PNC Reports Second Quarter 2025 Net Income of $1.6 Billion, $3.85 Diluted EPS
Strong loan growth; 4% positive operating leverage; stable credit quality
Quarterly common stock dividend increased 10 cents to $1.70 per share on July 3, 2025
PITTSBURGH, July 16, 2025 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE:PNC) today reported:
For the quarter
In millions, except per share data and as noted
2Q25
1Q25
2Q24
Second Quarter Highlights
Financial Results
Comparisons reflect 2Q25 vs. 1Q25
Net interest income (NII)
$ 3,555
$ 3,476
$ 3,302
Income Statement
▪ Generated 4% positive operating leverage; PPNR increased 10%
▪ Revenue increased 4%
– NII increased 2%; NIM expanded 2 bps to 2.80%
– Fee income increased 3%
– Other noninterest income of $212 million
▪ Noninterest expense was stable
– Efficiency ratio improved to 60%
Balance Sheet
▪ Average loans increased $6.1 billion, or 2%, driven by 4% growth in commercial and industrial loans
▪ Average deposits grew $2.3 billion
▪ Net loan charge-offs were $198 million, or 0.25% annualized to average loans
▪ AOCI improved $0.6 billion to negative $4.7 billion
▪ TBV per share increased 4% to $103.96
▪ Maintained strong capital position
– CET1 capital ratio of 10.5%
– Returned $1 billion of capital through common dividends and share repurchases
– Strong Federal Reserve stress test results; Stress capital buffer will remain at the regulatory minimum of 2.5%
Fee income (non-GAAP)
1,894
1,839
1,777
Other noninterest income
212
137
332
Noninterest income
2,106
1,976
2,109
Revenue
5,661
5,452
5,411
Noninterest expense
3,383
3,387
3,357
Pretax, pre-provision earnings (PPNR) (non-GAAP)
2,278
2,065
2,054
Provision for credit losses
254
219
235
Net income
1,643
1,499
1,477
Per Common Share
Diluted earnings per share (EPS)
$ 3.85
$ 3.51
$ 3.39
Average diluted common shares outstanding
397
398
400
Book value
131.61
127.98
116.70
Tangible book value (TBV) (non-GAAP)
103.96
100.40
89.12
Balance Sheet & Credit Quality
Average loans In billions
$ 322.8
$ 316.6
$ 319.9
Average securities In billions
141.9
142.2
141.3
Average deposits In billions
423.0
420.6
417.2
Accumulated other comprehensive income (loss) (AOCI)
In billions
(4.7)
(5.2)
(7.4)
Net loan charge-offs
198
205
262
Allowance for credit losses to total loans
1.62 %
1.64 %
1.67 %
Selected Ratios
Return on average common shareholders' equity
12.20 %
11.60 %
12.16 %
Return on average assets
1.17
1.09
1.05
Net interest margin (NIM) (non-GAAP)
2.80
2.78
2.60
Noninterest income to total revenue
37
36
39
Efficiency
60
62
62
Effective tax rate
18.8
18.8
18.8
Common equity Tier 1 (CET1) capital ratio
10.5
10.6
10.2
See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release. Totals may not sum due to rounding.
From Bill Demchak, PNC Chairman and Chief Executive Officer:"Our national growth strategy continues to deliver results. New customer acquisition is accelerating, while we continue to deepen relationships with our existing customers across businesses. The strength of our franchise resulted in strong loan and revenue growth even through an uncertain macro environment, while expenses remained well controlled. Overall, we had a great quarter."
Income Statement Highlights
Second quarter 2025 compared with first quarter 2025
Total revenue of $5.7 billion increased $209 million, or 4%, driven by growth in both noninterest income and net interest income.
Net interest income of $3.6 billion increased $79 million, or 2%, driven by loan growth, the continued benefit of fixed rate asset repricing and one additional day in the quarter.
Net interest margin of 2.80% increased 2 basis points.
Fee income of $1.9 billion increased $55 million, or 3%, primarily due to higher card and cash management revenue and an increase in capital markets and advisory fees.
Other noninterest income of $212 million increased $75 million reflecting Visa related activity and other positive valuation adjustments, partially offset by lower private equity revenue.
Noninterest expense of $3.4 billion was stable.
Provision for credit losses was $254 million in the second quarter and reflected changes in macroeconomic scenarios, tariff related considerations and portfolio activity, including loan growth.
The effective tax rate was 18.8% for both the second quarter and first quarter.
Balance Sheet Highlights
Second quarter 2025 compared with first quarter 2025 or June 30, 2025 compared with March 31, 2025
Average loans of $322.8 billion increased $6.1 billion, or 2%, driven by growth in the commercial and industrial portfolio of $7.4 billion, or 4%, reflecting strong new production and increased utilization of loan commitments, partially offset by a decline in commercial real estate loans of $1.2 billion, or 4%. Consumer loan balances were stable.
Credit quality performance:
Delinquencies of $1.3 billion decreased $128 million, or 9%, as a result of lower consumer and commercial loan delinquencies.
