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PNC Financial Shares Gain on Q4 Earnings Beat & Record Revenues
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Key Takeaways
PNC posted Q4 EPS of $4.88, beating estimates, as quarterly revenues hit a record $6.1B.
PNC Financial saw NII grow 5.9% and fee income up 14.5%, with loans and deposits rising sequentially.
PNC cut credit costs, improved capital ratios and returned $1.1B to shareholders in 4Q25.
Shares of The PNC Financial Services Group, Inc. (PNC - Free Report) rose nearly 3.2% in the pre-market trading session following the release of better-than-expected fourth-quarter results. The company posted fourth-quarter 2025 earnings per share (EPS) of $4.88, which surpassed the Zacks Consensus Estimate of $4.23. In the prior-year quarter, the company reported EPS of $3.77.
Results have been aided by record revenue growth, driven by a rise in net interest income (NII) and fee income. Rising loan and deposit balances, along with a decline in provisions for credit losses, were other positives. However, an increase in expenses acted as a spoilsport.
Net income was $2.03 billion, which jumped 24.9% from the prior-year quarter.
For 2025, earnings per share were $16.59, up from $13.74 in the year-ago period. The metric surpassed the Zacks Consensus Estimate of $15.99. Net income was $6.99 billion, up from $5.95 billion in 2024.
PNC Financial’s Revenues & Expenses Rise Y/Y
Total quarterly revenues were at a record level of $6.1 billion, up 9.1% year over year. The top line surpassed the Zacks Consensus Estimate of $5.96 billion.
For 2025, total revenues were $23.09 billion, up 7.2% year over year. The metric topped the Zacks Consensus Estimate of $23.07 billion.
NII was $3.73 billion, which rose 5.9% from the year-ago quarter. The net interest margin (NIM) increased 9 basis points to 2.84%.
Non-interest income increased 14.5% year over year to $2.34 billion. The improvement was driven by a rise in all components of fee income.
Non-interest expenses totaled $3.6 billion, which rose 2.7% from the year-ago figure.
The efficiency ratio was 59% compared with 63% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
PNC's Loan & Deposit Balance Rises
As of Dec. 31, 2025, total loans were $331.5 billion, which increased 1.5% on a sequential basis. Further, total deposits increased 1.9% from the end of the previous quarter to $440 billion.
PNC Financial’s Credit Quality Improves
Non-performing loans fell 4.6% year over year to $2.22 billion. Further, net loan charge-offs were $162 million, which declined 35.2% year over year.
The company reported a provision for credit losses of $139 million in the fourth quarter, which declined 10.9% from the year-earlier quarter.
The allowance for credit losses increased marginally to $5.22 billion.
PNC’s Capital Position & Profitability Ratios Improve
As of Dec. 31, 2025, the Basel III common equity tier 1 capital ratio was 10.6% compared with 10.5% as of Dec. 31, 2024.
Return on average assets and average common shareholders’ equity were 1.40% and 14.33%, respectively, compared with 1.14% and 12.38% witnessed in the prior-year quarter.
PNC Financial’s Capital Distribution Activity
In the fourth quarter of 2025, PNC returned $1.1 billion of capital to shareholders. This included $0.7 billion in common stock dividends and $0.4 billion in common share repurchases. Share repurchase activity in the first quarter of 2026 is expected to be $600-$700 million.
Our View on PNC
PNC Financial’s solid NII and fee income growth, along with rising loan and deposit balances, will continue driving its top-line performance. A strong capital position supports consistent shareholder returns.
In January 2025, PNC completed the acquisition of FirstBank Holding Company and its banking subsidiary, FirstBank, adding 95 branches and $26.8 billion in assets. This transaction more than tripled PNC’s branch footprint in Colorado and expanded its Arizona presence to above 70 branches, positioning the company for enhanced long-term growth. Nonetheless, elevated operating expenses remain a near-term headwind.
The PNC Financial Services Group, Inc Price, Consensus and EPS Surprise
Fifth Third Bancorp (FITB - Free Report) is scheduled to release fourth-quarter 2025 earnings on Jan. 20. The consensus estimate for FITB’s quarterly earnings has been unchanged at $1.01 per share over the past seven days.
