PNC Reports Full Year 2025 Net Income of $7.0 Billion, $16.59 Diluted EPS

Generated Record Revenue and 5% Positive Operating Leverage

Increases Planned Share Repurchases

Fourth Quarter 2025 net income was $2.0 Billion, $4.88 Diluted EPS

Grew NII, NIM and noninterest income; increased loans and deposits

Closed FirstBank Acquisition on Jan. 5, 2026

PITTSBURGH, Jan. 16, 2026 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported:

For the quarter

For the year

In millions, except per share data and as noted

4Q25

3Q25

2025

2024

Fourth Quarter Highlights

Financial Results

Comparisons reflect 4Q25 vs. 3Q25

Net interest income (NII)

$ 3,731

$ 3,648

$ 14,410

$ 13,499

Income Statement

Balance Sheet

Fee income (non-GAAP)

2,123

2,069

7,925

7,345

Other noninterest income

217

198

764

711

Noninterest income

2,340

2,267

8,689

8,056

Revenue

6,071

5,915

23,099

21,555

Noninterest expense

3,603

3,461

13,834

13,524

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

2,468

2,454

9,265

8,031

Provision for credit losses

139

167

779

789

Net income

2,033

1,822

6,997

5,953

Per Common Share

Diluted earnings per share (EPS)

$ 4.88

$ 4.35

$ 16.59

$ 13.74

Average diluted common shares outstanding

394

396

400

Book value

140.44

135.67

140.44

122.94

Tangible book value (TBV) (non-GAAP)

112.51

107.84

112.51

95.33

Balance Sheet & Credit Quality

Average loans In billions

$ 327.9

$ 325.9

$ 323.4

$ 319.8

Average securities In billions

142.2

144.4

142.7

140.7

Average deposits In billions

439.5

431.8

428.8

421.2

Accumulated other comprehensive income (loss) (AOCI)

In billions

(3.4)

(4.1)

(3.4)

(6.6)

Net loan charge-offs

162

179

744

1,041

Allowance for credit losses to total loans

1.58 %

1.61 %

1.58 %

1.64 %

Selected Ratios

Return on average common shareholders' equity

14.33 %

13.24 %

12.90 %

11.92 %

Return on average assets

1.40

1.27

1.24

1.05

Net interest margin (NIM) (non-GAAP)

2.84

2.79

2.83

2.66

Noninterest income to total revenue

Efficiency

Effective tax rate

12.7

20.3

17.5

17.8

Common equity tier 1 (CET1) capital ratio

10.6

10.7

10.6

10.5

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:

"By virtually all measures, 2025 was a successful year. Strong execution across all business lines resulted in record revenue, well controlled expenses and 21% earnings per share growth. We're entering 2026 with great momentum and are excited about the opportunities in front of us, including the recently closed acquisition of FirstBank."

Acquisition of FirstBank

Income Statement Highlights

Fourth quarter 2025 compared with third quarter 2025

Balance Sheet Highlights

Fourth quarter 2025 compared with third quarter 2025 or December 31, 2025 compared with September 30, 2025

Earnings Summary

In millions, except per share data

4Q25

3Q25

4Q24

Net income

$ 2,033

$ 1,822

$ 1,627

Net income attributable to diluted common shareholders

$ 1,922

$ 1,723

$ 1,505

Diluted earnings per common share

$ 4.88

$ 4.35

$ 3.77

Average diluted common shares outstanding

394

396

399

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

4Q25 vs

In millions

4Q25

3Q25

4Q24

3Q25

4Q24

Net interest income

$ 3,731

$ 3,648

$ 3,523

2 %

6 %

Noninterest income

2,340

2,267

2,044

3 %

14 %

Total revenue

$ 6,071

$ 5,915

$ 5,567

3 %

9 %

Total revenue for the fourth quarter of 2025 increased $156 million compared to the third quarter of 2025 and $504 million compared to the fourth quarter of 2024, driven by growth in both net interest income and noninterest income in each period.

