PNC

This article first appeared on GuruFocus. Net Profit After Tax (NPAT): $23.1 million for FY26, representing growth of 245% on FY25 and exceeding the upgraded guidance. Cash Collections: Increased to $147.6 million (or $148 million) in FY26, up from $107 million in FY22. EBITDA: Reached an all-time high of almost $106 million. Earnings Before Interest and Taxation (EBIT): Just shy of $56 million. Interest Income: Increased by 16% to $102.5 million. Employee Expense: Reduced by 4% to $31.7 million. Finance Expenses: Reduced significantly from $38.3 million to $26.9 million, driven by successful repricing of senior facility and medium-term notes. Net Operating Cash Flow: Increased significantly by 35% to $70.8 million. PDP Investment: Record investment of $105.1 million in FY26, with $93.8 million reinvested into PDP acquisitions from a cash flow perspective. Cash Balance: Finished the year with a higher cash balance of $7.9 million. Cost to Service: Reduced from 44% in FY22 to 34% in FY26, remaining within target range. Total Assets: Increased to $445 million. PDP Assets: Increased 17% to $400 million. Net Assets: Increased 38% to $83.7 million. Interest Cover: Improved to 4.1 times at March '26. Group LVR: Reduced from 89% at March '25 to 84% at March '26, and further to 77% post the recent equity raise. FY27 Guidance: PDP investment of $100 million to $110 million, with $77 million already underpinned by forward flow agreements; cash collections expected to grow to $170 million to $180 million. FY29 NPAT Target: At least $35 million. Warning! GuruFocus has detected 9 Warning Signs with ASX:PNC. Is ASX:PNC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record NPAT of $23.1 million, up 245% year-over-year, exceeding the upgraded guidance of $18 million. Record PDP investment of $105.1 million, with $77 million already underpinned by forward flow agreements for FY27. Improved credit metrics: LVR reduced to 77% post equity raise, and interest cover improved to 4.1 times. Strong cash generation with cash collections up to $147.6 million and net operating cash flow up 35% to $70.8 million. Management alignment with long-term targets, including a new FY29 NPAT target of at least $35 million and a clear path to dividend resumption. Cost to Service increased modestly during FY26, though it remains within the target range. A significant proportion of FY26 PDP investments were completed late in the year, contributing only modestly to FY26 earnings. Trade payables increased due to late-year PDP acquisitions, though subsequently paid down. Leverage, while reduced, remains a focus, with the Board yet to finalize a target gearing level. The company's outlook is dependent on continued favorable supply conditions and pricing in the PDP market. Q: How has Pioneer Credit reduced its leverage, and what is the target gearing level going forward?A: Keith John, Managing Director, explained that leverage has been reduced from mid-to-high 90s to 77% through continued strong performance, cash generation, and a recent $17 million equity raise. The Board has not yet finalized a specific target but believes the current range is reasonable. They expect leverage to continue to drop and will communicate a formal target to shareholders soon. Q: What are the key drivers behind the record PDP investment and the outlook for FY27?A: Keith John, Managing Director, highlighted that Pioneer's unique position as the only Australian company with agreements with all Big 4 Banks, coupled with its ethical recovery approach and strong vendor relationships, drove a record $105 million PDP investment in FY26. For FY27, the company guides to $100 million to $110 million in investment, with $77 million already secured via forward flow agreements, positioning it to become Australia's number one PDP buyer. Q: Can you elaborate on the FY26 financial performance and the significant NPAT growth?A: Barry Hartnett, CFO, reported NPAT of $23.1 million, a 245% increase from FY25, surpassing the original $18 million target. This was driven by a 16% rise in interest income to $102.5 million, a 4% reduction in employee expenses, and a significant decrease in finance expenses from $38.3 million to $26.9 million due to successful refinancing. Cash collections increased to $148 million, and net operating cash flow grew by 35% to $70.8 million. Q: What is the company's strategy for returning value to shareholders, and what are the future earnings targets?A: Keith John, Managing Director, confirmed that the path is now set for a return to dividends following the achievement of FY27 results. Management and the Board are aligned on a new long-term target of at least $35 million NPAT for FY29, which will be tied to management incentives. The company expects material earnings growth in FY27, with cash collections projected to rise to $170 million to $180 million. Q: How is Pioneer Credit managing its cost base and operational efficiency?A: Barry Hartnett, CFO, noted that the Cost to Service ratio has improved from 44% in FY22 to 34% in FY26, demonstrating significant operating leverage and scale benefits. While there was a modest increase during FY26, it remains within the target range. The company continues to identify further efficiency opportunities through the embedding of technology initiatives across the business. Q: What are the key differentiators that make Pioneer Credit attractive to its vendor partners?A: Keith John, Managing Director, emphasized three key differentiators: a strong ethical customer care model that supports Australians in financial difficulty, a commitment to not competing with vendor partners by not selling loans, and a strict policy of not purchasing payday loans. These factors, combined with an industry-leading compliance record, underpin the trust and strong relationships with major banks. Q: How does the quality of Pioneer's portfolio protect it from economic downturns?A: Keith John, Managing Director, explained that the portfolio is high quality, with low exposure to home loans (less than 10% of customers) and minimal exposure to payday or SACC loans. The customer base has a low unemployment exposure of around 2%, less than half the national average, which provides resilience against interest rate rises and inflationary pressures, supporting strong portfolio performance. Q: Can you provide details on the balance sheet strength and credit metrics?A: Barry Hartnett, CFO, highlighted that total assets increased to $445 million, driven by a 17% growth in PDP assets to $400 million. Net assets increased 38% to $83.7 million. Interest cover improved to 4.1 times, and the group LVR reduced from 89% to 84% at March '26, further improving to 77% post the equity raise. These metrics are among the lowest in the industry, and management remains focused on reducing the cost of funds. Q: How is management incentivized to ensure long-term shareholder alignment?A: Keith John, Managing Director, stated that there is no short-term incentive for the management team; instead, remuneration is tied to performance over three to four years, aligning with the time it takes to extract value from portfolio investments. For FY27, incentives will expand to include measurable compliance outcomes, cash collection targets, and return on investment, all tied to the FY29 NPAT target of at least $35 million. Q: What is the expected impact of the FY26 investments on future earnings?A: Barry Hartnett, CFO, noted that a significant proportion of the record FY26 investments was completed late in the financial year, contributing only modestly to FY26 earnings. However, these investments are expected to drive significant growth in cash collections and earnings in FY27, supporting the company's guidance for cash collections of $170 million to $180 million and material earnings growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the diversified banks industry, including PNC Financial Services Group (NYSE:PNC) and its peers. At their core, diversified banks take in deposits and engage in various forms of lending, which means revenue is generated through interest rate spreads (difference between loan and deposit rates) and fees. Other revenue comes from adjacent services such as wealth management, card and account fees, and products such as annuities. These institutions benefit from rising interest rates that improve NIMs (net interest margins), digital transformation reducing operational costs, and expanding wealth management services as populations age. However, they face headwinds including fintech competition disrupting traditional models (how disruptive is crypto?), stringent regulatory requirements increasing compliance costs, and cybersecurity threats requiring substantial technology investments. Economic downturns also pose risks through potential loan defaults and compressed margins during accommodative monetary policy periods. The 7 diversified banks stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.6%. In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results. Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE:PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network. PNC Financial Services Group reported revenues of $6.68 billion, up 17.5% year on year. This print exceeded analysts’ expectations by 3.8%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and net interest income in line with analysts’ estimates. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $252.60. Is now the time to buy PNC Financial Services Group? Access our full analysis of the earnings results here, it’s free. With operations in nearly 160 countries and a history dating back to 1812, Citigroup (NYSE:C) is a global financial services company that provides banking, investment, wealth management, and payment solutions to consumers, corporations, and governments. Citigroup reported revenues of $24.79 billion, up 14.3% year on year, outperforming analysts’ expectations by 4.5%. The business had an exceptional quarter with a solid beat of analysts’ net interest income and EPS estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 3.7% since reporting. It currently trades at $135.53. Is now the time to buy Citigroup? Access our full analysis of the earnings results here, it’s free. With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE:USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses. U.S. Bancorp reported revenues of $7.76 billion, up 9.9% year on year, exceeding analysts’ expectations by 2.1%. Still, it was a mixed quarter as it posted a miss of analysts’ tangible book value per share estimates. Interestingly, the stock is up 1.7% since the results and currently trades at $64.09. Read our full analysis of U.S. Bancorp’s results here. Founded during the California Gold Rush in 1852 to provide banking and express delivery services to miners and merchants, Wells Fargo (NYSE:WFC) is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals and businesses. Wells Fargo reported revenues of $22.7 billion, up 8.6% year on year. This number topped analysts’ expectations by 3.9%. Overall, it was a very strong quarter as it also put up a beat of analysts’ EPS estimates and a narrow beat of analysts’ tangible book value per share estimates. The stock is flat since reporting and currently trades at $87.40. Read our full, actionable report on Wells Fargo here, it’s free. Tracing its roots back to 1799 when its earliest predecessor was founded by Aaron Burr, JPMorgan Chase (NYSE:JPM) is a leading financial services company offering investment banking, consumer banking, commercial banking, and asset management services globally. JPMorgan Chase reported revenues of $58.02 billion, up 27% year on year. This result surpassed analysts’ expectations by 13%. It was a strong quarter as it also produced a narrow beat of analysts’ tangible book value per share estimates and a beat of analysts’ EPS estimates. JPMorgan Chase achieved the biggest analyst estimate beat and fastest revenue growth