PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 as Adjusted

PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 as Adjusted Generated record revenue, net interest income and fee income

Increased quarterly common stock dividend 30 cents, or 18%, to $2.00 per share

PITTSBURGH, July 15, 2026 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported:

For the quarter

In millions, except per share data and as noted

2Q26

1Q26

2Q25

Second Quarter Highlights

Financial Results

Comparisons reflect 2Q26 vs. 1Q26

Net interest income (NII)

$ 4,107

$ 3,961

$ 3,555

Income Statement

Balance Sheet

Fee income (non-GAAP)

2,279

2,079

1,894

Other noninterest income

489

125

212

Noninterest income

2,768

2,204

2,106

Revenue

6,875

6,165

5,661

Noninterest expense

4,098

3,768

3,383

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

2,777

2,397

2,278

Provision for credit losses

191

210

254

Net income

2,055

1,772

1,643

Per Common Share

Diluted earnings per share (EPS)

$ 4.81

$ 4.13

$ 3.85

EPS impact of integration costs and 2Q26 significant items

0.04

0.19

—

Diluted EPS - as adjusted (non-GAAP)

4.85

4.32

3.85

Average diluted common shares outstanding

403

405

397

Book value

145.52

143.65

131.61

Tangible book value (TBV) (non-GAAP)

111.09

109.42

103.96

Balance Sheet & Credit Quality

Average loans In billions

$ 363.2

$ 350.9

$ 322.8

Noninterest-bearing deposits In billions

103.5

99.1

93.1

Interest-bearing deposits In billions

353.5

359.3

329.8

Average deposits In billions

457.0

458.4

423.0

Accumulated other comprehensive income (loss) (AOCI)

In billions

(4.1)

(3.8)

(4.7)

Net loan charge-offs

226

253

198

Allowance for credit losses to total loans

1.48 %

1.52 %

1.62 %

Selected Ratios

Return on average common shareholders' equity

13.61 %

11.92 %

12.20 %

Return on avg. tangible common equity (ROTCE) (non-GAAP)

17.88

15.66

15.55

Return on average assets

1.34

1.19

1.17

Net interest margin (NIM) (non-GAAP)

2.96

2.95

2.80

Noninterest income to total revenue

Efficiency

Common equity tier 1 (CET1) capital ratio

9.9

10.1

10.5

See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.

Totals may not sum due to rounding. 1Q26 Diluted EPS - as adjusted, excludes $98 million of integration costs

related to the FirstBank acquisition.

From Bill Demchak, PNC Chairman and Chief Executive Officer:

"Our strong second quarter performance reflects the disciplined execution of our growth strategy and positions us well for the second half of the year. We remain focused on delivering results that support our customers, shareholders and communities. Our successful FirstBank conversion, strong capital position and announced dividend increase provide further evidence of the strength and resilience of our franchise."

Acquisition of FirstBank

As of June 22, 2026, PNC has converted approximately 780,000 customers, more than 1,620 employees and 95 branches across Colorado and Arizona, merging FirstBank into PNC Bank. Second quarter of 2026 results include the full quarter benefit of FirstBank. First quarter of 2026 results include FirstBank operations since acquisition close on January 5, 2026.

Integration Costs and 2Q26 Significant Items

In the second quarter of 2026, PNC incurred integration costs related to the FirstBank acquisition of $127 million. Results for the quarter also reflected the impact of several significant items. PNC participated in the Visa exchange program monetizing 50% of its Visa Class B-2 shares resulting in a gain of $448 million and converting its remaining holdings into 0.9 million of Visa Class B-3 shares. This gain was substantially offset by a $140 million PNC Foundation contribution expense, a $139 million securities loss related to the repositioning of approximately $4 billion of available-for-sale investment securities into higher yielding instruments, and negative $85 million of Visa Class B-3 derivative fair value adjustments, driven by the extension of anticipated litigation resolution timing. The combined 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 2Q26 Significant Items

In millions

2Q26 Integration Costs and Significant Items

Noninterest Income

Integration

Costs

Significant

Items

Net Impact

Gain on exchange of Visa Class B-2 shares

$ 448

Visa Class B-3 derivative fair value adjustments

(85)

Loss on sale of securities

(139)

Integration costs

$ (6)

(6)

Noninterest income impact of integration costs

and 2Q26 significant items

$ (6)

$ 224

$ 218

Noninterest Expense

Contribution to PNC Foundation

$ 140

Integration costs

$ 121

121

Noninterest expense impact of integration costs

and 2Q26 significant item

$ 121

$ 140

$ 261

Net Income and EPS

Pretax, pre-provision impact

$ (127)

$ 84

$ (43)

Income taxes (benefit)

(26)

(2)

(28)

Net Income decrease from integration costs

and 2Q26 significant items

$ (101)

$ 86

$ (15)

EPS impact of integration costs and 2Q26 significant items

$ (0.25)

$ 0.21

$ (0.04)

Income taxes on integration costs and 2Q26 significant items are calculated at a statutory tax rate of 21% on pretax, pre-

provision earnings. Significant items tax impact also includes the benefit of shares donated to the PNC Foundation.

