Increases Planned Share Repurchases
Fourth Quarter 2025 net income was $2.0 Billion, $4.88 Diluted EPS
Grew NII, NIM and noninterest income; increased loans and deposits
Closed FirstBank Acquisition on Jan. 5, 2026
PITTSBURGH, Jan. 16, 2026 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE:PNC) today reported:
For the quarter
For the year
In millions, except per share data and as noted
4Q25
3Q25
2025
2024
Fourth Quarter Highlights
Financial Results
Comparisons reflect 4Q25 vs. 3Q25
Net interest income (NII)
$ 3,731
$ 3,648
$ 14,410
$ 13,499
Income Statement
Record revenue of $6.1 billion increased 3%
NII increased 2%; NIM of 2.84% increased 5 bps
Fee income increased 3% driven by higher capital markets and advisory fees
Other noninterest income of $217 million included negative $41 million of Visa derivative adjustments
Noninterest expense increased 4%
Efficiency ratio of 59%
Effective tax rate of 12.7% reflected favorable resolution of several tax matters
Balance Sheet
Average loans increased $2.0 billion, or 1%
Average deposits grew $7.7 billion, or 2%
Net loan charge-offs were $162 million, or 0.20% annualized to average loans
AOCI improved $0.7 billion to negative $3.4 billion
TBV per share increased 4% to $112.51
Maintained strong capital position
CET1 capital ratio of 10.6%
$0.7 billion of common dividends
$0.4 billion of share repurchases
Fee income (non-GAAP)
2,123
2,069
7,925
7,345
Other noninterest income
217
198
764
711
Noninterest income
2,340
2,267
8,689
8,056
Revenue
6,071
5,915
23,099
21,555
Noninterest expense
3,603
3,461
13,834
13,524
Pretax, pre-provision earnings (PPNR) (non-GAAP)
2,468
2,454
9,265
8,031
Provision for credit losses
139
167
779
789
Net income
2,033
1,822
6,997
5,953
Per Common Share
Diluted earnings per share (EPS)
$ 4.88
$ 4.35
$ 16.59
$ 13.74
Average diluted common shares outstanding
394
396
396
400
Book value
140.44
135.67
140.44
122.94
Tangible book value (TBV) (non-GAAP)
112.51
107.84
112.51
95.33
Balance Sheet & Credit Quality
Average loans In billions
$ 327.9
$ 325.9
$ 323.4
$ 319.8
Average securities In billions
142.2
144.4
142.7
140.7
Average deposits In billions
439.5
431.8
428.8
421.2
Accumulated other comprehensive income (loss) (AOCI)
In billions
(3.4)
(4.1)
(3.4)
(6.6)
Net loan charge-offs
162
179
744
1,041
Allowance for credit losses to total loans
1.58 %
1.61 %
1.58 %
1.64 %
Selected Ratios
Return on average common shareholders' equity
14.33 %
13.24 %
12.90 %
11.92 %
Return on average assets
1.40
1.27
1.24
1.05
Net interest margin (NIM) (non-GAAP)
2.84
2.79
2.83
2.66
Noninterest income to total revenue
39
38
38
37
Efficiency
59
59
60
63
Effective tax rate
12.7
20.3
17.5
17.8
Common equity tier 1 (CET1) capital ratio
10.6
10.7
10.6
10.5
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:"By virtually all measures, 2025 was a successful year. Strong execution across all business lines resulted in record revenue, well controlled expenses and 21% earnings per share growth. We're entering 2026 with great momentum and are excited about the opportunities in front of us, including the recently closed acquisition of FirstBank."
Acquisition of FirstBank
On January 5, 2026, PNC completed its acquisition of FirstBank Holding Company, including its banking subsidiary FirstBank. As of close, FirstBank had $26 billion of assets, $16 billion of loans and $23 billion of deposits. Effective January 5, 2026, FirstBank's financial results are included in PNC's consolidated operations and will be reported in PNC's first quarter 2026 results.
Income Statement Highlights
Fourth quarter 2025 compared with third quarter 2025
Total revenue of $6.1 billion increased $156 million, or 3%, driven by records in both net interest income and fee income.
Net interest income of $3.7 billion increased $83 million, or 2%, and included the impact of lower funding costs, loan growth and the continued benefit of fixed rate asset repricing.
Net interest margin increased 5 basis points to 2.84%.
Fee income of $2.1 billion increased $54 million, or 3%, driven by higher capital markets and advisory activity.