in the group. The stock is up 7.5% since reporting and currently trades at $359.51. Read our full, actionable report on JPMorgan Chase here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Bank of Hawaii Corporation BOH reported second-quarter 2026 earnings per share (EPS) of $1.47, which beat the Zacks Consensus Estimate of $1.46. The bottom line also improved from $1.06 in the year-ago quarter. Shares of the company lost 4.7% in yesterday’s trading session despite posting better-than-expected results. BOH’s results benefited from higher net interest income (NII), margin expansion, solid loan growth and strong credit quality. However, lower fee income and a decline in deposit balances remained headwinds. The company’s net income (GAAP basis) came in at $63.8 million, up 34% year over year. BOH’s quarterly revenues increased 13% year over year to $196.9 million. The top line missed the Zacks Consensus Estimate of $198.3 million. NII was $153.6 million, up 18% year over year. Net interest margin (NIM) increased 39 basis points to 2.78%. Our estimate for NII and NIM was $154.8 million and 2.80%, respectively. Non-interest income was $43.3 million, down 3% year over year. The decline was mainly due to lower fees, exchange and other service charges and higher net investment securities losses, partially offset by higher trust and asset management fees, annuity and insurance income and bank-owned life insurance income. Our estimate for the metric was $42.1 million. Non-interest expenses rose marginally year over year to $111.2 million. Higher salaries and benefits, occupancy, equipment, professional fees and FDIC insurance costs were largely offset by lower other expenses. Our estimate for the metric was $112.9 million. The efficiency ratio was 56.47%, down from 63.49% in the year-ago period. A lower efficiency ratio indicates improved profitability. As of June 30, 2026, total loans and leases increased nearly 1% from the prior quarter to $14.3 billion. Our estimate for total loans and leases was $13.9 billion. Total deposits decreased marginally on a sequential basis to $20.9 billion. Our estimate for total deposits was $21.1 billion. As of June 30, 2026, non-performing assets were $11.5 million, down 36% year over year. Our estimate for the metric was $13.9 million. Net loan and lease charge-offs were $3.4 million, up from $2.6 million in the year-ago quarter. Our estimate for the metric was $1.1 million. Provision for credit losses was $3.6 million, up from $3.3 million a year earlier. Our estimate for the metric was $2.7 million. The allowance for credit losses declined 1% year over year to $147 million. Our estimate for the metric was $148.6 million. As of June 30, 2026, the Tier 1 capital ratio was 14.45%, up from 14.17% as of June 30, 2025. The total capital ratio increased to 15.48% from 15.23% a year ago. The ratio of tangible common equity to risk-weighted assets was 10.38%, up from 9.62% at the end of the year-ago quarter. Return on average assets was 1.07% at the end of the second quarter of 2026, up from 0.81% in the prior-year quarter. Return on average shareholders' equity improved to 13.74% from 11.21% a year ago. In the reported quarter, Bank of Hawaii repurchased 216 thousand shares of common stock at a total cost of $17 million. As of June 30, 2026, the total remaining buyback authority under the share repurchase program was $88.9 million. Higher NII, continued margin expansion, healthy loan growth and a strong capital position are expected to support BOH's financial performance. Nonetheless, muted fee income growth, elevated expenses and deposit pressure are likely to remain challenges. Bank of Hawaii Corporation price-consensus-eps-surprise-chart | Bank of Hawaii Corporation Quote Currently, BOH carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Regions Financial Corporation RF has posted adjusted second-quarter 2026 earnings of 68 cents per share, beating the Zacks Consensus Estimate of 64 cents. Also, this compares favorably with earnings of 60 cents in the year-ago quarter. Increases in net interest income, wealth management income, service charges and lower provisions supported RF’s results. However, higher non-interest expenses and securities losses played spoilsport. The PNC Financial Services Group, Inc. PNC delivered adjusted earnings per share of $4.85 in the second quarter of 2026, beating the Zacks Consensus Estimate of $4.51 and up from $3.85 a year ago. PNC’s results reflected higher net interest income, strong fee income growth, an improvement in the net interest margin and solid loan growth. However, higher expenses and a decline in the deposit balance were headwinds. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of Hawaii Corporation (BOH) : Free Stock Analysis Report Regions Financial Corporation (RF) : Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 15, 2026 at 10:00 a.m. ET Director of Investor Relations - Bryan K. Gill Chairman and Chief Executive Officer - Bill Demchak Executive Vice President and Chief Financial Officer - Robert Q. Reilly Operator: Greetings and welcome to the PNC Financial Services Group Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Bryan K. Gill, Thank you, Bryan. You may now begin. Bryan K. Gill: Well, good morning, and welcome to today's conference call for the PNC Financial Services Group. I am Bryan K. Gill, the director of investor relations for PNC, And participating on this call are PNC's chairman and CEO, Bill Demchak, and Robert Q. Reilly, executive vice president and CFO. To's presentation contains forward looking information. Cautionary statements about this information, as well as reconciliations of non GAAP measures are included in today's earnings release materials as well as our SEC filings and other investor materials. These are all available on our corporate website, pandc.com under Investor Relations. These statements speak only as of 07/15/2026, PNC undertakes no obligation to update them. Now I would like to turn the call over to Bill. William S. Demchak: Thank you, Bryan, and good morning, everyone. As you saw, PNC delivered an impressive second quarter. We generated $2.1 billion of net income or $4.81 per diluted share. Our results included First Bank integration costs and other significant items, Collectively, these items reduced earnings per share by $0.04 resulting in an adjusted diluted EPS of $4.85 Now Rob is going to take you through all those details on our financial results in a couple of minutes, but let me just hit a few highlights. Business momentum remains really strong. We continue to win new clients and deepen existing relationships. DDA growth continues at a healthy pace, while client acquisition across our corporate and private banking businesses continues to grow meaningfully. Net interest income grew on the back of continued commercial loan growth as well as favorable deposit mix and pricing. And fee income performance was a particular highlight increasing 10% linked quarter and 20% year over year. Growth has been broad based across every fee category underscoring the value of our diversified business model. Also generated positive operating leverage and improved our efficiency ratio. Credit performance remained strong, reflecting the strength of our economy as well as the quality of our portfolio. The consistency of our financial strength was evident in the Fed's latest stress test results. For the fourth year in a row, PNC's start to trough capital depletion was the lowest in our peer group. Further demonstrating our best in class resiliency. With this in mind, our board approved an increase to our quarterly common stock dividend of $0.30, or 18%, to $2 per share. Beyond these financial results, we continue to make meaningful progress on the things that will drive our future success. Successfully completed the conversion of FirstBank, opened new branches in high growth markets, introduced a new mobile banking platform, all the while continuing to advance client and infrastructure technology. None of these efforts are about the next quarter. They are about making PNC a better bank for our customers and positioning the company for sustained growth over the long term. In summary, we had a great quarter, and importantly, we are well positioned to drive further growth across our company. Before I turn it over to Robert, as always, I just want to thank our employees for everything they do for our company and our customers. And with that, Robert will take you through the quarter. Robert? Robert Q. Reilly: Thanks, Bill. And good morning, everyone. Our balance sheet is on Slide 4 and is presented on an average basis. For the linked quarter, loans of $363 billion grew $12 billion or 4%. Securities balances increased 2% to $147 billion during the quarter and the portfolio yield improved 9 basis points to 3.45%. Average deposit balances of $457 billion were stable consistent with seasonal patterns. And borrowings were $79 billion, an increase of $16 billion reflecting high FHLB advances. Our tangible book value was $111 per common share, up 2% linked quarter. up 7% compared with the same period a year ago. And our return on tangible common equity was 17.9% in the second quarter. We continue to be well positioned with capital flexibility. During the quarter, we returned $1.3 billion of capital to shareholders. Which included $690 million of common dividends, $610 million of share repurchases. Going forward, we expect third quarter repurchases to approximate the same level. As Bill just mentioned, our Board recently approved a $0.30 increase to our quarterly cash dividend on common stock, raising the dividend 18% to $2 per share. And we remain well capitalized with an estimated CET1 ratio of 9.9%. Slide 5 shows our loans in more detail. Loan balances averaged $363 billion in the second quarter. Increase of $12 billion or 4% linked quarter. And the total average loan yield decreased 3 basis points linked quarter to 5.47%. Virtually all of the loan growth was in C and I, reflecting strong new production and higher utilization across almost every loan category. CRE balances increased $690 million during the quarter driven primarily by growth in retail and industrial exposures. And consumer loans declined by $730 million as growth in credit card balances partially offset expected declines in residential real estate and auto loans. Slide 6 covers our deposit balances in more detail. Average deposits were stable with the prior quarter. As higher consumer balances were offset by a seasonal decline in commercial deposits. Our total rate paid on interest bearing deposits decreased 5 basis points to 1.91% in the second quarter, reflecting lower rates paid across all deposit categories. Notably, average non interest bearing balances grew 4% linked quarter and represented 23% of total deposits. Turning to the income statement, As Bill mentioned, I want to provide a bit more detail regarding the integration costs and significant items in the quarter. When combined, these items had a minimal impact on our net income and earnings per share. First, we incurred $127 million of integration costs related to the FirstBank acquisition. Beyond these integration costs, we had several significant items. We participated in the Visa Exchange Program and monetized half of our Visa Class B2 shares resulting in a $448 million pre-tax gain. We also recorded a negative $85 million Visa derivative fair value adjustment associated with our remaining Visa Class B shares primarily related to the extension of anticipated litigation resolution. In addition, we repositioned a portion of our securities portfolio through the sale of approximately $4 billion of available for sale securities resulting in a $139 million loss. We reinvested the proceeds into securities with yields approximately 120-basis-points higher than the securities sold. Finally, we contributed $140 million to the PNC Foundation, which supports our communities and early childhood