Income Statement Highlights

Second quarter 2026 compared with first quarter 2026

Balance Sheet Highlights

Second quarter 2026 compared with first quarter 2026 or June 30, 2026 compared with March 31, 2026

Earnings Summary

In millions, except per share data

2Q26

1Q26

2Q25

Net income

$ 2,055

$ 1,772

$ 1,643

Net income attributable to diluted common shareholders

$ 1,941

$ 1,675

$ 1,532

Net income attributable to diluted common shareholders - as adjusted (non-

GAAP)

$ 1,956

$ 1,752

$ 1,532

Diluted earnings per common share

$ 4.81

$ 4.13

$ 3.85

Diluted earnings per common share - as adjusted (non-GAAP)

$ 4.85

$ 4.32

$ 3.85

Average diluted common shares outstanding

403

405

397

Cash dividends declared per common share

$ 1.70

$ 1.60

See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.

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

2Q26 vs

In millions

2Q26

1Q26

2Q25

1Q26

2Q25

Net interest income

$ 4,107

$ 3,961

$ 3,555

4 %

16 %

Noninterest income

2,768

2,204

2,106

26 %

31 %

Total revenue

$ 6,875

$ 6,165

$ 5,661

12 %

21 %

Total revenue for the second quarter of 2026 increased $710 million compared to the first quarter of 2026 and $1.2 billion compared to the second quarter of 2025. In both comparisons, the increase was driven by both higher noninterest income and net interest income.

Net interest income of $4.1 billion increased $146 million from the first quarter of 2026 and $552 million from the second quarter of 2025. In each comparison, the increase included the benefit of commercial loan growth and higher noninterest-bearing deposit balances. In comparison to the second quarter of 2025, the increase also reflected the benefit of FirstBank and lower funding costs.

Net interest margin was 2.96% in the second quarter of 2026, increasing 1 basis point from the first quarter of 2026. Compared to the second quarter of 2025, net interest margin expanded 16 basis points.

Noninterest Income

Change

2Q26 vs

In millions

2Q26

1Q26

2Q25

1Q26

2Q25

Asset management and brokerage

$ 440

$ 420

$ 391

5 %

13 %

Capital markets and advisory

577

463

321

25 %

80 %

Card and cash management

772

738

737

5 %

Lending and deposit services

346

340

317

2 %

9 %

Residential and commercial mortgage

144

118

128

22 %

13 %

Fee income (non-GAAP)

2,279

2,079

1,894

10 %

20 %

Other

489

125

212

291 %

131 %

Total noninterest income

$ 2,768

$ 2,204

$ 2,106

26 %

31 %

Integration costs and 2Q26 significant items

218

(1)

—

Noninterest income, excluding integration costs

and 2Q26 significant items (non-GAAP)

$ 2,550

$ 2,205

$ 2,106

16 %

21 %

See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.

Noninterest income for the second quarter of 2026 of $2.8 billion included $218 million of both integration costs and 2Q26 significant items. The first quarter of 2026 included $1 million of FirstBank related integration costs. Excluding these items from each quarter, noninterest income was $2.6 billion, increasing $345 million, or 16%, from the first quarter of 2026 and $444 million, or 21%, from the second quarter of 2025.

In comparison to the first quarter of 2026, fee income increased $200 million, or 10%, driven by growth across all fee categories. Asset management and brokerage fees increased $20 million as a result of higher average equity markets and increased client activity. Capital markets and advisory revenue increased $114 million driven by record merger and acquisition advisory fees as well as strong activity across other capital markets businesses. Card and cash management revenue increased $34 million due to seasonally higher consumer transaction volumes and growth in treasury management product revenue. Lending and deposit related revenue increased $6 million primarily due to increased customer activity. Residential and commercial mortgage revenue increased $26 million primarily driven by a first quarter of 2026 negative valuation of residential mortgage servicing rights, net of economic hedge, which did not recur.

Compared to the second quarter of 2025, fee income increased $385 million, or 20%, driven by an increase in capital markets and advisory revenue of $256 million as well as broad-based growth across the other fee income categories.

Other noninterest income of $489 million in the second quarter of 2026 included both integration costs and 2Q26 significant items totaling $218 million as well as positive valuation adjustments of private equity investments.

