PNC Reports Full Year 2025 Net Income of $7.0 Billion, $16.59 Diluted EPS

Core Viewpoint - PNC Financial Services Group reported record revenue and a 5% positive operating leverage for the fourth quarter of 2025, with net income reaching $2.0 billion and diluted EPS at $4.88. The company also announced an increase in planned share repurchases following the acquisition of FirstBank [1][7]. Financial Performance - Total revenue for Q4 2025 was $6.1 billion, an increase of $156 million, or 3%, compared to Q3 2025, driven by growth in both net interest income (NII) and noninterest income [11][13]. - Net interest income was $3.7 billion, up $83 million, or 2%, from Q3 2025, benefiting from lower funding costs and loan growth [14][11]. - Noninterest income reached $2.34 billion, a 3% increase from Q3 2025, with notable growth in capital markets and advisory fees [16][11]. Balance Sheet Highlights - Average loans increased by $2.0 billion, or 1%, to $327.9 billion, primarily due to growth in commercial loans [21][23]. - Average deposits grew by $7.7 billion, or 2%, to $439.5 billion, driven by both commercial and consumer client accounts [26][11]. - The common equity tier 1 (CET1) capital ratio was estimated at 10.6% as of December 31, 2025, reflecting a strong capital position [28][29]. Credit Quality - Provision for credit losses was $139 million in Q4 2025, down from $167 million in Q3 2025, indicating improved credit quality [35][36]. - Net loan charge-offs were $162 million, a decrease of $17 million compared to Q3 2025, reflecting lower consumer and commercial charge-offs [36][35]. - Total delinquencies increased to $1.4 billion, up 17% from the previous quarter, primarily due to higher commercial and consumer loan delinquencies [38][35]. Acquisition Impact - PNC completed the acquisition of FirstBank on January 5, 2026, which had $26 billion in assets and will be included in PNC's consolidated operations starting Q1 2026 [7][1].