Net interest income of $3.7 billion increased $83 million from the third quarter of 2025 and $208 million from the fourth quarter of 2024. In both comparisons, the increase included the impact of lower funding costs, loan growth and the continued benefit of fixed rate asset repricing.

Net interest margin was 2.84% in the fourth quarter of 2025, increasing 5 basis points and 9 basis points from the third quarter of 2025 and fourth quarter of 2024, respectively, reflecting the benefit of fixed rate asset repricing.

Noninterest Income

Change

4Q25 vs

In millions

4Q25

3Q25

4Q24

3Q25

4Q24

Asset management and brokerage

$ 411

$ 404

$ 374

2 %

10 %

Capital markets and advisory

489

432

348

13 %

41 %

Card and cash management

733

737

695

(1) %

5 %

Lending and deposit services

342

335

330

2 %

4 %

Residential and commercial mortgage

148

161

122

(8) %

21 %

Fee income (non-GAAP)

2,123

2,069

1,869

3 %

14 %

Other

217

198

175

10 %

24 %

Total noninterest income

$ 2,340

$ 2,267

$ 2,044

3 %

14 %

Noninterest income for the fourth quarter of 2025 increased $73 million, or 3%, compared with the third quarter of 2025. Asset management and brokerage fees increased $7 million driven by higher average equity markets and increased client activity. Capital markets and advisory revenue increased $57 million primarily due to an increase in merger and acquisition advisory activity. Lending and deposit services increased $7 million and included higher loan commitment fees. Residential and commercial mortgage revenue decreased $13 million driven by lower residential mortgage servicing rights valuation, net of economic hedge. Other noninterest income increased $19 million reflecting higher private equity revenue, partially offset by negative $41 million of Visa derivative adjustments primarily due to litigation escrow funding. Visa derivative adjustments were negative $35 million in the third quarter of 2025.

Noninterest income for the fourth quarter of 2025 increased $296 million, or 14%, from the fourth quarter of 2024. Fee income increased $254 million, or 14%, reflecting strong momentum across all business lines and fee income categories. Other noninterest income increased $42 million and included increased private equity revenue, partially offset by higher negative Visa derivative adjustments. Visa derivative adjustments were negative $41 million in the fourth quarter of 2025 compared to negative $23 million in the fourth quarter of 2024.

CONSOLIDATED EXPENSE REVIEW

Noninterest Expense

Change

4Q25 vs

In millions

4Q25

3Q25

4Q24

3Q25

4Q24

Personnel

$ 2,033

$ 1,970

$ 1,857

3 %

9 %

Occupancy

247

235

240

5 %

3 %

Equipment

412

416

473

(1) %

(13) %

Marketing

101

112

9 %

(10) %

Other

810

747

824

8 %

(2) %

Total noninterest expense

$ 3,603

$ 3,461

$ 3,506

4 %

3 %

Noninterest expense for the fourth quarter of 2025 increased $142 million compared to the third quarter of 2025 and $97 million compared with the fourth quarter of 2024. In both comparisons, the increase was driven by increased business activity. Compared to the third quarter of 2025, the increase also reflected the impact of seasonality.

The effective tax rate was 12.7% for the fourth quarter of 2025 and reflected favorable resolution of several tax matters. The effective tax rate was 20.3% for the third quarter of 2025 and 14.6% for the fourth quarter of 2024.

