10-QPeriod: Q2 FY2026

PNC FINANCIAL SERVICES GROUP, INC. Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 5, 2026For Securities:PNC

Summary

PNC Financial Services Group, Inc. reported strong financial results for the second quarter and first half of 2026. Net income increased significantly year-over-year and quarter-over-quarter, driven by robust growth in net interest income and noninterest income. The company successfully integrated the FirstBank acquisition, contributing to higher loan and deposit balances. While noninterest expense increased due to integration costs and strategic investments, efficiency ratios remained stable. Credit quality indicators remained strong, with a decrease in nonperforming assets. PNC also returned substantial capital to shareholders through dividends and share repurchases, further signaling financial strength and a commitment to shareholder value. The outlook for the remainder of 2026 remains positive, with expectations for continued loan and revenue growth, supported by a stable economic forecast.

Key Highlights

  • 1Net income for the second quarter of 2026 was $2.1 billion, a 16% increase compared to the first quarter and a 25% increase year-over-year.
  • 2Total revenue grew by 12% sequentially and 17% year-over-year, primarily due to higher net interest income and noninterest income.
  • 3The acquisition of FirstBank was successfully integrated, contributing to an 11% increase in total loans and a 2% increase in total deposits.
  • 4Noninterest income saw a significant boost from a $448 million gain on the Visa exchange program, although this was partially offset by a securities loss and derivative adjustments.
  • 5Provision for credit losses decreased year-over-year, reflecting stable credit quality and prudent risk management.
  • 6PNC returned $1.3 billion in capital to shareholders in the second quarter through dividends and share repurchases.
  • 7The company announced a 30-cent, or 18%, increase in its quarterly cash dividend on common stock, payable in August 2026.

Frequently Asked Questions

The acquisition of FirstBank, completed in January 2026, significantly contributed to PNC's growth in the second quarter of 2026. It led to an increase in total assets, loans (up 11% to $368.0 billion), and deposits (up 2% to $449.8 billion). The company's financial results for the second quarter included the full quarter's benefit of FirstBank's operations, positively impacting net interest income and noninterest income.

Noninterest income saw a substantial increase of 26% sequentially and 22% year-over-year. Key drivers included strong growth in capital markets and advisory revenue. Additionally, a significant one-time gain of $448 million resulted from PNC's participation in the Visa exchange program. These positive contributions were partially offset by a $139 million securities loss related to portfolio repositioning and negative $85 million in Visa derivative adjustments.

Noninterest expense increased by 9% sequentially and 16% year-over-year. This increase was largely due to higher personnel costs reflecting increased business activity, and integration expenses related to the FirstBank acquisition, totaling $121 million in the second quarter and $218 million year-to-date. A pre-tax expense of $140 million was also recognized for a PNC Foundation contribution. Despite these elevated expenses, the company's efficiency ratio remained stable at 60%, indicating effective management of costs relative to revenue.

PNC provided guidance for the third quarter of 2026, expecting average loans to increase by 1-2%, net interest income to rise by 3-3.5%, and fee income to decrease by 5-5.5%. Noninterest expense is projected to decrease by 7-8%, with a 2-3% decline expected when excluding integration costs and significant items. For the full year 2026, PNC anticipates loan growth of approximately 12.5%, net interest income growth of 15-15.5%, and total revenue growth of approximately 14%.