Rise in NII & Fee Income to Aid PNC Financial's Q3 Earnings

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].