The PNC Financial Services Group (PNC) Q1 2025 earnings summary

Executive summary

• Reported Q1 2025 net income of $1.5 billion and diluted EPS of $3.51, up 12%-13% year-over-year, reflecting robust performance despite industry headwinds and market volatility from tariff uncertainty.

• Net interest margin expanded to 2.78%, with tangible book value per share rising to $100.40, and CET1 capital ratio increasing to 10.6%.

• Customer and relationship growth continued, particularly in C&I loan commitments, though total loans declined 1% sequentially.

• Expenses were well-controlled despite market uncertainty, and credit quality metrics remained strong.

• Appointed Mark Weidman as President, bringing deep financial services experience to the leadership team.

Financial highlights

• Total revenue was $5.45 billion, up 6% year-over-year but down 2% sequentially; net interest income of $3.48 billion increased 6% year-over-year but decreased 1% sequentially.

• Noninterest income was $1.98 billion, up 5% year-over-year but down 3% sequentially; fee income (non-GAAP) was $1.84 billion, down 2% sequentially.

• Noninterest expense declined 3% sequentially to $3.39 billion, but rose 2% year-over-year.

• Provision for credit losses increased to $219 million, driven by macroeconomic changes and higher net charge-offs.

• Tangible book value per share increased 17% year-over-year to $100.40.

Outlook and guidance

• Full-year 2025 guidance unchanged: average loans stable, spot loans up 2%-3%, net interest income up 6%-7%, noninterest income up ~5%, total revenue up ~6%, noninterest expense up ~1%.

• Q2 2025: average loans up ~1%, net interest income up 1%-2%, fee income up 1%-3%, total revenue up 1%-3%, noninterest expense stable, net charge-offs expected at ~$300 million.

• Management expects record net interest income for 2025, but notes risks from trade policy, economic slowdown, and potential recession.