PNC Financial Services : Presentation Q1 2025
PNC
First Quarter 2025
Earnings Conference Call April 15, 2025
Solid 1Q25 Results
Note: Footnotes are presented on slide 29.
1Q25 Financial Results $1.5 billion
Net Income
$3.51
Diluted Earnings per Share (EPS)
+3 bps
Net Interest Margin
26 bps
Net Charge-off Ratio1
10.6%
Basel III CET1 Capital Ratio2
2
Increased Capital Position
Balance Sheet Summary
Linked Quarter
Year over Year
Average balances, $ billions
1Q25
$
%
$
%
Total loans
$316.6
$(2.4)
(1)%
$(4.0)
(1)%
Investment securities
$142.2
$(1.7)
(1)%
$6.7
5%
Federal Reserve Bank balances
$34.2
$(3.3)
(9)%
$(13.6)
(28)%
Total deposits
$420.6
$(4.6)
(1)%
$0.5
-
Borrowed funds
$64.5
$(2.7)
(4)%
$(11.1)
(15)%
Common shareholders' equity
$49.2
$0.7
2%
$4.8
11%
Period end
3/31/25
12/31/24
LQ
3/31/24
YoY
AOCI ($ billions)
$(5.2)
$(6.6)
$1.3
$(8.0)
$2.8
Tangible book value per common share (non-GAAP)
$100.40
$95.33
5%
$85.70
17%
Basel III CET1 capital ratio
10.6%
10.5%
10 bps
10.1%
50 bps
Note: AOCI = accumulated other comprehensive income (loss). YoY = year-over-year. LQ = linked quarter. Totals may not sum due to rounding. For non-GAAP figures, see reconciliation in the appendix.
3
Average Loans Declined; Solid C&I Growth Drove Higher Quarter-End Balances
Consolidated Average Loan Balances
Spot Loan Roll-Forward
lower CRE balances
Total loans declined 1% LQ, primarily driven by
C&I growth partially offset by declines in CRE and consumer
$321
$319
$317
$4.7
$318.9
$316.5
Commercial Loans
$(1.3)
$(1.0)
$219
$219
$ billions
$217
(1)% LQ and (1)% YoY
12/31/24
C&I
CRE
Consumer
3/31/25
billions$
6.01%
5.87%
5.70%
Total Loan Yield
C&IB Loan Utilization
declined 17 bps LQ
Spot utilization increased ~80 bps in 1Q25
$101
$100
$100
52%
Consumer Loans
51%
(1)% LQ and (2)% YoY
50.3%
50%
Spot Utilization
49%
49.5%
1Q24
4Q24
1Q25
Apr-24 May-24
Oct-24 Nov-24 Dec-24
Jan-24 Feb-24
Mar-24
Jun-24 Jul-24 Aug-24
Sep-24
Jan-25
Feb-25 Mar-25
Consumer
Commercial
Total Loan Yield
Note: YoY = year-over-year. LQ = linked quarter. C&I = commercial and industrial. CRE = commercial real estate. Totals may not sum due to rounding.
4
Well-Positioned Investment Securities and Receive Fixed Swaps Portfolios
Investment Securities
Leveraging floating rate securities to manage duration risk, provide flexibility and capital protection
Receive Fixed Swaps
Leveraging forward starting swaps to lock in higher yields and reduce repricing risk
Average balances; $ billions
$135
2.62%
$144
3.17%
$142
3.17%
$59
$50
$20
$13
billions$
$37
$39
$35
notional;
$37
3.22%
3.49%
Spot
2.21%
1Q24
4Q24
1Q25
HTM
AFS - Fixed
AFS - Floating1
Investment Securities Yield
Note: HTM = held to maturity. AFS = available for sale. NII = net interest income. Additional footnotes are presented on slide 29.