education initiatives. So all in, the First Bank integration costs and significant items when combined resulted in a nominal reduction to our second quarter EPS of $0.04. Turning to Slide 8, we highlight our income statement trends. Comparing the second quarter to the first quarter of 26. Total revenue was $6.9 billion and grew $710 million or 12%. And included both integration costs and significant items totaling $218 million Non interest expense of $4.1 billion increased $330 million or 9% included $140 million PNC Foundation contribution. As well as $121 million of integration expense. We generated 3% positive operating leverage and PPNR grew 16%. Provision was $191 million. Our effective tax rate was 21% As a result, our second quarter net income was $2.1 billion or $4.81 per common share. And $4.85 as adjusted. Comparing the second quarter of 26 to the same time last year, net income grew by $412 million, resulting in EPS growth of 25%. Turning to Slide 9, we detail our revenue trends. The quarter included integration costs and significant items within the other non interest income, our revenue growth was driven primarily by the underlying strength of our franchise. We generated 4% growth in net interest income and 10% growth in fee revenue. Net interest income of $4.1 billion increased $146 million and included the benefit of commercial loan growth, and higher non interest bearing deposit balances. Our net interest margin was 2.96%, an increase of 1 basis point. Fee income was $2.3 billion and increased $200 million or 10%. Looking at the details, Asset Management and Brokerage increased $20 million or 5%, driven by increased client activity and higher average equity markets. Capital Markets and Advisory revenue increased $114 million or 25% reflecting record M&A advisory fees, and strong activity across our other capital markets businesses. Card and Cash Management increased $34 million or 5% driven by seasonally higher consumer transaction levels, and growth in treasury management product revenue. Lending and deposit services increased by $6 million or 2% primarily due to increased customer activity. Mortgage revenue increased $26 million or 22%, largely attributable to negative residential mortgage servicing rights valuations recognized in the first quarter. And other non interest income of $489 million increased $364 million which included the $218 million of integration costs and significant items, as well as positive private equity valuation adjustments. Compared with the second quarter of 25, and excluding integration costs and significant items, total non interest income increased $444 million or 21%. Importantly, this performance was driven by strong organic growth, with broad based increases across our businesses. Turning to Slide 10, Second quarter expenses increased $330 million or 9% linked quarter. Expenses in the second quarter included integration expense and significant items totaling $261 million, while the first quarter of 2026 included $97 million of integration expense. Excluding the impact of integration costs and significant items, noninterest expense increased $166 million or 5% linked quarter. The growth reflected increased business activity, higher marketing spend as well as continued investments. We remain focused on expense management and we are on track to reach our goal to reduce costs by $350 million in 2026. Through our continuous improvement program. Which as a reminder is independent of the FirstBank acquisition. And this program will continue to fund a significant portion of our ongoing business and technology investments. Credit metrics are presented on Slide 11. Overall credit quality remains strong with improvements in NPL delinquencies and net loan charge offs. Non performing loans of $2 billion decreased $216 million or 10% and represented 0.55% of total loans down from 0.62% last quarter. To delinquencies declined $122 million to $1.4 billion now represent 0.39% of total loans. To net loan charge offs were $226 million and our NCO ratio was 25 basis points. At the end of the second quarter, our allowance for credit losses totaled $5.5 billion or 1.48% of total loans. To summarize, PNC reported a strong second quarter of 26, and we are well positioned for the second half of the year. Regarding our view of the overall economy, our base case assumes GDP growth to be approximately 2.1% in 2026. The unemployment rate holding steady and ending the year at approximately 4.3%. We expect the Federal Reserve to keep rates stable throughout 2026. For ease of comparability with our prior guidance, our full year outlook excludes the impact of First Bank integration charges and significant items. Considering our reported first half operating results, third quarter expectations and current economic forecast, our outlook for the full year 2026 compared to 2025 results, is as follows: We expect full year average loan growth of approximately 12.5%, expect full year net interest income to be up 15% to 15.5%. We expect non interest income to be up approximately 9%. Taking the component pieces of revenue together, we expect total revenue to be up approximately 13%. Non interest expense to be up approximately 8.5% and we expect our effective tax rate to be approximately 19.5%. Our outlook for the third quarter of 26 compared to the second quarter of 26 is as follows. We expect average loans to be up 1% to 2%. Net interest income to be up between 3% to 3.5%, fee income to be down 5% to 5.5%. Other non interest income to be in the range of a $150 million-$200 million. We expect adjusted non interest expense to decline 2% to 3%. And in the third quarter, we anticipate approximately $50 million of integration expenses. And we expect third quarter net charge offs to be approximately $225 million. And with that, Bill and I are ready to take your questions. Operator: Thank you. We will now be conducting a question and answer session. Our first question today is coming from John McDonald of Truist Securities. Please go ahead. John McDonald: Thanks. Good morning. Robert, wanted to ask, you had some very strong loan growth through the quarter. Could you speak a little bit to the cadence of the loan and deposit growth as the quarter progressed? There seems a little bit different dynamic between the period end and average. And maybe just broadly do you plan on funding the strong loan growth throughout the year? Robert Q. Reilly: Yes, sure. So good morning, John. Loan growth in the first half and in the second quarter continued to be pretty strong. Which is a good thing. When we take a look at the second half, we still see loan growth but not at the same rates. We are pointing to effectively sort of GDP growth in our guidance going through the balance of the year. So overall loan growth, but not to the same extent. Analyst: And in terms of funding, as we look forward, we do expect deposits to grow through the second half of the year. So that will be a key component to the funding as it replaces some wholesale debt that we picked up in the second quarter. John McDonald: Okay. Got it. And was that just about some the funding that you picked up on the FHLB side this quarter, was that just some temporary dynamics and you expect that you also had good NIM growth this quarter. Maybe just comment on that and the outlook there. Robert Q. Reilly: Yes. So non-interest-bearing, your second-- first, non-interest-bearing interest bearing deposits were higher than we expected All of that virtually all of that was on the commercial side. Related to our treasury management business and some escrow monies that come through. So that is a good thing. William S. Demchak: Yeah. Yeah. The-- I would expect that to continue not at the same rate. So we are 23% of our total deposits and we have that pretty steady through the balance of the year. I think the funding, John, you should just assume we sort of optimize against every lever, whether it is wholesale funding, or what we are doing on deposits. You know, the drops this quarter in corporate deposits are pretty easy to turn back on. there is a bit of a seasonal effect, but there is also a rate effect You saw we grew deposits in retail, which is the most important thing. In the FHLB advances, you know, this quarter were, you know, think of it as the cheapest alternative to fund loans. You know, relative to other things, and that changes all the time. I would not read too much into that. No. it is just it is just flexing to the optimal cost. Robert Q. Reilly: Yeah. Got it. John McDonald: Got it. Okay. Great. Thanks, guys. Robert Q. Reilly: Sure. Operator: Thank you. Our next question is coming from John Pancari of Evercore ISI. Please go ahead. John Pancari: Good morning. On the loan growth side, appreciate the trends that you have seen some pretty good strengthening. Can you maybe just talk about the areas of strengthening? What do you see in terms of demand and pipelines and utilization? And then separately on the loan spread, front, any shift in spreads that is observable here? Amid the competitive backdrop? Thanks. William S. Demchak: You want me? Yeah. Robert Q. Reilly: So inside that, I would say, the loan growth has been strong. Again, expect loan growth to continue not at the same rate and that is just a function of maybe some pull forward in terms of borrowings or some pent up borrowing demand. And then we will see As far as the mix, we do not see a lot of spread compression from a competitive standpoint, but we do have some spread compression in continuation of what we saw in the first quarter, which is most of the lending that we are doing is to the high credit quality, lower spread entities. William S. Demchak: Those are who are borrowing now. it is good business. it is sufficient return, particularly given that those loans often come with treasury management and or capital markets. So there is a little bit of dilution to the portfolio spreads but that is more mixed than competitive pressures. The other thing, you know, we continue to have the new markets outpace the legacy markets just in terms of growth as we grow share there. And for the first time, I am sure this is not true, but for the first time I can remember we had strong growth across kind of every category inside of the C and I franchise. And utilization increases. So Right. So yeah, it is broad based. We are gaining share. You know, kind of all on the back of you know, what feels like a pretty strong economy. Okay. Thank you. that is helpful. John Pancari: And then I know you do not really guide on more specifically around the margin, but just trying to get an idea, just given some of the pricing dynamics that you are seeing and in the backdrop and the environment, just wanted to get an idea of how you are thinking about this margin could project through the back half of the year that is kind of baked into your into your guidance here? I know you saw a modest expansion in the quarter by about a bit. Just how are you thinking about how that could play out as you look through the back half? Robert Q. Reilly: Yes. So let me address that, John, because there is a lot of focus on NIM. So we had said that we expect to go above 3% by the end of the year and we still are standing next to that. So that is that. The second piece is if you jump down the NIM components and it sort of gets to your earlier question, the components of our second quarter NIM. What helped our second quarter NIM, which went up a net 1 basis point, was obviously the decline in the rate paid on the interest bearing as well as the increased noninterest bearing deposits. So that helped NIM. What constrained NIM was the point that I was making earlier is these commercial loans that are coming in at a pretty good rate and the majority of those being the higher credit quality lower spread. That constrains NIM. So when you think about it and you look at it, those loans carry the fees along with them. So from an EPS perspective, those loans are