The PNC Financial Services Group (PNC) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $1.5 billion with diluted EPS of $3.49, reflecting strong operating leverage, fee growth, and tangible book value per share gains.

• Net interest income grew 3% sequentially, net interest margin increased to 2.64%, and fee income rose 10%, led by capital markets and advisory activity.

• Expenses were well controlled, down 1% sequentially, with positive pretax, pre-provision earnings growth.

• Credit quality remained stable with robust reserves for CRE office exposure; tangible book value per share increased 9% sequentially and 24% year-over-year.

• Capital and liquidity positions strengthened, with a CET1 ratio of 10.3%.

Financial highlights

• Q3 net income: $1.5 billion; diluted EPS: $3.49; total revenue: $5.4 billion, up $21 million sequentially.

• Net interest income: $3.4 billion, up 3%; net interest margin: 2.64%; fee income: $2.0 billion, up 10%.

• Noninterest expense: $3.3 billion, down 1% sequentially; efficiency ratio: 61%.

• Provision for credit losses: $243 million, up 3% sequentially; allowance for credit losses to total loans: 1.65%.

• Tangible book value per share: $96.98, up 9% sequentially and 24% year-over-year.

Outlook and guidance

• Q4 2024 guidance: average loans stable, net interest income up ~1%, fee income down 5–7%, noninterest expense up 2–3%, net charge-offs ~$300 million.

• Management expects record net interest income in 2025, not reliant on loan growth.

• Economic growth projected to slow into 2025, with inflation moderating and multiple Fed rate cuts anticipated.