q4 was $2 billion, a 1% increase, while total revenue for the year was $21.6 billion [28][25] Market Data and Key Metrics Changes - Average loan balances remained stable at $319 billion, with a yield on total loans decreasing by 26 basis points to 5.87% [18][14] - Average deposits increased by $3 billion, or 1%, reflecting growth in interest-bearing commercial balances [24] - The cumulative deposit beta through December was 47%, with expectations for it to remain in the high 40% range during the anticipated rate-cutting cycle [24] Company Strategy and Development Direction - The company plans to double new branch builds to gain scale in fast-growing regions and is entering the Salt Lake City market [10][9] - Investments in new products and an expanded footprint are aimed at accelerating momentum, including a new online banking platform [9][10] - The company is focused on maintaining expense discipline while delivering positive operating leverage [11][7] Management's Comments on Operating Environment and Future Outlook - Management expects continued economic growth in 2025, with approximately 2% real GDP growth and unemployment slightly above 4% [40] - The company anticipates two rate cuts in 2025, which will impact net interest income [41][40] - There are uncertainties regarding the economic outlook, but the company believes its balance sheet is well-positioned [11][12] Other Important Information - Non-performing loans decreased by 10% linked quarter, while total delinquencies increased by 8% [35] - The company is adequately reserved for credit risk, with an allowance for credit losses totaling $5.2 billion [37][36] - The company has a high liquidity position, with a cash balance at the Federal Reserve of $38 billion [14][16] Q&A Session Summary Question: Industry deposit growth and trends in 2025 - Management expects industry deposits to grow slightly by 1% to 2% in 2025, with organic efforts in expansion markets performing well [47][48] Question: NII guidance and drivers - The guidance for NII is conservative, with expectations for a decline in the first quarter due to fewer days and lower seasonal commercial deposits [50][52] Question: Demand for lines of credit - Management noted that demand for capital is low across all segments, with utilization rates decreasing despite strong originations [85][104] Question: Fee income growth outlook - Fee income is expected to grow by approximately 5% in 2025, driven by various segments including asset management and capital markets [78][77] Question: Capital buyback plans - The company plans to sustain buybacks at levels between $100 million and $200 million, depending on loan growth [80][79] Question: Regulatory environment and M&A opportunities - Management believes it is easier to get deals approved but notes that many banks are currently not looking to sell, making acquisitions challenging [163][164]

The PNC Financial Services Group, Inc.’s (PNC) fourth-quarter 2024 adjusted earnings per share of $3.77 surpassed the Zacks Consensus Estimate of $3.3. In the prior-year quarter, the company reported earnings per share of $1.85.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.For 2024, adjusted earnings per share was $13.74, which beat the Zacks Consensus Estimate of $13.47. This compares favorably with $12.79 reported in the year-ago quarter.Results were aided by a rise in fe ...

