PNC Financial Services Group, Inc. (NYSE:PNC) announced third-quarter results that exceeded analyst expectations, driven by growth in both interest and noninterest income.
The bank reported earnings per share of $4.35, surpassing the consensus estimate of $4.05. Simultaneously, its quarterly revenue reached $5.915 billion, exceeding the street’s projection of $5.825 billion.
Financial Performance
PNC’s revenue grew 4% quarter-over-quarter (Q/Q). Net interest income rose 3% Q/Q to $3.6 billion, attributed to fixed-rate asset repricing, loan growth, and an additional day in the quarter.
Also Read: Top Wall Street Forecasters Revamp PNC Financial Expectations Ahead Of Q3 Earnings
The net interest margin was 2.79%, a one basis point Q/Q decrease, influenced by 5% average commercial deposit growth. Noninterest income increased 8% Q/Q to $2.27 billion, driven by higher fees.
Average loans increased 1% Q/Q to $325.9 billion, led by 2% Q/Q growth in commercial and industrial loans. Average deposits of $431.8 billion increased $8.9 billion, or 2%, due to commercial deposit growth. Consumer deposits were stable.
The provision for credit losses was $167 million, down from $243 million a year earlier. The CET1 capital ratio stood at 10.6%, up from 10.3% in the prior year quarter.
Strategic Initiatives and Shareholder Actions
Chairman and CEO Bill Demchak commented on the results, noting, “Fee income grew 9% and expenses were well-controlled which contributed to another quarter of positive operating leverage. Credit performed well and we continued to build on our strong capital levels.”
Demchak also highlighted the planned acquisition of FirstBank Holding Company for approximately $4.1 billion. This deal is anticipated to expand PNC’s presence in Colorado to about 120 branches and in Arizona to over 70. Demchak stated, “The planned acquisition of FirstBank positions us for accelerated expansion in Colorado and Arizona as we continue to strategically grow our national franchise.” The acquisition is expected to close in early 2026, subject to regulatory approvals.
The company’s board declared a quarterly cash dividend of $1.70 per share, payable November 5 to shareholders of record as of October 14. PNC returned $1.0 billion to shareholders in the quarter, which included $700 million in dividends and $300 million in share repurchases.
Outlook
For the fourth quarter of 2025, PNC Financial Services Group forecasts key financial metrics relative to the third quarter. The company expects average loans to remain stable or increase up to 1%.
Net interest income is projected to rise by approximately 1.5%, while fee income is anticipated to decrease by around 3%. Other noninterest income is expected to be between $150 million and $200 million.
PNC anticipates its total revenue to be stable or decline by up to 1% from the third quarter. The bank projects a 1% to 2% increase in noninterest expenses. Additionally, net charge-offs are expected to be in the range of $200 million to $225 million.
Price Action: PNC shares were trading lower by 4.07% to $182.00 premarket at last check Wednesday.
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