PNC Financial Tops Q1 Earnings Estimates Despite Revenue Miss, Credit Loss Provisions Rise

PNC Financial Services Group, Inc. PNC reported first-quarter results on Tuesday, where earnings per share of $3.51 outpaced the analyst consensus estimate of $3.39.

Quarterly sales of $5.452 billion missed the street view of $5.489 billion. Revenues gained 6% year over year in the quarter under review.

Net interest income grew 6% year over year to $3.476 billion, thanks to the benefit of lower funding costs and the continued repricing of fixed rate assets. The net interest margin was 2.78%, increasing by 21 basis points from the first quarter of 2024.

Noninterest income grew 5% to $1.976 billion, driven by business growth across all fee categories except residential mortgage revenue.

Also Read: PNC Financial Positioned For Strong Loan Expansion And Yield Curve Benefits, Analyst Predicts Net Interest Income Growth Through 2026

Provision for credit losses was $219 million in the first quarter (vs. $155 million a year ago), reflecting changes in macroeconomic factors and portfolio activity.

CET1 capital ratio stood at 10.6% vs. 10.1% in the prior year quarter. 

PNC Financial said it distributed $0.8 billion to shareholders, including $0.6 billion in common stock dividends and $0.2 billion through share buybacks.

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Dividend: On April 3, 2025, the company declared a quarterly cash dividend on common stock of $1.60 per share to be paid on May 5, 2025.

The company said that second-quarter 2025 share repurchase activity is expected to approximate recent quarterly average levels.

Outlook: For FY25, the company reiterated its outlook. PNC Financial expects net interest income to increase 6% to 7%, non-interest income to increase 5%, and total revenue to increase 6%.

For the second quarter, the firm expects net interest income to be up 1%-2% compared to the first quarter of 2025, and total revenue to increase by 1% to 3%.

Price Action: PNC shares were trading higher by 2.04% to $158.49 at last check on Tuesday.

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