01—Abstract
Summary
Summary of the 10-K filed February 21, 2025. Cited figures are marked; the original filing is the authoritative source.
PNC Financial Services Group, Inc. (PNC) reported stable total revenue of $21.6 billiona for the fiscal year ended December 31, 2024, marking a slight increase from $21.5 billion in 2023.
Net income rose by 5% to $6.0 billionb, or $13.74 per diluted share, up from $5.6 billion, or $12.79 per diluted share, in the prior year. This improvement was driven by a 3% decrease in noninterest expense, largely due to lower FDIC special assessment costs and reduced personnel expenses, coupled with a 6% increase in noninterest income primarily from capital markets and advisory fees. However, net interest income experienced a 3% decline to $13.5 billion, reflecting increased funding costs that outpaced higher asset yields.
The company maintained strong capital levels, with its Common Equity Tier 1 (CET1) ratio increasing to 10.5% from 9.9% at the end of 2023. Loan balances saw a modest 2% decrease to $316.5 billionc, while total deposits increased by 1% to $426.7 billion. Looking ahead, PNC anticipates slower economic growth in 2025, with projections for real GDP growth of approximately 2% and unemployment rates remaining above 4%.
The company expects two additional 25 basis point federal funds rate cuts in 2025. For the full year 2025, PNC forecasts average loans to be stable, net interest income to increase by 6-7%d, and noninterest income to grow by approximately 5%.
The outlook for noninterest expense is a 1% increase. PNC's strategic priorities focus on expanding its franchise, deepening customer relationships, and leveraging technology for efficiency.
02—Key points
Key Highlights
- Total revenue remained stable at $21.6 billion in 2024.
- Net income increased by 5% to $6.0 billion, or $13.74 per diluted share.
- Net interest income decreased by 3% to $13.5 billion due to higher funding costs.
- Noninterest expense decreased by 3% to $13.5 billion, benefiting from lower FDIC special assessment costs and reduced personnel expenses.
- Noninterest income increased by 6% to $8.1 billion, driven by higher capital markets and advisory fees.
- Common Equity Tier 1 (CET1) capital ratio improved to 10.5% from 9.9%.
- Total loans decreased by 2% to $316.5 billion, while total deposits increased by 1% to $426.7 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 21, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $21.55B$21.49B | +0.3% |
| Net Income | $5.95B$5.65B | +5.4% |
| EPS (Basic) | $13.76$12.80 | +7.5% |
| EPS (Diluted) | $13.74$12.79 | +7.4% |
| Shares Outstanding (Basic) | 399.00M401.00M | −0.5% |
| Shares Outstanding (Diluted) | 400.00M401.00M | −0.2% |
05—Questions
Frequently Asked Questions
What was PNC's net income for the year ended December 31, 2024?
PNC reported a net income of $6.0 billion, or $13.74 per diluted common share, for the year ended December 31, 2024. This represents a 5% increase compared to the prior year.
How did PNC's net interest income and margin perform in 2024?
Net interest income decreased by 3% to $13.5 billion in 2024. The net interest margin also decreased to 2.66% for 2024 from 2.76% in 2023, primarily due to increased funding costs that more than offset the benefit of higher interest-earning asset yields and balances.
What were the key drivers of the decrease in noninterest expense?
The 3% decrease in noninterest expense to $13.5 billion was primarily driven by lower costs related to the FDIC's special assessment and lower personnel expense. These were partially offset by a PNC Foundation contribution expense and impairments related to technology investments.
What is PNC's outlook for the economy and interest rates in 2025?
PNC anticipates slower economic growth in 2025, with real GDP growth projected around 2% and unemployment rates remaining above 4%. The company expects two additional 25 basis point cuts to the federal funds rate in 2025.
06—Continue