hugely accretive. On a stand alone basis, they are dilutive to NIM. So, you know, if we did not have those loans, just for illustration purposes, if we did not have that loan growth in the second quarter, our NIM would have easily popped above 3%. William S. Demchak: So, you know, we are given a choice between lower NIM, higher EPS or higher NIM and lower EPS. We will take EPS every time. But having said that, we are still on the we are on record for 3% in the back half of the year. Robert Q. Reilly: And much of that driven through the continued repricing of fixed rate assets. Well, that is the longer term issue. So the longer term issue is the steepness of the yield curve We still have a lot of fixed rate assets to reprice, so that will determine that. But I just mentioned that for illustration purposes because I think a lot of the focus on NIM is on the funding side. The issues there. But there is also the loan dynamic. William S. Demchak: Right. John Pancari: Got it. Thanks for that detail. I appreciate it. Operator: Thank you. Our next question is coming from Ebrahim Poonawala of Bank of America. Please go ahead. Ebrahim Poonawala: Hey, good morning. Guess, maybe, Bill, Robert, sticking with loan growth. So you mentioned the high credit quality, low spread lending, which is good to hear from a credit quality standpoint. Is this different from history in terms of this kind of loan growth or this is kind of what you would expect in a good C and I environment? Where market spreads are tight? So 1, like, is there something different about the quality or the type of borrower or the type of borrowing that is happening? Then I have a follow-up to that, but maybe if you could start there. Thanks. Robert Q. Reilly: Yeah. I would say I would not say anything is, you know, like, way different. But I would say that the preponderance of the loan growth is in that higher credit quality, spread loans, which is probably mix wise a little bit higher than average run rate. But it is not, you know, off the charts. Ebrahim Poonawala: Got it. And I guess as a follow-up to that, you had all the big banks report like there is a significant energy around the economy, around AI CapEx spend. We are seeing that in the financing markets. When you sort of bring it back to you are the second bank today that talked about broad based C and I growth. I am just wondering, 1, are you picking up some of that business tied to data center lending, etcetera? And second, when you think about the broad based growth, are there other engines of the economy at work here, be it reshoring, manufacturing, etcetera? Or are you able to sort of connect dots between second derivatives of AI CapEx driving that loan demand for P and C? William S. Demchak: it is too broad based to lay it all on AI. At the margin, it is impacting what we are doing. But it is as I said before, it is coming from kind of all sectors. You know, which is you know I have heard the different explanations as to why it is showing up. People are otherwise used to the chaos and the environment, and they figured out that they need to operate through it and grow. The M and A environment is more robust. You know, look, the economy is strong and people are spending money. But it is not while I appreciate the impact AI is having on GDP that cannot be the only driver of the loan growth that we are seeing given the industry dispersion and the geographic dispersion. Ebrahim Poonawala: Got it. Thank you. Operator: Thank you. Our next question is coming from Erika Najarian of UBS. Please go ahead. Erika Najarian: Hi, good morning. Robert, if I could just start with you to your point, there is a lot of focus on net interest margin trajectory because of the funding dynamic. The street currently has an exit rate of 3.08% for fourth quarter 26. As we think about where the loan growth is coming from, does that is that too fast of a ramp relative to the other opportunities in terms of fixed asset repricing and obviously maybe optimizing some of the wholesale funding that you put on this quarter to core funding? William S. Demchak: Yes. So again, do not give NIM guidance nor do we manage to it. That said, I always give NIM guidance. So it is you know, we are above 3, Erika. I you know, the precise level at the exit run rate. Why do you why do you care? it is-- you know, at the end of the day, we will stick to our guide, and we will get there. But if we grow EPS and NII, you know, at 2% higher and have a lower NIM-- or would you to Robert's earlier point, why do you focus on it? So I personally do not care. Robert Q. Reilly: I think that the NII dollars are more important, and I could not quote you what JPMorgan's NIM was for this quarter. So I think you are right. Erika Najarian: I think just like I am just thinking about why the stock is down despite the beat and raise. So that is why I am trying to clarify that question. William S. Demchak: More sellers than buyers. You know, look, the maybe the simplest thing to say across the space is we have healthy asset growth through loan growth which is coming from client acquisition and economic activity. And we have a great ability to fund it. We are growing our retail franchise, retail deposits are increasing. Corporate deposits did not pay up for and they went down in the quarter, but we can make those whatever we want. Got it. Okay. Deposits. When we are already liquid today, And so, you know, it is it is not a huge focus inside the company even though the mechanical outcome, as we have said, since the beginning of the year will push us over 3% by the end of the year. Erika Najarian: To that end, you know, just to take a step back, you know, clearly, company is doing well. You have talked about organic NII dollar growth. Of about $1.2 billion this year. And so, I guess, as we think about sort of what is you know, your plan over the next few years, you know, is that NII dollar growth replicable? For a sustainable period of time And additionally, you printed a pretty nice ROTCE this quarter. I guess I am wondering about the path to the 20% that you have mentioned previously. Robert Q. Reilly: Well, maybe I could jump in there a little bit. So we are not going to get into 2027 guidance, but we are on record saying that we have got a lot of fixed rate asset repricing that goes well into 2027 and beyond. So that is constructive for NII in 2027 and as we get closer to the end of the year, we will sharpen that up for you. As far as the ROTCE goes, we are on record saying that we would hit 18% annualized exit rate fourth quarter 26. We are sticking to that as well. And we are tracking to that. We point out this quarter, we are at 17.9%. So arguably, we are in the vicinity. Erika Najarian: Okay. Thank you. Robert Q. Reilly: Sure. Operator: Thank you. Our next question is coming from Mike Mayo of Wells Fargo. Please go ahead. Mike Mayo: Hi. Just a little bit more color on loan growth. Certainly, it is growing faster than you had thought. Can you talk about line utilization and potential for loans to grow even faster and how much you are assuming line utilization will increase as part of your higher guide? Robert Q. Reilly: Yes. Hey, Mike, it is Robert. So as we pointed out in the second quarter, utilization has increased for us and it is been pretty broad based. When we look into the second half, we have continued loan growth. We have an expectation that the utilization would at least hold, maybe go up a little bit But that is all part of our thinking in terms of sort of moderating the loan growth to roughly GDP. Mike Mayo: Okay. And you ever like, look, I if you know, your stock prices outperformed this year when you look at it and caught a bid. But do you ever wonder about this party that is taken place elsewhere as it relates to AI and this CapEx AI super cycle and all the mega IPOs and mega financings, and mega mergers that you are not part of. And it is like, wow, we are not part of that, but we have our own area. what is what is the counterargument to that whole super cycle? Or is there enough to go around and a trickle down effect? Bill, if you have thoughts on that because you have been on both sides of that kind of, you know, Wall Street you know, mega cycle. William S. Demchak: So many ways to answer that. I guess I would offer the following. The first is you just look at who we are and our growth rate, our EPS is what a 25% year on year. We are growing single, double digits on every line item on revenue and growing customers in a space that does not focus heavily on capital markets Yet our capital markets revenue was up 80% year on year. So, if-- are we in the middle of a deal that pays $100 million in fees, you know, no, we are not. But are we actually growing the core franchise at a pace, importantly, at a pace that is less cyclical. Than the boom you are seeing in the super cycle right now. We are. So it is an alternative to something that I think is more volatile, yet it is you know, we are we are dropping real dollars to the bottom line in a healthy economy. And gaining share as we do it. Mike Mayo: Okay. Appreciate the answer. Operator: Thank you. Our next question is coming from Manav Ghisalya of Morgan Stanley. Please go ahead. Manav Ghisalya: Hey, good morning. Robert, I wanted to check-in on the trends on deposit costs So the 5 basis points improvement this quarter, it is pretty good given the environment. Have you noticed anything in terms of the trajectory as you went through the quarter? Just given the increased on deposit competition? I am wondering if you are seeing anything-- any underlying trend in the either the overall portfolio or in specific geographies on deposit costs? Robert Q. Reilly: Yeah. So, you know, we track that obviously pretty close. We declined in terms of rate paid in the first quarter. Our outlook, we do have rate paid drifting back up to first quarter levels. that is all part of our guidance. Mostly in terms of back book repricing and some of the things that we want to do with our deposits. So you know, that is that is the track that we are on. Manav Ghisalya: So I guess in terms of the competitive environment, I guess what do you think is driving that? Is that just the rate outlook and the fact that rate cuts have come out of the forward curve and maybe we have a rate hike or 2? Coming up. Is that the only thing that is driving it? Is there just more competition overall Can you talk a little bit more about that dynamic? William S. Demchak: I think a couple of things. But what is happening, let's separate what is going on in wealth and corporate and assume correctly that those are competitive yields and you can kind of dial them up and down with rate. On the retail side, to the extent you are in effect a commercial bank without a retail franchise, things are really tight, right? that is where you are seeing CD rates posted brokered CDs, you know, at really high rates. If you are growing in own a good retail franchise, it is less severe. And if you look inside of what we have done in retail, you know, the growth in DDA households, the increase in balance, and the actual drop in rate quarter on quarter, but basis point. Right? Yeah. Yeah. You know, what kind of leads you to a-- you know, to a conclusion that if you are if your company's balanced here between retail and just commercial lending, you actually are in a pretty good spot, and I think we are. I do not think everybody is. And, you know, we have talked about it forever, but retail shares moving aggressively to the larger players. And it is making it more difficult to fund if you are if you are smaller and do not focus. Robert Q. Reilly: Yeah. that is right. And I think that is why even though we do expect some increase in our rate paid, it is not dramatic. Manav Ghisalya: Great. Thank you. Operator: Thank you. Our next question is coming from Matt O'Connor of Deutsche Bank. Please go ahead. Matt O'Connor: Good morning. I was hoping to circle back on the capital market