Price Chart

Executive Summary

PNC reported strong Q2 2026 results with net income of $2.1 billion ($4.81 diluted EPS; $4.85 adjusted), record revenue of $6.875 billion (+21% YoY), and record net interest income and fee income. The company raised its full-year 2026 guidance for average loans (to ~+12.5%), net interest income (to +15%-15.5%), noninterest income (to ~+9%), and total revenue (to ~+13%), while also announcing an 18% dividend increase to $2.00 per common share. Credit quality strengthened across all key indicators, with NPLs/total loans declining to 0.55% and NCOs/average loans at 0.25%.

Key Facts

• Net income of $2.1 billion, or $4.81 diluted EPS ($4.85 adjusted)
• Record total revenue of $6.875 billion, up 21% YoY and 12% linked quarter
• Record net interest income of $4.107 billion, up 16% YoY and 4% linked quarter
• Record fee income (non-GAAP) of $2.279 billion, up 20% YoY and 10% linked quarter
• Average loans grew 4% linked quarter and 13% YoY to $363.2 billion
• Total deposits stable linked quarter at $457.0 billion, up 8% YoY; NIB deposits grew 4% linked quarter and 11% YoY
• Noninterest expense, as adjusted (non-GAAP), up 5% linked quarter and 13% YoY to $3.837 billion
• PPNR (non-GAAP) of $2.777 billion, up 16% linked quarter and 22% YoY
• Provision for credit losses of $191 million, down 9% linked quarter and 25% YoY
• NPLs/total loans improved to 0.55% from 0.62% linked quarter and 0.65% YoY
• NCOs/average loans of 0.25%, flat YoY and down from 0.29% linked quarter
• Allowance for credit losses to total loans of 1.48%, down from 1.52% linked quarter and 1.62% YoY
• Basel III CET1 capital ratio of 9.9% (estimated), down 20 bps linked quarter and 60 bps YoY
• Return on average tangible common equity (non-GAAP) of 17.88%, up 222 bps linked quarter and 233 bps YoY
• Tangible book value per common share (non-GAAP) of $111.09, up 2% linked quarter and 7% YoY
• Returned $1.3 billion to shareholders: $0.7 billion in dividends on common shares and $0.6 billion in share repurchases
• Announced dividend increase of $0.30, or 18%, to $2.00 per common share
• Full-year 2026 guidance raised: average loans up ~12.5% (from ~11%), NII up 15%-15.5% (from ~14.5%), noninterest income up ~9% (from ~6%), total revenue up ~13% (from ~11%), noninterest expense up ~8.5% (from ~7%)
• Q3 2026 guidance: average loans up 1%-2% linked quarter, NII up 3%-3.5%, fee income down 5%-5.5%, other noninterest income $150-$200 million, adjusted noninterest expense down 2%-3%, NCOs ~$225 million
• Integration costs of ~$325 million expected for FY26; $140 million PNC Foundation contribution in Q2

Financial Impact

Record revenue of $6.875B (+21% YoY), net income $2.055B (+25% YoY), EPS $4.81 (+25% YoY). Raised FY26 guidance across all key metrics. Dividend increased 18% to $2.00/share.

Risk Factors

• Net interest margin compressed slightly to 2.96% from 2.95% linked quarter, though up from 2.80% YoY
• CET1 ratio declined 20 bps linked quarter to 9.9%, and 60 bps YoY from 10.5%
• FY26 guidance excludes ~$325M in integration costs and $140M PNC Foundation contribution, which will pressure GAAP expense growth to ~11%
• Q3 fee income guidance of down 5%-5.5% sequentially could signal seasonal or competitive pressure
• Elevated inflation and potential for tighter Fed policy could pressure net interest margins and loan demand

Market Snapshot

Investment Themes

Documents Analyzed

This report is based on 5 SEC documents filed with EDGAR.

US Market Status