CONSOLIDATED EXPENSE REVIEW

Noninterest Expense

Change

2Q26 vs

In millions

2Q26

1Q26

2Q25

1Q26

2Q25

Personnel

$ 2,273

$ 2,106

$ 1,889

8 %

20 %

Occupancy

252

262

235

(4) %

7 %

Equipment

435

415

394

5 %

10 %

Marketing

110

26 %

11 %

Other

1,028

898

766

14 %

34 %

Total noninterest expense

$ 4,098

$ 3,768

$ 3,383

9 %

21 %

Integration costs and 2Q26 significant items

261

—

Noninterest expense, excluding integration costs and

2Q26 significant items (non-GAAP)

$ 3,837

$ 3,671

$ 3,383

5 %

13 %

See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.

Noninterest expense for the second quarter of 2026 of $4.1 billion included both integration costs and 2Q26 significant items totaling $261 million. The first quarter of 2026 included $97 million of FirstBank integration costs.

Noninterest expense excluding both integration costs and 2Q26 significant items was $3.8 billion, increasing $166 million from the first quarter of 2026 and $454 million compared to the second quarter of 2025. In each comparison the increase reflected the impact of increased business activity, higher marketing spend and continued investments to support business growth. Compared with the second quarter of 2025, the increase also included the impact of FirstBank operating expenses.

The effective tax rate was 20.5% for the second quarter of 2026, 19.0% for the first quarter of 2026 and 18.8% for the second quarter of 2025.

CONSOLIDATED BALANCE SHEET REVIEW

Loans

Change

2Q26 vs

In billions

2Q26

1Q26

2Q25

1Q26

2Q25

Average

Commercial and industrial

$ 223.7

$ 211.4

$ 191.5

6 %

17 %

Commercial real estate

35.1

34.4

31.8

2 %

10 %

Commercial

$ 258.8

$ 245.7

$ 223.4

5 %

16 %

Consumer

104.4

105.2

99.4

(1) %

5 %

Average loans

$ 363.2

$ 350.9

$ 322.8

4 %

13 %

Quarter end

Commercial and industrial

$ 227.9

$ 221.2

$ 195.8

3 %

16 %

Commercial real estate

36.0

34.8

31.3

3 %

15 %

Commercial

$ 263.9

$ 256.0

$ 227.0

3 %

16 %

Consumer

104.1

105.0

99.3

(1) %

5 %

Total loans

$ 368.0

$ 360.9

$ 326.3

2 %

13 %

Totals may not sum due to rounding

Average loans for the second quarter of 2026 increased $12.3 billion compared to the first quarter of 2026 and $40.4 billion compared to the second quarter of 2025.

Average commercial loans increased $13.0 billion and $35.4 billion compared to the first quarter of 2026 and the second quarter of 2025, respectively. In comparison to the first quarter of 2026, growth was driven by strong new production and increased utilization. Compared to the second quarter of 2025, the increase was attributable to strong new production as well as acquired FirstBank loans.

Average consumer loans decreased $0.7 billion compared to the first quarter of 2026, primarily due to declines in both residential mortgage and auto loans, partially offset by growth in credit card loans. Compared to the second quarter of 2025, average consumer loans increased $5.0 billion driven by the benefit of FirstBank loans.

Loans at June 30, 2026 increased $7.0 billion and $41.6 billion from March 31, 2026 and June 30, 2025, respectively. In each comparison, the increase included growth in commercial loans, reflecting strong new production. Compared to the second quarter of 2025, the increase was also attributable to acquired FirstBank commercial and consumer loans.

Average Investment Securities

Change

2Q26 vs

In billions

2Q26

1Q26

2Q25

1Q26

2Q25

Available for sale

$ 73.7

$ 71.6

$ 67.8

3 %

9 %

Held to maturity

73.4

72.9

74.2

1 %

(1) %

Total

$ 147.1

$ 144.5

$ 141.9

2 %

4 %

Totals may not sum due to rounding

Average investment securities of $147.1 billion in the second quarter of 2026 increased $2.6 billion compared to the first quarter of 2026 and $5.2 billion compared to the second quarter of 2025. In both comparisons, the increase reflected higher residential mortgage-backed securities.

During the second quarter of 2026, PNC completed a repositioning of the investment securities portfolio, selling approximately $4 billion of available-for-sale securities with a weighted average yield of approximately 3.2%. The proceeds from the sale were then redeployed into an equivalent amount of investment securities with a weighted average yield of approximately 4.4%.

The duration of the investment securities portfolio was 3.6 years as of June 30, 2026 and March 31, 2026 and 3.4 years as of June 30, 2025. Net unrealized losses on available-for-sale securities were $2.1 billion at both June 30, 2026 and March 31, 2026 and $2.6 billion at June 30, 2025.

