PNC Reports Third Quarter 2025 Net Income of $1.8 Billion, $4.35 Diluted EPS

Record revenue; 8% noninterest income growth; strong credit quality

Announced agreement to acquire FirstBank on Sept. 8, 2025

PITTSBURGH, Oct. 15, 2025 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported:

For the quarter

In millions, except per share data and as noted

3Q25

2Q25

3Q24

Third Quarter Highlights

Financial Results

Comparisons reflect 3Q25 vs. 2Q25

Net interest income (NII)

$ 3,648

$ 3,555

$ 3,410

Income Statement

▪ PPNR increased 8%; generated 2%

positive operating leverage

▪ Revenue increased 4%

– NII increased 3%; NIM of 2.79%

declined 1 bp driven by 5% avg.

commercial deposit growth

– Fee income increased 9%

– Other noninterest income of $198

million

▪ Noninterest expense increased 2%

– Efficiency ratio improved to 59%

Balance Sheet

▪ Average loans increased $3.2 billion,

or 1%, driven by 2% growth in

commercial and industrial loans

▪ Average deposits grew $8.9 billion, or

2%, driven by commercial deposit growth

▪ Net loan charge-offs were $179 million,

or 0.22% annualized to average loans

▪ AOCI improved $0.6 billion to negative

$4.1 billion

▪ TBV per share increased 4% to $107.84

▪ Maintained strong capital position

– CET1 capital ratio increased to 10.6%

– Returned $1 billion of capital through

common dividends and share

repurchases

▪ On September 8, 2025, PNC announced

an agreement to acquire FirstBank for

implied consideration of $4.1 billion, with

an expected close in early 2026

Fee income (non-GAAP)

2,069

1,894

1,953

Other noninterest income

198

212

Noninterest income

2,267

2,106

2,022

Revenue

5,915

5,661

5,432

Noninterest expense

3,461

3,383

3,327

Pretax, pre-provision earnings (PPNR) (non-GAAP)

2,454

2,278

2,105

Provision for credit losses

167

254

243

Net income

1,822

1,643

1,505

Per Common Share

Diluted earnings per share (EPS)

$ 4.35

$ 3.85

$ 3.49

Average diluted common shares outstanding

396

397

400

Book value

135.67

131.61

124.56

Tangible book value (TBV) (non-GAAP)

107.84

103.96

96.98

Balance Sheet & Credit Quality

Average loans In billions

$ 325.9

$ 322.8

$ 319.6

Average securities In billions

144.4

141.9

142.3

Average deposits In billions

431.8

423.0

422.1

Accumulated other comprehensive income (loss) (AOCI)

In billions

(4.1)

(4.7)

(5.1)

Net loan charge-offs

179

198

286

Allowance for credit losses to total loans

1.61 %

1.62 %

1.65 %

Selected Ratios

Return on average common shareholders' equity

13.24 %

12.20 %

11.72 %

Return on average assets

1.27

1.17

1.05

Net interest margin (NIM) (non-GAAP)

2.79

2.80

2.64

Noninterest income to total revenue

Efficiency

Effective tax rate

20.3

18.8

19.2

Common equity Tier 1 (CET1) capital ratio

10.6

10.5

10.3

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:

"We delivered another great quarter with better than expected financial results and steady client growth across all our business lines. Fee income grew 9% and expenses were well-controlled which contributed to another quarter of positive operating leverage. Credit performed well and we continued to build on our strong capital levels. The planned acquisition of FirstBank positions us for accelerated expansion in Colorado and Arizona as we continue to strategically grow our national franchise."

Pending Acquisition of FirstBank

Income Statement Highlights

Third quarter 2025 compared with second quarter 2025

Balance Sheet Highlights

Third quarter 2025 compared with second quarter 2025 or September 30, 2025 compared with June 30, 2025

Earnings Summary

In millions, except per share data

3Q25

2Q25

3Q24

Net income

$ 1,822

$ 1,643

$ 1,505

Net income attributable to diluted common shareholders

$ 1,723

$ 1,532

$ 1,396

Diluted earnings per common share

$ 4.35

$ 3.85

$ 3.49

Average diluted common shares outstanding

396

397

400

Cash dividends declared per common share

$ 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

3Q25 vs

In millions

3Q25

2Q25

3Q24

2Q25

3Q24

Net interest income

$ 3,648

$ 3,555

$ 3,410

3 %

7 %

Noninterest income

2,267

2,106

2,022

8 %

12 %

Total revenue

$ 5,915

$ 5,661

$ 5,432

4 %

9 %

Total revenue for the third quarter of 2025 increased $254 million compared to the second quarter of 2025 and $483 million compared to the third quarter of 2024. In each comparison the increase was driven by growth in both noninterest income and net interest income.