CONSOLIDATED BALANCE SHEET REVIEW

Loans

Change

4Q25 vs

In billions

4Q25

3Q25

4Q24

3Q25

4Q24

Average

Commercial and industrial

$ 191.7

$ 189.0

$ 177.4

1 %

8 %

Commercial real estate

30.2

30.9

34.5

(2) %

(12) %

Equipment lease financing

7.0

6.9

6.7

1 %

4 %

Commercial

$ 228.9

$ 226.8

$ 218.6

1 %

5 %

Consumer

99.0

99.2

100.4

—

(1) %

Average loans

$ 327.9

$ 325.9

$ 319.1

1 %

3 %

Quarter end

Commercial

$ 232.5

$ 227.4

$ 216.2

2 %

8 %

Consumer

99.0

99.2

100.3

—

(1) %

Total loans

$ 331.5

$ 326.6

$ 316.5

2 %

5 %

Totals may not sum due to rounding

Average loans for the fourth quarter of 2025 increased $2.0 billion compared to the third quarter of 2025 and $8.9 billion compared to the fourth quarter of 2024.

Average commercial loans increased $2.1 billion and $10.3 billion compared to the third quarter of 2025 and the fourth quarter of 2024, respectively, driven by growth in the commercial and industrial portfolio, partially offset by continued runoff in commercial real estate loans.

Average consumer loans were stable compared to the third quarter of 2025 as growth in both the auto and credit card loan portfolios was offset by declines in residential real estate loans. In comparison to the fourth quarter of 2024, average consumer loans decreased due to declines in residential real estate loans, partially offset by growth in the auto loan portfolio.

Loans at December 31, 2025 increased $4.9 billion and $15.0 billion from September 30, 2025 and December 31, 2024, respectively.

Average Investment Securities

Change

4Q25 vs

In billions

4Q25

3Q25

4Q24

3Q25

4Q24

Available for sale

$ 69.9

$ 69.8

$ 63.6

—

10 %

Held to maturity

72.3

74.6

80.3

(3) %

(10) %

Total

$ 142.2

$ 144.4

$ 143.9

(2) %

(1) %

Totals may not sum due to rounding

Average investment securities of $142.2 billion in the fourth quarter of 2025 decreased $2.2 billion compared to the third quarter of 2025 and $1.6 billion compared to the fourth quarter of 2024. In both comparisons, the decrease reflected net paydowns and maturities in the held-to-maturity portfolio.

The duration of the investment securities portfolio was 3.5 years as of December 31, 2025, 3.4 years as of September 30, 2025 and 3.5 years as of December 31, 2024. Net unrealized losses on available-for-sale securities were $1.8 billion at December 31, 2025, $2.1 billion at September 30, 2025 and $3.5 billion at December 31, 2024.

Average Deposits

Change

4Q25 vs

In billions

4Q25

3Q25

4Q24

3Q25

4Q24

Commercial

$ 224.0

$ 215.1

$ 211.6

4 %

6 %

Consumer

210.1

209.4

205.9

—

2 %

Brokered time deposits

5.4

7.3

7.7

(26) %

(30) %

Total

$ 439.5

$ 431.8

$ 425.3

2 %

3 %

IB % of total avg. deposits

78 %

79 %

77 %

NIB % of total avg. deposits

22 %

21 %

23 %

IB - Interest-bearing

NIB - Noninterest-bearing

Totals may not sum due to rounding

Fourth quarter 2025 average deposits of $439.5 billion increased $7.7 billion compared to the third quarter of 2025 and $14.3 billion compared to the fourth quarter of 2024, driven by growth in both commercial and consumer client accounts and activity, partially offset by lower brokered time deposits.

Average Borrowed Funds

Change

4Q25 vs

In billions

4Q25

3Q25

4Q24

3Q25

4Q24

Total

$ 60.3

$ 66.3

$ 67.2

(9) %

(10) %

Avg. borrowed funds to avg. liabilities

12 %

13 %

Average borrowed funds of $60.3 billion in the fourth quarter of 2025 decreased $6.0 billion compared to the third quarter of 2025 and $6.9 billion compared to the fourth quarter of 2024. In both comparisons, the decrease reflected lower Federal Home Loan Bank advances.

