Group 1 - PNC Financial reported quarterly revenue of $5.45 billion, slightly missing the consensus by $30 million, but beat earnings expectations by 12 cents, resulting in a diluted EPS of $3.51 [1]

First Quarter 2025 Earnings Conference Call April 15, 2025 Cautionary Statement Regarding Forward-Looking and non-GAAP Financial Information Our earnings conference call presentation is not intended as a full business or financial review and should be viewed in the context of all of the information made available by PNC in its SEC filings and on our corporate website. The presentation contains forward-looking statements regarding our outlook for financial performance, such as earnings, revenues, expenses, t ...

The PNC Financial Services Group, Inc.’s (PNC) first-quarter 2025 adjusted earnings per share of $3.51 surpassed the Zacks Consensus Estimate of $3.40. In the prior-year quarter, the company reported earnings per share of $3.36.Results were aided by a rise in fee income, NII and the loan balance. However, an increase in expenses and provision for credit losses acted as spoilsports.Net income (GAAP basis) was $1.49 billion, which jumped 11.5% from the prior-year quarter.PNC Financial’s Revenues & Expenses Ri ...

Core Insights - The PNC Financial Services Group reported $5.48 billion in revenue for Q1 2025, a 6.5% year-over-year increase, with an EPS of $3.51 compared to $3.36 a year ago [1] - The reported revenue met the Zacks Consensus Estimate, with a slight surprise of +0.02%, while the EPS exceeded expectations by +3.24% [1] Financial Performance Metrics - Efficiency ratio was reported at 62%, matching the average estimate from seven analysts [4] - Net interest margin stood at 2.8%, aligning with the average estimate of seven analysts [4] - Net charge-offs to average loans were 0.3%, slightly better than the average estimate of 0.4% [4] - Average balance of total interest-earning assets was $503.57 billion, below the average estimate of $507.80 billion [4] - Book value per common share was $127.98, exceeding the average estimate of $125.24 [4] - Total nonperforming assets were $2.32 billion, better than the estimated $2.38 billion [4] - Total nonperforming loans were $2.29 billion, also better than the average estimate of $2.36 billion [4] - Leverage ratio was reported at 9.2%, above the average estimate of 8.9% [4] - Tier 1 risk-based ratio was 11.9%, surpassing the average estimate of 11.7% [4] - Total capital risk-based ratio was 13.7%, slightly above the average estimate of 13.5% [4] - Net interest income (FTE) was $3.50 billion, exceeding the average estimate of $3.48 billion [4] - Total noninterest income was $1.98 billion, below the average estimate of $2.02 billion [4] Stock Performance - Shares of The PNC Financial Services Group have declined by -10.7% over the past month, compared to a -3.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - PNC reported a net income of $1.5 billion, or $3.51 per share, reflecting a year-over-year increase of 13% [25][36] - Total revenue for the quarter was $5.5 billion, a decrease of $115 million, or 2%, compared to the previous quarter, primarily due to seasonality [27][36] - Non-interest expense increased by $53 million, or 2%, driven by higher business activity and technology investments [25][36] - The net interest margin expanded to 2.78%, an increase of three basis points [27][36] Business Line Data and Key Metrics Changes - Average loan balances declined by $2 billion, or 1%, driven by lower commercial real estate and consumer loans, but total loans grew by $2 billion, or 1%, on a period-end basis [14][18] - C&I loans increased by $5 billion, or 3%, reflecting broad growth across loan categories, marking the largest increase since Q4 2022 [19][36] - Investment securities decreased by $2 billion to $142 billion, with a stable securities yield of 3.17% [20][36] Market Data and Key Metrics Changes - Average deposits decreased by $5 billion, or 1%, to $421 billion, with consumer deposits increasing by $4 billion, or 2%, while commercial deposits declined by $5 billion, or 2% [22][36] - The rate paid on interest-bearing deposits declined by 20 basis points to 2.23% [22][36] Company Strategy and Development Direction - The company aims to focus on organic growth opportunities while maintaining strong capital levels and providing significant shareholder returns through dividends and share repurchases [11][36] - PNC is committed to managing expenses effectively, with a goal to reduce costs by $350 million in 2025 through a continuous improvement program [31][36] - The appointment of Mark Weidman as president is expected to enhance the company's capabilities without changing its strategic direction [12][71] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased market volatility due to tariff uncertainties but expressed confidence in the company's ability to perform well in uncertain times [7][8] - The company expects average loans to be stable for the full year 2025, with spot loan growth projected at 2% to 3% [37][36] - Non-interest income may face pressure throughout the year due to the uncertainty surrounding tariffs [37][36] Other Important Information - The company returned approximately $800 million of capital to shareholders through dividends and share repurchases during the quarter [17][36] - The allowance for credit losses totaled $5.2 billion, or 1.64% of total loans, reflecting considerations for potential economic downturns [34][36] Q&A Session Summary Question: Can you provide more details on the drivers of loan growth in C&I? - Management noted broad-based growth across most loan categories, with increased utilization rates and new loan productions contributing to the growth [46][47] Question: How do you view the capital markets pipeline given the current uncertainty? - Management indicated that while capital markets were lighter than expected, the M&A advisory pipeline remains strong, with a 20% increase compared to last year [50][51] Question: What are your thoughts on expense management in a potential recession? - Management expressed confidence in maintaining positive expense leverage and indicated that some expenses would self-correct with lower activity [56][58] Question: How do you see the impact of tariffs on your credit outlook? - Management stated that while tariffs have slowed activity, they have not yet led to credit deterioration, and the quality of the loan book remains strong [88][89] Question: What is the company's strategy regarding share buybacks? - Management confirmed an intention to accelerate share buybacks, particularly given the current share price [105][145]