Net interest income of $3.6 billion increased $93 million from the second quarter of 2025, driven by the continued benefit of fixed rate asset repricing, loan growth and one additional day in the quarter. Compared to the third quarter of 2024, net interest income increased $238 million due to lower funding costs, the benefit of fixed rate asset repricing and loan growth.

Net interest margin was 2.79% in the third quarter of 2025, decreasing 1 basis point from the second quarter of 2025 driven by average commercial deposit growth of 5%. Compared to the third quarter of 2024, net interest margin increased 15 basis points reflecting the benefit of fixed rate asset repricing.

Noninterest Income

Change

3Q25 vs

In millions

3Q25

2Q25

3Q24

2Q25

3Q24

Asset management and brokerage

$ 404

$ 391

$ 383

3 %

5 %

Capital markets and advisory

432

321

371

35 %

16 %

Card and cash management

737

698

—

6 %

Lending and deposit services

335

317

320

6 %

5 %

Residential and commercial mortgage

161

128

181

26 %

(11) %

Fee income (non-GAAP)

2,069

1,894

1,953

9 %

6 %

Other

198

212

(7) %

187 %

Total noninterest income

$ 2,267

$ 2,106

$ 2,022

8 %

12 %

Noninterest income for the third quarter of 2025 increased $161 million, or 8%, compared with the second quarter of 2025 driven by strong fee income growth. Asset management and brokerage fees increased $13 million driven by higher average equity markets. Capital markets and advisory revenue increased $111 million primarily due to an increase in merger and acquisition advisory activity, higher underwriting fees, and increased loan syndication revenue. Lending and deposit services increased $18 million primarily due to increased customer activity. Residential and commercial mortgage revenue increased $33 million driven by higher mortgage servicing rights valuation, net of economic hedge, and increased residential mortgage production revenue. Other noninterest income decreased $14 million reflecting negative Visa derivative adjustments, partially offset by higher private equity revenue. Visa derivative adjustments were negative $35 million in the third quarter of 2025 and positive $2 million in the second quarter of 2025.

Noninterest income for the third quarter of 2025 increased $245 million, or 12%, from the third quarter of 2024, driven by higher other noninterest income and broad-based fee income growth. Other noninterest income in the third quarter of 2025 included negative $35 million of Visa derivative adjustments compared to negative $128 million in the third quarter of 2024.

CONSOLIDATED EXPENSE REVIEW

Noninterest Expense

Change

3Q25 vs

In millions

3Q25

2Q25

3Q24

2Q25

3Q24

Personnel

$ 1,970

$ 1,889

$ 1,869

4 %

5 %

Occupancy

235

234

—

Equipment

416

394

357

6 %

17 %

Marketing

(6) %

—

Other

747

766

774

(2) %

(3) %

Total noninterest expense

$ 3,461

$ 3,383

$ 3,327

2 %

4 %

Noninterest expense for the third quarter of 2025 increased $78 million compared to the second quarter of 2025 and $134 million compared with the third quarter of 2024. In both comparisons, the increase was driven by increased business activity and continued investments in technology and branches.

The effective tax rate was 20.3% for the third quarter of 2025, 18.8% for the second quarter of 2025 and 19.2% for the third quarter of 2024.

CONSOLIDATED BALANCE SHEET REVIEW

Loans

Change

3Q25 vs

In billions

3Q25

2Q25

3Q24

2Q25

3Q24

Average

Commercial and industrial

$ 189.0

$ 184.7

$ 177.0

2 %

7 %

Commercial real estate

30.9

31.8

35.5

(3) %

(13) %

Equipment lease financing

6.9

6.8

6.5

1 %

6 %

Commercial

$ 226.8

$ 223.4

$ 219.0

2 %

4 %

Consumer

99.2

99.4

100.6

—

(1) %

Average loans

$ 325.9

$ 322.8

$ 319.6

1 %

2 %

Quarter end

Commercial and industrial

$ 190.2

$ 188.8

$ 178.9

1 %

6 %

Commercial real estate

30.3

31.3

35.1

(3) %

(14) %

Equipment lease financing

6.9

6.7

—

3 %

Commercial

$ 227.4

$ 227.0

$ 220.7

—

3 %

Consumer

99.2

99.3

100.7

—

(1) %

Total loans

$ 326.6

$ 326.3

$ 321.4

—

2 %

Totals may not sum due to rounding

Average loans increased $3.2 billion compared to the second quarter of 2025. Average commercial loans increased $3.4 billion, driven by growth in the commercial and industrial portfolio of $4.3 billion partially offset by a decline in commercial real estate loans of $1.0 billion. Average consumer loans were stable as growth, primarily in the auto and credit card loan portfolio, was offset by lower residential mortgage loans.