Financial Data and Key Metrics Changes - For the full year 2024, the company earned $6 billion or $13.74 per share, achieving record revenue and a 6% growth in fee income [5][6] - The tangible book value per share increased by 12% compared to the previous year, reaching $95.33 [12] - The net interest income for Q4 was $3.5 billion, an increase of $113 million or 3% from the previous quarter, with a net interest margin of 2.75%, up 11 basis points [18][20] Business Line Data and Key Metrics Changes - Consumer DDA growth in 2024 was the highest in 8 years, and brokerage revenue reached record levels [7] - Non-interest income for Q4 was $2 billion, a 1% increase, while non-interest expense rose by 5% to $3.5 billion [18][22] - The asset management and brokerage income declined by 2%, reflecting lower annuity sales, while lending and deposit services revenue grew by 3% [20] Market Data and Key Metrics Changes - Sales in expansion markets grew by 26%, with over 60% of those sales being non-credit [7] - Average deposits increased by $3 billion or 1%, with non-interest bearing deposits stable at $96 billion [16] - The company expects deposit growth of 1% to 2% in 2025, with some seasonality expected in commercial deposits [31] Company Strategy and Development Direction - The company is investing in new products and expanding its footprint, including doubling new branch builds in fast-growing regions [9] - A new online banking platform is set to be rolled out to enhance customer experience and operational efficiency [8][100] - The company aims to generate substantial positive operating leverage in 2025, with expectations for net interest income and non-interest income to grow [28] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued economic growth in 2025, with a projected real GDP growth of approximately 2% [26] - The company expects to see further tailwinds from fixed asset repricing over the next couple of years [5] - There are uncertainties regarding the economic outlook, but the company believes its balance sheet is well positioned [9][10] Other Important Information - The company returned $3 billion of capital to shareholders through dividends and share buybacks [6] - Non-performing loans decreased by 10% linked quarter, while total delinquencies increased by 8% [23] - The company is adequately reserved for credit risk, with an allowance for credit losses totaling $5.2 billion [24] Q&A Session Summary Question: Industry deposit growth and trends in 2025 - The company expects slight deposit growth of 1% to 2% in 2025, with positive organic efforts in expansion markets [31][32] Question: NII guidance and drivers - The guidance for NII is conservative, with expectations for a decline in Q1 due to fewer days and lower seasonal commercial deposits [33][35] Question: Loan growth and demand outlook - Management noted that utilization is lower across all segments, with uncertainty impacting capital investment decisions [42][65] Question: Fee income growth outlook - The company expects fee income to grow approximately 5% in 2025, driven by various segments including asset management and capital markets [56][57] Question: Capital buyback plans - The company plans to sustain buybacks at levels between $100 million and $200 million, depending on loan growth [58][59] Question: Regulatory environment and M&A opportunities - The company sees potential for easier deal approvals but notes that many banks are currently not looking to sell [122]

For the quarter ended December 2024, The PNC Financial Services Group, Inc (PNC) reported revenue of $5.57 billion, up 3.8% over the same period last year. EPS came in at $3.77, compared to $3.16 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $5.47 billion, representing a surprise of +1.71%. The company delivered an EPS surprise of +14.24%, with the consensus EPS estimate being $3.30.While investors scrutinize revenue and earnings changes year-over-year and how they ...

Fourth Quarter 2024 Earnings Conference Call January 16, 2025 Cautionary Statement Regarding Forward-Looking and non-GAAP Financial Information Our earnings conference call presentation is not intended as a full business or financial review and should be viewed in the context of all of the information made available by PNC in its SEC filings and on our corporate website. The presentation contains forward-looking statements regarding our outlook for financial performance, such as earnings, revenues, expenses ...

The PNC Financial Services Group, Inc (PNC) came out with quarterly earnings of $3.77 per share, beating the Zacks Consensus Estimate of $3.30 per share. This compares to earnings of $3.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.24%. A quarter ago, it was expected that this company would post earnings of $3.29 per share when it actually produced earnings of $3.49, delivering a surprise of 6.08%.Over the last four qu ...

