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It has been about a month since the last earnings report for The PNC Financial Services Group, Inc (PNC). Shares have added about 3.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is The PNC Financial Services Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
PNC Financial third-quarter 2025 adjusted earnings per share 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 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.
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 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.
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.
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.
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.
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.
Q4 2025
The company expects average loans to remain stable to up 1% from the third quarter’s reported figure of $325.9 billion.
Management anticipates NII to increase by approximately 1.5% from the $3.6 billion reported in the third quarter of 2025.
Fee income (non-GAAP) is expected to decline around 3% from the third-quarter 2025 reported figure of $2.1 billion.
Other non-interest income is projected to range between $150 million and $200 million, compared with $198 million reported in the third quarter of 2025.
Total revenues are expected to remain stable to down 1% from the $5.9 billion reported in the third quarter of 2025.
Non-interest expenses are anticipated to rise 1%–2% from the $3.5 billion reported in the third quarter of 2025.
Net charge-offs are estimated to be in the range of $200 million–$225 million, compared with the $179 million reported in the third quarter of 2025.
2025
Average loans are expected to rise 1% to $319.8 billion from that reported in 2024.
NII is now expected to rise 6.5%, slightly below the prior guidance of 7%, reflecting moderated growth expectations amid Fed rate cuts.
Non-interest income (excluding visa gain and securities losses) is projected to rise 4-5% from the $8.1 billion reported in 2024.
Management suggests revenues to rise 6% from the $21.6 billion reported in 2024.
Adjusted non-interest expenses (excluding FDIC special assessment and PNC foundation contribution expenses) are now expected to increase about 1.5%, slightly above the prior guidance of 1%, due to higher technology and branch-related investments.
The effective tax rate is estimated to be 19%, whereas the company reported 17.8% in 2024.
In the past month, investors have witnessed a upward trend in fresh estimates.
Currently, The PNC Financial Services Group has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, The PNC Financial Services Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
The PNC Financial Services Group belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, Citigroup (C), has gained 4.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Citigroup reported revenues of $22.09 billion in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $2.24 for the same period compares with $1.51 a year ago.
For the current quarter, Citigroup is expected to post earnings of $1.78 per share, indicating a change of +32.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.9% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Citigroup. Also, the stock has a VGM Score of F.
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This article originally published on Zacks Investment Research (zacks.com).
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