Capital

December 31, 2025

September 30, 2025

December 31, 2024

Common shareholders' equity In billions

$ 54.8

$ 53.2

$ 48.7

Accumulated other comprehensive income (loss)

In billions

$ (3.4)

$ (4.1)

$ (6.6)

Basel III common equity tier 1 capital ratio *

10.6 %

10.7 %

10.5 %

*December 31, 2025 ratio is estimated. December 31, 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 December 31, 2025 increased $1.6 billion from September 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 $3.4 billion at December 31, 2025 improved from negative $4.1 billion at September 30, 2025 and negative $6.6 billion at December 31, 2024. The change in each comparison reflected the favorable impact of interest rate movements on securities and swaps and the continued accretion of unrealized losses.

In the fourth quarter of 2025, PNC returned $1.1 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.4 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 35% of the 100 million common shares still available for repurchase at December 31, 2025 under the repurchase program previously approved by our board of directors.

Share repurchase activity in the first quarter of 2026 is expected to approximate $600 million to $700 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 January 5, 2026, the PNC board of directors declared a quarterly cash dividend on common stock of $1.70 per share to be paid on February 5, 2026 to shareholders of record at the close of business January 20, 2026.

At December 31, 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

December 31,

2025

September 30,

2025

December 31,

2024

12/31/25 vs

In millions

09/30/25

12/31/24

Provision for credit losses (a)

$ 139

$ 167

$ 156

$ (28)

$ (17)

Net loan charge-offs (a)

$ 162

$ 179

$ 250

(9) %

(35) %

Allowance for credit losses (b)

$ 5,228

$ 5,253

$ 5,205

—

Total delinquencies (c)

$ 1,443

$ 1,233

$ 1,382

17 %

4 %

Nonperforming loans

$ 2,218

$ 2,137

$ 2,326

4 %

(5) %

Net charge-offs to average loans (annualized)

0.20 %

0.22 %

0.31 %

Allowance for credit losses to total loans

1.58 %

1.61 %

1.64 %

Nonperforming loans to total loans

0.67 %

0.65 %

0.73 %

(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 $139 million in the fourth quarter of 2025, $167 million in the third quarter of 2025 and $156 million in the fourth quarter of 2024.

Net loan charge-offs were $162 million in the fourth quarter of 2025, decreasing $17 million compared to the third quarter of 2025 due to lower consumer and commercial net loan charge-offs. Compared to the fourth quarter of 2024, net loan charge-offs decreased $88 million driven by lower commercial real estate net loan charge-offs.

The allowance for credit losses was $5.2 billion at December 31, 2025 as well as at December 31, 2024, and $5.3 billion at September 30, 2025. The allowance for credit losses as a percentage of total loans was 1.58% at December 31, 2025, 1.61% at September 30, 2025 and 1.64% at December 31, 2024.

Delinquencies at December 31, 2025 were $1.4 billion, increasing $210 million from September 30, 2025, due to higher commercial and consumer loan delinquencies. Compared to December 31, 2024, delinquencies increased $61 million as a result of higher commercial loan delinquencies, partially offset by lower consumer loan delinquencies.

Nonperforming loans were $2.2 billion at December 31, 2025 increasing $81 million compared to September 30, 2025 as higher commercial and industrial nonperforming loans more than offset declines in commercial real estate nonperforming loans. Compared to December 31, 2024, nonperforming loans decreased $108 million driven by lower commercial real estate nonperforming loans.

BUSINESS SEGMENT RESULTS

Business Segment Income (Loss)

In millions

4Q25

3Q25

4Q24

Retail Banking

$ 1,241

$ 1,324

$ 1,083

Corporate & Institutional Banking

1,514

1,459

1,365

Asset Management Group

121

117

Other

(856)

(1,092)

(933)

Net income excluding noncontrolling interests

$ 2,020

$ 1,808

$ 1,610

Retail Banking

Change

4Q25 vs

In millions

4Q25

3Q25

4Q24

3Q25

4Q24

Net interest income

$ 2,989

$ 3,016

$ 2,834

$ (27)

$ 155

Noninterest income

$ 770

$ 790

$ 708

$ (20)

