PNC Financial Services | 8-K: FY2025 Q4 Revenue: USD 6.071 B

Revenue: As of FY2025 Q4, the actual value is USD 6.071 B.EPS: As of FY2025 Q4, the actual value is USD 4.88, beating the estimate of USD 4.2115.Consolidated Financial PerformanceFor the three months ended December 31, 2025:Net interest income was $3,731 million.Noninterest income totaled $2,340 million.Total revenue reached $6,071 million, an increase of $156 million or 3% from $5,915 million in 3Q25.Provision for Credit Losses was $139 million, a decrease of $28 million from $167 million in 3Q25.Total noninterest expense amounted to $3,603 million, an increase of $142 million or 4% from $3,461 million in 3Q25.Net income was $2,033 million, an increase of $211 million or 11.6% from $1,822 million in 3Q25.Net income attributable to common shareholders was $1,934 million.Efficiency ratio was 59%.Noninterest income represented 39% of total revenue.The effective tax rate was 12.7%, down from 20.3% in 3Q25.Pretax, Pre-provision Earnings (PPNR) (non-GAAP) were $2.468 billion, up from $2.454 billion in 3Q25.Share Repurchases were $0.4 billion in 4Q25.Common Dividends were $0.7 billion in 4Q25, with a quarterly cash dividend of $1.70 per share declared.For the year ended December 31, 2025:Net interest income was $14,410 million, up from $13,499 million in 2024.Noninterest income totaled $8,689 million, up from $8,056 million in 2024.Total revenue reached $23,099 million, up from $21,555 million in 2024.Provision for Credit Losses was $779 million, down from $789 million in 2024.Total noninterest expense amounted to $13,834 million, up from $13,524 million in 2024.Net income was $6,997 million.Net income attributable to common shareholders was $6,619 million.Efficiency ratio was 60%, improved from 63% in 2024.Noninterest income represented 38% of total revenue.The effective tax rate was 17.5%, down from 17.8% in 2024.Fee Income (non-GAAP) was $7.925 billion, up from $7.345 billion in 2024.Pretax, Pre-provision Earnings (PPNR) (non-GAAP) were $9.265 billion, up from $8.031 billion in 2024.Return on Average Common Shareholders’ Equity was 12.90%, up from 11.92% in 2024.Return on Average Assets was 1.24%, up from 1.05% in 2024.Consolidated Balance SheetAs of December 31, 2025:Total assets were $573,572 million.Total liabilities were $512,936 million.Total equity was $60,636 million.Total deposits amounted to $440,866 million, comprising $91,748 million in noninterest-bearing deposits and $349,118 million in interest-bearing deposits.Total borrowed funds were $57,101 million.Loans totaled $331,481 million.The allowance for loan and lease losses was - $4,410 million.Common Shareholders’ Equity was $54.8 billion, up from $53.2 billion in 3Q25.Accumulated Other Comprehensive Income (Loss) (AOCI) was - $3.4 billion, an improvement from - $4.1 billion in 3Q25.Tangible Book Value (TBV) per Share (non-GAAP) was $112.51, up from $95.33 in 2024.Average Consolidated Balance SheetFor the three months ended December 31, 2025:Average total interest-earning assets were $520,775 million.Average total interest-bearing liabilities were $405,016 million.Average total loans were $327,929 million, an increase of $2.0 billion or 1% from $325.9 billion in 3Q25.Commercial Loans were $228.9 billion, up 1% from $226.8 billion in 3Q25.Consumer Loans were $99.0 billion, stable compared to $99.2 billion in 3Q25.Average total interest-bearing deposits were $344,701 million.Average noninterest-bearing deposits were $94,834 million.Average Investment Securities were $142.2 billion, a decrease of $2.2 billion or 2% from $144.4 billion in 3Q25.Average Deposits were $439.5 billion, an increase of $7.7 billion or 2% from $431.8 billion in 3Q25.Commercial Deposits were $224.0 billion, up 4% from $215.1 billion in 3Q25.Consumer Deposits were $210.1 billion, stable compared to $209.4 billion in 3Q25.Brokered Time Deposits were $5.4 billion, down 26% from $7.3 billion in 3Q25.Average Borrowed Funds were $60.3 billion, a decrease of $6.0 billion or 9% from $66.3 billion in 3Q25.For the year ended December 31, 2025:Average total interest-earning assets were $512,683 million.Average total interest-bearing liabilities were $399,630 million.Average total loans were $323,381 million, up from $319.8 billion in 2024.Average total interest-bearing deposits were $335,529 million.Average noninterest-bearing deposits were $93,283 million.Average Deposits were $428.8 billion, up from $421.2 billion in 2024.Net Interest MarginFor the three months ended December 31, 2025:Net interest margin was 2.84%, an increase of 5 basis points from 2.79% in 3Q25.Interest rate spread was 2.27%.For the year ended December 31, 2025:Net interest margin was 2.83%.Interest rate spread was 2.23%.Credit QualityFor the three months ended December 31, 2025:Total net charge-offs were - $162 million, a decrease of $17 million or 9% from - $179 million in 3Q25.The provision for credit losses for loans and leases was $93 million.Net charge-offs to average loans was 0.20%.Delinquencies were $1.443 billion, an increase of $210 million or 17% from $1.233 billion in 3Q25.Allowance for Credit Losses was $5.228 billion, a decrease of $25 million from $5.253 billion