Net Income: $1.5 billion or $3.51 per share.
Total Revenue: $5.5 billion, a decrease of $115 million or 2% from the previous quarter.
Net Interest Income: $3.5 billion, a decrease of $47 million or 1% from the previous quarter.
Net Interest Margin: 2.78%, an increase of 3 basis points.
Average Loans: $317 billion, a decline of $2 billion or 1% from the previous quarter.
Spot C&I Loans Growth: 3% increase.
Deposit Balances: $421 billion, a decline of $5 billion or 1% from the previous quarter.
Tangible Book Value: $100.40 per common share, a 5% increase from the previous quarter.
CET1 Ratio: Estimated at 10.6% as of March 31.
Noninterest Expense: $3.4 billion, a decline of $119 million or 3% from the previous quarter.
Provision for Credit Losses: $219 million.
Effective Tax Rate: 18.8%.
Credit Quality: Nonperforming loans stable at $2.3 billion; net loan charge-offs were $205 million.
Capital Returned to Shareholders: Approximately $800 million through dividends and share repurchases.
Release Date: April 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
PNC Financial Services Group Inc (NYSE:PNC) reported strong first-quarter results with a net income of $1.5 billion or $3.51 per share.
The company achieved a 3% growth in spot C&I loans, marking the largest increase since the fourth quarter of 2022.
PNC’s net interest margin expanded to 2.78%, with expectations to approach 3% by the end of the year.
The company maintained strong credit quality with a well-reserved allowance for credit losses totaling $5.2 billion.
PNC returned approximately $800 million of capital to shareholders through dividends and share repurchases during the first quarter.
Loan growth remained challenging for the industry, with a 1% decline in average loan balances.
Deposit balances decreased by $5 billion or 1%, reflecting seasonal trends and a reduction in brokered CDs.
Noninterest income could be pressured throughout the year due to uncertainty around proposed tariffs.
Capital markets and advisory fees decreased by 12%, reflecting lower M&A advisory and trading revenue.
The company faces potential risks from proposed tariffs, which could increase the probability of a recession.
Q: On the loan growth front, can you provide more color around the drivers of C&I loan growth and whether any of it is transient due to tariffs or precautionary line draws? A: Robert Reilly, CFO: The increase in outstanding loans was broad-based across most categories, aligning with our expectations for increased utilization. While some growth might be defensive or tariff-driven, it’s not significant. William Demchak, CEO: Clients aren’t explicitly building inventory ahead of tariffs, but some inventory build is occurring as part of working capital financing.
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