$ 62

Noninterest expense

$ 1,977

$ 1,941

$ 2,010

$ 36

$ (33)

Provision for credit losses

$ 155

$ 126

$ 106

$ 29

$ 49

Earnings

$ 1,241

$ 1,324

$ 1,083

$ (83)

$ 158

In billions

Average loans

$ 97.0

$ 96.9

$ 98.6

$ 0.1

$ (1.6)

Average deposits

$ 244.1

$ 243.3

$ 239.5

$ 0.8

$ 4.6

Net loan charge-offs In millions

$ 116

$ 126

$ 152

$ (10)

$ (36)

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

Fourth quarter 2025 compared with third quarter 2025

Fourth quarter 2025 compared with fourth quarter 2024

Corporate & Institutional Banking

Change

4Q25 vs

In millions

4Q25

3Q25

4Q24

3Q25

4Q24

Net interest income

$ 1,856

$ 1,777

$ 1,688

$ 79

$ 168

Noninterest income

$ 1,210

$ 1,132

$ 1,067

$ 78

$ 143

Noninterest expense

$ 1,107

$ 976

$ 981

$ 131

$ 126

Provision for credit losses

$ 14

$ 44

$ (30)

Earnings

$ 1,514

$ 1,459

$ 1,365

$ 55

$ 149

In billions

Average loans

$ 214.6

$ 212.5

$ 203.7

$ 2.1

$ 10.9

Average deposits

$ 163.8

$ 155.2

$ 151.3

$ 8.6

$ 12.5

Net loan charge-offs In millions

$ 49

$ 53

$ 100

$ (4)

$ (51)

Corporate & Institutional Banking Highlights

Fourth quarter 2025 compared with third quarter 2025

Fourth quarter 2025 compared with fourth quarter 2024

Asset Management Group

Change

4Q25 vs

In millions

4Q25

3Q25

4Q24

3Q25

4Q24

Net interest income

$ 180

$ 176

$ 161

$ 4

$ 19

Noninterest income

$ 260

$ 254

$ 242

$ 6

$ 18

Noninterest expense

$ 293

$ 273

$ 277

$ 20

$ 16

Provision for (recapture of) credit losses

$ (11)

$ 4

$ 2

$ (15)

$ (13)

Earnings

$ 121

$ 117

$ 95

$ 4

$ 26

In billions

Discretionary client assets under management

$ 234

$ 228

$ 211

$ 6

$ 23

Nondiscretionary client assets under administration

$ 238

$ 212

$ 210

$ 26

$ 28

Client assets under administration at quarter end

$ 472

$ 440

$ 421

$ 32

$ 51

In billions

Average loans

$ 14.1

$ 14.2

$ 14.1

$ (0.1)

—

Average deposits

$ 27.0

$ 26.9

$ 27.2

$ 0.1

$ (0.2)

Net loan charge-offs (recoveries) In millions

—

$ 2

$ (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

Fourth quarter 2025 compared with third quarter 2025

Fourth quarter 2025 compared with fourth 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 9:00 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 fourth 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 13753963 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

[email protected]

INVESTORS:

Bryan Gill

(412) 768-4143

[email protected]

[TABULAR MATERIAL FOLLOWS]

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

FINANCIAL RESULTS

Three months ended

Year ended

Dollars in millions, except per share data

December 31

September 30

December 31

2025

2024

2025

2024

Revenue

Net interest income

$ 3,731

$ 3,648

$ 3,523

$ 14,410

$ 13,499

Noninterest income

2,340

2,267

2,044

8,689

8,056

Total revenue

6,071

5,915

5,567

23,099

21,555

Provision for credit losses

139

167

156

779

789

Noninterest expense

3,603

3,461

3,506

13,834

13,524

Income before income taxes and noncontrolling interests

$ 2,329

$ 2,287

$ 1,905

$ 8,486

$ 7,242

Income taxes

296

465

278

1,489

1,289

Net income

$ 2,033

$ 1,822

$ 1,627

$ 6,997

$ 5,953

Less:

