PNC Financial Services Group (NYSE:PNC) reported stronger-than-expected second-quarter results after record capital markets revenue and solid loan growth helped boost earnings above Wall Street expectations. The bank’s shares rose in premarket trading after the announcement.
Earnings and revenues were better than expectations
PNC reported adjusted earnings per share of $4.85 for the second quarter, beating analysts’ consensus estimate of $4.47.
Revenue rose to $6.88 billion, above the expected $6.5 billion and up 21 percent from the same period last year.
Following the results, the bank’s shares rose about 0.5 percent in premarket trading.
Capital markets deliver record quarter
A key driver of the quarter was record capital markets and advisory revenues, which increased 80 percent year over year to $577 million.
Net interest income rose 16 percent to $4.1 billion, supported by continued commercial loan growth and higher balances in non-interest-bearing deposits.
Fee income also strengthened, rising 20 percent from a year earlier to $2.3 billion.
Chief Executive Officer Bill Demchak said:
“Our strong performance in the second quarter reflects the disciplined implementation of our growth strategy and positions us well for the second half of the year.”
Loan and deposit growth remains strong
Average loans increased by $40.4 billion, or 13 percent year over year, to $363.2 billion due to growth in commercial lending.
Average deposits increased 8 percent to $457.0 billion.
Net loan charge-offs during the quarter totaled $226 million, representing 0.25 percent of average loans.
Adjusted earnings exclude $0.04 per share of integration costs related to the FirstBank acquisition, as well as several one-time items, including a $448 million gain from the Visa swap program, which was largely offset by a $140 million contribution to the PNC Foundation, a $139 million securities impairment loss and an $85 million negative adjustment related to Visa derivatives.
FirstBank integration completed
PNC completed the transformation of FirstBank on June 22, 2026, and integrated approximately 780,000 customers, 1,620 employees and 95 branches into its operations.
The bank also announced an 18 percent increase in its quarterly dividend to $2.00 per share.
During the quarter, PNC returned $1.3 billion to shareholders through dividends and share repurchases.
Its common equity Tier 1 capital ratio at the end of the quarter was estimated at 9.9 percent.
PNC Financial Services Group Stock Price