Core Insights - The PNC Financial Services Group reported a revenue of $5.95 billion for the quarter ended September 2025, reflecting a year-over-year increase of 9.4% and surpassing the Zacks Consensus Estimate of $5.83 billion by 1.92% [1] - Earnings per share (EPS) for the quarter was $4.35, up from $3.49 in the same quarter last year, exceeding the consensus EPS estimate of $4.05 by 7.41% [1] Financial Performance Metrics - Net charge-offs to average loans were reported at 0.2%, better than the average estimate of 0.3% [4] - Net interest margin was 2.8%, slightly below the estimated 2.9% [4] - Efficiency ratio stood at 59%, in line with the average estimate of 59.3% [4] - Total nonperforming assets amounted to $2.3 billion, slightly above the estimated $2.21 billion [4] - Average balance of total interest-earning assets was $518.13 billion, exceeding the estimate of $512.95 billion [4] - Book value per common share was $135.67, surpassing the average estimate of $134.56 [4] - Leverage ratio was reported at 9.2%, compared to the average estimate of 9.3% [4] - Total nonperforming loans were $2.14 billion, below the average estimate of $2.21 billion [4] - Tier 1 risk-based ratio was 12%, above the average estimate of 11.9% [4] - Total capital risk-based ratio was 13.6%, below the average estimate of 14.1% [4] - Net interest income (Fully Taxable-Equivalent - FTE) was $3.68 billion, slightly below the average estimate of $3.69 billion [4] - Total noninterest income reached $2.27 billion, exceeding the average estimate of $2.14 billion [4] Stock Performance - Shares of The PNC Financial Services Group have returned -5.6% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Shares of The PNC Financial Services Group, Inc. (NYSE: PNC) have shown mixed performance over the past year, trading essentially flat, with late-year gains driven by hopes for bank deregulation [1] Group 1: Stock Performance - The stock has been buoyed by expectations of bank deregulation, but overall performance remains flat over the year [1] Group 2: Analyst Insights - The article reflects a contrarian investment approach based on macro views and stock-specific turnaround stories to achieve outsized returns with a favorable risk/reward profile [1]

分组1 - The PNC Financial Services Group reported quarterly earnings of $4.35 per share, exceeding the Zacks Consensus Estimate of $4.05 per share, and up from $3.49 per share a year ago, representing an earnings surprise of +7.41% [1] - The company achieved revenues of $5.95 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.92%, and an increase from $5.43 billion year-over-year [2] - Over the last four quarters, the company has consistently surpassed consensus EPS and revenue estimates [2] 分组2 - The stock has underperformed the market, losing about 1.6% since the beginning of the year, while the S&P 500 has gained 13% [3] - The current consensus EPS estimate for the upcoming quarter is $4.18 on revenues of $5.94 billion, and for the current fiscal year, it is $15.62 on revenues of $23.13 billion [7] - The Zacks Industry Rank for Financial - Investment Bank is in the top 14% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Insights - PNC Financial reported a more than 21% increase in third-quarter profit, attributed to higher interest income and a significant rise in fees [1] Financial Performance - The profit increase was driven by higher interest income, indicating a favorable interest rate environment [1] - There was an across-the-board jump in fees, suggesting strong performance in various service areas [1]

Core Insights - PNC Financial Services reported mixed results in its retail and corporate banking units, indicating a cautious approach towards consumer credit while showing confidence in corporate lending [1][2]. Retail Banking Unit - The provision for credit losses in the retail banking unit was $126 million for Q3, which is an increase of $43 million from Q2 and up $15 million compared to Q3 of 2024 [2]. Corporate and Institutional Banking Unit - The provision for credit losses in the corporate and institutional banking unit was $44 million for Q3, down $140 million from Q2 and down $90 million from Q3 of 2024 [2].

Core Insights - PNC Financial Services Group reported increased profit and revenue in the third quarter, driven by a growing customer base [1] Financial Performance - The company experienced higher profit and revenue compared to previous quarters, indicating strong financial health [1] Customer Growth - PNC continued to add customers, which contributed significantly to its improved financial performance [1]

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]