PNC third-quarter diluted earnings rise 14% to $4.97 per share, adjusted $5.09

The PNC Financial Services Group, Inc. (PNC) said Thursday it earned $4.97 per diluted share in the third quarter of 2026, up 14% from a year earlier, a regulatory filing showed.

Adjusted diluted earnings per share, a non-GAAP measure that excludes integration costs and other items, were $5.09, up 17% from a year earlier.

Net income was $2.1 billion, up 15% from a year earlier. The company furnished slides from its earnings conference call in an 8-K filing.

Here's how the company did:

• Diluted EPS: $4.97, up 14% from a year earlier
• Adjusted diluted EPS: $5.09, up 17% from a year earlier
• Total revenue: $6,562 million vs. $5,915 million a year earlier
• Net income: $2.1 billion, up 15% from a year earlier

Total revenue fell 5% from the second quarter but rose 11% from a year earlier.

Net interest income was $4,206 million, up 15% from a year earlier and 2% higher than in the second quarter. The net interest margin was 2.94%, compared with 2.79% a year earlier.

Noninterest income was $2,356 million, down 15% from the second quarter and up 4% from a year earlier. Fee income, a non-GAAP subset of noninterest income, was $2,142 million, up 4% from a year earlier.

Average loans were $372.2 billion, up 14% from a year earlier. Commercial and industrial loans and commercial real estate loans each rose 19% from a year earlier, while consumer loans rose 4%.

Average deposits were $461.2 billion, up 7% from a year earlier.

Noninterest expense was $3,751 million, down 8% from the second quarter and up 8% from a year earlier. Personnel costs were $2,031 million, up 3% from a year earlier.

Integration costs and related items totaled $27 million, compared with $261 million in the second quarter. The integration costs relate to the FirstBank acquisition.

Pretax, pre-provision earnings, a non-GAAP measure of earnings before taxes and the provision for credit losses, were $2,811 million, up 15% from a year earlier. The efficiency ratio was 57%, compared with 59% a year earlier.

The provision for credit losses was $189 million. Net charge-offs were $257 million, or 0.28% of average loans, up from 0.22% a year earlier.

The allowance for credit losses was 1.42% of total loans, down from 1.61% a year earlier.

Return on average tangible common equity, a non-GAAP measure, was 18.28%, up from 16.77% a year earlier.

The company returned $1.4 billion to shareholders in the quarter, including $0.8 billion of common dividends and $0.6 billion of share repurchases. The estimated Basel III CET1 ratio was 9.8%, compared with 10.7% a year earlier. Average diluted shares were 401 million.

For full-year 2026, the company raised its outlook for average loans to growth of about 13.5%, from about 12.5% previously. Growth in total revenue is now expected at about 13.7%, from about 13%. These figures are measured against 2025.

The company now expects noninterest income to grow about 10.5%, up from about 9%, and noninterest expense about 9.5%, up from about 8.5%. Net interest income growth is about 15.5%, compared with a previous range of 15% to 15.5%. The effective tax rate is expected at about 19.5%, unchanged.

Full-year expense guidance excludes non-recurring merger and integration costs the company expects to total about $300 million, of which $261 million was recognized through September. The guidance does not take into account potential legal and regulatory contingencies.

For the fourth quarter, the company expects average loans to rise about 2.5% from the third quarter's $372.2 billion. It expects net interest income to rise about 4.0% from $4,206 million.

The company also expects fee income to rise about 3.5% from $2,142 million, and noninterest expense, as adjusted, to rise about 5.0% from $3,724 million.

Other noninterest income is expected at about $250 million, compared with $214 million in the third quarter. Net charge-offs are expected at about $250 million. The company expects a net interest margin of 3.0% or higher in the fourth quarter.

The company held its earnings conference call on Thursday, Oct. 15.