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The PNC Financial Services Group (PNC) Down 0.7% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for The PNC Financial Services Group, Inc (PNC - Free Report) . Shares have lost about 0.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is The PNC Financial Services Group due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for The PNC Financial Services Group, Inc before we dive into how investors and analysts have reacted as of late.
PNC Financial Q2 Earnings Beat Estimates on NII & Loan Growth
PNC Financial second-quarter 2025 adjusted earnings per share (EPS) of $3.85 surpassed the Zacks Consensus Estimate of $3.56. In the prior-year quarter, the company reported EPS of $3.39.
Results were aided by a rise in NII and the loan balance. However, a decline in fee income and an increase in expenses, along with a rise in provision for credit losses, acted as spoilsports.
Net income (GAAP basis) was $1.64 billion, which jumped 11.2% from the prior-year quarter.
Revenues & Expenses Rise Y/Y
Total quarterly revenues were $5.66 billion, up 4.6% year over year. The top line surpassed the Zacks Consensus Estimate by 0.7%.
NII was $3.55 billion, which rose 7.7% from the year-ago quarter. The net interest margin (NIM) increased 20 basis points to 2.80%.
Non-interest income slightly decreased year over year to $2.1 billion. The decrease was driven by lower residential and commercial mortgage income, along with a decline in other non-interest income.
Non-interest expenses totaled $3.38 billion, which rose marginally from the year-ago figure.
The efficiency ratio was 60% compared with 62% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
Loan and Deposit Balance Rises
As of June 30, 2025, total loans were $326.3 billion, which increased 2.3% on a sequential basis. Further, total deposits increased by nearly 1% from the end of the previous quarter to $426.7 billion.
Credit Quality: Mixed Bag
Non-performing loans fell 15.8% year over year to $2.1 billion. Further, net loan charge-offs were $198 million, which declined 24.4% year over year.
The company reported a provision for credit losses of $254 million in the second quarter, which surged 8.1% from the year-earlier quarter.
The allowance for credit losses decreased 1.3% to $5.3 billion.
Capital Position & Profitability Ratios Improve
As of June 30, 2025, the Basel III common equity tier 1 capital ratio was 10.5% compared with 10.2% as of June 30, 2024.
Return on average assets and average common shareholders’ equity were 1.17% and 12.20%, respectively, compared with 1.05% and 12.16% witnessed in the prior-year quarter.
Capital Distribution Activity
In the second quarter of 2025, PNC Financial returned $1 billion of capital to shareholders. This included $0.6 billion in common stock dividends and more than $0.3 billion in common share repurchases.
Outlook
Q3 2025
The company expects average loans to rise 1% from the second quarter’s reported figure of $322.8 billion.
Management anticipates NII to rise 3% from the $3.6 billion reported in the second quarter of 2025.
Fee income is expected to rise 3-4% from the second-quarter 2025 reported figure of $1.9 billion.
Management anticipates total revenues to increase 2-3% from $5.7 billion in the second quarter of 2025.
Other non-interest income is projected between $150 million and $200 million compared with the $212 million reported in the second quarter of 2025.
Adjusted non-interest expenses are expected to rise 2% from the $3.4 billion reported in the second quarter of 2025.
Net charge-offs are estimated to be $2275-$300 million compared with the second-quarter 2025 reported figure of $198 million.
2025
Average loans are expected to rise 1% to $319.8 billion from that reported in 2024.
NII is expected to rise 7% from the 2024 reported level.
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 forecast to rise 1% from the $13.52 billion reported in 2024.
The effective tax rate is estimated to be 19%, whereas the company reported 17.8% in 2024.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, The PNC Financial Services Group has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been 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.
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The PNC Financial Services Group (PNC) Down 0.7% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for The PNC Financial Services Group, Inc (PNC - Free Report) . Shares have lost about 0.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is The PNC Financial Services Group due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for The PNC Financial Services Group, Inc before we dive into how investors and analysts have reacted as of late.
PNC Financial Q2 Earnings Beat Estimates on NII & Loan Growth
PNC Financial second-quarter 2025 adjusted earnings per share (EPS) of $3.85 surpassed the Zacks Consensus Estimate of $3.56. In the prior-year quarter, the company reported EPS of $3.39.
Results were aided by a rise in NII and the loan balance. However, a decline in fee income and an increase in expenses, along with a rise in provision for credit losses, acted as spoilsports.
Net income (GAAP basis) was $1.64 billion, which jumped 11.2% from the prior-year quarter.
Revenues & Expenses Rise Y/Y
Total quarterly revenues were $5.66 billion, up 4.6% year over year. The top line surpassed the Zacks Consensus Estimate by 0.7%.
NII was $3.55 billion, which rose 7.7% from the year-ago quarter. The net interest margin (NIM) increased 20 basis points to 2.80%.
Non-interest income slightly decreased year over year to $2.1 billion. The decrease was driven by lower residential and commercial mortgage income, along with a decline in other non-interest income.
Non-interest expenses totaled $3.38 billion, which rose marginally from the year-ago figure.
The efficiency ratio was 60% compared with 62% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
Loan and Deposit Balance Rises
As of June 30, 2025, total loans were $326.3 billion, which increased 2.3% on a sequential basis. Further, total deposits increased by nearly 1% from the end of the previous quarter to $426.7 billion.
Credit Quality: Mixed Bag
Non-performing loans fell 15.8% year over year to $2.1 billion. Further, net loan charge-offs were $198 million, which declined 24.4% year over year.
The company reported a provision for credit losses of $254 million in the second quarter, which surged 8.1% from the year-earlier quarter.
The allowance for credit losses decreased 1.3% to $5.3 billion.
Capital Position & Profitability Ratios Improve
As of June 30, 2025, the Basel III common equity tier 1 capital ratio was 10.5% compared with 10.2% as of June 30, 2024.
Return on average assets and average common shareholders’ equity were 1.17% and 12.20%, respectively, compared with 1.05% and 12.16% witnessed in the prior-year quarter.
Capital Distribution Activity
In the second quarter of 2025, PNC Financial returned $1 billion of capital to shareholders. This included $0.6 billion in common stock dividends and more than $0.3 billion in common share repurchases.
Outlook
Q3 2025
The company expects average loans to rise 1% from the second quarter’s reported figure of $322.8 billion.
Management anticipates NII to rise 3% from the $3.6 billion reported in the second quarter of 2025.
Fee income is expected to rise 3-4% from the second-quarter 2025 reported figure of $1.9 billion.
Management anticipates total revenues to increase 2-3% from $5.7 billion in the second quarter of 2025.
Other non-interest income is projected between $150 million and $200 million compared with the $212 million reported in the second quarter of 2025.
Adjusted non-interest expenses are expected to rise 2% from the $3.4 billion reported in the second quarter of 2025.
Net charge-offs are estimated to be $2275-$300 million compared with the second-quarter 2025 reported figure of $198 million.
2025
Average loans are expected to rise 1% to $319.8 billion from that reported in 2024.
NII is expected to rise 7% from the 2024 reported level.
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 forecast to rise 1% from the $13.52 billion reported in 2024.
The effective tax rate is estimated to be 19%, whereas the company reported 17.8% in 2024.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, The PNC Financial Services Group has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been 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.