revenues and I guess the fact that a lot of the revenues in the industry are being driven by some of these biggest bigger headline deals and yet your revenues were so strong. Maybe you could just remind us a little bit about what the mix is maybe kind of generally from a product point of view, size of customer, And then just also any comments on like how well it is integrated with the rest of the firm as a feeder system? Thank you. Robert Q. Reilly: Yes. Sure, Matt. So our capital markets was up overall, but each category was up Harris Williams, which is about 40% of our capital markets business had a record quarter. But beyond that, loan syndication, Solvency, trading all up. Bryan based. William S. Demchak: You know? And inside of their you have derivatives and FX and our share of investment grade underwriting has gone way up. Robert Q. Reilly: it is a healthy market. We participate in it. Matt O'Connor: And then just in terms of the interconnectivity with the other businesses, like, when we see C and I loan growth, like is that driving some of the hedging here? I mean, obviously, that would make sense, but sometimes it is different targeted customer bases. William S. Demchak: it is all correlated and you are exactly right. Loan growth gives rise to derivative activities. Oftentimes, if it is a even in a middle market instance where there is going to be some loan and there is gonna be, which is syndicated, and there might be some bonds associated with it where inside of that also. So it is all correlated, and it is on the back of the size of the financings that are going on inside of the U.S. economy. Matt O'Connor: Okay. Thank you. Operator: Thank you. Our next question is coming from Gerard Cassidy of RBC Capital Markets. Please go ahead. Gerard Cassidy: Hey, Bill. Hey, Robert. Robert Q. Reilly: Robert. William S. Demchak: Hey, Gerard. Gerard Cassidy: You guys have been good over the last 2, 3 years in getting out in front of the commercial real estate story. Obviously, there was a lot of fear following the pandemic about office space and the issues around it. Your credit continues to improve in commercial real estate and now you are growing commercial real estate mortgages. Can you share with us some color, what are you guys seeing there What are the opportunities to grow that portfolio further? Robert Q. Reilly: Yes, Gerard. So you are spot on we have worked through the commercial real estate office, portfolio, still some work to do there, but we did release some reserves. As we work through that book. As far as loan growth, inflected in the first for the first time after I do not know how many quarters of declines. And we see that continuing. In fact, the pipelines are forming in commercial real estate in a very constructive way, across all the categories. So multifamily, industrial, and retail, pipelines are all up. Analyst: So we would expect commercial real estate to be a bigger component of our loan growth going forward. Gerard Cassidy: Very good. Is there any data center construction loans? Just out of the area, I assume not or not many. Robert Q. Reilly: Nothing major. Although, you may know, it is sort of any data centers. William S. Demchak: So nothing involved in the space. You know, we have been involved in it project construction loans forever inside of the real estate space. Robert Q. Reilly: So tangentially, but not with big risk and not big size. Yeah. Gerard Cassidy: Okay, good. And then as a follow-up, can you share with us, obviously, FirstBank is closed, it is integrated. What were some of the positive surprises you guys discovered in that process? And then what were some of the issues that may be required extra effort that you may not have anticipated So, I do not know if there are surprises or not, but perhaps the biggest thing that we proved to ourselves was that we could do an acquisition of that size without slowing down at all the rest of the company in terms technology deployment or product rollout. William S. Demchak: So you will notice in the middle of this whole thing, put out a new mobile banking platform. Right? So normally, you do a deal, you get a free stuff. We did not have to free stuff. Second thing was the data factory that we built patented you know, in its first form with BBVA, was even better. Inside of this integration. Robert Q. Reilly: Third thing, I think we are the first bank correct me where I go wrong here, Robert. But ever to do the early access Yeah. Where basically people could log in and credential before you did the actual account switch. William S. Demchak: So all of that was great. What we underestimated on this 1 was the I am just going to call it lack of digital awareness on a relative basis to our existing client base that maybe FirstBank customer had. So we had a lot of branch traffic that was there to activate a debit card or to download a mobile app and things that we otherwise might have expected would happen outside of the branch caused traffic in the branch that we underestimated and caused some confusion, and we are going to have to improve on that going forward. Robert Q. Reilly: But all in all, it, you know, mechanically and then and the conversion is so much more than the conversion-- Yeah. Than that. Mechanics. William S. Demchak: But mechanically, it went really well. Super proud of the team of people that you know, got this done both on the PNC side and importantly on the FirstBank side. Super proud and thankful for the employees inside the First Bank branches that went through a couple of days of real heavy volume. Heavy lifting. Robert Q. Reilly: 1 thing to add to that Gerard too, just in terms of the financials everything that we expected in terms of you know, the price we paid, the return that we would have, the accretion. it is all there and then some. So from a financial perspective, we are in a really good place. Gerard Cassidy: Very good. Thank you, guys. Robert Q. Reilly: Yeah. Operator: Thank you. The next question is coming from Ken Usdin of Autonomous Research. Please go ahead. Ken Usdin: Hey, guys. Robert, I know you touched on the capital market strength before. And just and we see, obviously, the fee guide that you gave that would assume that is probably coming off a little bit. Bill, you mentioned the super cycle of this, and I am just wondering, you know, Robert, if you could kind of walk us through just your expectations for the fee areas that you usually give us, which is a good run through. And then just how strong do you think this capital market flow through could be? And did you see any pull forward into this really strong second quarter result from a closings perspective? Thanks. Operator: You want me to go first with the Yes, go ahead. Robert Q. Reilly: Well, then that sort of tells the story too. Ken Usdin: So for the third quarter, Ken, in terms of the fee sort of component breakdowns, we did we do feel like pulled some of capital markets forward into the second quarter So the second quarter was elevated. So when you look at the third quarter guide for the fee breakdown, it is largely around the capital markets that we think probably be down about 20% quarter over quarter. The rest of the fee categories are sort of flattish to up depending on sort of what happens with market conditions, but that is the big driver to get it to down the 5.5% that we talked about. William S. Demchak: And just an aside, I mean, it is a net like, you come off a record quarter and everybody looks at the activity and says, we cannot do that again. Right. So-- so we knocked down our estimates going into the third quarter. Robert Q. Reilly: You know, it is it is a handful of big deals. That show up that Yeah. Cause a difference that is right. You know, inside of the size of deals that are getting done in this. You know, in this market. that is our best guess for now, and, well, for the third quarter, but then for the full year. So if you just sort of dial it back for the full year, asset management is having a great year with the equity markets up. So they are up high. Single digits. Capital markets for the full year You know, we will be up close to 25% to 30% year over year that is in our guidance. Card and cash management, mid to high single digits Lending and deposit services, mid single digits. And then mortgage, just to round it out, probably flattish to down depending on sort of hedge gains and sort of how that works out. William S. Demchak: So The guide the guide on capital markets, I mean, just to be clear, it is volatile. Robert Q. Reilly: that is right. Yeah. William S. Demchak: You know? And so Especially in a 90-day period. Yeah. Yeah. Ken Usdin: But we are Scott? Sorry? Let's just say we are in the right places. We are in the right deals. Right? We are winning business. So it is kind of a function of what is actually happening in the broader market. Yeah. Exactly. that is why I am I am pointing to that point, which is that it just seems like the, you know, potential for this type of, you know, result to continue seems pretty good. So thanks for that color. Thanks, guys. William S. Demchak: Sure. Operator: Thank you. The next question is coming from David Schieterini of Jefferies. Please go ahead. David Schieterini: Hi, thanks for taking the questions. Can you give us an update on sensitivity to rates on NII, if we get a hike or 2, what would that impact be? William S. Demchak: Very small in 26. And we said it for a while, we are sort of in a neutral position to rates, 25 basis points up or down. Very little impact to 26. As you go forward, it becomes function of how the rest of the curve reacts where they would raise rates. But within the range that we would otherwise contemplate there is still a healthy pickup next year just because of the continued repricing. David Schieterini: Got it. Thanks for that. And over to capital CET1 at 9.9%. You mentioned the buyback in the third quarter should be similar to the second quarter level. Is this 9.9% kind of the new, or comfort range, that you guys would point to? William S. Demchak: Yes, I think so. We have said 10%. We were actually very close to ramping the 10%, but we rounded down to 9.9%. But our operating target is around 10% and that is where we expect to be. David Schieterini: Thanks very much. Operator: Thank you. The next question is coming from Saul Martinez of HSBC. Please go ahead. Saul Martinez: Hi, good morning. Thanks for taking my question. Back on loan growth, is there I mean, do you guys feel like there is an element of conservatism being built into the second half guidance of, you know, roughly in line with nominal GDP growth. I get the comments about pull forward, but everything else you are talking about seems pretty constructive. The utilization rates kind of ticking higher, economy doing well. CRE returning to growth, M and A financing. Is there, you know, is the bias you know, if you are gonna be wrong more to the upside? Just curious how you know, if that is you think that is a logical conclusion? Robert Q. Reilly: Got it. William S. Demchak: I would say-- Hey, Bill, you want me to re-guide the guide? Robert? Yeah. I am just saying our guide is our guide and that is what we have we have guided to lower numbers, then they come in higher. We have guided to higher numbers that come into lower. So the guide is the guide. I think that the only thing I am comfortable in saying is if there is loan growth across the economy, we will get more than our fair share simply because of the newer markets we are operating in the share growth. But it is become so hard to predict what is happening with loan growth. We kind of you know, pick a real simple base case and hopefully outperform. Saul Martinez: Got it. Okay. Fair enough. And then, I mean, nobody asked about credit anymore. You know, for good reason. We have obviously been, you know, really strong. I mean, are there are there areas that you are monitoring your you know, that where you see there are vulnerabilities and even