PNC Reports Third Quarter 2026 Net Income of $2.1 Billion, $4.97 Diluted EPS or $5.09 as Adjusted

The PNC Financial Services Group, Inc. (NYSE: PNC) today reported: For the quarter In millions, except per share data and as noted 3Q26 2Q26 3Q25 Third Quarter Highlights Financial Results Comparisons reflect 3Q26 vs. 2Q26 Net interest income (NII) $ 4,206 $ 4,107 $ 3,648 Income Statement Adjusted diluted EPS of $5.09 increased $0.24 Excludes integration costs and significant items from both periods PPNR increased 1% Generated 18.3% ROTCE NII increased 2%; NIM of 2.94% Fee income decreased 6% primarily due to elevated 2Q26 capital markets activity Other noninterest income was $214 million, decreasing $275 million drivenby 2Q26 significant items Noninterest expense declined 8%, or 3%, as adjusted Efficiency ratio improved to 57% Balance Sheet Average loans increased $9.0 billion, or 2%, reflecting new production and higher utilization Transferred $1.4 billion student loan portfolio to held-for-sale Average deposits increased 1%; spot deposits increased 4% Average investment securities increased 3% Net loan charge-offs were $257 million, including $35 million related to the student loan portfolio transfer AOCI of negative $6.5 billion in 3Q26, compared to negative $4.1 billion in 2Q26 Maintained strong capital position CET1 capital ratio of 9.8% $0.8 billion of common dividends $0.6 billion of share repurchases Fee income (non-GAAP) 2,142 2,279 2,069 Other noninterest income 214 489 198 Noninterest income 2,356 2,768 2,267 Revenue 6,562 6,875 5,915 Noninterest expense 3,751 4,098 3,461 Integration costs and significant items 27 261 — Noninterest expense - as adjusted (non-GAAP) 3,724 3,837 3,461 Pretax, pre-provision earnings (PPNR) (non-GAAP) 2,811 2,777 2,454 Provision for credit losses 189 191 167 Net income 2,097 2,055 1,822 Per Common Share Diluted earnings per share (EPS) $ 4.97 $ 4.81 $ 4.35 EPS impact of integration costs and significant items 0.12 0.04 Diluted EPS - as adjusted (non-GAAP) 5.09 4.85 Average diluted common shares outstanding 401 403 396 Book value 142.17 145.52 135.67 Tangible book value (TBV) (non-GAAP) 107.64 111.09 107.84 Balance Sheet & Credit Quality Average loans In billions $ 372.2 $ 363.2 $ 325.9 Average securities In billions 151.4 147.1 144.4 Average deposits In billions 461.2 457.0 431.8 Accumulated other comprehensive income (loss) (AOCI) In billions (6.5) (4.1) (4.1) Net loan charge-offs 257 226 179 Allowance for credit losses to total loans 1.42 % 1.48 % 1.61 % Selected Ratios Return on average common shareholders' equity 13.89 % 13.61 % 13.24 % Return on avg. tangible common equity (ROTCE) (non-GAAP) 18.28 17.88 16.77 Return on average assets 1.32 1.34 1.27 Net interest margin (NIM) (non-GAAP) 2.94 2.96 2.79 Noninterest income to total revenue 36 40 38 Efficiency 57 60 59 Common equity tier 1 (CET1) capital ratio 9.8 9.9 10.7 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 strategy continues to drive growth across our businesses, as we deepen our presence in key markets and expand our reach nationally. During the third quarter, we continued to build on the strong momentum we delivered in the first half of the year, and we generated an 18.3% return on average tangible common equity. We are well positioned, and remain confident in our long-term outlook."Integration Costs and Significant ItemsIn the third quarter of 2026, PNC incurred integration costs related to the FirstBank acquisition of $36 million. Results also included significant items of negative $25 million related to net Visa activity, including an $11 million valuation gain on remaining Visa shares received in the second quarter exchange and negative $36 million of Visa Class B-3 derivative fair value adjustments, primarily related to litigation escrow funding. The combined after-tax impact of both integration costs and 3Q26 significant items resulted in a $48 million decline in net income, or a 12 cent reduction to EPS.During the second quarter of 2026, PNC incurred integration costs of $127 million and significant items with a net benefit of $84 million, as outlined in the table below. The combined after-tax impact of both integration costs and 2Q26 significant items resulted in a $15 million decline in net income, or a 4 cent reduction to EPS. Impact of Integration Costs and Significant Items In millions, except per share data Noninterest Income 3Q26 2Q26 Gains related to Visa share exchange $ 11 $ 448 Visa Class B-3 derivative fair value adjustments (36) (85) 2Q26 loss on sale of securities (139) Significant items $ (25) $ 224 Integration costs (9) (6) Noninterest income impact of integration costs and significant items $ (34) $ 218 Noninterest Expense Significant item - contribution to PNC Foundation $ 140 Integration costs $ 27 121 Noninterest expense impact of integration costs and significant items $ 27 $ 261 Net Income and EPS Total significant items $ (25) $ 84 Total integration costs (36) (127) Pretax, pre-provision impact $ (61) $ (43) Income taxes (benefit) (13) (28) Net income decrease from integration costs and significant items $ (48) $ (15) EPS impact of integration costs and significant items $ (0.12) $ (0.04) Income taxes on integration costs and significant items are calculated at a statutory tax rate of 21% on pretax, pre-provision earnings. 2Q26 significant items tax impact also includes the benefit of shares donated to the PNC Foundation. Income Statement HighlightsThird quarter 2026 compared with second quarter 2026Total revenue of $6.6 billion decreased $313 million, or 5%, as growth in net interest income was more than offset by lower noninterest income. Net interest income of $4.2 billion increased $99 million, or 2%, driven by commercial loan growth and higher yields on interest-earning assets, partially offset by increased funding costs. Net interest margin of 2.94% decreased 2 basis points. Fee income of $2.1 billion decreased $137 million, or 6%, primarily due to elevated second quarter capital markets and advisory revenue. Other noninterest income of $214 million included higher private equity revenue and significant items of negative $25 million related to net Visa activity. Noninterest expense of $3.8 billion decreased $347 million, or 8%, and included $27 million of integration costs in the third quarter, compared to $261 million of both integration costs and significant items in the second quarter. Excluding these items from both quarters, noninterest expense, as adjusted, decreased 3%. Provision for credit losses was $189 million in the third quarter, stable from the second quarter. The effective tax rate was 20.0% for the third quarter and 20.5% for the second quarter.Balance Sheet HighlightsThird quarter 2026 compared with second quarter 2026 or September 30, 2026 compared with June 30, 2026Read More

PNC Reports Third Quarter 2026 Net Income of $2.1 Billion, $4.97 Diluted EPS or $5.09 as Adjusted

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