Total nonperforming loans of $2.1 billion decreased $184 million, or 8%, driven by lower commercial nonperforming loans, including lower commercial real estate nonperforming loans.
Net loan charge-offs of $198 million decreased $7 million due to lower consumer net loan charge-offs, partially offset by higher commercial net loan charge-offs, primarily related to the commercial real estate portfolio.
The allowance for credit losses increased $0.1 billion to $5.3 billion. The allowance for credit losses to total loans was 1.62% at June 30, 2025 and 1.64% at March 31, 2025.
Average investment securities of $141.9 billion were stable.
Investment securities at June 30, 2025 of $142.3 billion increased $4.6 billion, or 3%, reflecting net purchase activity, primarily of agency residential mortgage-backed securities.
Average deposits of $423.0 billion increased $2.3 billion due to higher brokered and consumer deposits, partially offset by seasonally lower commercial deposits. Noninterest-bearing deposits were $93.1 billion, increasing $0.8 billion.
Average borrowed funds of $65.3 billion were stable.
PNC maintained a strong capital and liquidity position:
Based on the results of the Federal Reserve's 2025 annual stress test, PNC's SCB for the four-quarter period beginning October 1, 2025 will remain at the regulatory minimum of 2.5%.
On July 3, 2025, the PNC board of directors raised the quarterly cash dividend on common stock to $1.70 per share, an increase of 10 cents per share. The dividend is payable on August 5, 2025 to shareholders of record at the close of business July 15, 2025.
PNC returned $1.0 billion of capital to shareholders, reflecting more than $0.6 billion of dividends on common shares and more than $0.3 billion of common share repurchases.
The Basel III common equity Tier 1 capital ratio was an estimated 10.5% at June 30, 2025 and was 10.6% at March 31, 2025.
PNC's average LCR for the three months ended June 30, 2025 was 107%, exceeding the regulatory minimum requirement throughout the quarter.
Earnings Summary
In millions, except per share data
2Q25
1Q25
2Q24
Net income
$ 1,643
$ 1,499
$ 1,477
Net income attributable to diluted common shareholders
$ 1,532
$ 1,399
$ 1,355
Diluted earnings per common share
$ 3.85
$ 3.51
$ 3.39
Average diluted common shares outstanding
397
398
400
Cash dividends declared per common share
$ 1.60
$ 1.60
$ 1.55
The Consolidated Financial Highlights accompanying this news release include additional information regarding reconciliations of non-GAAP financial measures to reported (GAAP) amounts. This information supplements results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, GAAP results. Information in this news release, including the financial tables, is unaudited.
CONSOLIDATED REVENUE REVIEW
Revenue
Change
Change
2Q25 vs
2Q25 vs
In millions
2Q25
1Q25
2Q24
1Q25
2Q24
Net interest income
$ 3,555
$ 3,476
$ 3,302
2 %
8 %
Noninterest income
2,106
1,976
2,109
7 %
—
Total revenue
$ 5,661
$ 5,452
$ 5,411
4 %
5 %
Total revenue for the second quarter of 2025 increased $209 million compared to the first quarter of 2025 driven by growth in both noninterest income and net interest income. In comparison to the second quarter of 2024, total revenue increased $250 million reflecting the benefit of fixed rate asset repricing and broad-based fee income growth, partially offset by $141 million of significant items recognized in the second quarter of 2024.
Net interest income of $3.6 billion increased $79 million from the first quarter of 2025, driven by loan growth, the continued benefit of fixed rate asset repricing and one additional day in the quarter. Compared to the second quarter of 2024, net interest income increased $253 million primarily due to lower funding costs and the benefit of fixed rate asset repricing. Net interest margin was 2.80% in the second quarter of 2025, increasing 2 basis points from the first quarter of 2025, and 20 basis points from the second quarter of 2024.
Noninterest Income
Change
Change
2Q25 vs
2Q25 vs
In millions
2Q25
1Q25
2Q24
1Q25
2Q24
Asset management and brokerage
$ 391
$ 391
$ 364
—
7 %
Capital markets and advisory
321
306
272
5 %
18 %
Card and cash management
737
692
706
7 %
4 %
Lending and deposit services
317
316
304
—
4 %
Residential and commercial mortgage
128
134
131
(4) %
(2) %
Fee income (non-GAAP)
1,894
1,839
1,777
3 %
7 %
Other
212
137
332
55 %
(36) %
Total noninterest income
$ 2,106
$ 1,976
$ 2,109
7 %
—
Noninterest income for the second quarter of 2025 increased $130 million, or 7%, compared with the first quarter of 2025. Capital markets and advisory revenue increased $15 million reflecting an increase in capital markets activity late in the quarter. Card and cash management increased $45 million as a result of seasonally higher consumer transaction volumes and growth in treasury management product revenue. Residential and commercial mortgage revenue decreased $6 million primarily due to lower residential mortgage servicing revenue. Other noninterest income increased $75 million reflecting Visa related activity and other positive valuation adjustments, partially offset by lower private equity revenue. Visa derivative adjustments were positive $2 million in the second quarter of 2025 and negative $40 million in the first quarter of 2025.