3/31/24
12/31/24
3/31/25
Active Swaps
Forward Starting Swaps
Receive Fixed Rate on Active Swaps2
5
Stable Deposit Base
Consolidated Average Deposit Balances
Cumulative deposit beta1 of 51% as of March 2025
Average Consumer Deposit Mix
$ billions
$420
$312
2.60%
$99
$10
$425
$321
2.43%
$96
$8
$421
$5
$324
2.23%
$92
$208
$206
$187
$185
$ billions
$21
$21
1Q24
4Q24
NIB
IB
Average Commercial Deposit Mix
$203
$212
$136
$125
$ billions
$78
$76
$210
$188
$21
1Q25
$206
$135
$71
1Q24
4Q24
1Q25
NIB
IB, ex. Brokered CDs
Brokered CDs
Rate Paid on Total IB
1Q24
4Q24
NIB
IB
1Q25
Note: IB = interest-bearing deposits. NIB = noninterest-bearing deposits. Totals may not sum due to rounding. Additional footnotes are presented on slide 29.
6
Strong Year over Year Performance
Income Statement Summary
Linked Quarter
Year over Year
$ millions except EPS
1Q25
$
%
$
%
Net interest income
$3,476
$(47)
(1)%
$212
6%
Fee income (non-GAAP)
1,839
(30)
(2)%
93
5%
Other noninterest income
137
(38)
(22)%
2
1%
Noninterest income
$1,976
$(68)
(3)%
$95
5%
Total revenue
$5,452
$(115)
(2)%
$307
6%
Noninterest expense
3,387
(119)
(3)%
53
2%
Pretax, pre-provision earnings (non-GAAP)
$2,065
$4
-
$254
14%
Provision for credit losses
219
63
40%
64
41%
Income taxes
347
69
25%
35
11%
Net income
$1,499
$(128)
(8)%
$155
12%
Diluted EPS
$3.51
$(0.26)
(7)%
$0.41
13%
Key metrics
3/31/25
12/31/24
3/31/24
Noninterest income to total revenue
36%
37%
37%
Net interest margin (non-GAAP)
2.78%
2.75%
2.57%
Note: Net interest margin is calculated using taxable-equivalent net interest income, a non-GAAP measure. For non-GAAP figures, see reconciliation in the appendix.
7
Solid Results; Continued NIM Expansion
Total Revenue
Net Interest Income Noninterest Income Net Interest Margin
Detail of Revenue
Linked Quarter
Year over Year
$ millions
$5,145
$1,881
$3,264
$5,567
$2,044
$3,523
$5,452
$1,976
$3,476
$ millions
1Q25
$
%
$
%
Net interest income
$3,476
$(47)
(1)%
$212
6%
Asset management and brokerage
391
17
5%
27
7%
Capital markets and advisory
306
(42)
(12)%
47
18%
Card and cash management
692
(3)
-
21
3%
Lending and deposit services
316
(14)
(4)%
11
4%
Residential and commercial mortgage
134
12
10%
(13)
(9)%
2.57%
2.75%
2.78%
1Q24 4Q24 1Q25
Note: NIM = net interest margin. For non-GAAP figures, see reconciliation in the appendix.
Fee income (non-GAAP)
$1,839
$(30)
(2)%
$93
5%
Other noninterest income
137
(38)
(22)%
2
1%
Noninterest income
$1,976
$(68)
(3)%
$95
5%
Total revenue
$5,452
$(115)
(2)%
$307
6%
8
Well-Controlled Noninterest Expense
Noninterest Expense
Detail of Noninterest Expense
$3,334
$ millions
$3,506 $3,387
Linked Quarter
Year over Year
$ millions
1Q25
$
%
$
%
Personnel
$1,890
$33
2%
$96
5%
Occupancy
245
5
2%
1
-
Equipment
384
(89)
(19)%
43
13%
Marketing
85
(27)
(24)%
21
33%
Other
783
(41)
(5)%
(108)
(12)%
Total noninterest expense
$3,387
$(119)
(3)%
$53
2%
1Q24 4Q24 1Q25
9
Disclaimer
The PNC Financial Services Group Inc. published this content on April 15, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 15, 2025 at 10:42 UTC.