In comparison to the third quarter of 2024, average loans increased $6.3 billion. Average commercial loans increased $7.8 billion primarily due to strong growth in commercial and industrial loans, partially offset by lower commercial real estate loans. Average consumer loans decreased $1.4 billion primarily due to lower residential mortgage loans, partially offset by growth in the auto loan portfolio.

Loans at September 30, 2025 increased $0.3 billion and $5.2 billion from June 30, 2025 and September 30, 2024, respectively. In both comparisons, the increase was due to growth in commercial and industrial loans, partially offset by lower commercial real estate loans.

Average Investment Securities

Change

3Q25 vs

In billions

3Q25

2Q25

3Q24

2Q25

3Q24

Available for sale

$ 69.8

$ 67.8

$ 56.2

3 %

24 %

Held to maturity

74.6

74.2

86.1

1 %

(13) %

Total

$ 144.4

$ 141.9

$ 142.3

2 %

1 %

Totals may not sum due to rounding

Average investment securities of $144.4 billion in the third quarter of 2025 increased $2.5 billion compared to the second quarter of 2025 and $2.1 billion compared to the third quarter of 2024. In both comparisons, the increase reflected net purchase activity, primarily of agency residential mortgage-backed securities.

The duration of the investment securities portfolio was 3.4 years as of September 30, 2025 and June 30, 2025 and 3.3 years as of September 30, 2024. Net unrealized losses on available-for-sale securities were $2.1 billion at September 30, 2025, $2.6 billion at June 30, 2025 and $2.3 billion at September 30, 2024.

Average Federal Reserve Bank balances for the third quarter of 2025 were $34.2 billion, increasing $3.4 billion from the second quarter of 2025 and decreasing $10.7 billion from the third quarter of 2024. In comparison to the second quarter of 2025, the increase was driven by deposit growth. Compared to the third quarter of 2024, the decline reflected lower borrowed funds outstanding.

Average Deposits

Change

3Q25 vs

In billions

3Q25

2Q25

3Q24

2Q25

3Q24

Commercial

$ 215.1

$ 205.8

$ 206.1

5 %

4 %

Consumer

209.4

210.5

205.3

(1) %

2 %

Brokered time deposits

7.3

6.7

10.7

9 %

(32) %

Total

$ 431.8

$ 423.0

$ 422.1

2 %

IB % of total avg. deposits

79 %

78 %

77 %

NIB % of total avg. deposits

21 %

22 %

23 %

IB - Interest-bearing

NIB - Noninterest-bearing

Totals may not sum due to rounding

Third quarter 2025 average deposits of $431.8 billion increased $8.9 billion compared to the second quarter of 2025 driven by commercial deposit growth. Compared to the third quarter of 2024, average deposits increased $9.7 billion reflecting growth in both commercial and consumer deposits, partially offset by lower brokered time deposits.

Average Borrowed Funds

Change

3Q25 vs

In billions

3Q25

2Q25

3Q24

2Q25

3Q24

Total

$ 66.3

$ 65.3

$ 76.1

2 %

(13) %

Avg. borrowed funds to avg. liabilities

13 %

15 %

Average borrowed funds of $66.3 billion in the third quarter of 2025 increased $1.0 billion compared to the second quarter of 2025 and decreased $9.8 billion compared to the third quarter of 2024. In comparison to the third quarter of 2024, the decrease was primarily driven by lower Federal Home Loan Bank advances, partially offset by higher senior debt outstanding.

Capital

September 30, 2025

June 30, 2025

September 30, 2024

Common shareholders' equity In billions

$ 53.2

$ 51.9

$ 49.4

Accumulated other comprehensive income (loss)

In billions

$ (4.1)

$ (4.7)

$ (5.1)

Basel III common equity Tier 1 capital ratio *

10.6 %

10.5 %

10.3 %

*September 30, 2025 ratio is estimated. September 30, 2024 ratio reflects PNC's election to adopt the optional five-year CECL transition provision.

PNC maintained a strong capital position. Common shareholders' equity at September 30, 2025 increased $1.3 billion from June 30, 2025 due to net income and an improvement in accumulated other comprehensive income, partially offset by dividends paid and share repurchases.