Net income attributable to noncontrolling interests

Preferred stock dividends (a)

308

352

Preferred stock discount accretion and redemptions

Net income attributable to common shareholders

$ 1,934

$ 1,735

$ 1,514

$ 6,619

$ 5,529

Less: Dividends and undistributed earnings allocated to

nonvested restricted shares

Net income attributable to diluted common shareholders

$ 1,922

$ 1,723

$ 1,505

$ 6,576

$ 5,496

Per Common Share

Basic

$ 4.88

$ 4.36

$ 3.77

$ 16.60

$ 13.76

Diluted

$ 4.88

$ 4.35

$ 3.77

$ 16.59

$ 13.74

Cash dividends declared per common share

$ 1.70

$ 1.60

$ 6.60

$ 6.30

Effective tax rate (b)

12.7 %

20.3 %

14.6 %

17.5 %

17.8 %

PERFORMANCE RATIOS

Net interest margin (c)

2.84 %

2.79 %

2.75 %

2.83 %

2.66 %

Noninterest income to total revenue

39 %

38 %

37 %

38 %

37 %

Efficiency (d)

59 %

63 %

60 %

63 %

Return on:

Average common shareholders' equity

14.33 %

13.24 %

12.38 %

12.90 %

11.92 %

Average assets

1.40 %

1.27 %

1.14 %

1.24 %

1.05 %

(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 December 31, 2025, September 30, 2025 and December 31, 2024 were $31 million, $30 million and $30 million, respectively. The taxable-equivalent adjustments to net interest income for the twelve months ended December 31, 2025 and December 31, 2024 were $117 million and $131 million, respectively.

(d)

Calculated as noninterest expense divided by total revenue.

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

December 31

September 30

December 31

2025

2024

BALANCE SHEET DATA

Dollars in millions, except per share data and as noted

Assets

$ 573,572

$ 568,767

$ 560,038

Loans (a)

$ 331,481

$ 326,616

$ 316,467

Allowance for loan and lease losses

$ 4,410

$ 4,478

$ 4,486

Interest-earning deposits with banks

$ 32,936

$ 33,318

$ 39,347

Investment securities

$ 138,240

$ 141,523

$ 139,732

Total deposits (a)

$ 440,866

$ 432,749

$ 426,738

Borrowed funds (a)

$ 57,101

$ 62,344

$ 61,673

Allowance for unfunded lending related commitments

$ 818

$ 775

$ 719

Total shareholders' equity

$ 60,585

$ 58,990

$ 54,425

Common shareholders' equity

$ 54,828

$ 53,235

$ 48,676

Accumulated other comprehensive income (loss)

$ (3,408)

$ (4,077)

$ (6,565)

Book value per common share

$ 140.44

$ 135.67

$ 122.94

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

$ 112.51

$ 107.84

$ 95.33

Period end common shares outstanding (In millions)

390

392

396

Loans to deposits

75 %

74 %

Common shareholders' equity to total assets

9.6 %

9.4 %

8.7 %

CLIENT ASSETS (In billions)

Discretionary client assets under management

$ 234

$ 228

$ 211

Nondiscretionary client assets under administration

238

212

210

Total client assets under administration

472

440

421

Brokerage account client assets

Total client assets

$ 566

$ 532

$ 507

CAPITAL RATIOS

Basel III (c) (d)

Common equity tier 1

10.6 %

10.7 %

10.5 %

Tier 1 risk-based

11.9 %

12.0 %

11.9 %

Total capital risk-based

13.5 %

13.6 %

Leverage

9.4 %

9.2 %

9.0 %

Supplementary leverage

7.6 %

7.5 %

ASSET QUALITY

Nonperforming loans to total loans

0.67 %

0.65 %

0.73 %

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

0.71 %

0.70 %

0.74 %

Nonperforming assets to total assets

0.41 %

0.40 %

0.42 %

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

0.20 %

0.22 %

0.31 %

Allowance for loan and lease losses to total loans

1.33 %

1.37 %

1.42 %

Allowance for credit losses to total loans (f)