Huntington Bancshares Inc. (HBAN - Free Report) is also slated to report fourth-quarter 2025 results on Jan. 22. Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 39 cents per share.
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PNC Financial Shares Gain on Q4 Earnings Beat & Record Revenues
Key Takeaways
Shares of The PNC Financial Services Group, Inc. (PNC - Free Report) rose nearly 3.2% in the pre-market trading session following the release of better-than-expected fourth-quarter results. The company posted fourth-quarter 2025 earnings per share (EPS) of $4.88, which surpassed the Zacks Consensus Estimate of $4.23. In the prior-year quarter, the company reported EPS of $3.77.
Results have been aided by record revenue growth, driven by a rise in net interest income (NII) and fee income. Rising loan and deposit balances, along with a decline in provisions for credit losses, were other positives. However, an increase in expenses acted as a spoilsport.
Net income was $2.03 billion, which jumped 24.9% from the prior-year quarter.
For 2025, earnings per share were $16.59, up from $13.74 in the year-ago period. The metric surpassed the Zacks Consensus Estimate of $15.99. Net income was $6.99 billion, up from $5.95 billion in 2024.
PNC Financial’s Revenues & Expenses Rise Y/Y
Total quarterly revenues were at a record level of $6.1 billion, up 9.1% year over year. The top line surpassed the Zacks Consensus Estimate of $5.96 billion.
For 2025, total revenues were $23.09 billion, up 7.2% year over year. The metric topped the Zacks Consensus Estimate of $23.07 billion.
NII was $3.73 billion, which rose 5.9% from the year-ago quarter. The net interest margin (NIM) increased 9 basis points to 2.84%.
Non-interest income increased 14.5% year over year to $2.34 billion. The improvement was driven by a rise in all components of fee income.
Non-interest expenses totaled $3.6 billion, which rose 2.7% from the year-ago figure.
The efficiency ratio was 59% compared with 63% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
PNC's Loan & Deposit Balance Rises
As of Dec. 31, 2025, total loans were $331.5 billion, which increased 1.5% on a sequential basis. Further, total deposits increased 1.9% from the end of the previous quarter to $440 billion.
PNC Financial’s Credit Quality Improves
Non-performing loans fell 4.6% year over year to $2.22 billion. Further, net loan charge-offs were $162 million, which declined 35.2% year over year.
The company reported a provision for credit losses of $139 million in the fourth quarter, which declined 10.9% from the year-earlier quarter.
The allowance for credit losses increased marginally to $5.22 billion.
PNC’s Capital Position & Profitability Ratios Improve
As of Dec. 31, 2025, the Basel III common equity tier 1 capital ratio was 10.6% compared with 10.5% as of Dec. 31, 2024.
Return on average assets and average common shareholders’ equity were 1.40% and 14.33%, respectively, compared with 1.14% and 12.38% witnessed in the prior-year quarter.
PNC Financial’s Capital Distribution Activity
In the fourth quarter of 2025, PNC returned $1.1 billion of capital to shareholders. This included $0.7 billion in common stock dividends and $0.4 billion in common share repurchases. Share repurchase activity in the first quarter of 2026 is expected to be $600-$700 million.
Our View on PNC
PNC Financial’s solid NII and fee income growth, along with rising loan and deposit balances, will continue driving its top-line performance. A strong capital position supports consistent shareholder returns.
In January 2025, PNC completed the acquisition of FirstBank Holding Company and its banking subsidiary, FirstBank, adding 95 branches and $26.8 billion in assets. This transaction more than tripled PNC’s branch footprint in Colorado and expanded its Arizona presence to above 70 branches, positioning the company for enhanced long-term growth. Nonetheless, elevated operating expenses remain a near-term headwind.
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 #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Other Banks
Fifth Third Bancorp (FITB - Free Report) is scheduled to release fourth-quarter 2025 earnings on Jan. 20. The consensus estimate for FITB’s quarterly earnings has been unchanged at $1.01 per share over the past seven days.
Huntington Bancshares Inc. (HBAN - Free Report) is also slated to report fourth-quarter 2025 results on Jan. 22. Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 39 cents per share.