As a Category III institution, PNC has elected to exclude accumulated other comprehensive income related to both available-for-sale securities and pension and other post-retirement plans from CET1 capital. Accumulated other comprehensive income of negative $4.1 billion at September 30, 2025 improved from negative $4.7 billion at June 30, 2025 and negative $5.1 billion at September 30, 2024. In both comparisons, the change reflected the favorable impact of interest rate movements on securities and swaps and the continued accretion of unrealized losses.

In the third quarter of 2025, PNC returned $1.0 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.3 billion of common share repurchases. Consistent with the Stress Capital Buffer (SCB) framework, which allows for capital return in amounts in excess of the SCB minimum levels, our board of directors has authorized a repurchase framework under the previously approved repurchase program of up to 100 million common shares, of which approximately 37% were still available for repurchase at September 30, 2025.

Share repurchase activity in the fourth quarter of 2025 is expected to be generally consistent with our third quarter of 2025 share repurchase levels and approximate $300 million to $400 million. PNC may adjust share repurchase activity depending on market and economic conditions, as well as other factors.

PNC's SCB for the four-quarter period beginning October 1, 2025 is the regulatory minimum of 2.5%. On October 2, 2025, the PNC board of directors declared a quarterly cash dividend on common stock of $1.70 per share to be paid on November 5, 2025 to shareholders of record at the close of business October 14, 2025.

At September 30, 2025, PNC was considered "well capitalized" based on applicable U.S. regulatory capital ratio requirements. For additional information regarding PNC's Basel III capital ratios, see Capital Ratios in the Consolidated Financial Highlights.

CREDIT QUALITY REVIEW

Credit Quality

Change

September 30,

2025

June 30,

2025

September 30,

2024

09/30/25 vs

In millions

06/30/25

09/30/24

Provision for credit losses (a)

$ 167

$ 254

$ 243

$ (87)

$ (76)

Net loan charge-offs (a)

$ 179

$ 198

$ 286

(10) %

(37) %

Allowance for credit losses (b)

$ 5,253

$ 5,282

$ 5,314

(1) %

Total delinquencies (c)

$ 1,233

$ 1,303

$ 1,275

(5) %

(3) %

Nonperforming loans

$ 2,137

$ 2,108

$ 2,578

1 %

(17) %

Net charge-offs to average loans

(annualized)

0.22 %

0.25 %

0.36 %

Allowance for credit losses to total loans

1.61 %

1.62 %

1.65 %

Nonperforming loans to total loans

0.65 %

0.80 %

(a) Represents amounts for the three months ended for each respective period

(b) Excludes allowances for investment securities and other financial assets

Provision for credit losses was $167 million in the third quarter of 2025, $254 million in the second quarter of 2025 and $243 million in the third quarter of 2024.

Net loan charge-offs were $179 million in the third quarter of 2025, decreasing $19 million compared to the second quarter of 2025 and $107 million compared to the third quarter of 2024. In both comparisons, the decline reflected lower commercial real estate net loan charge-offs.

The allowance for credit losses was $5.3 billion at September 30, 2025, June 30, 2025 and September 30, 2024. The allowance for credit losses as a percentage of total loans was 1.61% at September 30, 2025, 1.62% at June 30, 2025 and 1.65% at September 30, 2024.

Delinquencies at September 30, 2025 were $1.2 billion, decreasing $70 million from June 30, 2025, due to lower commercial and consumer loan delinquencies. Compared to September 30, 2024, delinquencies decreased $42 million reflecting lower consumer loan delinquencies.

Nonperforming loans were $2.1 billion at September 30, 2025 and June 30, 2025, and $2.6 billion at September 30, 2024. Compared to September 30, 2024, the improvement was primarily driven by lower commercial real estate nonperforming loans.

BUSINESS SEGMENT RESULTS

Business Segment Income (Loss)

In millions

3Q25

2Q25

3Q24

Retail Banking

$ 1,324

$ 1,359

$ 1,172

Corporate & Institutional Banking

1,459

1,229

1,197

Asset Management Group

117

129

Other

(1,092)

(1,090)

(975)

Net income excluding noncontrolling interests

$ 1,808

$ 1,627

$ 1,490

Retail Banking

Change

3Q25 vs

In millions

3Q25

2Q25

3Q24

2Q25

3Q24

Net interest income

$ 3,016

$ 2,974

$ 2,793

$ 42

$ 223

Noninterest income

$ 790

$ 782

$ 701

$ 8

$ 89

Noninterest expense

$ 1,941

$ 1,890

$ 1,842

$ 51

$ 99

Provision for credit losses

$ 126

$ 83

$ 111

$ 43

$ 15

Earnings

$ 1,324

$ 1,359

$ 1,172

$ (35)