Group 1 - The PNC Financial Services Group reported quarterly earnings of $3.51 per share, exceeding the Zacks Consensus Estimate of $3.40 per share, and showing an increase from $3.36 per share a year ago, representing an earnings surprise of 3.24% [1] - The company achieved revenues of $5.48 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.02%, and up from $5.15 billion year-over-year [2] - Over the last four quarters, the company has consistently surpassed consensus EPS and revenue estimates [2] Group 2 - The stock has underperformed, losing approximately 19.5% since the beginning of the year, compared to the S&P 500's decline of 8.1% [3] - The current consensus EPS estimate for the upcoming quarter is $3.72 on revenues of $5.64 billion, and for the current fiscal year, it is $15.18 on revenues of $22.79 billion [7] - The Zacks Industry Rank for Financial - Investment Bank is in the bottom 33% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Financial Performance - PNC Financial Services Group reported a net income of $1,499 million for Q1 2025, a decrease from $1,627 million in Q4 2024 but an increase from $1,344 million in Q1 2024 [1][4][5] - Net interest income was $3,476 million, down 1% from Q4 2024 but up 6% from Q1 2024, with a net interest margin (NIM) of 2.78%, an increase of 3 basis points from Q4 2024 [1][7][9] - Total revenue for Q1 2025 was $5,452 million, a decrease of $115 million from Q4 2024 but an increase of $307 million from Q1 2024 [6][9] Noninterest Income and Expenses - Noninterest income totaled $1,976 million, down 3% from Q4 2024 due to a slowdown in capital markets activity and seasonality [1][9][10] - Noninterest expenses decreased by 3% to $3,387 million compared to Q4 2024, reflecting lower asset impairments and seasonally lower expenses [1][12][13] Balance Sheet and Credit Quality - Average loans decreased by $2.4 billion, or 1%, to $316.6 billion compared to Q4 2024, while spot loans increased by $2.4 billion, reflecting a 3% growth in commercial and industrial loans [1][9][15] - The allowance for credit losses remained stable at $5.2 billion, with a ratio of 1.64% of total loans [30][32] - Total delinquencies increased to $1.4 billion, up 4% from Q4 2024, primarily due to higher consumer loan delinquencies [30][33] Capital and Shareholder Returns - PNC maintained a strong capital position with a common equity Tier 1 (CET1) capital ratio of 10.6% as of March 31, 2025, up from 10.5% at the end of 2024 [1][25][29] - The company returned approximately $200 million to shareholders through dividends and share repurchases [2][27][29] Business Segment Performance - Retail Banking reported earnings of $1,112 million, an increase of 4% from Q4 2024, driven by lower noninterest expenses [35][36] - Corporate & Institutional Banking earnings decreased to $1,244 million, down 9% from Q4 2024, impacted by lower net interest and noninterest income [39][40] - The Asset Management Group saw earnings increase to $113 million, reflecting growth in discretionary client assets under management [41][42]

The PNC Financial Services Group, Inc. (PNC) is scheduled to report first-quarter 2025 earnings on April 15, before market open. Its revenues and earnings are expected to have improved on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the fourth quarter, PNC’s earnings beat the Zacks Consensus Estimate, driven by higher revenues and a fall in provision for credit losses and expenses. However, a lower loan balance was an undermining factor.The company has a ...

Wall Street analysts forecast that The PNC Financial Services Group, Inc (PNC) will report quarterly earnings of $3.40 per share in its upcoming release, pointing to a year-over-year increase of 1.2%. It is anticipated that revenues will amount to $5.48 billion, exhibiting an increase of 6.5% compared to the year-ago quarter.Over the last 30 days, there has been a downward revision of 1.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' coll ...

Finance Executive to Accelerate Growth and Extend Strong Leadership TeamPITTSBURGH, April 7, 2025 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today announced that its Board of Directors has unanimously appointed Mark Wiedman as president of the corporation and its wholly owned banking subsidiary, PNC Bank, National Association, effective immediately.Wiedman will report to PNC Chairman and Chief Executive Officer William S. Demchak. PNC's primary operating lines of business and the Reg ...