Average Deposits

Change

2Q26 vs

In billions

2Q26

1Q26

2Q25

1Q26

2Q25

Commercial

$ 228.2

$ 229.6

$ 205.8

(1) %

11 %

Consumer

228.4

226.9

210.5

1 %

9 %

Brokered time deposits

0.4

1.9

6.7

(79) %

(94) %

Total

$ 457.0

$ 458.4

$ 423.0

—

8 %

IB % of total avg. deposits

77 %

78 %

NIB % of total avg. deposits

23 %

22 %

IB - Interest-bearing

NIB - Noninterest-bearing

Second quarter 2026 average deposits of $457.0 billion were stable compared to the first quarter of 2026, as higher consumer deposits were offset by both lower brokered time deposits and a seasonal decline in commercial deposits. Average deposits increased $34.0 billion compared to the second quarter of 2025 and included the addition of FirstBank deposits.

Average noninterest-bearing deposits as a percentage of total average deposits increased to 23% in the second quarter of 2026 from 22% in both the first quarter of 2026 and second quarter of 2025.

Average Borrowed Funds

Change

2Q26 vs

In billions

2Q26

1Q26

2Q25

1Q26

2Q25

Total

$ 78.9

$ 62.9

$ 65.3

25 %

21 %

Avg. borrowed funds to avg. liabilities

14 %

12 %

13 %

Totals may not sum due to rounding

Average borrowed funds of $78.9 billion in the second quarter of 2026 increased $16.1 billion compared to the first quarter of 2026 and $13.6 billion compared to the second quarter of 2025. In both comparisons, the increase was primarily due to higher Federal Home Loan Bank advances.

Capital

June 30, 2026

March 31, 2026

June 30, 2025

Common shareholders' equity In billions

$ 58.1

$ 57.8

$ 51.9

Accumulated other comprehensive income (loss)

In billions

$ (4.1)

$ (3.8)

$ (4.7)

Basel III common equity tier 1 capital ratio *

9.9 %

10.1 %

10.5 %

*June 30, 2026 ratio is estimated.

PNC maintained a strong capital position. Common shareholders' equity at June 30, 2026 increased $0.3 billion from March 31, 2026 primarily due to net income, partially offset by dividends paid and share repurchases as well as a decline in accumulated other comprehensive income.

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 was negative $4.1 billion at June 30, 2026 compared to negative $3.8 billion at March 31, 2026 and negative $4.7 billion at June 30, 2025. The change in each comparison reflected the impact of interest rate movements on securities and swaps and the continued accretion of unrealized losses.

In the second quarter of 2026, PNC returned $1.3 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.6 billion of common share repurchases. The Stress Capital Buffer (SCB) framework permits capital return in amounts in excess of SCB minimum levels. Consistent with this framework, PNC had approximately 29% of the 100 million common shares still available for repurchase at June 30, 2026 under the repurchase program previously approved by our board of directors.

Share repurchase activity in the third quarter of 2026 is expected to approximate second quarter of 2026 share repurchase levels. PNC may adjust share repurchase activity depending on market and economic conditions, as well as other factors. PNC's SCB will be maintained at the regulatory minimum of 2.5% through September 30, 2027.

On July 6, 2026, the PNC board of directors raised the quarterly cash dividend on common stock to $2.00 per share, an increase of 30 cents, or 18%. The dividend is payable on August 5, 2026 to shareholders of record at the close of business July 20, 2026.

At June 30, 2026, 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

June 30, 2026

March 31, 2026

June 30, 2025

06/30/26 vs

In millions

03/31/26

06/30/25

Provision for credit losses (a)

$ 191

$ 210

$ 254

$ (19)

$ (63)

Net loan charge-offs (a)

$ 226

$ 253

$ 198

(11) %

14 %

Allowance for credit losses (b)

$ 5,461

$ 5,495

$ 5,282

(1) %

3 %

Total delinquencies (c)

$ 1,436

$ 1,558

$ 1,303

(8) %

10 %

Nonperforming loans

$ 2,027

$ 2,243

$ 2,108

(10) %

(4) %

Net charge-offs to average loans

(annualized)

0.25 %

0.29 %

0.25 %

Allowance for credit losses to total loans

1.48 %

1.52 %

1.62 %

Nonperforming loans to total loans

0.55 %

0.62 %

0.65 %

(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 $191 million in the second quarter of 2026 and reflected portfolio activity as well as updates to macroeconomic factors. Provision for credit losses was $210 million in the first quarter of 2026 and $254 million in the second quarter of 2025.

Net loan charge-offs were $226 million in the second quarter of 2026, decreasing $27 million compared to the first quarter of 2026. The decrease was primarily due to FirstBank acquired net loan charge-offs of $45 million recognized in the first quarter. Compared to the second quarter of 2025, net loan charge-offs increased $28 million primarily due to higher commercial loan net charge-offs.

The allowance for credit losses was $5.5 billion at both June 30, 2026 and March 31, 2026 and $5.3 billion at June 30, 2025. The allowance for credit losses as a percentage of total loans was 1.48% at June 30, 2026, 1.52% at March 31, 2026 and 1.62% at June 30, 2025.

