PNC Financial Services Group, Inc. (The)
PNC · NYSE
PNC · NYSE
Expected to report Jan 15, 2027 — estimated from last year’s reporting date.
Consensus is $5.09 EPS for Dec 2026 across 8 estimates, ranging $5.00 to $5.22.
PNC’s third quarter combined sequential growth in net income and net interest income with a revenue decline from Q2’s unusually high noninterest income. Net income was $2.10 billion, versus $2.06 billion in Q2 and $1.82 billion a year earlier. Revenue of $6.56 billion fell 5% sequentially but grew 11% year over year. The comparison with Q2 is distorted by its $448 million Visa share-exchange gain; PNC recorded just $11 million this quarter. The supplied expectations line reports EPS of $5.09 against $4.97 consensus, but the financial supplement lists diluted GAAP EPS of $4.97, so the stated beat conflicts with the filing figure.
Underlying banking trends included NII rising to $4.21 billion as loans and deposits grew, although net interest margin edged down 2 basis points sequentially to 2.94%. Lower expenses helped lift the efficiency ratio to 57% from 60% in Q2. Credit costs were broadly stable at $189 million of provision, but net charge-offs increased to $257 million and nonperforming loans rose to $2.19 billion from $2.03 billion. Loan growth reflects continued expansion in commercial lending as well as the FirstBank acquisition completed in January; the quarter also included the transfer of PNC’s education-loan portfolio to held-for-sale.
The quarter’s headline revenue decline primarily reflects the comparison with Q2’s Visa-related gain rather than a sequential contraction in net interest income. Net income increased modestly as lower expenses offset the fall in noninterest income.
NII continued to expand alongside loan growth, but the margin was nearly flat sequentially as asset yields and funding costs both moved higher. Average interest-earning assets increased to $566.1 billion from $555.0 billion in Q2.
Commercial lending drove much of the balance-sheet expansion, while reported credit metrics were mixed: the provision was steady and total past-due accruing loans declined, but charge-offs and nonperforming loans increased. The FirstBank acquisition, completed in January, is also part of the year-over-year balance growth.
Sequential expense reduction helped cushion the lower revenue comparison. Total noninterest expense was $3.75 billion, down from $4.10 billion in Q2 but above $3.46 billion in Q3 2025. The resulting 57% efficiency ratio improved from 60% sequentially and 59% year over year. Personnel expense declined to $2.03 billion from $2.27 billion in Q2; other expense fell to $917 million from $1.03 billion.
Corporate & Institutional Banking remained the largest earnings contributor. Retail Banking’s sequential comparison includes the Visa gain recorded in Q2; Asset Management Group delivered modest year-over-year growth.