in 3Q25.Allowance for Credit Losses to Total Loans was 1.58%, down from 1.61% in 3Q25.For the year ended December 31, 2025:Total net charge-offs were - $744 million, down from - $1,041 million in 2024.The provision for credit losses for loans and leases was $660 million.Net charge-offs to average loans was 0.23%.Allowance for Credit Losses to Total Loans was 1.58%, down from 1.64% in 2024.As of December 31, 2025:Total nonperforming loans were $2,218 million, an increase of $81 million or 4% from $2.137 billion in 3Q25.Total nonperforming assets were $2,361 million.Nonperforming loans to total loans was 0.67%.Nonperforming assets to total assets was 0.41%.Accruing loans past due 30 to 59 days totaled $660 million.Accruing loans past due 60 to 89 days totaled $403 million.Accruing loans past due 90 days or more totaled $380 million.Segment Performance (Three months ended December 31, 2025)Retail Banking:Net income: $1,241 million, a decrease of $83 million or 6% from $1,324 million in 3Q25.Total revenue: $3,759 million.Provision for credit losses: $155 million, an increase of $29 million from $126 million in 3Q25.Total noninterest expense: $1,977 million, an increase of $36 million or 2% from $1,941 million in 3Q25.Return on average assets: 4.33%.Efficiency ratio: 53%.Nonperforming assets: $840 million.Net charge-offs - loans and leases: $116 million, a decrease of $10 million from $126 million in 3Q25.Serviced portfolio balance: $198 billion.MSR asset value: $2,638 million.Loan origination volume: $1.6 billion.Net Interest Income: $2.989 billion, a decrease of $27 million from $3.016 billion in 3Q25.Noninterest Income: $770 million, a decrease of $20 million or 3% from $790 million in 3Q25.Average Loans: $97.0 billion, stable with a $0.1 billion increase from $96.9 billion in 3Q25.Average Deposits: $244.1 billion, stable with a $0.8 billion increase from $243.3 billion in 3Q25.Corporate & Institutional Banking:Net income: $1,514 million, an increase of $55 million or 4% from $1,459 million in 3Q25.Total revenue: $3,066 million.Provision for credit losses: $14 million, a decrease of $30 million from $44 million in 3Q25.Total noninterest expense: $1,107 million, an increase of $131 million or 13% from $976 million in 3Q25.Return on average assets: 2.49%.Efficiency ratio: 36%.Nonperforming assets: $1,375 million.Net charge-offs - loans and leases: $49 million, a decrease of $4 million from $53 million in 3Q25.Revenue from Treasury Management: $1,197 million.Serviced portfolio balance (commercial mortgage): $294 billion.Net Interest Income: $1.856 billion, an increase of $79 million from $1.777 billion in 3Q25.Noninterest Income: $1.210 billion, an increase of $78 million or 7% from $1.132 billion in 3Q25.Average Loans: $214.6 billion, an increase of $2.1 billion or 1% from $212.5 billion in 3Q25.Average Deposits: $163.8 billion, an increase of $8.6 billion or 6% from $155.2 billion in 3Q25.Asset Management Group:Net income: $121 million, an increase of $4 million or 3% from $117 million in 3Q25.Total revenue: $440 million.Provision for (recapture of) credit losses: - $11 million, a recapture compared to a $4 million provision in 3Q25.Total noninterest expense: $293 million, an increase of $20 million or 7% from $273 million in 3Q25.Return on average assets: 3.31%.Efficiency ratio: 67%.Nonperforming assets: $52 million.Net charge-offs (recoveries) - loans and leases: $0 million, a decrease of $2 million from $2 million in 3Q25.Total discretionary client assets under management: $234 billion, an increase of $6 billion or 3% from $228 billion in 3Q25.Nondiscretionary client assets under administration: $238 billion, an increase of $26 billion from $212 billion in 3Q25.Client Assets Under Administration at Quarter End: $472 billion, an increase of $32 billion from $440 billion in 3Q25.Net Interest Income: $180 million, an increase of $4 million from $176 million in 3Q25.Noninterest Income: $260 million, an increase of $6 million or 2% from $254 million in 3Q25.Average Loans: $14.1 billion, stable with a - $0.1 billion change from $14.2 billion in 3Q25.Average Deposits: $27.0 billion, stable with a $0.1 billion increase from $26.9 billion in 3Q25.Other Segment:Net income was - $856 million, an improvement from - $1.092 billion in 3Q25.Operational MetricsPeriod End Employees (as of December 31, 2025):Total full-time employees: 53,859.Total part-time employees: 1,474.Total employees: 55,333.Outlook / GuidanceThe PNC Financial Services Group, Inc. completed its acquisition of FirstBank Holding Company on January 5, 2026, and FirstBank’s financial results will be included in The PNC Financial Services Group, Inc.’s consolidated operations starting in the first quarter of 2026.Share repurchase activity in the first quarter of 2026 is expected to approximate $600 million to $700 million.The company anticipates continued but slower economic growth in 2026, with real GDP growth slowing to around 2% and the unemployment rate around 4.5%.The Federal Reserve is expected to hold rates in the first half of 2026, followed by modest easing with 25 basis point cuts in July and September 2026, bringing the federal funds rate to 3.00% to 3.25% by fall.