Delinquencies at June 30, 2026 were $1.4 billion, decreasing $122 million from March 31, 2026 due to lower commercial loan delinquencies. Compared to June 30, 2025, delinquencies increased $133 million due to higher consumer loan delinquencies.

Nonperforming loans of $2.0 billion at June 30, 2026 decreased $216 million compared to March 31, 2026 and $81 million compared to June 30, 2025. In both comparisons, the decrease was driven by lower commercial real estate nonperforming loans.

BUSINESS SEGMENT RESULTS

Business Segment Income (Loss)

In millions

2Q26

1Q26

2Q25

Retail Banking

$ 1,747

$ 1,349

$ 1,386

Corporate & Institutional Banking

1,588

1,480

1,318

Asset Management Group

135

121

132

Other

(1,430)

(1,190)

(1,209)

Net income excluding noncontrolling interests

$ 2,040

$ 1,760

$ 1,627

Retail Banking

Change

2Q26 vs

In millions

2Q26

1Q26

2Q25

1Q26

2Q25

Net interest income

$ 3,291

$ 3,237

$ 3,010

$ 54

$ 281

Noninterest income

$ 1,227

$ 770

$ 782

$ 457

$ 445

Noninterest expense

$ 2,111

$ 2,115

$ 1,890

$ (4)

$ 221

Provision for credit losses

$ 120

$ 124

$ 83

$ (4)

$ 37

Earnings

$ 1,747

$ 1,349

$ 1,386

$ 398

$ 361

In billions

Brokerage account client assets

$ 97

$ 91

$ 87

$ 6

$ 10

In billions

Average loans

$ 110.5

$ 110.9

$ 97.5

$ (0.4)

$ 13.0

Average deposits

$ 271.6

$ 268.2

$ 243.5

$ 3.4

$ 28.1

Net loan charge-offs In millions

$ 123

$ 118

$ 120

$ 5

$ 3

During the second quarter of 2026, PNC updated its internal funds transfer pricing methodology. The update resulted in impacts to net interest income and

associated income statement line items for all business segments. Prior periods have been adjusted to conform with the current presentation.

Retail Banking Highlights

Second quarter 2026 compared with first quarter 2026

Second quarter 2026 compared with second quarter 2025

Corporate & Institutional Banking

Change

2Q26 vs

In millions

2Q26

1Q26

2Q25

1Q26

2Q25

Net interest income

$ 1,992

$ 1,942

$ 1,814

$ 50

$ 178

Noninterest income

$ 1,291

$ 1,144

$ 1,022

$ 147

$ 269

Noninterest expense

$ 1,131

$ 1,076

$ 950

$ 55

$ 181

Provision for credit losses

$ 76

$ 77

$ 184

$ (1)

$ (108)

Earnings

$ 1,588

$ 1,480

$ 1,318

$ 108

$ 270

In billions

Average loans

$ 236.1

$ 223.5

$ 208.6

$ 12.6

$ 27.5

Average deposits

$ 158.6

$ 161.2

$ 146.5

$ (2.6)

$ 12.1

Net loan charge-offs In millions

$ 105

$ 92

$ 83

$ 13

$ 22

During the second quarter of 2026, PNC updated its internal funds transfer pricing methodology. The update resulted in impacts to net interest income and

associated income statement line items for all business segments. Prior periods have been adjusted to conform with the current presentation.

Corporate & Institutional Banking Highlights

Second quarter 2026 compared with first quarter 2026

Second quarter 2026 compared with second quarter 2025

Asset Management Group

Change

2Q26 vs

In millions

2Q26

1Q26

2Q25

1Q26

2Q25

Net interest income

$ 191

$ 193

$ 184

$ (2)

$ 7

Noninterest income

$ 271

$ 262

$ 244

$ 9

$ 27

Noninterest expense

$ 289

$ 292

$ 268

$ (3)

$ 21

Provision for (recapture of) credit losses

$ (3)

$ 5

$ (13)

$ (8)

$ 10

Earnings

$ 135

$ 121

$ 132

$ 14

$ 3

In billions

Discretionary client AUM

$ 247

$ 230

$ 217

$ 17

$ 30

Nondiscretionary client AUM

$ 256

$ 233

$ 204

$ 23

$ 52

Client AUM at quarter end

$ 503

$ 463

$ 421

$ 40

$ 82

In billions

Average loans

$ 14.6

$ 14.4

$ 14.2

$ 0.2

$ 0.4

Average deposits

$ 27.0

$ 27.7

$ 26.9

$ (0.7)

$ 0.1

Net loan charge-offs (recoveries) In millions

$ 1

—

$ (1)

$ 1

$ 2

AUM - Assets under management

During the second quarter of 2026, PNC updated its internal funds transfer pricing methodology. The update resulted in impacts to net interest income and

associated income statement line items for all business segments. Prior periods have been adjusted to conform with the current presentation.

