PNC FINANCIAL SERVICES GROUP, INC. Annual Report, Year Ended Dec 31, 2024

PNC Financial Services Group, Inc. (PNC) reported stable total revenue of $21.6 billion 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 billion, 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 billion, 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%, 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.