$ 152

In billions

Average loans

$ 96.9

$ 97.5

$ 98.6

$ (0.6)

$ (1.7)

Average deposits

$ 243.3

$ 243.5

$ 239.0

$ (0.2)

$ 4.3

Net loan charge-offs In millions

$ 126

$ 120

$ 141

$ 6

$ (15)

During the second quarter of 2025, certain operations were transferred into and out of the Retail Banking segment to better align products, services and operations with the appropriate business segment. Prior period results have been adjusted to conform with the current presentation. See a description of each change in the footnotes to table 16 in the Financial Supplement.

Retail Banking Highlights

Third quarter 2025 compared with second quarter 2025

Third quarter 2025 compared with third quarter 2024

Corporate & Institutional Banking

Change

3Q25 vs

In millions

3Q25

2Q25

3Q24

2Q25

3Q24

Net interest income

$ 1,777

$ 1,698

$ 1,615

$ 79

$ 162

Noninterest income

$ 1,132

$ 1,022

$ 1,030

$ 110

$ 102

Noninterest expense

$ 976

$ 950

$ 26

Provision for credit losses

$ 44

$ 184

$ 134

$ (140)

$ (90)

Earnings

$ 1,459

$ 1,229

$ 1,197

$ 230

$ 262

In billions

Average loans

$ 212.5

$ 208.6

$ 204.0

$ 3.9

$ 8.5

Average deposits

$ 155.2

$ 146.5

$ 146.0

$ 8.7

$ 9.2

Net loan charge-offs In millions

$ 53

$ 83

$ 147

$ (30)

$ (94)

Corporate & Institutional Banking Highlights

Third quarter 2025 compared with second quarter 2025

Third quarter 2025 compared with third quarter 2024

Asset Management Group

Change

3Q25 vs

In millions

3Q25

2Q25

3Q24

2Q25

3Q24

Net interest income

$ 176

$ 179

$ 151

$ (3)

$ 25

Noninterest income

$ 254

$ 244

$ 242

$ 10

$ 12

Noninterest expense

$ 273

$ 268

$ 270

$ 5

$ 3

Provision for (recapture of) credit losses

$ 4

$ (13)

$ (2)

$ 17

$ 6

Earnings

$ 117

$ 129

$ 96

$ (12)

$ 21

In billions

Discretionary client assets under management

$ 228

$ 217

$ 214

$ 11

$ 14

Nondiscretionary client assets under administration

$ 212

$ 204

$ 216

$ 8

$ (4)

Client assets under administration at quarter end

$ 440

$ 421

$ 430

$ 19

$ 10

In billions

Average loans

$ 14.2

—

Average deposits

$ 26.9

$ 26.8

—

$ 0.1

Net loan charge-offs (recoveries) In millions

$ 2

$ (1)

—

$ 3

$ 2

During the second quarter of 2025, certain loans and deposits, and the associated income statement impact, were transferred from the Asset Management Group to Retail Banking to better align products and services with the appropriate business segment. Prior periods have been adjusted to conform with the current presentation.

Asset Management Group Highlights

Third quarter 2025 compared with second quarter 2025

Third quarter 2025 compared with third quarter 2024

Other

The "Other" category, for the purposes of this release, includes residual activities that do not meet the criteria for disclosure as a separate reportable business, such as asset and liability management activities, including net securities gains or losses, ACL for investment securities, certain trading activities, certain runoff consumer loan portfolios, private equity investments, intercompany eliminations, corporate overhead net of allocations, tax adjustments that are not allocated to business segments, exited businesses and the residual impact from funds transfer pricing operations.

CONFERENCE CALL AND SUPPLEMENTAL FINANCIAL INFORMATION

PNC Chairman and Chief Executive Officer William S. Demchak and Executive Vice President and Chief Financial Officer Robert Q. Reilly will hold a conference call for investors today at 11:00 a.m. Eastern Time regarding the topics addressed in this news release and the related earnings materials. Dial-in numbers for the conference call are (866) 604-1697 and (215) 268-9875 (international) and Internet access to the live audio listen-only webcast of the call is available at www.pnc.com/investorevents. PNC's third quarter 2025 earnings materials to accompany the conference call remarks will be available at www.pnc.com/investorevents prior to the beginning of the call. A telephone replay of the call will be available for 30 days at (877) 660-6853 and (201) 612-7415 (international), Access ID 13753961 and a replay of the audio webcast will be available on PNC's website for 30 days.