Asset Management Group Highlights

Second quarter 2026 compared with first quarter 2026

Second quarter 2026 compared with second quarter 2025

Other

The "Other" category, for the purposes of this release, includes remaining corporate operations 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 10:00 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 second quarter 2026 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 four weeks at (877) 660-6853 and (201) 612-7415 (international), Access ID 13760708 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:

Anne Pace

(631) 338-3268

[email protected]

INVESTORS:

Bryan Gill

(412) 768-4143

[email protected]

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

FINANCIAL RESULTS

Three months ended

Six months ended

Dollars in millions, except per share data

June 30

March 31

June 30

2026

2025

2026

2025

Revenue

Net interest income

$ 4,107

$ 3,961

$ 3,555

$ 8,068

$ 7,031

Noninterest income

2,768

2,204

2,106

4,972

4,082

Total revenue

6,875

6,165

5,661

13,040

11,113

Provision for credit losses

191

210

254

401

473

Noninterest expense

4,098

3,768

3,383

7,866

6,770

Income before income taxes and noncontrolling interests

$ 2,586

$ 2,187

$ 2,024

$ 4,773

$ 3,870

Income taxes

531

415

381

946

728

Net income

$ 2,055

$ 1,772

$ 1,643

$ 3,827

$ 3,142

Less:

Net income attributable to noncontrolling interests

Preferred stock dividends (a)

158

154

Preferred stock discount accretion and redemptions

Net income attributable to common shareholders

$ 1,953

$ 1,686

$ 1,542

$ 3,639

$ 2,950

Less: Dividends and undistributed earnings allocated to

nonvested restricted shares

Net income attributable to diluted common shareholders

$ 1,941

$ 1,675

$ 1,532

$ 3,616

$ 2,931

Per Common Share

Basic

$ 4.82

$ 4.13

$ 3.86

$ 8.95

$ 7.37

Diluted

$ 4.81

$ 4.13

$ 3.85

$ 8.94

$ 7.37

Cash dividends declared per common share

$ 1.70

$ 1.60

$ 3.40

$ 3.20

Effective tax rate (b)

20.5 %

19.0 %

18.8 %

19.8 %

18.8 %

PERFORMANCE RATIOS

Net interest margin (c)

2.96 %

2.95 %

2.80 %

2.96 %

2.79 %

Noninterest income to total revenue

40 %

36 %

37 %

38 %

37 %

Efficiency (d)

60 %

61 %

60 %

61 %

Return on:

Average common shareholders' equity

13.61 %

11.92 %

12.20 %

12.77 %

11.91 %

Average assets

1.34 %

1.19 %

1.17 %

1.27 %

1.13 %

(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 June 30, 2026, March 31, 2026 and June 30, 2025 were $27 million, $29 million and $28 million, respectively. The taxable-equivalent adjustments to net interest income for both the six months ended June 30, 2026 and 2025 were $56 million.

(d)

Calculated as noninterest expense divided by total revenue.

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

June 30

March 31

June 30

2026

2025

BALANCE SHEET DATA

Dollars in millions, except per share data and as noted

Assets

$ 616,034

$ 603,028

$ 559,107

Loans (a)

$ 367,953

$ 360,923

$ 326,340

Allowance for loan and lease losses

$ 4,652

$ 4,663

$ 4,523

Interest-earning deposits with banks

$ 22,794

$ 26,053

$ 24,455

Investment securities

$ 149,506

$ 143,112

$ 142,348

Total deposits (a)

$ 449,792

$ 457,648

$ 426,696

Borrowed funds (a)

$ 85,723

$ 66,666

$ 60,424

Allowance for unfunded lending related commitments

$ 809

$ 832

$ 759

Total shareholders' equity

$ 64,008

$ 63,627

$ 57,607

Common shareholders' equity

$ 58,131

$ 57,752

$ 51,854

Accumulated other comprehensive income (loss)

$ (4,120)

$ (3,773)

$ (4,682)

Book value per common share

$ 145.52

$ 143.65

$ 131.61

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

$ 111.09

$ 109.42

$ 103.96

Period end common shares outstanding (In millions)

399

402

394

Loans to deposits

82 %

79 %

76 %

Common shareholders' equity to total assets

9.4 %

9.6 %

9.3 %

CLIENT ASSETS (In billions)

Discretionary client assets under management

$ 247

$ 230

$ 217

Nondiscretionary client assets under administration

256

233

204

Total client assets under administration

503

463

421

Brokerage account client assets

Total client assets

$ 602

$ 556

$ 510

CAPITAL RATIOS

Basel III (c)

