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PNC Financial Q1 Earnings Top Estimates on Rise in NII & Fee Income
PNCPNC(PNC) ZACKS·2025-04-15 14:50

Core Viewpoint - PNC Financial Services Group, Inc. reported strong first-quarter 2025 adjusted earnings per share of 3.51,exceedingexpectationsandshowinggrowthfromthepreviousyear[1]FinancialPerformance−Totalquarterlyrevenuesreached3.51, exceeding expectations and showing growth from the previous year [1] Financial Performance - Total quarterly revenues reached 5.48 billion, marking a 6.4% year-over-year increase and surpassing estimates by 0.02% [2] - Net interest income (NII) was 3.47billion,up6.53.47 billion, up 6.5% from the prior year, with a net interest margin (NIM) increase of 21 basis points to 2.78% [2] - Non-interest income rose 5.1% year over year to 1.97 billion, driven by increases in various fee income components, except for mortgage income [3] - Non-interest expenses totaled 3.39billion,a1.63.39 billion, a 1.6% increase from the previous year [3] - The efficiency ratio improved to 62% from 65% in the prior year, indicating enhanced profitability [3] Loan and Deposit Trends - Total loans as of March 31, 2025, were 318.9 billion, reflecting a 0.8% sequential increase [4] - Total deposits decreased slightly to 422.9billion,fallingshortofestimates[4]CreditQuality−Non−performingloansdecreasedby3.7422.9 billion, falling short of estimates [4] Credit Quality - Non-performing loans decreased by 3.7% year over year to 2.3 billion, while net loan charge-offs declined 15.6% to 205million[5]−Theprovisionforcreditlossesincreasedby41.3205 million [5] - The provision for credit losses increased by 41.3% year over year to 219 million [5] - The allowance for credit losses decreased by 2.7% to 5.2billion[6]CapitalPositionandProfitability−TheBaselIIIcommonequitytier1capitalratioimprovedto10.65.2 billion [6] Capital Position and Profitability - The Basel III common equity tier 1 capital ratio improved to 10.6% from 10.1% year over year [7] - Return on average assets and average common shareholders' equity were 1.09% and 11.60%, respectively, both showing improvement from the prior year [7] Capital Distribution - In the first quarter of 2025, PNC returned 0.8 billion to shareholders, including 0.6billionindividendsand0.6 billion in dividends and 0.2 billion in share repurchases [8] Outlook - PNC's growth in fee income and NII, along with an increasing loan balance, is expected to support top-line growth, although declining deposits and rising provisions present near-term challenges [9]