PNC Financial Services Group, Inc. (PNC)

PNC Reports First Quarter 2025 Net Income of $1.5 Billion, $3.51 Diluted EPS

Expanded NIM; increased capital and TBV; maintained solid credit quality metrics PITTSBURGH , April 15, 2025 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported: For the quarter In millions, except per share data and as noted 1Q25 4Q24 1Q24 First Quarter Highlights Financial Results Comparisons reflect 1Q25 vs. 4Q24 Net interest income $    3,476 $    3,523 $    3,264           Income Statement ▪   Net interest income decreased 1%     driven by two fewer days in the     quarter, partially offset by the benefit     of lower funding costs and fixed rate     asset repricing –  NIM expanded 3 bps to 2.78% ▪   Fee income decreased 2% due to a     slowdown in capital markets activity     and seasonality ▪   Other noninterest income of $137     million included negative $40 million     of Visa derivative adjustments ▪   Noninterest expense decreased 3%     as a result of 4Q24 asset     impairments and seasonality               Balance Sheet ▪   Average loans decreased $2.4     billion, or 1% –  Spot loans increased $2.4 billion,     reflecting $4.7 billion, or 3%,     growth in commercial and     industrial loans ▪   Average deposits decreased $4.6     billion, or 1% ▪   Net loan charge-offs were $205     million, or 0.26% annualized to     average loans ▪   AOCI improved $1.3 billion to     negative $5.2 billion reflecting the     movement of interest rates ▪   TBV per share increased 5% to     $100.40 ▪   Maintained strong capital position –  CET1 capital ratio of 10.6% –  Repurchased approximately $200     million of common shares Fee income (non-GAAP) 1,839 1,869 1,746 Other noninterest income 137 175 135 Noninterest income 1,976 2,044 1,881 Revenue 5,452 5,567 5,145 Noninterest expense 3,387 3,506 3,334 Pretax, pre-provision earnings (non-GAAP) 2,065 2,061 1,811 Provision for credit losses 219 156 155 Net income 1,499 1,627 1,344 Per Common Share Diluted earnings per share (EPS) $      3.51 $      3.77 $      3.10 Average diluted common shares outstanding 398 399 400 Book value 127.98 122.94 113.30 Tangible book value (TBV) (non-GAAP) 100.40 95.33 85.70 Balance Sheet & Credit Quality Average loans    In billions $    316.6 $    319.1 $    320.6 Average securities    In billions 142.2 143.9 135.4 Average deposits    In billions 420.6 425.3 420.2 Accumulated other comprehensive income (loss) (AOCI) In billions (5.2) (6.6) (8.0) Net loan charge-offs 205 250 243 Allowance for credit losses to total loans 1.64 % 1.64 % 1.68 % Selected Ratios Return on average common shareholders' equity 11.60 % 12.38 % 11.39 % Return on average assets 1.09 1.14 0.97 Net interest margin (NIM) (non-GAAP) 2.78 2.75 2.57 Noninterest income to total revenue 36 37 37 Efficiency 62 63 65 Effective tax rate 18.8 14.6 18.8 Common equity Tier 1 (CET1) capital ratio 10.6 10.5 10.1 See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.