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PNC FINANCIAL SERVICES GROUP, INC.

PNC
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Business Summary

The PNC Financial Services Group, Inc. is a financial services holding company headquartered in Pittsburgh, Pennsylvania and one of the largest diversified financial institutions in the U.S., with businesses engaged in retail banking, corporate and institutional banking and asset management. PNC is organized around customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. The retail branch network is located coast-to-coast, and PNC also has strategic international offices in four countries outside the U.S.

PNC is subject to intense competition from other regulated banking organizations, as well as various other types of financial institutions and non-bank entities that can offer a number of similar products and services without being subject to bank regulatory supervision and restrictions. Competitors include other commercial banks, savings banks, credit unions, consumer finance companies, leasing companies, investment management firms, other non-bank lenders, financial technology companies, treasury management service companies, insurance companies, and issuers of commercial paper and other securities, including mutual funds. In providing asset management services, PNC competes with investment management firms, large banks and other financial institutions, brokerage firms, financial technology companies, mutual fund complexes, and insurance companies. Competition is based on a number of factors including pricing, product structure, the range of products and services offered and the quality of customer service.

PNC generates revenue through a broad range of deposit, credit and fee-based products and services. The business model is built on customer loyalty and engagement, understanding customers' financial goals and offering diverse products and services to help them achieve financial well-being. The approach is concentrated on organically growing and deepening client relationships across businesses that meet risk/return measures. Total revenue for 2025 was $23.099 billion , consisting of net interest income of $14.410 billion and noninterest income of $8.689 billion .

PNC operates through three reportable business segments: Retail Banking, Corporate & Institutional Banking, and Asset Management Group. Retail Banking provides deposit, lending, brokerage, and cash management services to consumer and small business customers. Corporate & Institutional Banking offers lending, treasury management, capital markets, and real estate finance services to corporations and government entities. Asset Management Group provides investment management, fiduciary, and brokerage services. For 2025, Retail Banking reported total revenue of $11.245 billion , Corporate & Institutional Banking reported total revenue of $10.214 billion , and Asset Management Group reported total revenue of $1.640 billion .

In the second quarter of 2024, PNC participated in the Visa exchange program, converting its Visa Class B-1 common shares into approximately equal amounts of Visa Class B-2 common shares and Visa Class C common shares, resulting in a gain of $754 million related to the Visa Class C common shares received. Also in the second quarter of 2024, PNC repositioned the investment securities portfolio, selling low-yielding investment securities for net proceeds of $3.8 billion , resulting in a loss of $497 million . In 2025, PNC benefited from changes in the FDIC's expected losses which led to an accrual release of $60 million in the fourth quarter and $48 million in the third quarter, resulting in a $108 million accrual release for the full year. On January 5, 2026, PNC completed its acquisition of FirstBank Holding Company, including its banking subsidiary, FirstBank, which had $26.4 billion of assets, $16.0 billion of loans and $23.1 billion of deposits as of close.

Net income for 2025 was $6.997 billion or $16.59 per diluted common share, an increase of $1.0 billion , or 18% , compared to net income of $5.953 billion , or $13.74 per diluted common share, for 2024. Total revenue increased $1.5 billion , or 7% , to $23.099 billion . Net interest income increased $0.9 billion , or 7% , to $14.410 billion . Net interest margin increased to 2.83% for 2025 compared to 2.66% for 2024. Noninterest income increased $0.6 billion , or 8% , to $8.689 billion . Noninterest expense increased $310 million , or 2% , to $13.834 billion .

Business Outlook

PNC's baseline forecast remains for continued expansion, but slower economic growth in 2026 than in 2024 and 2025. Tariffs remain a drag on consumer spending and business investment, while AI-related capex and wealth effects have been key supports to growth. Consumer spending growth is slowing to a pace more consistent with household income growth. The baseline forecast anticipates real GDP growth slowing to around 2% in 2026, with continued modest job gains.

PNC is focused on expanding its leading banking franchise to new markets and digital platforms. The strategic priorities include deepening customer relationships by delivering a superior banking experience and financial solutions, and leveraging technology to create efficiencies that help better serve customers. PNC continues to invest in products, markets and brand, and embraces commitments to customers, shareholders, employees and the communities where it does business.

PNC's capital and liquidity priorities are to support customers, fund business investments and return excess capital to shareholders, while maintaining appropriate capital and liquidity in light of economic conditions, the Basel III framework and other regulatory expectations. PNC's SCB for the four-quarter period beginning October 1, 2025 is the regulatory minimum of 2.5% . First quarter 2026 share repurchase activity is expected to approximate $600 million to $700 million .

PNC continues to invest in technology, seeking to automate functions previously performed manually, facilitate the ability of customers to engage in financial transactions and otherwise enhance the customer experience. This effort has involved and is likely to continue to involve the expenditure of considerable amounts of funds and other resources. Employees totaled 55,333 at December 31, 2025, including 53,859 full-time and 1,474 part-time employees.

PNC returned $3.9 billion of capital to shareholders in 2025 through dividends on common shares of more than $2.6 billion and repurchases of 6.8 million common shares for $1.2 billion . PNC's CET1 capital ratio increased to 10.6% at December 31, 2025 from 10.5% at December 31, 2024. PNC had approximately 35% of the 100 million common shares still available for repurchase at December 31, 2025 under the repurchase program previously approved by the Board of Directors.

PNC faces risks from adverse economic conditions, including sustained inflationary pressures, higher prices and lower housing affordability, and fluctuating trade policies (including tariffs), combined with geopolitical tensions. These conditions have led and may continue to lead to turmoil and volatility in financial markets. Underutilization of commercial real estate space, combined with higher interest rates, has harmed some customers' creditworthiness and ability to refinance maturing loans, and decreased the demand for financial services in that sector.

Risk Factors

PNC's business and financial performance are vulnerable to adverse economic conditions, including sustained inflationary pressures, higher prices, lower housing affordability, and fluctuating trade policies, which have led to turmoil and volatility in financial markets. Underutilization of commercial real estate space combined with higher interest rates has harmed some customers' creditworthiness and ability to refinance maturing loans. PNC is subject to numerous governmental regulations and comprehensive oversight by a variety of regulatory agencies, and changes in law or governmental policy may subject financial institutions to changes in regulation, supervision and enforcement that are difficult to predict. PNC is vulnerable to the risk of cyber attacks and breaches affecting the functioning of technology or the confidentiality of information, and the techniques used in cyber attacks change rapidly and are increasingly sophisticated, including through the use of generative AI and deepfakes. PNC's ability to pay or increase dividends or otherwise return capital to shareholders is subject to compliance with its SCB, which is determined through the Federal Reserve's CCAR process, and PNC's SCB for the four-quarter period beginning October 1, 2025 is the regulatory minimum of 2.5% .

Management Priorities

Management's message emphasizes managing the company for the long term, focused on the fundamentals of growing customers, loans, deposits and revenue and improving profitability, while investing for the future and managing risk, expenses and capital. The strategic priorities are designed to enhance value over the long term and consist of expanding the leading banking franchise to new markets and digital platforms, deepening customer relationships by delivering a superior banking experience and financial solutions, and leveraging technology to create efficiencies that help better serve customers. PNC's baseline forecast remains for continued expansion, but slower economic growth in 2026 than in 2024 and 2025, with real GDP growth slowing to around 2% in 2026.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Executive Summary
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Analysis on 6/8/2026