(NYSE:PNC) reported stronger-than-expected third-quarter results on Wednesday, fueled by solid fee income growth and tight expense management. Despite the upbeat performance, shares dipped 0.91% in pre-market trading.
The Pittsburgh-based banking group posted earnings of $4.35 per share, well above analyst estimates of $4.04. Total revenue came in at $5.92 billion, surpassing the $5.83 billion consensus and rising 9% year over year.
Fee income climbed 9% from the previous quarter to $2.07 billion, driven by a 35% surge in capital markets and advisory services. Net interest income also rose 3% to $3.65 billion, while the bank maintained a net interest margin of 2.79%.
“We delivered another great quarter with better than expected financial results and steady client growth across all our business lines,” said Bill Demchak, PNC Chairman and Chief Executive Officer. “Fee income grew 9% and expenses were well-controlled which contributed to another quarter of positive operating leverage.”
Credit quality remained solid, with net loan charge-offs falling to $179 million, or 0.22% of average loans on an annualized basis, down from $198 million in the prior quarter. Average loans increased 1% to $325.9 billion, supported by 2% growth in commercial and industrial lending.
PNC’s Common Equity Tier 1 (CET1) capital ratio strengthened to 10.6% from 10.5% in the previous quarter. The bank returned $1 billion to shareholders during the period through dividends and stock buybacks.
Looking forward, PNC expects fourth-quarter share repurchases to remain broadly in line with third-quarter levels, between $300 million and $400 million. The company also reaffirmed that its acquisition of FirstBank—announced in September—will expand its footprint in Colorado and Arizona once completed in early 2026.
PNC Financial Services Group stock price
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