Other noninterest income of $217 million increased $19 million reflecting higher private equity revenue, partially offset by negative $41 million of Visa derivative adjustments primarily due to litigation escrow funding. Visa derivative adjustments were negative $35 million in the third quarter.
Noninterest expense of $3.6 billion increased $142 million, or 4%, driven by increased business activity and seasonality.
Provision for credit losses was $139 million in the fourth quarter.
The effective tax rate was 12.7% for the fourth quarter and 20.3% for the third quarter. The lower effective tax rate reflected favorable resolution of several tax matters.
Balance Sheet Highlights
Fourth quarter 2025 compared with third quarter 2025 or December 31, 2025 compared with September 30, 2025
Average loans of $327.9 billion increased $2.0 billion, or 1%, driven by growth in commercial loans, primarily within the commercial and industrial portfolio. Average consumer loans were stable as growth in both the auto and credit card loan portfolios was offset by declines in residential real estate loans.
Credit quality performance:
Delinquencies of $1.4 billion increased $210 million, or 17%, due to higher commercial and consumer loan delinquencies.
Total nonperforming loans of $2.2 billion increased $81 million, or 4%, as higher commercial and industrial nonperforming loans more than offset declines in commercial real estate nonperforming loans.
Net loan charge-offs of $162 million decreased $17 million due to lower consumer and commercial net loan charge-offs.
The allowance for credit losses of $5.2 billion decreased $0.1 billion. The allowance for credit losses to total loans was 1.58% at December 31, 2025 and 1.61% at September 30, 2025.
Average investment securities of $142.2 billion decreased $2.2 billion, or 2%, reflecting net paydowns and maturities in the held-to-maturity portfolio.
Average deposits of $439.5 billion increased $7.7 billion, or 2%, driven by growth in both commercial and consumer client accounts and activity, partially offset by lower brokered time deposits.
PNC maintained a strong capital and liquidity position:
On January 5, 2026, the PNC board of directors declared a quarterly cash dividend on common stock of $1.70 per share to be paid on February 5, 2026 to shareholders of record at the close of business January 20, 2026.
PNC returned $1.1 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.4 billion of common share repurchases.
Share repurchase activity in the first quarter of 2026 is expected to approximate $600 million to $700 million.
The Basel III common equity tier 1 capital ratio was an estimated 10.6% at December 31, 2025 and was 10.7% at September 30, 2025.
PNC's average LCR for the three months ended December 31, 2025 was 108%, exceeding the regulatory minimum requirement throughout the quarter.
Earnings Summary
In millions, except per share data
4Q25
3Q25
4Q24
Net income
$ 2,033
$ 1,822
$ 1,627
Net income attributable to diluted common shareholders
$ 1,922
$ 1,723
$ 1,505
Diluted earnings per common share
$ 4.88
$ 4.35
$ 3.77
Average diluted common shares outstanding
394
396
399
Cash dividends declared per common share
$ 1.70
$ 1.70
$ 1.60
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
4Q25 vs
4Q25 vs
In millions
4Q25
3Q25
4Q24
3Q25
4Q24
Net interest income
$ 3,731
$ 3,648
$ 3,523
2 %
6 %
Noninterest income
2,340
2,267
2,044
3 %
14 %
Total revenue
$ 6,071
$ 5,915
$ 5,567
3 %
9 %
Total revenue for the fourth quarter of 2025 increased $156 million compared to the third quarter of 2025 and $504 million compared to the fourth quarter of 2024, driven by growth in both net interest income and noninterest income in each period.
Net interest income of $3.7 billion increased $83 million from the third quarter of 2025 and $208 million from the fourth quarter of 2024. In both comparisons, the increase included the impact of lower funding costs, loan growth and the continued benefit of fixed rate asset repricing.
Net interest margin was 2.84% in the fourth quarter of 2025, increasing 5 basis points and 9 basis points from the third quarter of 2025 and fourth quarter of 2024, respectively, reflecting the benefit of fixed rate asset repricing.