Noninterest income for the second quarter of 2025 was stable from the second quarter of 2024, as broad-based fee income growth was offset by lower other noninterest income, reflecting $141 million of significant items recognized in the second quarter of 2024.
CONSOLIDATED EXPENSE REVIEW
Noninterest Expense
Change
Change
2Q25 vs
2Q25 vs
In millions
2Q25
1Q25
2Q24
1Q25
2Q24
Personnel
$ 1,889
$ 1,890
$ 1,782
—
6 %
Occupancy
235
245
236
(4) %
—
Equipment
394
384
356
3 %
11 %
Marketing
99
85
93
16 %
6 %
Other
766
783
890
(2) %
(14) %
Total noninterest expense
$ 3,383
$ 3,387
$ 3,357
—
1 %
Noninterest expense for the second quarter of 2025 was stable compared to the first quarter of 2025, reflecting a continued focus on expense management, partially offset by seasonally higher marketing spend and continued technology investments.
Noninterest expense for the second quarter of 2025 increased $26 million compared with the second quarter of 2024 as a result of increased business activity, technology investments and annual employee merit and benefits increases, partially offset by $120 million of significant items recognized in the second quarter of 2024.
The effective tax rate was 18.8% for all periods presented.
CONSOLIDATED BALANCE SHEET REVIEW
Loans
Change
Change
2Q25 vs
2Q25 vs
In billions
2Q25
1Q25
2Q24
1Q25
2Q24
Average
Commercial
$ 223.4
$ 217.1
$ 219.1
3 %
2 %
Consumer
99.4
99.5
100.8
—
(1) %
Average loans
$ 322.8
$ 316.6
$ 319.9
2 %
1 %
Quarter end
Commercial
$ 227.0
$ 219.6
$ 220.8
3 %
3 %
Consumer
99.3
99.3
100.6
—
(1) %
Total loans
$ 326.3
$ 318.9
$ 321.4
2 %
2 %
Totals may not sum due to rounding
Average loans increased $6.1 billion compared to the first quarter of 2025. Average commercial loans increased $6.3 billion, driven by growth in the commercial and industrial portfolio of $7.4 billion, or 4%, reflecting strong new production and increased utilization of loan commitments, partially offset by a decline in commercial real estate loans of $1.2 billion, or 4%. Average consumer loans were stable as growth in the auto loan portfolio was offset by lower residential mortgage loans.
In comparison to the second quarter of 2024, average loans increased $2.8 billion. Average commercial loans increased $4.2 billion primarily due to strong growth in commercial and industrial loans, partially offset by lower commercial real estate loans. Average consumer loans decreased $1.4 billion primarily due to lower residential mortgage loans, partially offset by growth in the auto loan portfolio.
Loans at June 30, 2025 increased $7.5 billion and $4.9 billion from March 31, 2025 and June 30, 2024, respectively. In both comparisons the increase was the result of commercial loan growth.
Investment Securities
Change
Change
2Q25 vs
2Q25 vs
In billions
2Q25
1Q25
2Q24
1Q25
2Q24
Average
Available for sale
$ 67.8
$ 65.7
$ 53.4
3 %
27 %
Held to maturity
74.2
76.5
87.9
(3) %
(16) %
Average investment securities
$ 141.9
$ 142.2
$ 141.3
—
—
Quarter end
Available for sale
$ 67.1
$ 63.3
$ 51.2
6 %
31 %
Held to maturity
75.2
74.5
87.5
1 %
(14) %
Total investment securities
$ 142.3
$ 137.8
$ 138.6
3 %
3 %
Totals may not sum due to rounding
Average investment securities of $141.9 billion in the second quarter of 2025 were stable compared to the first quarter of 2025 and second quarter of 2024. Both comparisons include net purchase activity of available-for-sale securities.
Total investment securities of $142.3 billion at June 30, 2025 increased $4.6 billion from March 31, 2025 and $3.7 billion from June 30, 2024, reflecting net purchase activity, primarily of agency residential mortgage-backed securities. The duration of the investment securities portfolio was estimated at 3.4 years as of June 30, 2025 and March 31, 2025 and 3.6 years as of June 30, 2024. Net unrealized losses on available-for-sale securities were $2.6 billion at June 30, 2025, $2.7 billion at March 31, 2025 and $3.7 billion at June 30, 2024.
Average Federal Reserve Bank balances for the second quarter of 2025 were $30.8 billion, decreasing $3.4 billion from the first quarter of 2025 and $9.9 billion from the second quarter of 2024. In comparison to the first quarter of 2025, the decrease was primarily driven by loan growth. Compared to the second quarter of 2024, the decline included lower borrowed funds outstanding.
Average Deposits
Change
Change
2Q25 vs
2Q25 vs
In billions
2Q25
1Q25
2Q24