Common equity tier 1

9.9 %

10.1 %

10.5 %

Tier 1 risk-based

11.1 %

11.3 %

11.8 %

Total capital risk-based

12.9 %

13.1 %

13.6 %

Leverage

9.0 %

9.1 %

9.3 %

Supplementary leverage

7.2 %

7.4 %

7.6 %

ASSET QUALITY

Nonperforming loans to total loans

0.55 %

0.62 %

0.65 %

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

0.58 %

0.66 %

Nonperforming assets to total assets

0.35 %

0.40 %

0.38 %

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

0.25 %

0.29 %

0.25 %

Allowance for loan and lease losses to total loans

1.26 %

1.29 %

1.39 %

Allowance for credit losses to total loans (e)

1.48 %

1.52 %

1.62 %

Allowance for loan and lease losses to nonperforming loans

230 %

208 %

215 %

Total delinquencies (In millions) (f)

$ 1,436

$ 1,558

$ 1,303

(a)

Amounts include assets and liabilities for which we have elected the fair value option. Our first quarter 2026 Form 10-Q included, and our second quarter 2026 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 19 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 June 30, 2026 are estimated.

(d)

Amounts include nonaccrual servicing advances primarily to single asset/single borrower trusts with commercial real estate as collateral totaling $90 million and $103 million at June 30, 2026 and March 31, 2026, respectively.

(e)

Excludes allowances for investment securities and other financial assets.

(f)

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 2026 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.

Our Basel III capital ratios may be impacted by changes to the regulatory capital rules and additional regulatory guidance or analysis. The following table summarizes our March 31, 2026, June 30, 2025 and estimated June 30, 2026 capital balances and ratios.

Basel lll Common Equity Tier 1 Capital Ratios

Basel III

June 30

2026

(estimated)

March 31

2026

June 30

2025

Dollars in millions

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

$ 62,249

$ 61,523

$ 56,536

Less regulatory capital adjustments:

Goodwill and disallowed intangibles, net of deferred tax liabilities

(13,752)

(13,757)

(10,896)

All other adjustments

(84)

(80)

(81)

Basel III Common equity tier 1 capital

$ 48,413

$ 47,686

$ 45,559

Basel III standardized approach risk-weighted assets (a)

$ 487,609

$ 472,981

$ 433,190

Basel III Common equity tier 1 capital ratio

9.9 %

10.1 %

10.5 %

(a)

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

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

NON-GAAP MEASURES

Fee Income (non-GAAP)

Three months ended

June 30

March 31

June 30

Dollars in millions

2026

2025

Noninterest income

Asset management and brokerage

$ 440

$ 420

$ 391

Capital markets and advisory

577

463

321

Card and cash management

772

738

737

Lending and deposit services

346

340

317

Residential and commercial mortgage

144

118

128

Fee income (non-GAAP)

$ 2,279

$ 2,079

$ 1,894

Other income

489

125

212

Total noninterest income

$ 2,768

$ 2,204

$ 2,106

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

June 30

March 31

June 30

Dollars in millions

2026

2025

Income before income taxes and noncontrolling interests

$ 2,586

$ 2,187

$ 2,024

Provision for credit losses

191

210

254

Pretax pre-provision earnings (non-GAAP)

$ 2,777

$ 2,397

$ 2,278

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.

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

Noninterest Expense Excluding Integration Costs and 2Q26 Significant Items (non-GAAP)

Noninterest Income Excluding Integration Costs and 2Q26 Significant Items (non-GAAP)

Three months ended

June 30

March 31

Change

June 30

Change

Dollars in millions

2026

2025

Noninterest expense

$ 4,098

$ 3,768

$ 330

9 %

$ 4,098

$ 3,383

$ 715

21 %

Contribution to PNC Foundation

(140)

—

(140)

—

Integration costs

(121)

(97)

(121)

—

Noninterest expense excluding

integration costs and 2Q26

significant items (non-GAAP)

$ 3,837

$ 3,671

$ 166

5 %

$ 3,837

$ 3,383

$ 454

13 %

Noninterest income

$ 2,768

$ 2,204

$ 564

26 %

$ 2,768

$ 2,106

$ 662

31 %

Gain on exchange of Visa Class B-

2 shares

448

—

448

—

Visa Class B-3 derivative fair value

adjustments

(85)

—

(85)

—

Loss on sale of securities

(139)

—

(139)

—

Integration costs

(6)

(1)

(6)

—

Noninterest income excluding

integration costs and 2Q26

significant items (non-GAAP)

$ 2,550

$ 2,205

$ 345

16 %

$ 2,550

$ 2,106

$ 444

21 %

Pretax, pre-provision impact of

integration costs and 2Q26

significant items

$ (43)

$ (98)

$ (43)

$ —

Income taxes (benefit) (a)

(28)

(21)

(28)

—

After tax impact of integration

costs and 2Q26 significant items

$ (15)

$ (77)

$ (15)

$ —

(a)

Income taxes on integration costs and 2Q26 significant items are calculated at a statutory tax rate of 21% on pretax, pre-provision earnings. Significant items tax impact also includes the benefit of shares donated to the PNC Foundation.

