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PNC Financial Q2 Earnings Beat Estimates on NII & Loan Growth
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Key Takeaways
PNC reported Q2 adjusted EPS of $3.85, beating estimates and rising from $3.39 a year ago.
Higher net interest income and loan growth helped drive 4.6% year-over-year revenue growth.
Weaker fee income and a rise in provisions and expenses partially weighed on quarterly results.
The PNC Financial Services Group, Inc.’s (PNC - Free Report) second-quarter 2025 adjusted earnings per share (EPS) of $3.85 surpassed the Zacks Consensus Estimate of $3.56. In the prior-year quarter, the company reported EPS of $3.39.
Results were aided by a rise in NII and the loan balance. However, a decline in fee income and an increase in expenses, along with a rise in provision for credit losses, acted as spoilsports.
Net income (GAAP basis) was $1.64 billion, which jumped 11.2% from the prior-year quarter.
PNC Financial’s Revenues & Expenses Rise Y/Y
Total quarterly revenues were $5.66 billion, up 4.6% year over year. The top line surpassed the Zacks Consensus Estimate by 0.7%.
NII was $3.55 billion, which rose 7.7% from the year-ago quarter. The net interest margin (NIM) increased 20 basis points to 2.80%. Our estimate for NII and NIM was $3.56 billion and 2.92%, respectively.
Non-interest income slightly decreased year over year to $2.1 billion. The decrease was driven by lower residential and commercial mortgage income, along with a decline in other non-interest income. Our estimate was $2.04 billion.
Non-interest expenses totaled $3.38 billion, which rose marginally from the year-ago figure. Our estimate was $3.43 billion.
The efficiency ratio was 60% compared with 62% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
PNC's Loan and Deposit Balance Rises
As of June 30, 2025, total loans were $326.3 billion, which increased 2.3% on a sequential basis. Our estimate for total loans was $323.1 billion. Further, total deposits increased by nearly 1% from the end of the previous quarter to $426.7 billion. Our estimate for total deposits was $422.5 billion.
PNC Financial’s Credit Quality: Mixed Bag
Non-performing loans fell 15.8% year over year to $2.1 billion. Further, net loan charge-offs were $198 million, which declined 24.4% year over year. Our estimate for non-performing loans was 2.2 billion.
The company reported a provision for credit losses of $254 million in the second quarter, which surged 8.1% from the year-earlier quarter. Our estimate for the metric was $252 million.
The allowance for credit losses decreased 1.3% to $5.3 billion. Our estimate for the metric was $5.4 billion.
PNC’s Capital Position & Profitability Ratios Improves
As of June 30, 2025, the Basel III common equity tier 1 capital ratio was 10.5% compared with 10.2% as of June 30, 2024.
Return on average assets and average common shareholders’ equity were 1.17% and 12.20%, respectively, compared with 1.05% and 12.16% witnessed in the prior-year quarter.
PNC Financial’s Capital Distribution Activity
In the second quarter of 2025, PNC returned $1 billion of capital to shareholders. This included $0.6 billion in common stock dividends and more than $0.3 billion in common share repurchases.
Our View on PNC
PNC Financial’s NII growth, along with rising loan and deposit balances, will support its top-line growth. Its strong capital position aids steady capital distribution activities. However, a decline in fee income and a rise in provisions are near-term concerns.
The PNC Financial Services Group, Inc Price, Consensus and EPS Surprise
Citizens Financial Group, Inc. (CFG - Free Report) is slated to report second-quarter 2025 results on July 17. Over the past seven days, the Zacks Consensus Estimate for CFG’s quarterly earnings per share has remained unchanged at $0.88. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Fifth Third Bancorp (FITB - Free Report) is scheduled to release second-quarter 2025 earnings on July 17. The consensus estimate for FITB’s quarterly earnings has been unchanged at 87 cents per share over the past seven days.
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PNC Financial Q2 Earnings Beat Estimates on NII & Loan Growth
Key Takeaways
The PNC Financial Services Group, Inc.’s (PNC - Free Report) second-quarter 2025 adjusted earnings per share (EPS) of $3.85 surpassed the Zacks Consensus Estimate of $3.56. In the prior-year quarter, the company reported EPS of $3.39.
Results were aided by a rise in NII and the loan balance. However, a decline in fee income and an increase in expenses, along with a rise in provision for credit losses, acted as spoilsports.
Net income (GAAP basis) was $1.64 billion, which jumped 11.2% from the prior-year quarter.
PNC Financial’s Revenues & Expenses Rise Y/Y
Total quarterly revenues were $5.66 billion, up 4.6% year over year. The top line surpassed the Zacks Consensus Estimate by 0.7%.
NII was $3.55 billion, which rose 7.7% from the year-ago quarter. The net interest margin (NIM) increased 20 basis points to 2.80%. Our estimate for NII and NIM was $3.56 billion and 2.92%, respectively.
Non-interest income slightly decreased year over year to $2.1 billion. The decrease was driven by lower residential and commercial mortgage income, along with a decline in other non-interest income. Our estimate was $2.04 billion.
Non-interest expenses totaled $3.38 billion, which rose marginally from the year-ago figure. Our estimate was $3.43 billion.
The efficiency ratio was 60% compared with 62% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
PNC's Loan and Deposit Balance Rises
As of June 30, 2025, total loans were $326.3 billion, which increased 2.3% on a sequential basis. Our estimate for total loans was $323.1 billion. Further, total deposits increased by nearly 1% from the end of the previous quarter to $426.7 billion. Our estimate for total deposits was $422.5 billion.
PNC Financial’s Credit Quality: Mixed Bag
Non-performing loans fell 15.8% year over year to $2.1 billion. Further, net loan charge-offs were $198 million, which declined 24.4% year over year. Our estimate for non-performing loans was 2.2 billion.
The company reported a provision for credit losses of $254 million in the second quarter, which surged 8.1% from the year-earlier quarter. Our estimate for the metric was $252 million.
The allowance for credit losses decreased 1.3% to $5.3 billion. Our estimate for the metric was $5.4 billion.
PNC’s Capital Position & Profitability Ratios Improves
As of June 30, 2025, the Basel III common equity tier 1 capital ratio was 10.5% compared with 10.2% as of June 30, 2024.
Return on average assets and average common shareholders’ equity were 1.17% and 12.20%, respectively, compared with 1.05% and 12.16% witnessed in the prior-year quarter.
PNC Financial’s Capital Distribution Activity
In the second quarter of 2025, PNC returned $1 billion of capital to shareholders. This included $0.6 billion in common stock dividends and more than $0.3 billion in common share repurchases.
Our View on PNC
PNC Financial’s NII growth, along with rising loan and deposit balances, will support its top-line growth. Its strong capital position aids steady capital distribution activities. However, a decline in fee income and a rise in provisions are near-term concerns.
The PNC Financial Services Group, Inc Price, Consensus and EPS Surprise
The PNC Financial Services Group, Inc price-consensus-eps-surprise-chart | The PNC Financial Services Group, Inc Quote
Currently, PNC carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Banks
Citizens Financial Group, Inc. (CFG - Free Report) is slated to report second-quarter 2025 results on July 17. Over the past seven days, the Zacks Consensus Estimate for CFG’s quarterly earnings per share has remained unchanged at $0.88. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Fifth Third Bancorp (FITB - Free Report) is scheduled to release second-quarter 2025 earnings on July 17. The consensus estimate for FITB’s quarterly earnings has been unchanged at 87 cents per share over the past seven days.