Noninterest Income
Change
Change
4Q25 vs
4Q25 vs
In millions
4Q25
3Q25
4Q24
3Q25
4Q24
Asset management and brokerage
$ 411
$ 404
$ 374
2 %
10 %
Capital markets and advisory
489
432
348
13 %
41 %
Card and cash management
733
737
695
(1) %
5 %
Lending and deposit services
342
335
330
2 %
4 %
Residential and commercial mortgage
148
161
122
(8) %
21 %
Fee income (non-GAAP)
2,123
2,069
1,869
3 %
14 %
Other
217
198
175
10 %
24 %
Total noninterest income
$ 2,340
$ 2,267
$ 2,044
3 %
14 %
Noninterest income for the fourth quarter of 2025 increased $73 million, or 3%, compared with the third quarter of 2025. Asset management and brokerage fees increased $7 million driven by higher average equity markets and increased client activity. Capital markets and advisory revenue increased $57 million primarily due to an increase in merger and acquisition advisory activity. Lending and deposit services increased $7 million and included higher loan commitment fees. Residential and commercial mortgage revenue decreased $13 million driven by lower residential mortgage servicing rights valuation, net of economic hedge. Other noninterest income increased $19 million reflecting higher private equity revenue, partially offset by negative $41 million of Visa derivative adjustments primarily due to litigation escrow funding. Visa derivative adjustments were negative $35 million in the third quarter of 2025.
Noninterest income for the fourth quarter of 2025 increased $296 million, or 14%, from the fourth quarter of 2024. Fee income increased $254 million, or 14%, reflecting strong momentum across all business lines and fee income categories. Other noninterest income increased $42 million and included increased private equity revenue, partially offset by higher negative Visa derivative adjustments. Visa derivative adjustments were negative $41 million in the fourth quarter of 2025 compared to negative $23 million in the fourth quarter of 2024.
CONSOLIDATED EXPENSE REVIEW
Noninterest Expense
Change
Change
4Q25 vs
4Q25 vs
In millions
4Q25
3Q25
4Q24
3Q25
4Q24
Personnel
$ 2,033
$ 1,970
$ 1,857
3 %
9 %
Occupancy
247
235
240
5 %
3 %
Equipment
412
416
473
(1) %
(13) %
Marketing
101
93
112
9 %
(10) %
Other
810
747
824
8 %
(2) %
Total noninterest expense
$ 3,603
$ 3,461
$ 3,506
4 %
3 %
Noninterest expense for the fourth quarter of 2025 increased $142 million compared to the third quarter of 2025 and $97 million compared with the fourth quarter of 2024. In both comparisons, the increase was driven by increased business activity. Compared to the third quarter of 2025, the increase also reflected the impact of seasonality.
The effective tax rate was 12.7% for the fourth quarter of 2025 and reflected favorable resolution of several tax matters. The effective tax rate was 20.3% for the third quarter of 2025 and 14.6% for the fourth quarter of 2024.
CONSOLIDATED BALANCE SHEET REVIEW
Loans
Change
Change
4Q25 vs
4Q25 vs
In billions
4Q25
3Q25
4Q24
3Q25
4Q24
Average
Commercial and industrial
$ 191.7
$ 189.0
$ 177.4
1 %
8 %
Commercial real estate
30.2
30.9
34.5
(2) %
(12) %
Equipment lease financing
7.0
6.9
6.7
1 %
4 %
Commercial
$ 228.9
$ 226.8
$ 218.6
1 %
5 %
Consumer
99.0
99.2
100.4
—
(1) %
Average loans
$ 327.9
$ 325.9
$ 319.1
1 %
3 %
Quarter end
Commercial
$ 232.5
$ 227.4
$ 216.2
2 %
8 %
Consumer
99.0
99.2
100.3
—
(1) %
Total loans
$ 331.5
$ 326.6
$ 316.5
2 %
5 %
Totals may not sum due to rounding
Average loans for the fourth quarter of 2025 increased $2.0 billion compared to the third quarter of 2025 and $8.9 billion compared to the fourth quarter of 2024.
Average commercial loans increased $2.1 billion and $10.3 billion compared to the third quarter of 2025 and the fourth quarter of 2024, respectively, driven by growth in the commercial and industrial portfolio, partially offset by continued runoff in commercial real estate loans.
Average consumer loans were stable compared to the third quarter of 2025 as growth in both the auto and credit card loan portfolios was offset by declines in residential real estate loans. In comparison to the fourth quarter of 2024, average consumer loans decreased due to declines in residential real estate loans, partially offset by growth in the auto loan portfolio.
Loans at December 31, 2025 increased $4.9 billion and $15.0 billion from September 30, 2025 and December 31, 2024, respectively.
Average Investment Securities
Change
Change
4Q25 vs
4Q25 vs
In billions
4Q25
3Q25
4Q24
3Q25
4Q24
Available for sale
$ 69.9
$ 69.8
$ 63.6
—
10 %
Held to maturity