Noninterest expense excluding integration costs and 2Q26 significant items is a non-GAAP measure and is based on adjusting noninterest expense to exclude integration costs related to the FirstBank acquisition and 2Q26 significant items during the period. The 2Q26 significant items are described in the Integration Costs and 2Q26 Significant Items section on page 2. We believe this non-GAAP measure to be a useful tool for comparison of operating expenses incurred during the normal course of business. The exclusion of integration costs and 2Q26 significant items increases comparability across periods, demonstrates the impact of significant items and provides a useful measure for determining PNC's expenses that are core to our business operations and expected to recur over time.

Noninterest income excluding integration costs and 2Q26 significant items is a non-GAAP measure and is based on adjusting noninterest income to exclude integration costs related to the FirstBank acquisition and 2Q26 significant items during the period. The 2Q26 significant items are described in the Integration Costs and 2Q26 Significant Items section on page 2. We believe this non-GAAP measure to be a useful tool for comparison of noninterest income earned during the normal course of business. The exclusion of integration costs and 2Q26 significant items increases comparability across periods, demonstrates the impact of significant items and provides a useful measure for determining PNC's noninterest income generating activities that are core to our business operations and expected to recur over time.

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

Adjusted Diluted Earnings per Common Share Excluding Integration Costs and 2Q26 Significant Items (non-GAAP)

Three months ended

June 30

Per Common

March 31

Per Common

Dollars in millions, except per share data

2026

Net income attributable to diluted common shareholders

$ 1,941

$ 4.81

$ 1,675

$ 4.13

After tax impact of integration costs and 2Q26 significant items

0.04

0.19

Adjusted net income attributable to diluted common shareholders excluding

integration costs and 2Q26 significant items (non-GAAP)

$ 1,956

$ 4.85

$ 1,752

$ 4.32

Average diluted common shares outstanding (In millions)

403

405

The adjusted diluted earnings per common share excluding integration costs and 2Q26 significant items is a non-GAAP measure and excludes integration costs related to the FirstBank acquisition and 2Q26 significant items during the period. It is calculated based on adjusting net income attributable to diluted common shareholders by removing post-tax effects of integration costs and 2Q26 significant items in the period. The 2Q26 significant items are described in the Integration Costs and 2Q26 Significant Items section on page 2. We believe this non-GAAP measure serves as a useful tool in understanding PNC's results by providing greater comparability between periods, as well as demonstrating the effect of significant items.

Tangible Book Value per Common Share (non-GAAP)

June 30

March 31

June 30

Dollars in millions, except per share data

2026

2025

Book value per common share

$ 145.52

$ 143.65

$ 131.61

Tangible book value per common share

Common shareholders' equity

$ 58,131

$ 57,752

$ 51,854

Goodwill and other intangible assets

(14,161)

$ (14,174)

(11,137)

Deferred tax liabilities on goodwill and other intangible assets

408

416

242

Tangible common shareholders' equity

$ 44,378

$ 43,994

$ 40,959

Period-end common shares outstanding (In millions)

399

402

394

Tangible book value per common share (non-GAAP)

$ 111.09

$ 109.42

$ 103.96

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.

Return on Average Tangible Common Equity (non-GAAP)

Three months ended

June 30

March 31

June 30

Dollars in millions

2026

2025

Return on average common shareholders' equity

13.61 %

11.92 %

12.20 %

Return on average tangible common equity

Average common shareholders' equity

$ 57,556

$ 57,382

$ 50,676

Average goodwill and other intangible assets

(14,162)

(14,056)

(11,145)

Average deferred tax liabilities on goodwill and other intangible assets

412

327

241

Average tangible common shareholders' equity

$ 43,806

$ 43,653

$ 39,772

Net income attributable to common shareholders

$ 1,953

$ 1,686

1,542

Net income attributable to common shareholders, annualized

$ 7,833

$ 6,838

$ 6,185

Return on average tangible common equity (non-GAAP)

17.88 %

15.66 %

15.55 %

Return on average tangible common equity is a non-GAAP measure and is calculated based on annualized net income attributable to common shareholders divided by tangible common equity. We believe this non-GAAP measure serves as a useful tool to help measure and assess a company's use of common equity.

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

Taxable-Equivalent Net Interest Income (non-GAAP)

Three months ended

June 30

March 31

June 30

Dollars in millions

2026

2025

Net interest income

$ 4,107

$ 3,961

$ 3,555

Taxable-equivalent adjustments

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

$ 4,134

$ 3,990

$ 3,583

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.