Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q2 2025 Earnings Presentation
28 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jul 16, 2025
Slide 1: Second Quarter 2025 Earnings Conference Call
Second Quarter 2025 Earnings Conference Call July 16, 2025
Slide 2: Cautionary Statement
Cautionary Statement Regarding Forward-Looking and non-GAAP Financial Information Our earnings conference call presentation is not intended as a full business or financial review and should be viewed in the context of all of the information made available by PNC in its SEC filings and on our corpora
Slide 3: Strong 2Q25 Results
Strong 2Q25 Results Net Income of $1.6 billion, or $3.85 Diluted Earnings per Share Strongest loan growth since 4Q22 2Q25 Financial Highlights +2% Revenue growth of 4% Average Loan Growth Stable noninterest expense; Positive operating leverage +10% PPNR (non-GAAP) Growth Solid credit quality
Slide 4: Diversified Businesses Driving Growth
Diversified Businesses Driving Growth Second Quarter 2025 Business Highlights Corporate & Institutional Banking PNC Strategic Priorities Average loans increased 3% LQ, driven by growth in Corporate Banking and Business Credit Increased loan commitments 3% YoY, with strong growth in expansion mar
Slide 5: Increased Loans and Deposits
Increased Loans and Deposits Balance Sheet Summary Linked Quarter Year over Year Average balances, $ billions 2Q25 $ % $ % Total loans $322.8 $6.1 2% $2.8 1% Investment securities $141.9 $(0.2) – $0.6 – Federal Reserve Bank balances $30.8 $(3.4) (10)% $(9.9) (24)% Total deposits $423.0 $2.3 1% $5.7
Slide 6: Strong Growth in C&I Drove Higher Loan Balances
Strong Growth in C&I Drove Higher Loan Balances Consolidated Average Loan Balances Average Loan Roll-Forward Total loans increased 2% LQ, reflecting strongest LQ growth since 4Q22 4% C&I growth partially offset by 4% decline in CRE $7.5 $322.8 $320 $317 $323 $(1.2) $(0.1) $316.6 $223 Commercial Loan
Slide 7: Asset Repricing Driving Higher Yield on Securities and Receive Fixed Swaps
Asset Repricing Driving Higher Yield on Securities and Receive Fixed Swaps Investment Securities Receive Fixed Swaps Estimated duration of 3.4 years as of 6/30/25 Leveraging forward starting swaps to lock in higher yields and reduce repricing risk $141 $142 $142 $59 $56 $52 $20 $16 $18 Average balan
Slide 8: Stable Deposit Base
Stable Deposit Base Consolidated Average Deposit Balances Average Consumer Deposit Mix Cumulative deposit beta1 of 47% as of June 2025 $208 $210 $210 $187 $188 $189 $417 $421 $423 $ billions $9 $5 $7 $312 $324 $323 $21 $21 $21 2Q24 1Q25 2Q25 NIB IB 2.61% $ billions 2.23% 2.24% Average Commercial Dep
Slide 9: Strong Revenue Growth and Well-Controlled Expenses
Strong Revenue Growth and Well-Controlled Expenses Income Statement Summary Quarter Year to Date $ millions except EPS 2Q25 LQ YoY YTD 2025 vs. YTD 2024 Net interest income $3,555 2% 8% $7,031 7% Fee income (non-GAAP) 1,894 3% 7% 3,733 6% Other noninterest income 212 55% (36)% 349 (25)% Noninterest
Slide 10: Revenue Increased; Driven by Higher NII and Fees
Revenue Increased; Driven by Higher NII and Fees Total Revenue Detail of Revenue Net Interest Income Noninterest Income Net Interest Margin Quarter Year to Date $5,661 $ millions 2Q25 LQ YoY YTD 2025 vs. YTD 2024 $5,411 $5,452 $2,106 $2,109 $1,976 Net interest income $3,555 2% 8% $7,031 7% Asset man
Slide 11: Expenses Remain Well-Controlled
Expenses Remain Well-Controlled Noninterest Expense Detail of Noninterest Expense Noninterest Expense Efficiency Ratio1 Quarter Year to Date $3,357 $3,387 $3,383 $ millions 2Q25 LQ YoY YTD 2025 vs. YTD 2024 Personnel $1,889 – 6% $3,779 6% 62.1% Occupancy 235 (4)% – 480 – 62.0% $ millions 59.8% Equip
Slide 12: Strong Credit Quality; NPLs, Delinquencies and NCOs Declined
Strong Credit Quality; NPLs, Delinquencies and NCOs Declined Nonperforming Loans (NPLs) Credit Quality Metrics 2Q24 1Q25 2Q25 Commercial Consumer NPLs / Total Loans (Period end) 0.78% 0.72% 0.65% Delinquencies / Total Loans1 (Period end) 0.40% 0.45% 0.40% $2,503 NCOs / Average Loans2 0.33% 0.26% 0.2
Slide 13: Full Year 2025 vs. Full Year 2024
Full Year 2025 vs. Full Year 2024 $ millions; except loans, $ billions 2024 Previous 2025 Guidance1, 2 Current 2025 Guidance1, 2 Average loans $319.8 Stable Up ~1% Net interest income $13,499 Up 6% – 7% Up ~7% Noninterest income $8,056 Up ~5% Up 4% – 5% Total revenue $21,555 Up ~6% Up ~6% Noninteres
Slide 14: Third Quarter 2025 vs. Second Quarter 2025
Third Quarter 2025 vs. Second Quarter 2025 $ millions; except loans, $ billions 2Q25 3Q25 Guidance1, 2 Average loans $322.8 Up ~1% Net interest income $3,555 Up ~3% Fee income (non-GAAP) $1,894 Up 3% – 4% Other noninterest income $212 $150 – $200 Total revenue $5,661 Up 2% – 3% Noninterest expense $