The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.

CONTACTS

MEDIA:

Kristen Pillitteri

(412) 762-4550

media.relations@pnc.com

INVESTORS:

Bryan Gill

(412) 768-4143

investor.relations@pnc.com

[TABULAR MATERIAL FOLLOWS]

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

FINANCIAL RESULTS

Three months ended

Nine months ended

Dollars in millions, except per share data

September 30

June 30

September 30

2025

2024

2025

2024

Revenue

Net interest income

$ 3,648

$ 3,555

$ 3,410

$ 10,679

$ 9,976

Noninterest income

2,267

2,106

2,022

6,349

6,012

Total revenue

5,915

5,661

5,432

17,028

15,988

Provision for credit losses

167

254

243

640

633

Noninterest expense

3,461

3,383

3,327

10,231

10,018

Income before income taxes and noncontrolling interests

$ 2,287

$ 2,024

$ 1,862

$ 6,157

$ 5,337

Income taxes

465

381

357

1,193

1,011

Net income

$ 1,822

$ 1,643

$ 1,505

$ 4,964

$ 4,326

Less:

Net income attributable to noncontrolling interests

Preferred stock dividends (a)

225

258

Preferred stock discount accretion and redemptions

Net income attributable to common shareholders

$ 1,735

$ 1,542

$ 1,406

$ 4,685

$ 4,015

Less: Dividends and undistributed earnings allocated to nonvested restricted shares

Net income attributable to diluted common shareholders

$ 1,723

$ 1,532

$ 1,396

$ 4,654

$ 3,991

Per Common Share

Basic

$ 4.36

$ 3.86

$ 3.50

$ 11.73

$ 9.99

Diluted

$ 4.35

$ 3.85

$ 3.49

$ 11.72

$ 9.98

Cash dividends declared per common share

$ 1.70

$ 1.60

$ 4.90

$ 4.70

Effective tax rate (b)

20.3 %

18.8 %

19.2 %

19.4 %

18.9 %

PERFORMANCE RATIOS

Net interest margin (c)

2.79 %

2.80 %

2.64 %

2.79 %

2.60 %

Noninterest income to total revenue

38 %

37 %

38 %

Efficiency (d)

59 %

60 %

61 %

60 %

63 %

Return on:

Average common shareholders' equity

13.24 %

12.20 %

11.72 %

12.39 %

11.76 %

Average assets

1.27 %

1.17 %

1.05 %

1.18 %

1.02 %

(a)

Dividends are payable quarterly, other than Series S preferred stock, which is payable semiannually.

(b)

The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.

(c)

Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024 were $30 million, $28 million and $33 million, respectively. The taxable-equivalent adjustments to net interest income for the nine months ended September 30, 2025 and September 30, 2024 were $86 million and $101 million, respectively.

(d)

Calculated as noninterest expense divided by total revenue.

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

September 30

June 30

September 30

2025

2024

BALANCE SHEET DATA

Dollars in millions, except per share data and as noted

Assets

$ 568,767

$ 559,107

$ 564,881

Loans (a)

$ 326,616

$ 326,340

$ 321,381

Allowance for loan and lease losses

$ 4,478

$ 4,523

$ 4,589

Interest-earning deposits with banks

$ 33,318

$ 24,455

$ 35,024

Investment securities

$ 141,523

$ 142,348

$ 144,183

Total deposits (a)

$ 432,749

$ 426,696

$ 423,966

Borrowed funds (a)

$ 62,344

$ 60,424

$ 68,069

Allowance for unfunded lending related commitments

$ 775

$ 759

$ 725

Total shareholders' equity

$ 58,990

$ 57,607

$ 55,689

Common shareholders' equity

$ 53,235

$ 51,854

$ 49,442

Accumulated other comprehensive income (loss)

$ (4,077)

$ (4,682)

$ (5,090)

Book value per common share

$ 135.67

$ 131.61

$ 124.56

Tangible book value per common share (non-GAAP) (b)

$ 107.84

$ 103.96

$ 96.98

Period end common shares outstanding (In millions)

392

394

397

Loans to deposits

75 %

76 %

Common shareholders' equity to total assets

9.4 %

9.3 %

8.8 %

CLIENT ASSETS (In billions)