1.58 %

1.61 %

1.64 %

Allowance for loan and lease losses to nonperforming loans

199 %

210 %

193 %

Total delinquencies (In millions) (g)

$ 1,443

$ 1,233

$ 1,382

(a)

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

(b)

See the Tangible Book Value per Common Share table on page 15 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 14 for additional information. The ratios as of December 31, 2025 are estimated.

(d)

The December 31, 2024 ratios are calculated to reflect PNC's election to adopt the CECL optional five-year transition provisions.

(e)

Amounts include nonaccrual servicing advances to single asset/single borrower trusts with commercial real estate as collateral totaling $105 million and $127 million at December 31, 2025 and September 30, 2025, respectively.

(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 September 30, 2025, December 31, 2024 and estimated December 31, 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

December 31

2025

(estimated)

September 30

2025

December 31

2024

Dollars in millions

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

$ 58,235

$ 57,312

$ 55,483

Less regulatory capital adjustments:

Goodwill and disallowed intangibles, net of deferred tax liabilities

(10,901)

(10,920)

(10,930)

All other adjustments

(76)

(71)

(86)

Basel III Common equity tier 1 capital

$ 47,258

$ 46,321

$ 44,467

Basel III standardized approach risk-weighted assets (b)

$ 444,551

$ 434,712

$ 422,399

Basel III Common equity tier 1 capital ratio (c)

10.6 %

10.7 %

10.5 %

(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 December 31, 2024 ratio is calculated to reflect PNC's election to adopt the CECL optional five-year transition provisions.

The PNC Financial Services Group, Inc.

Consolidated Financial Highlights (Unaudited)

NON-GAAP MEASURES

Fee Income (non-GAAP)

Three months ended

Year ended

December 31

September 30

December 31

Dollars in millions

2025

2024

Noninterest income

Asset management and brokerage

$ 411

$ 404

$ 1,597

$ 1,485

Capital markets and advisory

489

432

1,548

1,250

Card and cash management

733

737

2,899

2,770

Lending and deposit services

342

335

1,310

1,259

Residential and commercial mortgage

148

161

571

581

Fee income (non-GAAP)

$ 2,123

$ 2,069

$ 7,925

$ 7,345

Other income

217

198

764

711

Total noninterest income

$ 2,340

$ 2,267

$ 8,689

$ 8,056

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

Year ended

December 31

September 30

December 31

Dollars in millions

2025

2024

Income before income taxes and noncontrolling interests

$ 2,329

$ 2,287

$ 8,486

$ 7,242

Provision for credit losses

139

167

779

789

Pretax pre-provision earnings (non-GAAP)

$ 2,468

$ 2,454

$ 9,265

$ 8,031

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)

December 31

September 30

December 31

Dollars in millions, except per share data

2025

2024

Book value per common share

$ 140.44

$ 135.67

$ 122.94

Tangible book value per common share

Common shareholders' equity

$ 54,828

$ 53,235

$ 48,676

Goodwill and other intangible assets

(11,138)

(11,163)

(11,171)

Deferred tax liabilities on goodwill and other intangible assets

237

243

241

Tangible common shareholders' equity

$ 43,927

$ 42,315

$ 37,746

Period-end common shares outstanding (In millions)

390

392

396

Tangible book value per common share (non-GAAP)

$ 112.51

$ 107.84

$ 95.33

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

Year ended

December 31

September 30

December 31

Dollars in millions

2025

2024

Net interest income

$ 3,731

$ 3,648

$ 14,410

$ 13,499

Taxable-equivalent adjustments

117

131

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

$ 3,762

$ 3,678

$ 14,527

$ 13,630

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.