if it is not a big part of your portfolio, where do you think there either from a sector standpoint, product your income categories. where do you feel like there is a more fragility? Robert Q. Reilly: You know, I would tell you, I mean, overall, credit quality is very good on both the consumer side and the commercial side. And we do not see any big pockets forming. We follow sort of the pressures in the healthcare industry. there is pressures in the distillery sector. there is some pressures in transportation around fuel costs, those sorts of things. All the things that you read about and are well aware But I would not say there is any big pocket or anything that particularly worrisome beyond that. Saul Martinez: Okay. Got it. Thank you. Operator: Thank you. Our next question is from Chris McGratty of KBW. Please go ahead. Chris McGratty: Great. Thanks. Hope I did not miss it, but any comment on credit spreads over the past 3 months with improving loan growth? Thank you. Robert Q. Reilly: Sorry. I did not catch that. Did you Credit spread. William S. Demchak: Oh, sorry, Chris. Chris McGratty: Credit-- just a comment on credit spreads. William S. Demchak: Now we are not seeing a lot of competitive pressure on the spreads. We are seeing some spread change relative to the mix change. Of higher credit quality, lower spread loans into our portfolio. But, you know, apples to apples spreads are, you know, pretty similar quarter over quarter. Operator: Thank you. Our next question is a follow-up coming from Erika Najarian of UBS. Please go ahead. Erika Najarian: I promise this is not about NIM or loan growth. Quick follow-up. Some stuff now. So, well, it is good. it is good. There was a news article last week about banks including PNC potentially being interested in a debit card network. And I am just wondering, of course, you are not gonna comment on any live deals, but what a debit card network or how a debit card network could be beneficial to PNC And, you know, do you have any sort of notion on how difficult it is to convert a PIN network to signature. William S. Demchak: We are not going to comment. Yeah. Particularly, Joe. Robert Q. Reilly: I think it is a safe assumption hypothetically that the work effort associated with a conversion like that would be pretty material. Leave it at that. Erika Najarian: Got it. Thank you. Operator: Thank you. At this time, I would like to turn the floor back over to Mr. Bill for closing comments. Bryan K. Gill: Okay. Well, thank you all for joining our call this morning, and please feel free to reach out to the IR team if you have any further questions. William S. Demchak: Thanks. Robert Q. Reilly: Everybody. Analyst: Thank you. Thank you. Operator: Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines or lock off the webcast at this time. You for your participation Before you buy stock in PNC Financial Services, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PNC Financial Services wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $370,332!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,272,280!* Now, it’s worth noting Stock Advisor’s total average return is 904% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 22, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. PNC (PNC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Fifth Third Bancorp FITB reported second-quarter 2026 adjusted earnings per share (EPS) of $1.02, which surpassed the Zacks Consensus Estimate of 98 cents. In the prior-year quarter, the company posted EPS of 88 cents. Results benefited from solid growth in net interest income (NII) and fee income, along with higher loan and deposit balances. Lower provisions for credit losses also offered support. However, a substantial rise in non-interest expenses acted as a headwind. Given the concern, FITB shares declined nearly 3.1% in the early trading session. A full day’s trading session will depict a clearer picture. Results excluded a negative 19-cent impact of certain items, including merger-related charges, securities repositioning losses, technology-related asset impairments, severance expenses and interchange litigation matters. After considering these, the company reported net income available to common shareholders (GAAP basis) of $763 million, up 29% year over year. Total quarterly revenues (FTE) in the reported quarter were $3.28 billion, which increased 46% year over year. The top line surpassed the Zacks Consensus Estimate of $3.25 billion. Fifth Third’s NII (on an FTE basis) for the second quarter was $2.22 billion, up 48% year over year. This improvement primarily reflected the full-quarter contribution from Comerica. Organic loan production, continued fixed-rate asset repricing and disciplined liability management also aided growth. The net interest margin (NIM) (on an FTE basis) increased to 3.36% from 3.12% in the year-ago quarter. Non-interest income rose 41% year over year to $1.06 billion. The increase was primarily driven by higher wealth and asset management revenues, commercial payments revenues, consumer banking revenues, capital markets fees and commercial banking revenues, partly offset by a decline in mortgage banking net revenues. Non-interest expenses surged 67% year over year to $2.11 billion. The increase was primarily due to a rise across all cost components and the inclusion of Comerica acquisition-related costs, including merger and integration expenses. The efficiency ratio was 64.3%, higher than the year-ago quarter’s 56.2%. An increase in the ratio indicates a deterioration in profitability. As of June 30, 2026, portfolio loans and leases rose 1% to $178.5 billion from the previous quarter. Total deposits increased marginally from the prior quarter to $234.1 billion. The company reported a provision for credit losses of $129 million, down 25% from the year-ago quarter. Total non-performing portfolio loans and leases were $1.04 billion, up from $853 million in the prior-year quarter. However, the non-performing loan ratio improved to 0.58% from 0.70% in the year-ago quarter. Net charge-offs in the second quarter declined to $135 million or 0.30% of average loans and leases (on an annualized basis) from $139 million or 0.45% in the prior-year quarter. The total allowance for credit losses rose 23% to $3.15 billion year over year. The allowance for credit losses represented 1.76% of portfolio loans and leases, down from 2.09% in the year-ago quarter. The CET1 capital ratio was 9.93% compared with 10.58% in the year-ago quarter. The Tier 1 risk-based capital ratio was 10.81% compared with 11.85% in the prior-year quarter. The leverage ratio declined to 9.20% from 9.42% in the year-ago quarter. For the third quarter of 2026, Fifth Third expects average loans and leases to rise 1% sequentially. NII is projected to increase 2% to 2.5% from the second-quarter baseline of $2.22 billion, while non-interest income is expected to rise 1% to 3% from the baseline of $1.04 billion. Adjusted non-interest expenses are expected to decline 1% to 2% sequentially from the second-quarter baseline of $1.86 billion. The net charge-off ratio is projected to be between 30 and 35 basis points, while the effective tax rate is expected to be 22.5%. For 2026, Fifth Third narrowed its average loans and leases outlook to $174-$176 billion from the prior expectation of the mid-$170 billion range. The company slightly raised its 2026 NII outlook to $8.74-$8.80 billion from the previous guidance of $8.7-$8.8 billion, driven by the assumption of a higher 4% federal funds rate at year-end 2026 compared with 3.75% previously. The company now expects non-interest income of $4.06-$4.16 billion, compared with its prior outlook of $4-$4.2 billion. Adjusted non-interest expense is now expected to be $7.22-$7.26 billion, compared with the prior outlook of $7.2-$7.3 billion, while the net charge-off ratio is still expected to be 30-40 basis points and the effective tax rate 22-23%. Strong growth in NII, driven by the full-quarter contribution from Comerica, organic loan production, fixed-rate asset repricing and disciplined liability management, supported top-line expansion. The company also witnessed solid growth in loans and deposits, reflecting improving business momentum. Broad-based fee income growth and lower provisions were other positives. The decline in the net charge-off ratio also reflected strong credit performance. However, elevated expenses related to integration activities and the lower year-over-year capital ratios remain near-term concerns. The Comerica acquisition (completed in February 2026) remains on track for integration, with systems conversion scheduled for Labor Day weekend. Fifth Third expects the conversion to unlock the full $850 million annualized expense synergy run rate in the fourth quarter of 2026. Fifth Third Bancorp price-consensus-eps-surprise-chart | Fifth Third Bancorp Quote Currently, Fifth Third carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. M&T Bank Corporation MTB reported second-quarter 2026 net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 per share in the year-ago quarter. MTB’s results were aided by higher NII and a rise in non-interest income on a year-over-year basis, along with loan growth. However, higher expenses acted as headwinds. The PNC Financial Services Group, Inc. PNC has delivered adjusted earnings per share of $4.85 in the second quarter of 2026, beating the Zacks Consensus Estimate of $4.51 and up from $3.85 a year ago. Results reflected higher NII, strong fee income growth, an improvement in the NIM and solid loan growth. However, higher expenses and a decline in the deposit balance were headwinds for PNC. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report M&T Bank Corporation (MTB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Truist Financial’s TFC second-quarter 2026 earnings of $1.23 per share handily beat the Zacks Consensus Estimate of $1.08. The bottom line was up 36.7% from 90 cents a year ago. Shares of TFC lost 1.2% in pre-market trading despite better-than-expected quarterly performance on net interest margin concerns.Results were primarily aided by a rise in net interest income (NII) and higher fee income. A higher average loan and deposit balance, as well as a decline in provisions, offered support. An increase in expenses and a decline in NIM were the undermining factors. Net income available to common shareholders was $1.52 billion, up 28.7% from the prior-year quarter. Total revenue of $5.27 billion rose 5.6% year over year. The top line beat the consensus estimate of $5.21 billion.  