PNC Financial beats forecasts on record capital markets revenue and FirstBank integration
The US bank announced an 18 per cent dividend hike and completed its FirstBank acquisition, with shares edging higher in premarket trading.
PNC Financial Services Group reported second-quarter adjusted earnings per share of US$4.85, surpassing analyst estimates of US$4.47, as record capital markets activity and robust loan growth underpinned a strong financial performance. Total revenue climbed 21 per cent year-on-year to US$6.88 billion, exceeding the consensus forecast of US$6.5 billion.
A primary catalyst for the quarter’s results was the capital markets and advisory division, where revenue surged 80 per cent to US$577 million. This growth coincided with a 16 per cent increase in net interest income to US$4.1 billion, supported by commercial lending expansion and higher balances in noninterest-bearing deposits. Fee income also strengthened, rising 20 per cent to US$2.3 billion.
The bank’s balance sheet expanded significantly, with average loans increasing by US$40.4 billion, or 13 per cent, to US$363.2 billion. Average deposits rose 8 per cent to US$457.0 billion. Credit quality remained stable, with net loan charge-offs totalling US$226 million, representing 0.25 per cent of average loans.
PNC completed the integration of FirstBank on 22 June 2026, incorporating approximately 780,000 customers, 1,620 employees, and 95 branches into its operations. Adjusted earnings excluded US$0.04 per share in integration costs related to the acquisition, alongside various one-off items including a US$448 million gain from the Visa exchange programme.
Chief Executive Officer Bill Demchak stated that the strong second-quarter performance reflected the disciplined execution of the bank’s growth strategy. PNC also announced an 18 per cent increase in its quarterly dividend to US$2.00 per share and returned US$1.3 billion to shareholders through dividends and share repurchases during the quarter.
The bank’s Common Equity Tier 1 capital ratio was estimated at 9.9 per cent at the end of the quarter. Following the announcement, PNC shares rose approximately 0.5 per cent in premarket trading.
