PNC third-quarter net income rises to $2.1 billion as diluted EPS reaches $4.97

The PNC Financial Services Group, Inc. (PNC) reported third-quarter net income of $2.1 billion, or $4.97 per diluted share, the company said Thursday in a regulatory filing.

Here's how the company did:

• Net income: $2,097 million vs. $1,822 million a year earlier
• Diluted EPS: $4.97 vs. $4.35 a year earlier
• Adjusted diluted EPS: $5.09 vs. $4.85 in the second quarter
• Revenue: $6,562 million vs. $5,915 million a year earlier

Revenue was $6.6 billion, down 5% from the second quarter but up 11% from a year earlier. Adjusted diluted EPS excludes integration costs tied to the FirstBank acquisition and other items the company removes from its adjusted figures.

Revenue fell $313 million from the second quarter, as fee income dropped 6% to $2.1 billion on lower capital markets and advisory revenue. Compared with a year earlier, revenue rose $647 million on higher net interest income and noninterest income.

Net interest income, the gap between interest earned and interest paid, rose 2% from the second quarter to $4.2 billion. Net interest margin was 2.94%, compared with 2.96% in the second quarter and 2.79% a year earlier.

Noninterest income fell 15% from the second quarter to $2.4 billion. The company said the decline was mainly because of a $448 million gain tied to the Visa share exchange that boosted the second quarter, along with lower capital markets and advisory revenue.

Noninterest expense was $3,751 million, down 8% from the second quarter but up 8% from a year earlier. Excluding integration costs and other items in both quarters, expense fell 3%. The efficiency ratio improved to 57% from 60%.

The results include $36 million of integration costs and negative $25 million of items related to net Visa activity. Together they reduced net income by $48 million, or 12 cents per share.

“Our strategy continues to drive growth across our businesses, as we deepen our presence in key markets and expand our reach nationally,” PNC Chairman and Chief Executive Officer William S. Demchak said. “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.”

Retail Banking earned $1,425 million, down 18% from the second quarter, when a $448 million gain tied to the Visa share exchange lifted results. Earnings rose 5% from a year earlier, driven by higher net interest income and noninterest income.

Corporate & Institutional Banking earned $1,552 million, down 2% from the second quarter as noninterest income fell 10% from elevated second-quarter capital markets and advisory revenue. Earnings rose modestly from a year earlier.

The Asset Management Group earned $128 million, down 5% from the second quarter and up 7% from a year earlier.

Average loans rose $9.0 billion, or 2%, from the second quarter to $372.2 billion, and were up 14% from a year earlier. Average commercial loans increased 4% from the prior quarter on new production and higher utilization, while consumer loans fell $1.4 billion. Average deposits were $461.2 billion, up 1% from the second quarter and 7% from a year earlier.

Net loan charge-offs were $257 million, up from $179 million a year earlier. They included $35 million tied to the transfer of a $1.4 billion student loan portfolio to held-for-sale. The provision for credit losses was $189 million, compared with $167 million a year earlier.

PNC returned $1.4 billion to shareholders in the quarter, including $0.8 billion of common dividends and $0.6 billion of share repurchases. The company said repurchases in the fourth quarter are expected to approximate third-quarter levels. About 27% of the 100 million common shares covered by the repurchase program remained available at Sept. 30.

The estimated Basel III common equity tier 1 ratio was 9.8% at Sept. 30, down from 9.9% in the second quarter and 10.7% a year earlier.

On Oct. 2, the board declared a quarterly cash dividend of $2.00 per common share, payable Nov. 5 to shareholders of record at the close of business Oct. 14. The company declared $1.70 per share in the second quarter and in the third quarter of 2025.

For the first nine months, net income was $5,924 million, compared with $4,964 million a year earlier, and diluted EPS was $13.91 vs. $11.72. PNC completed its acquisition of FirstBank Holding Company on Jan. 5, 2026, and FirstBank’s results are included in PNC’s operations from that date.