NII was $3.62 billion compared with $3.59 billion in the second quarter of 2025. This was driven by higher earning assets and loan growth, partly offset by lower loan spreads and fixed-rate debt repricing. The net interest margin (NIM) contracted 4 basis points (bps) to 2.98%.Non-interest income was $1.64 billion, up 17.4%. This was attributable to higher investment banking and trading income, wealth management income, mortgage banking income and lending-related fees. Non-interest expense totaled $3.06 billion, up 2.3%. This was primarily due to higher personnel costs related to salaries and incentives, partly offset by lower professional fees and outside processing expenses.Profitability metrics improved alongside earnings growth. Return on average common equity was 10.4% and return on average tangible common equity was 15.4% in the quarter compared with 8.1% and 12.3%, respectively, in the prior-year period. The efficiency ratio improved to 58% from 59.9%, signaling better operating leverage. Provision for credit losses decreased to $395 million from $488 million a year ago, reflecting an allowance release in the reported quarter. The allowance for loan and lease losses was 1.51% of loans and leases held for investment, down from 1.54% a year ago.Net charge-offs (NCOs) were $414 million, up from $396 million in the year-ago quarter. NCO ratio of 0.50% of average loans and leases increased 1 bp year over year.Total non-performing assets were $1.75 billion as of June 30, 2026, up from $1.32 billion a year earlier. Non-performing loans and leases were 0.51% of loans and leases held for investment, up 12 bps year over year. Balance sheet trends were solid, with average loans and leases of $331.75 billion, up from $313.84 billion in the year-ago quarter. This was driven by commercial and industrial, commercial real estate and other consumer loan growth.Average deposits were $404.87 billion compared with $400.48 billion a year earlier. Capital return was a notable highlight in the quarter. Truist returned $1.8 billion to shareholders through dividends and share repurchases, including $1.2 billion of buybacks. The company expects share repurchases to be approximately $5 billion in 2026. The common equity Tier 1 ratio was 10.9% at quarter end, up 10 bps sequentially but down from 11% a year ago. For the third quarter of 2026, management expects taxable-equivalent (TE) revenues to increase roughly 1% sequentially. Non-interest expenses are projected to rise almost 2% from $3.1 billion.For full-year 2026, Truist expects revenues (TE) to rise 3.5-4% and non-interest expenses to increase roughly 1.75%. The company also estimates NCO ratio of approximately 55 bps and an effective tax rate of about 14.5%. Management expects NII to increase 1-1.5% in 2026 from the prior year. The updated outlook reflects the continued optimization of less strategic lending portfolios, lower loan spreads, a less favorable deposit mix and changes in the forward interest-rate curve. Decent loan demand, higher fee income and TFC’s business restructuring/expansion initiatives are expected to continue supporting its top line. A solid balance sheet position is another positive. However, elevated expenses, given a tough operating environment, and pressure on NIM are major headwinds. Truist Financial Corporation price-consensus-eps-surprise-chart | Truist Financial Corporation Quote Truist Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. M&T Bank’s MTB second-quarter net operating earnings per share of $5.35 beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 in the year-ago quarter.Results were aided by higher NII and a rise in non-interest income, along with loan growth. However, higher expenses acted as headwinds.The PNC Financial Services Group, Inc. PNC reported adjusted earnings per share of $4.85 in the second quarter of 2026, beating the Zacks Consensus Estimate of $4.51 and up from $3.85 a year ago. Results reflected higher NII, strong fee income growth, an improvement in NIM, solid loan growth and lower provisions. However, higher expenses and a decline in the deposit balance were headwinds. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Truist Financial Corporation (TFC) : Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report M&T Bank Corporation (MTB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Regions Financial Corporation RF has posted adjusted second-quarter 2026 earnings of 68 cents per share, beating the Zacks Consensus Estimate of 64 cents. Also, this compares favorably with earnings of 60 cents in the year-ago quarter. Increases in net interest income (NII), wealth management income, service charges and lower provisions supported RF’s results. However, higher non-interest expenses and securities losses played spoilsport. The results include certain non-recurring items. After considering those, net income (GAAP basis) available to common shareholders was $549 million, up 2.8% year over year. Total quarterly revenues were $1.91 billion, marginally up from the year-ago quarter. The metric missed the Zacks Consensus Estimate of $1.95 billion. NII was $1.28 billion, up 1.4% year over year, driven primarily by average loan growth, fixed-rate asset turnover and prudent management of deposit costs. The net interest margin improved 1 basis point year over year to 3.66%. Non-interest income declined 2.5% year over year to $630 million. Higher service charges on deposit accounts, wealth management income, card and ATM fees, and capital markets income were more than offset by lower mortgage income and higher securities losses. Non-interest expenses increased 4.5% year over year to $1.12 billion. Adjusted non-interest expenses moved up 4% to $1.12 billion. The increase was mainly due to higher salaries and employee benefits, equipment and software expenses, net occupancy expenses, outside services, and branch consolidation, property and equipment charges. The efficiency ratio rose to 58.3% from 56% a year ago. A higher efficiency ratio indicates decreasing profitability. As of June 30, 2026, total loans increased 1.3% on a sequential basis to $99.2 billion, supported by commercial and industrial activity, and broader business lending momentum. Total deposits were $130.7 billion, which decreased 0.9% from the previous quarter. Non-performing assets (excluding more than 90 days past due), as a percentage of loans, foreclosed properties and non-performing loans held for sale, decreased to 0.69% from the year-ago quarter’s 0.84%. Non-performing loans, excluding loans held for sale as a percentage of net loans, were 0.67%, down from 0.80% in the prior-year quarter. A provision for credit losses of $68 million was recorded in the quarter, down 46% from the year-ago quarter. Annualized net charge-offs, as a percentage of average loans, were 0.42% compared with 0.47% in the prior-year period. As of June 30, 2026, the Common Equity Tier 1 ratio was 10.7%, down from 10.8% as of June 30, 2025, whereas the Tier 1 capital ratio fell to 11.8% from 11.9% in the year-ago quarter. In the reported quarter, the company repurchased 2.1 million shares for $59 million. Earlier this week, RF declared a quarterly common stock dividend of 30 cents per share, representing a 13% increase over the previous quarter. Regions Financial’s loan growth, solid deposit franchise and improving credit quality should continue supporting its financials. The company’s robust liquidity and prudent deposit-cost management will continue to aid its financials. However, elevated expenses are expected to remain headwinds. Regions Financial Corporation price-consensus-eps-surprise-chart | Regions Financial Corporation Quote Currently, Regions Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The PNC Financial Services Group, Inc. PNC delivered adjusted earnings per share of $4.85 in the second quarter of 2026, beating the Zacks Consensus Estimate of $4.51 and up from $3.85 a year ago. PNC’s results reflected higher net interest income, strong fee income growth, an improvement in the net interest margin and solid loan growth. However, higher expenses and a decline in the deposit balance were headwinds. Citizens Financial Group CFG reported second-quarter 2026 earnings per share of $1.30, which surpassed the Zacks Consensus Estimate of $1.25. The metric rose 41% from the year-ago quarter. CFG’s results benefited from a rise in NII and non-interest income. Growth in loan and deposit balances, and an improvement in credit quality were also encouraging. However, a rise in expenses and a weaker capital position were major headwinds. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Regions Financial Corporation (RF) : Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in The PNC Financial Services Group, Inc? Here are five stocks we like better. PNC posted a strong second quarter with net income of $2.1 billion and adjusted diluted EPS of $4.85, driven by broad-based business momentum, stronger fee income, and continued commercial loan growth. Revenue growth was led by net interest income and fees, as total revenue rose 12% quarter over quarter to $6.9 billion. Fee income jumped 10% on record M&A advisory activity and gains across capital markets, asset management, card, and mortgage businesses. Credit quality and capital returns remained solid, with nonperforming loans, delinquencies, and charge-offs improving. PNC also raised its quarterly dividend 18% and returned $1.3 billion to shareholders through dividends and buybacks. Fiserv’s Debit Network Talks Raise a Bigger Question for Visa and Mastercard The PNC Financial Services Group (NYSE:PNC) reported what Chairman and CEO Bill Demchak called an “impressive” second quarter, with management pointing to broad-based business momentum, stronger fee income, continued commercial loan growth and stable credit quality. PNC generated second-quarter net income of $2.1 billion, or $4.81 per diluted share. Demchak said results included FirstBank integration costs and other significant items that collectively reduced earnings per share by $0.04, resulting in adjusted diluted EPS of $4.85. → 3 Space Stocks That Could Outshine SpaceX After Its IPO Big Bank Earnings Gave Financials a Lift, But Wall Street Is Still Cautious “Business momentum remains really strong,” Demchak said. “We continue to win new clients and deepen existing relationships.” He cited healthy growth in demand deposit accounts, increased client acquisition across corporate and private banking, and higher net interest income supported by commercial loan growth and favorable deposit mix and pricing. Chief Financial Officer Rob Reilly said total revenue was $6.9 billion in the second quarter, up $710 million, or 12%, from the first quarter. Net interest income was $4.1 billion, up $146 million, helped by commercial loan growth and higher non-interest-bearing deposit balances. Net interest margin rose one basis point to 2.96%. → The SK Hynix IPO and 2027’s AI Memory Squeeze PNC Prepping for Its Best Year—Is Anyone Noticing? Fee income was a standout in the quarter, increasing $200 million, or 10%, to $2.3 billion. Reilly said the growth was broad-based across fee categories. Capital markets and advisory revenue increased $114 million, or 25%, reflecting record M&A advisory fees and strong activity across other capital markets businesses. Asset management and brokerage revenue rose 5%, card and cash management increased 5%, lending and deposit services rose 2%, and mortgage revenue increased 22%. Demchak said PNC’s fee performance underscored the value of its diversified business model. Reilly added that, compared with the second quarter of 2025 and excluding integration costs and significant items, total non-interest income increased $444 million, or 21%. → Meta Platforms Stock Rises as Muse Spark 1.1 AI Model Debuts Average loans were $363 billion, up $12 billion, or 4%, from the first quarter. Reilly said “virtually all” of the growth came from commercial and industrial lending, reflecting strong new production and higher utilization across almost every loan category. Commercial real estate balances rose $690 million, driven primarily by retail and industrial exposures, while consumer loans declined $730 million as credit card growth partially offset expected declines in residential real estate and auto loans. During the question-and-answer session, Reilly said PNC expects loan growth to continue in the second half of the year, but at a slower pace than in the first half. He described the company’s second-half loan growth outlook as roughly aligned with GDP growth. Demchak said the loan growth was broad-based across industries and geographies, with newer markets outpacing legacy markets as PNC gains share. “We’re gaining share all on the back of what feels like a pretty strong economy,” he said. On loan pricing, Reilly said PNC was not seeing significant competitive spread pressure. However, he said portfolio spreads were being diluted somewhat by mix, as much of the current lending is going to higher-credit-quality, lower-spread borrowers. He said those loans often come with treasury management or capital markets relationships and are “hugely accretive” to earnings per share even if they are dilutive to net interest margin. Average deposits were stable at $457 billion. Reilly said higher consumer balances offset a seasonal decline