Discretionary client assets under management

$ 228

$ 217

$ 214

Nondiscretionary client assets under administration

212

204

216

Total client assets under administration

440

421

430

Brokerage account client assets

Total client assets

$ 532

$ 510

$ 516

CAPITAL RATIOS

Basel III (c) (d)

Common equity Tier 1

10.6 %

10.5 %

10.3 %

Tier 1 risk-based

12.0 %

11.8 %

Total capital risk-based

13.6 %

Leverage

9.2 %

9.3 %

8.9 %

Supplementary leverage

7.5 %

7.6 %

7.4 %

ASSET QUALITY

Nonperforming loans to total loans

0.65 %

0.80 %

Nonperforming assets to total loans, OREO, foreclosed and other assets (e)

0.70 %

0.66 %

0.81 %

Nonperforming assets to total assets

0.40 %

0.38 %

0.46 %

Net charge-offs to average loans (for the three months ended) (annualized)

0.22 %

0.25 %

0.36 %

Allowance for loan and lease losses to total loans

1.37 %

1.39 %

1.43 %

Allowance for credit losses to total loans (f)

1.61 %

1.62 %

1.65 %

Allowance for loan and lease losses to nonperforming loans

210 %

215 %

178 %

Total delinquencies (In millions) (g)

$ 1,233

$ 1,303

$ 1,275

(a)

Amounts include assets and liabilities for which we have elected the fair value option. Our second quarter 2025 Form 10-Q included, and our third quarter 2025 Form 10-Q will include, additional information regarding these Consolidated Balance Sheet line items.

(b)

See the Tangible Book Value per Common Share table on page 17 for additional information.

(c)

All ratios are calculated using the regulatory capital methodology applicable to PNC during each period presented and calculated based on the standardized approach. See Capital Ratios on page 16 for additional information. The ratios as of September 30, 2025 are estimated.

(d)

The September 30, 2024 ratios are calculated to reflect PNC's election to adopt the CECL optional five-year transition provisions. The impact of the provisions was phased-in to regulatory capital through December 31, 2024.

(e)

Amounts at September 30, 2025 include $127 million of nonaccrual servicing advances to single asset/single borrower trusts with commercial real estate as collateral.

(f)

Excludes allowances for investment securities and other financial assets.

(g)

Total delinquencies represent accruing loans 30 days or more past due.

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

CAPITAL RATIOS

PNC's regulatory risk-based capital ratios in 2025 are calculated using the standardized approach for determining risk-weighted assets. Under the standardized approach for determining credit risk-weighted assets, exposures are generally assigned a pre-defined risk weight. Exposures to high volatility commercial real estate, past due exposures and equity exposures are generally subject to higher risk weights than other types of exposures.

PNC elected a five-year transition provision effective March 31, 2020 to delay until December 31, 2021 the full impact of the CECL standard on regulatory capital, followed by a three-year transition period. Effective for the first quarter of 2022, PNC entered a three-year transition period, and the full impact of the CECL standard was phased-in to regulatory capital through December 31, 2024. Beginning in the first quarter of 2025, CECL is fully reflected in regulatory capital. See the table below for the June 30, 2025, September 30, 2024 and estimated September 30, 2025 ratios.

Our Basel III capital ratios may be impacted by changes to the regulatory capital rules and additional regulatory guidance or analysis.

Basel lll Common Equity Tier 1 Capital Ratios (a)

Basel III

September 30

2025

(estimated)

June 30

2025

September 30

2024

Dollars in millions

Common stock, related surplus and retained earnings, net of treasury stock

$ 57,312

$ 56,536

$ 54,773

Less regulatory capital adjustments:

Goodwill and disallowed intangibles, net of deferred tax liabilities

(10,920)

(10,896)

(10,949)

All other adjustments

(71)

(81)

(83)

Basel III Common equity Tier 1 capital

$ 46,321

$ 45,559

$ 43,741

Basel III standardized approach risk-weighted assets (b)

$ 435,296

$ 433,190

$ 423,212

Basel III Common equity Tier 1 capital ratio (c)

10.6 %

10.5 %

10.3 %

(a)

All ratios are calculated using the regulatory capital methodology applicable to PNC during each period presented.

(b)

Basel III standardized approach risk-weighted assets are based on the Basel III standardized approach rules and include credit and market risk-weighted assets.

(c)

The September 30, 2024 ratio is calculated to reflect PNC's election to adopt the CECL optional five-year transition provisions. The impact of the provisions was phased-in to regulatory capital through December 31, 2024.