Financial Performance - Total interest income for Q4 2024 was $6,494 million, an increase from $6,500 million in Q4 2023, with loans contributing $4,731 million[6] - Net interest income for Q4 2024 was $3,523 million, compared to $3,264 million in Q4 2023, reflecting a year-over-year increase of 7.9%[6] - Noninterest income totaled $2,044 million in Q4 2024, up from $1,881 million in Q4 2023, marking an increase of 8.7%[6] - Net income attributable to common shareholders for Q4 2024 was $1,514 million, resulting in earnings per share of $3.77, compared to $3.10 in Q4 2023[6] - The efficiency ratio improved to 63% in Q4 2024, down from 65% in Q4 2023, indicating better cost management[6] - Total revenue for the year ended December 31, 2024, was $21,555 million, slightly up from $21,490 million in 2023[6] - The net interest margin for Q4 2024 was 2.75%, an increase from 2.66% in Q4 2023[13] - Total revenue for the year ended December 31, 2024, was $14,515 million, up from $12,925 million in 2023, reflecting a year-over-year increase of 12.3%[36] - Net income excluding noncontrolling interests for the year ended December 31, 2024, was $5,889 million, compared to $5,578 million for the year ended December 31, 2023, an increase of 5.6%[35] Credit Quality - The provision for credit losses was $156 million in Q4 2024, a decrease from $235 million in Q4 2023, indicating improved credit quality[6] - The allowance for loan and lease losses was $4.486 billion, slightly reduced from $4.589 billion in the previous quarter[8] - Total gross charge-offs for the year amounted to $1,435 million, compared to $1,092 million in the previous year, reflecting a 31.4% increase[16] - The provision for credit losses for the three months ended December 31, 2024, was $156 million, a decrease from $243 million in the previous quarter[18] - The allowance for credit losses increased to $5,205 million as of December 31, 2024, compared to $5,314 million on September 30, 2024, and $5,454 million on December 31, 2023[19] - Total nonperforming loans reached $2,326 million as of December 31, 2024, down from $2,578 million on September 30, 2024, and up from $2,180 million on December 31, 2023[20] - The ratio of nonperforming loans to total loans was 0.73% as of December 31, 2024, compared to 0.80% on September 30, 2024, and 0.68% on December 31, 2023[20] - The ending balance of nonperforming assets was $2,357 million as of December 31, 2024, a decrease from $2,609 million on September 30, 2024[21] Assets and Liabilities - Total assets as of December 31, 2024, were $560.038 billion, a decrease from $564.881 billion on September 30, 2024[8] - Total liabilities stood at $505.569 billion, a decrease from $509.152 billion in the previous quarter[8] - Total deposits increased to $426.738 billion, compared to $423.966 billion in the prior quarter, reflecting a growth of 0.6%[8] - Total investment securities increased to $143.863 billion as of December 31, 2024, compared to $142.314 billion in the prior quarter, reflecting a growth of 1.09%[10] - The total assets of the company were reported at $564.098 billion, a slight decrease from $569.513 billion in the previous quarter[10] Employee and Branch Network - PNC's retail branch network continues to expand, with strategic international offices in four countries outside the U.S.[4] - The company reported a total of 1,905 employees at the end of Q4 2024, reflecting ongoing growth in its workforce[6] - Total full-time employees decreased to 53,686 in December 2024 from 54,813 in December 2023, a reduction of 2.1%[32] Loan Performance - Total loans as of December 31, 2024, amounted to $316.467 billion, a slight decrease from $321.508 billion a year earlier[15] - Total loans remained stable at $319.058 billion for the three months ended December 31, 2024, compared to $319.602 billion in the previous quarter[10] - Commercial and industrial loans totaled $175.790 billion as of December 31, 2024, down from $177.580 billion a year prior[15] - Consumer loans totaled $100.303 billion as of December 31, 2024, a decrease from $101.950 billion a year earlier[15] Noninterest Income and Expenses - Noninterest income for Q4 2024 was $708 million, compared to $722 million in Q4 2023, indicating a decrease of 1.9%[36] - Total noninterest expense for Q4 2024 was $981 million, slightly up from $950 million in Q3 2024[41] Return on Assets - Return on average assets for Q4 2024 was 3.71%, down from 4.39% in Q4 2023, reflecting a decrease of 15.5%[36] - The return on average assets improved to 2.38% in Q4 2024, up from 2.09% in Q3 2024[41] - Return on average assets for Q4 2024 was 2.43%, slightly down from 2.44% in Q3 2024[47]

Generated Positive Operating LeverageFourth Quarter 2024 net income was $1.6 billion, $3.77 diluted EPSGrew NII and NIM; increased deposits and capital PITTSBURGH, Jan. 16, 2025 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported: For the quarter For the year In millions, except per share data and as noted 4Q24 3Q24 2024 2023 Fourth Quarter Highlights Financial Results Comparisons reflect 4Q24 vs. 3Q24 Net interest income (NII) $    3,52 ...