PNC Financial Q3 Earnings Beat Estimates as NII & Fee Income Rise Y/Y

The PNC Financial Services Group, Inc.’s PNC third-quarter 2025 adjusted earnings per share (EPS) of $4.35 surpassed the Zacks Consensus Estimate of $4.05. In the prior-year quarter, the company reported EPS of $3.49.

Results were aided by a rise in net interest income (NII) and fee income. Rising loan and deposit balances, along with a decline in provisions for credit losses, were other positives.  However, an increase in expenses acted as a spoilsport.

Net income (GAAP basis) was $1.82 billion, which jumped 21.1% from the prior-year quarter.

PNC Financial’s Revenues & Expenses Rise Y/Y

Total quarterly revenues were $5.91 billion, up 8.9% year over year. The top line surpassed the Zacks Consensus Estimate by 1.4%.

NII was $3.65 billion, which rose 6.9% from the year-ago quarter. The net interest margin (NIM) increased 15 basis points to 2.79%. Our estimate for NII and NIM was $3.66 billion and 3.00%, respectively.

Non-interest income increased 12.1% year over year to $2.3 billion. The improvement was driven by a rise in all the components of fee income, except for residential and commercial mortgage income. Our estimate was $2.12 billion.

Non-interest expenses totaled $3.46 billion, which rose 4% from the year-ago figure. Our estimate was $3.47 billion.

The efficiency ratio was 59% compared with 61% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.

PNC's Loan and Deposit Balance Rises

As of Sept. 30, 2025, total loans were $326.6 billion, which increased slightly on a sequential basis. Our estimate for total loans was $325.8 billion. Further, total deposits increased 1.4% from the end of the previous quarter to $432.7 billion. Our estimate for total deposits was $424.9 billion.

PNC Financial’s Credit Quality Improves

Non-performing loans fell 17.1% year over year to $2.1 billion. Further, net loan charge-offs were $179 million, which declined 37.4% year over year. Our estimate for non-performing loans was $2.0 billion.

The company reported a provision for credit losses of $167 million in the third quarter, which declined 31.2% from the year-earlier quarter. Our estimate for the metric was $228 million.

The allowance for credit losses decreased 1.1% to $5.2 billion. Our estimate for the metric was $5.1 billion.

PNC’s Capital Position & Profitability Ratios Improve

As of Sept. 30, 2025, the Basel III common equity tier 1 capital ratio was 10.6% compared with 10.3% as of Sept. 30, 2024.

Return on average assets and average common shareholders’ equity were 1.27% and 13.24%, respectively, compared with 1.05% and 11.72% witnessed in the prior-year quarter.

PNC Financial’s Capital Distribution Activity

In the third quarter of 2025, PNC returned $1 billion of capital to shareholders. This included $0.7 billion in common stock dividends and $0.3 billion in common share repurchases.

Our View on PNC

PNC Financial’s solid NII and fee income growth, along with rising loan and deposit balances, are expected to drive its top-line performance. A strong capital position supports consistent shareholder returns. However, elevated expenses remain a near-term concern.

The PNC Financial Services Group, Inc Price, Consensus and EPS Surprise

The PNC Financial Services Group, Inc price-consensus-eps-surprise-chart | The PNC Financial Services Group, Inc Quote

Currently, PNC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Dates & Expectations of Other Banks

M&T Bank Corporation MTB is slated to report third-quarter 2025 results on Oct. 16.

Over the past seven days, the Zacks Consensus Estimate for MTB’s quarterly earnings per share has been revised upward to $4.41 per share. This implies an 8.1% growth from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Fifth Third Bancorp FITB is scheduled to release third-quarter 2025 earnings on Oct. 17.

The consensus estimate for FITB’s quarterly earnings has been revised downward to 87 cents per share over the past seven days. This indicates a 2.3% rise from the prior-year quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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