in commercial deposits. The total rate paid on interest-bearing deposits declined five basis points to 1.91%, while average non-interest-bearing balances grew 4% from the prior quarter and represented 23% of total deposits. PNC increased borrowings by $16 billion to $79 billion, reflecting higher Federal Home Loan Bank advances. In response to an analyst question, Demchak said investors should view PNC’s funding approach as an optimization among multiple levers, including wholesale funding and deposits. He said the FHLB advances were the “cheapest alternative” during the quarter to fund loans relative to other options. PNC returned $1.3 billion of capital to shareholders in the quarter, including $690 million of common dividends and $610 million of share repurchases. Reilly said third-quarter repurchases are expected to approximate the second-quarter level. The board also approved an 18% increase in the quarterly common stock dividend, raising it by $0.30 to $2 per share. The company’s estimated common equity tier 1 ratio was 9.9%. Reilly said PNC’s operating target remains around 10%. Reilly said overall credit quality remained strong, with improvements in nonperforming loans, delinquencies and net charge-offs. Nonperforming loans declined $216 million, or 10%, to $2 billion, representing 0.55% of total loans. Total delinquencies declined $122 million to $1.4 billion, or 0.39% of total loans. Net loan charge-offs were $226 million, and the net charge-off ratio was 25 basis points. PNC’s allowance for credit losses totaled $5.5 billion, or 1.48% of total loans, at quarter-end. Asked about potential areas of credit vulnerability, Reilly said PNC does not see “any big pockets forming.” He cited pressures in healthcare, distilleries and transportation related to fuel costs, but said there was nothing that particularly worried him beyond those areas. PNC’s full-year 2026 outlook, which excludes FirstBank integration charges and significant items, calls for average loan growth of approximately 12.5% compared with 2025. The company expects net interest income to rise 15% to 15.5%, non-interest income to increase approximately 9%, and total revenue to grow approximately 13%. Non-interest expense is expected to increase approximately 8.5%, with an effective tax rate of about 19.5%. For the third quarter, PNC expects average loans to rise 1% to 2%, net interest income to increase 3% to 3.5%, fee income to decline 5% to 5.5%, and other non-interest income to be between $150 million and $200 million. Adjusted non-interest expense is expected to decline 2% to 3%, with approximately $50 million of integration expenses. Net charge-offs are expected to be approximately $225 million. Reilly said PNC’s base case assumes U.S. GDP growth of approximately 2.1% in 2026, unemployment ending the year around 4.3%, and the Federal Reserve keeping rates stable throughout the year. Demchak also highlighted progress beyond the quarter’s financial results, including completion of the FirstBank conversion, new branch openings in high-growth markets and the launch of a new mobile banking platform. He said those initiatives are intended to position PNC for sustained long-term growth rather than near-term results. The PNC Financial Services Group, Inc is a diversified financial services company headquartered in Pittsburgh, Pennsylvania, offering a broad range of banking, lending, investment and wealth management services. PNC operates a national banking franchise with a significant retail branch network and dedicated capabilities for commercial, institutional and government clients. Its services are designed to serve individuals, small businesses, corporations and public sector entities across the United States. PNC's core business activities include consumer and business banking, residential mortgage lending, corporate and institutional banking, asset management and wealth advisory services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "The PNC Financial Services Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

For the quarter ended June 2026, The PNC Financial Services Group, Inc (PNC) reported revenue of $6.9 billion, up 21.3% over the same period last year. EPS came in at $4.85, compared to $3.85 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $6.44 billion, representing a surprise of +7.13%. The company delivered an EPS surprise of +7.54%, with the consensus EPS estimate being $4.51. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how The PNC Financial Services Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Efficiency ratio: 60% versus the four-analyst average estimate of 58.9%. Total nonperforming assets: $2.15 billion compared to the $2.55 billion average estimate based on four analysts. Book value per common share: $145.52 versus the four-analyst average estimate of $146.34. Total interest-earning assets - Average balance: $555.01 billion versus the four-analyst average estimate of $552.4 billion. Net charge-offs to average loans: 0.3% compared to the 0.3% average estimate based on four analysts. Net interest margin: 3% versus the four-analyst average estimate of 3%. Total nonperforming loans: $2.03 billion versus the three-analyst average estimate of $2.45 billion. Tier 1 risk-based ratio: 11.1% versus 11.3% estimated by two analysts on average. Leverage Ratio: 9% versus 9% estimated by two analysts on average. Net interest income (Fully Taxable-Equivalent - FTE) (non-GAAP): $4.13 billion versus the four-analyst average estimate of $4.12 billion. Total Noninterest Income: $2.77 billion versus $2.33 billion estimated by four analysts on average. Net Interest Income: $4.11 billion compared to the $4.09 billion average estimate based on four analysts. View all Key Company Metrics for The PNC Financial Services Group here>>> Shares of The PNC Financial Services Group have returned +7.3% over the past month versus the Zacks S&P 500 composite's +1.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The PNC Financial Services Group, Inc. PNC has delivered adjusted earnings per share of $4.85 in the second quarter of 2026, beating the Zacks Consensus Estimate of $4.51 and up from $3.85 a year ago. Results reflected higher net interest income (NII), strong fee income growth, an improvement in the net interest margin (NIM) and solid loan growth. However, higher expenses and a decline in the deposit balance were headwinds. Given the concern, PNC shares were down nearly 3.8% in the early trading session. A full day’s trading session will depict a clearer picture. Results excluded FirstBank integration costs and certain significant items. After considering those, net income (GAAP basis) was $2.06 billion, which rose 25.1% from the year-ago quarter. Quarterly revenues were $6.88 billion, up 21.4% year over year. The top line surpassed the Zacks Consensus Estimate of $6.44 billion. NII rose to $4.1 billion in the quarter, increasing 15.5% from the year-ago period. The company’s NIM improved to 2.96%, expanding 16 basis points year over year, as the bank benefited from commercial loan growth, higher non-interest-bearing deposit balances, the FirstBank acquisition and lower funding costs. Non-interest income totaled $2.8 billion, up 31.4% from the second quarter of 2025, reflecting improvement across all fee categories. Within fee income lines, capital markets and advisory revenues surged 79.8% from last year, while asset management and brokerage revenues, card and cash management revenues, lending and deposit services revenues, and residential and commercial mortgage revenues also increased. Noninterest expenses increased to $4.1 billion, up 21.1% year over year. The rise reflected increased business activity, higher marketing expenses, continued investments to support growth and FirstBank operating expenses. PNC incurred $127 million of integration costs (pre-tax) in the second quarter of 2026 related to the FirstBank acquisition. Expenses also included a $140-million contribution to the PNC Foundation. The efficiency ratio was 60%, unchanged from the prior-year quarter. Total loans increased 1.9% sequentially to $367.9 billion, driven by commercial loan growth and strong new production. Total deposits declined 1.7% sequentially to $449.8 billion. Total non-performing loans were $2.03 billion, down 3.8% from the year-ago quarter. Net loan charge-offs were $226 million, up 14.1% from the year-ago quarter. The net charge-offs to average loans ratio was 0.25%, unchanged from the prior-year quarter. The company reported a provision for credit losses of $191 million in the second quarter, down 24.8% from the year-ago quarter. The allowance for credit losses increased to $5.5 billion from $5.3 billion as of June 30, 2025. The allowance for credit losses to total loans ratio was 1.48% compared with 1.62% in the year-ago quarter. As of June 30, 2026, the Basel III common equity tier 1 capital ratio was 9.9% compared with 10.5% as of June 30, 2025. Return on average assets and average common shareholders’ equity were 1.34% and 13.61%, respectively, compared with 1.17% and 12.20% in the year-ago quarter. In the second quarter of 2026, PNC returned $1.3 billion of capital to its shareholders. This included $0.7 billion in common stock dividends and $0.6 billion in common share repurchases. Share repurchase activity in the third quarter of 2026 is expected to approximate the second-quarter level. The company also raised its quarterly common stock dividend by 18% to $2 per share from $1.70. For the third quarter of 2026, PNC expects average loans to rise 1% to 2% from the second-quarter baseline. NII is expected to increase 3% to 3.5% sequentially, while fee income is projected to decline 5% to 5.5%. Other non-interest income is expected to be between $150 million and $200 million. Adjusted non-interest expenses are expected to decline 2% to 3% sequentially. Net charge-offs are projected to be nearly $225 million. For 2026, the company raised its average loan growth outlook to approximately 12.5% from about 11% mentioned previously. PNC also raised its 2026 NII outlook to 15-15.5% from the previously expected approximately 14.5%. The company now expects non-interest income and total revenues to rise about 9% and 13%, respectively, compared with the prior projections of nearly 6% and 11%. PNC raised its adjusted non-interest expense growth expectation to approximately 8.5% from about 7%, while maintaining its effective tax rate outlook of nearly 19.5%. PNC Financial’s higher NII, expanding NIM, strong fee income and solid loan growth will likely continue supporting the top-line performance. The company’s strong capital position and improving credit quality also provide room for steady shareholder returns. In June 2026, PNC completed the conversion of approximately 780,000 FirstBank customers, more than 1,620 employees and 95 branches across Colorado and Arizona. This marked a key integration milestone and positioned the company for enhanced long-term growth. However, elevated expenses tied to integration and an anticipated sequential decline in fee income remain near-term headwinds. The PNC Financial Services Group, Inc price-consensus-eps-surprise-chart | The PNC Financial Services Group, Inc Quote Currently, PNC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. U.S. Bancorp USB is scheduled to release second-quarter 2026 earnings on July 16. The consensus estimate for USB’s quarterly earnings has remained unchanged at $1.28 per share over the past seven days. This indicates a 15.3% increase from the year-ago reported level. State Street STT is slated to report second-quarter 2026 results on July 16. Over the past seven days, the Zacks Consensus Estimate for STT’s quarterly earnings has been revised upward to $3.30 per share. This indicates a 30.4% increase from the year-ago reported level. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report State Street Corporation (STT) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research