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Can PNC's Record Capital Markets Pace Support Its Fee-Income Outlook?
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Key Takeaways
PNC's capital markets and advisory revenues jumped 65.9% year over year in the first half of 2026.
PNC's Harris Williams investment-banking unit is on track for a record year, aided by stronger M&A activity.
PNC raised its 2026 non-interest income growth outlook to approximately 9% from 6%.
The PNC Financial Services Group, Inc.’s (PNC - Free Report) fee businesses are gaining momentum, with capital markets emerging as an important growth driver. At the Barclays 24th Annual Global Financial Services Conference, CFO Robert Q. Reilly highlighted that the company's fee businesses are having a strong year and expects the momentum to continue. Over the past five years (ended 2025), fee income increased at a compound annual growth rate of 7.7%, with growth continuing in the first half of 2026.
Providing a significant boost to this momentum, capital markets is on pace for a record year, supported by stronger mergers and acquisitions (M&A) activity and demand for advisory services. As of June 30, 2026, PNC’s capital markets and advisory accounted for approximately 20.8% of total noninterest income, while revenues from these businesses increased 65.9% year over year in the first half of 2026. The favorable M&A environment is providing an additional tailwind for PNC’s advisory business.
The company’s investment-banking business, Harris Williams, is also on track for a record year. PNC has expanded Harris Williams’ capabilities through the 2025 acquisition of Aqueduct Capital Group, which added private-equity and private-credit capital-raising capabilities, and the 2023 merger with Sixpoint Partners, which expanded capital-solutions and primary-fund-placement capabilities. These additions have broadened Harris Williams’ advisory platform and enabled PNC to address a wider range of clients’ transaction and capital needs.
Capital markets strength is part of broader growth across PNC Financial’s fee businesses, including treasury management, asset management, cards, cash management and lending-related services. Stronger equity markets are supporting asset-management fees, while fee-generating businesses, including capital markets, M&A advisory and treasury management, now account for about 40% of corporate-bank revenue. The company is also expanding its fee opportunities through acquisitions. Its January 2026 acquisition of FirstBank, converted in June 2026, expanded its presence across Colorado and Arizona and generated stronger-than-expected cross-selling of wealth management, private banking and asset-management products. Colorado has since emerged as its fastest-growing asset-management market, providing another source of fee-income growth.
Reflecting the stronger-than-expected first-half performance, record-paced capital-markets activity, stronger cross-selling and growth across other fee-generating businesses, the company raised its 2026 non-interest income growth outlook to approximately 9% (excluding integration costs and significant items) from its previous target of 6%.
Major Banks Benefit from Stronger M&A Activity
Goldman Sachs (GS - Free Report) and JPMorgan (JPM - Free Report) are also benefiting from stronger M&A and capital-markets activity in 2026, reflecting an improving deal environment and stronger demand for advisory services.
Goldman Sachs maintained its No. 1 position in announced and completed M&A in the first half of 2026. Goldman Sachs’ investment-banking fees rose 52% year over year to $6.2 billion during the period, while its investment-banking backlog reached a five-year high, including a record advisory backlog, supported by robust strategic M&A activity.
JPMorgan retained its No. 1 global ranking in investment-banking fees and captured a 9.3% wallet share in the first half of 2026. A healthy pipeline and resilient M&A demand are supporting JPMorgan’s investment-banking business, with companies pursuing strategic transactions to achieve scale, cost synergies and technology capabilities.
PNC’s Price Performance & Zacks Rank
Shares of PNC Financial have gained 2.6% in the past three months compared with the industry’s growth of 1.7%.
View the Zacks #1 Rank List
Image: Bigstock
Can PNC's Record Capital Markets Pace Support Its Fee-Income Outlook?
Key Takeaways
The PNC Financial Services Group, Inc.’s (PNC - Free Report) fee businesses are gaining momentum, with capital markets emerging as an important growth driver. At the Barclays 24th Annual Global Financial Services Conference, CFO Robert Q. Reilly highlighted that the company's fee businesses are having a strong year and expects the momentum to continue. Over the past five years (ended 2025), fee income increased at a compound annual growth rate of 7.7%, with growth continuing in the first half of 2026.
Providing a significant boost to this momentum, capital markets is on pace for a record year, supported by stronger mergers and acquisitions (M&A) activity and demand for advisory services. As of June 30, 2026, PNC’s capital markets and advisory accounted for approximately 20.8% of total noninterest income, while revenues from these businesses increased 65.9% year over year in the first half of 2026. The favorable M&A environment is providing an additional tailwind for PNC’s advisory business.
The company’s investment-banking business, Harris Williams, is also on track for a record year. PNC has expanded Harris Williams’ capabilities through the 2025 acquisition of Aqueduct Capital Group, which added private-equity and private-credit capital-raising capabilities, and the 2023 merger with Sixpoint Partners, which expanded capital-solutions and primary-fund-placement capabilities. These additions have broadened Harris Williams’ advisory platform and enabled PNC to address a wider range of clients’ transaction and capital needs.
Capital markets strength is part of broader growth across PNC Financial’s fee businesses, including treasury management, asset management, cards, cash management and lending-related services. Stronger equity markets are supporting asset-management fees, while fee-generating businesses, including capital markets, M&A advisory and treasury management, now account for about 40% of corporate-bank revenue. The company is also expanding its fee opportunities through acquisitions. Its January 2026 acquisition of FirstBank, converted in June 2026, expanded its presence across Colorado and Arizona and generated stronger-than-expected cross-selling of wealth management, private banking and asset-management products. Colorado has since emerged as its fastest-growing asset-management market, providing another source of fee-income growth.
Reflecting the stronger-than-expected first-half performance, record-paced capital-markets activity, stronger cross-selling and growth across other fee-generating businesses, the company raised its 2026 non-interest income growth outlook to approximately 9% (excluding integration costs and significant items) from its previous target of 6%.
Major Banks Benefit from Stronger M&A Activity
Goldman Sachs (GS - Free Report) and JPMorgan (JPM - Free Report) are also benefiting from stronger M&A and capital-markets activity in 2026, reflecting an improving deal environment and stronger demand for advisory services.
Goldman Sachs maintained its No. 1 position in announced and completed M&A in the first half of 2026. Goldman Sachs’ investment-banking fees rose 52% year over year to $6.2 billion during the period, while its investment-banking backlog reached a five-year high, including a record advisory backlog, supported by robust strategic M&A activity.
JPMorgan retained its No. 1 global ranking in investment-banking fees and captured a 9.3% wallet share in the first half of 2026. A healthy pipeline and resilient M&A demand are supporting JPMorgan’s investment-banking business, with companies pursuing strategic transactions to achieve scale, cost synergies and technology capabilities.
PNC’s Price Performance & Zacks Rank
Shares of PNC Financial have gained 2.6% in the past three months compared with the industry’s growth of 1.7%.
Image Source: Zacks Investment Research
PNC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.