The PNC Financial Services Group, Inc.

PNC reported second-quarter net income of $2.1 billion and diluted EPS of $4.81; adjusted diluted EPS was $4.85 after $0.04 of integration costs and significant items. Total revenue was $6.9 billion, up $710 million or 12% linked quarter; noninterest expense was $4.1 billion, up $330 million or 9% linked quarter; provision was $191 million; and the effective tax rate was 21%. Net income increased $412 million year over year, and EPS grew 25%. Net interest income was $4.1 billion, up $146 million or 4% year over year, with NIM at 2.96%; fee income was $2.3 billion, up $200 million or 10%. Loans averaged $363 billion, up $12 billion or 4% linked quarter; deposits averaged $457 billion, stable; CET1 was estimated at 9.9%; TBV was $111 per share, up 2% linked quarter and 7% year over year; and ROTCE was 17.9%. For the third quarter, PNC expects average loans up 1% to 2%, NII up 3% to 3.5%, fee income down 5% to 5.5%, other noninterest income of negative $150 million to negative $200 million, adjusted expenses down 2% to 3%, about $50 million of integration expense, and net charge-offs of about $225 million. For full-year 2026, PNC expects average loan growth of about 12.5%, NII up 15% to 15.5%, noninterest income up about 9%, total revenue up about 13%, expenses up about 8.5%, and an effective tax rate of about 19.5%.

Bill Demchak said the quarter reflected strong business momentum, broad-based fee growth, strong credit, and continued client acquisition across corporate and private banking. He emphasized that the FirstBank integration, new branches, and a new mobile platform were all part of building a better bank for long-term growth rather than maximizing next-quarter results. His tone was confident and upbeat, while repeatedly framing PNC as a diversified franchise that is winning share and compounding earnings in a solid economy.

Robert Reilly focused on balance-sheet growth, margins, and capital deployment. He highlighted $363 billion of average loans, $457 billion of average deposits, $111 of tangible book value per share, a 17.9% ROTCE, and a 9.9% CET1 ratio, while noting $1.3 billion returned to shareholders in the quarter, including $690 million of dividends and $610 million of buybacks. He said the quarter included $127 million of FirstBank integration costs, a $448 million Visa gain, an $85 million Visa derivative fair-value adjustment, a $139 million securities repositioning loss, and a $140 million foundation contribution, and reiterated that repurchases should stay around the Q2 level. He also said PNC still expects NIM to move above 3% by year-end, with future margin helped by repricing fixed-rate assets but tempered by higher-yielding, lower-spread commercial loan growth.

Analysts pressed on the pace and durability of loan growth, funding needs, deposit costs, and the margin outlook. Management said loan growth remains strong but should moderate toward GDP-like levels in the second half, while deposits are expected to grow and help replace some wholesale funding; they also said the quarter’s higher noninterest-bearing balances were helped by commercial treasury management and escrow flows. On capital markets, management said Q2 was elevated and some activity likely pulled forward, so Q3 fee income is expected to decline, mostly because capital markets revenue could be down about 20% sequentially. Management also said NII and EPS matter more than the exact NIM exit rate, but reaffirmed the full-year path to above 3% NIM and an 18% annualized ROTCE exit rate in Q4 2026.