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

NON-GAAP MEASURES

Fee Income (non-GAAP)

Three months ended

September 30

June 30

September 30

Dollars in millions

2025

2024

Noninterest income

Asset management and brokerage

$ 404

$ 391

$ 383

Capital markets and advisory

432

321

371

Card and cash management

737

698

Lending and deposit services

335

317

320

Residential and commercial mortgage

161

128

181

Fee income (non-GAAP)

$ 2,069

$ 1,894

$ 1,953

Other income

198

212

Total noninterest income

$ 2,267

$ 2,106

$ 2,022

Fee income is a non-GAAP measure and is comprised of noninterest income in the following categories: asset management and brokerage, capital markets and advisory, card and cash management, lending and deposit services, and residential and commercial mortgage. We believe this non-GAAP measure serves as a useful tool for comparison of noninterest income related to fees.

Pretax Pre-Provision Earnings (non-GAAP)

Three months ended

September 30

June 30

September 30

Dollars in millions

2025

2024

Income before income taxes and noncontrolling interests

$ 2,287

$ 2,024

$ 1,862

Provision for credit losses

167

254

243

Pretax pre-provision earnings (non-GAAP)

$ 2,454

$ 2,278

$ 2,105

Pretax pre-provision earnings is a non-GAAP measure and is based on adjusting income before income taxes and noncontrolling interests to exclude provision for credit losses. We believe that pretax, pre-provision earnings is a useful tool to help evaluate the ability to provide for credit costs through operations and provides an additional basis to compare results between periods by isolating the impact of provision for credit losses, which can vary significantly between periods.

Tangible Book Value per Common Share (non-GAAP)

September 30

June 30

September 30

Dollars in millions, except per share data

2025

2024

Book value per common share

$ 135.67

$ 131.61

$ 124.56

Tangible book value per common share

Common shareholders' equity

$ 53,235

$ 51,854

$ 49,442

Goodwill and other intangible assets

(11,163)

(11,137)

(11,188)

Deferred tax liabilities on goodwill and other intangible assets

243

242

240

Tangible common shareholders' equity

$ 42,315

$ 40,959

$ 38,494

Period-end common shares outstanding (In millions)

392

394

397

Tangible book value per common share (non-GAAP)

$ 107.84

$ 103.96

$ 96.98

Tangible book value per common share is a non-GAAP measure and is calculated based on tangible common shareholders' equity divided by period-end common shares outstanding. We believe this non-GAAP measure serves as a useful tool to help evaluate the strength and discipline of a company's capital management strategies and as an additional, conservative measure of total company value.

The PNC Financial Services Group, Inc .

Consolidated Financial Highlights (Unaudited)

Taxable-Equivalent Net Interest Income (non-GAAP)

Three months ended

September 30

June 30

September 30

Dollars in millions

2025

2024

Net interest income

$ 3,648

$ 3,555

$ 3,410

Taxable-equivalent adjustments

Net interest income (Fully Taxable-Equivalent - FTE) (non-GAAP)

$ 3,678

$ 3,583

$ 3,443

The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP. Taxable-equivalent net interest income is only used for calculating net interest margin. Net interest income shown elsewhere in this presentation is GAAP net interest income.

Cautionary Statement Regarding Forward-Looking Information

We make statements in this news release and related conference call, 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, asset levels, asset quality, financial position, and other matters regarding or affecting us and our future business and operations, including our sustainability strategy, that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as "believe," "plan," "expect," "anticipate," "see," "look," "intend," "outlook," "project," "forecast," "estimate," "goal," "will," "should" and other similar words and expressions.

Forward-looking statements are necessarily subject to numerous assumptions, risks and uncertainties, which change over time. Future events or circumstances may change our outlook and may also affect the nature of the assumptions, risks and uncertainties to which our forward-looking statements are subject. Forward-looking statements speak only as of the date made. We do not assume any duty and do not undertake any obligation to update forward-looking statements. Actual results or future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as from historical performance. As a result, we caution against placing undue reliance on any forward-looking statements.

Our forward-looking statements are subject to the following principal risks and uncertainties.

We provide greater detail regarding these as well as other factors in our most recent Form 10-K and in any subsequent Form 10-Qs, including in the Risk Factors and Risk Management sections and the Legal Proceedings and Commitments Notes of the Notes To Consolidated Financial Statements in those reports, and in our other subsequent SEC filings. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in our SEC filings, accessible on the SEC's website at www.sec.gov and on our corporate website at www.pnc.com/secfilings. We have included these web addresses as inactive textual references only. Information on these websites is not part of this document.

SOURCE The PNC Financial Services Group, Inc.