Slide 15: Appendix: Cautionary Statement
Appendix: Cautionary Statement Regarding Forward-Looking Information We make statements in this presentation, and we may from time to time make other statements, regarding our outlook for financial performance, such as earnings, revenues, expenses, tax rates, capital and liquidity levels and ratios,
Slide 16: Appendix: Cautionary Statement
Appendix: Cautionary Statement Regarding Forward-Looking Information Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting. These statements are based on our views that: −
Slide 17: Appendix: Cautionary Statement
Appendix: Cautionary Statement Regarding Forward-Looking Information − Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies. − Costs associated with obtaining rights in intellectual property claimed by o
Slide 18: Appendix: Securities and Swap Runoff and AOCI Accretion
Appendix: Securities and Swap Runoff and AOCI Accretion Cumulated Projected Runoff1 Securities and Swap AOCI Accretion1 21% of securities and swap portfolio projected to runoff through 2026 29% of securities and swap AOCI projected to accrete back through 2026 $- Historical Projected (3)% $(10) (7)%
Slide 19: Appendix: Office Commercial Real Estate (CRE) Portfolio
Appendix: Office Commercial Real Estate (CRE) Portfolio Office CRE Loan Balances Multi-Tenant Office CRE Portfolio Multi-Tenant loans represent 55% of total office portfolio 1 2 Non-Criticized Criticized, Accrual Criticized, NPL Reserves / Loans Criticized Ratio3: 53.8% All $5.8 Multi- $7.5 Other bi
Slide 20: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Consolidated CET1 Ratio, including AOCI & Other Fully Phased-In Expanded Risk-Based Approach (ERBA) Impacts, Basel III Endgame Impacts (non-GAAP) Common Equity Risk-Weighted June 30, 2025 (estimated): $ billions Tier 1 Capital June 30, 2025 (estimated): $ bi
Slide 21: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Pretax, Pre-Provision Earnings (non-GAAP) For the three months ended For the six months ended $ millions Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Jun. 30, 2025 Jun. 30, 2024 Total revenue $5,661 $5,452 $5,411 $11,113 $10,556 Total noninterest expense 3,383
Slide 22: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Fee Income (non-GAAP) For the three months ended For the six months ended $ millions Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Jun. 30, 2025 Jun. 30, 2024 Noninterest income Asset management and brokerage $391 $391 $364 $782 $728 Capital markets and advisory
Slide 23: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Taxable-Equivalent Net Interest Income (non-GAAP) For the three months ended For the six months ended $ millions Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Jun. 30, 2025 Jun. 30, 2024 Net interest income $3,555 $3,476 $3,302 $7,031 $6,566 Taxable-equivalent a
Slide 24: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share (non-GAAP) For the three months ended $ millions, except per share data Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Book value per common share $131.61 $127.98 $116.70 Tangible book value per common share Common shareholder
Slide 25: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Tangible Common Equity Ratio (non-GAAP) For the three months ended $ millions Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Tangible common shareholders’ equity Common shareholders’ equity $51,854 $50,654 $46,397 Goodwill and other intangible assets (11,137) (11
Slide 26: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Return On Average Tangible Common Equity (non-GAAP) For the three months ended $ millions Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Return on average common shareholders’ equity 12.20% 11.60% 12.16% Average common shareholders’ equity $50,676 $49,217 $44,916
Slide 27: Appendix: Preferred Dividends
Appendix: Preferred Dividends Preferred Dividends For the three months ended For the year ended $ millions Mar. 31, 2025 Jun. 30, 2025 Sep. 30, 2025 Dec. 31, 2025 Dec. 31, 2025 Preferred dividends $71 $84 $71 $84 $309 The above represents our current estimate for preferred dividends in 2025 for curr
Slide 28: Earnings Presentation Footnotes
Earnings Presentation Footnotes Slide 2 – Solid 2Q25 Results 1. Basel III common equity Tier (CET) 1 capital ratio – 6/30/25 ratio as used in this presentation is estimated. Details of the calculation are in the financial highlights section of the earnings release. Slide 3 – Diversified Businesses D
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