PNC Reports Third Quarter 2026 Net Income of $2.1 Billion, $4.97 Diluted EPS or $5.09 as Adjusted Grew average loans and deposits; increased NII and reduced…
PNC FINANCIAL SERVICES GROUP, INC. (PNC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 PNC Reports Third Quarter 2026 Net Income of $2.1 Billion, $4.97 Diluted EPS or $5.09 as Adjusted Grew average loans and deposits; increased NII and reduced expenses; 57% efficiency ratio PITTSBURGH, Oct. 15, 2026 – The PNC Financial Services Group, Inc. (NYSE: PNC)
How this was made
The 30-second read
Why it matters
The earnings beat may prompt short‑term buying, but investors will watch fee‑income trends and integration cost impacts for longer‑term outlook.
Market read
First‑report earnings release for a major U.S. bank, providing fresh data for traders and analysts.
What to watch
The $1.4 b student‑loan portfolio transfer and a 57% efficiency ratio improvement could affect future profitability.
PNC Reports Third Quarter 2026 Net Income of $2.1 Billion, $4.97 Diluted EPS or $5.09 as Adjusted
Third-quarter net income, adjusted EPS, net interest income, average loans and deposits increased from the second quarter, while adjusted expenses declined and the efficiency ratio improved. The quarter also included lower fee income and higher net charge-offs, nonperforming loans and AOCI losses.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $6.56B | (5)% | 11% |
| Net interest income, three months ended September 30, 2026GAAP | $4.21B | 2% | 15% |
| Noninterest income, three months ended September 30, 2026GAAP | $2.36B | (15)% | 4% |
| Fee income, three months ended September 30, 2026non-GAAP | $2.14B | (6)% | 4% |
| Other noninterest income, three months ended September 30, 2026GAAP | $214M | (56)% | 8% |
| Noninterest expense, three months ended September 30, 2026GAAP | $3.75B | (8)% | 8% |
| Noninterest expense excluding integration costs and significant items, three months ended September 30, 2026non-GAAP | $3.72B | (3)% | 8% |
| Pretax pre-provision earnings, three months ended September 30, 2026non-GAAP | $2.81B | 1% | – |
| Provision for credit losses, three months ended September 30, 2026GAAP | $189M | $(2) million | $22 million |
| Net income, three months ended September 30, 2026GAAP | $2.10B | – | – |
| Net income attributable to diluted common shareholders, three months ended September 30, 2026GAAP | $1.99B | – | – |
| Net income attributable to diluted common shareholders, as adjusted, three months ended September 30, 2026non-GAAP | $2.04B | – | – |
| Diluted earnings per common share, three months ended September 30, 2026GAAP | $4.97 | – | – |
| Diluted earnings per common share, as adjusted, three months ended September 30, 2026non-GAAP | $5.09 | $0.24 | – |
| Average diluted common shares outstanding, three months ended September 30, 2026GAAP | 401M | – | – |
| Net interest margin, three months ended September 30, 2026non-GAAP | 2.94% | decreased 2 basis points | – |
| Efficiency ratio, three months ended September 30, 2026other | 57% | – | – |
| Effective tax rate, three months ended September 30, 2026GAAP | 20.0% | – | – |
| Return on average tangible common equity, three months ended September 30, 2026non-GAAP | 18.28% | – | – |
| Average loans, three months ended September 30, 2026other | $372.2B | 2% | 14% |
| Average deposits, three months ended September 30, 2026other | $461.2B | 1% | 7% |
| Total loans, September 30, 2026other | $378.8B | 3% | 16% |
| Total deposits, September 30, 2026other | $466.4B | 4% | 8% |
| Average investment securities, three months ended September 30, 2026other | $151.4B | 3% | 5% |
| Net loan charge-offs, three months ended September 30, 2026GAAP | $257M | 14% | 44% |
| Allowance for credit losses, September 30, 2026GAAP | $5.39B | (1)% | 3% |
| Allowance for credit losses to total loans, September 30, 2026other | 1.42% | – | – |
| Total delinquencies, September 30, 2026other | $1.30B | (9)% | 6% |
| Nonperforming loans, September 30, 2026other | $2.19B | 8% | 3% |
| Common equity tier 1 capital ratio, September 30, 2026other | 9.8% | – | – |
| Accumulated other comprehensive income (loss), September 30, 2026other | −$6.5B | – | – |
| Common shareholders' equity, September 30, 2026other | $56.5B | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | $19.60B | – | – |
| Net income, nine months ended September 30, 2026GAAP | $5.92B | – | – |
| Diluted earnings per common share, nine months ended September 30, 2026GAAP | $13.91 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Retail BankingEarnings decreased 18%, reflecting lower noninterest income primarily due to a $448 million gain related to the Visa share exchange recognized in the second quarter, as well as lower net interest income. | Net interest income $3,246 million; noninterest income $842 million | – | – |
| Corporate & Institutional BankingHigher net interest income reflected strong new production and increased utilization of loan commitments, while noninterest income declined due to elevated second-quarter capital markets and advisory revenue. | Net interest income $2,045 million; noninterest income $1,167 million | – | – |
| Asset Management GroupDiscretionary client AUM increased 1%, driven by positive net flows, while nondiscretionary client AUA decreased 3%, driven by net outflows. | Net interest income $188 million; noninterest income $271 million | – | – |
fourth quarter of 2026 outlook
- NoteShare repurchase activity in the fourth quarter of 2026 is expected to approximate third quarter 2026 share repurchase levels.
Capital returns
- PNC returned $1.4 billion of capital to shareholders, reflecting $0.8 billion of dividends on common shares and $0.6 billion of common share repurchases.
- On October 2, 2026, the PNC board of directors declared a quarterly cash dividend on common stock of $2.00 per share to be paid on November 5, 2026 to shareholders of record at the close of business October 14, 2026.
- PNC had approximately 27% of the 100 million common shares still available for repurchase at September 30, 2026 under the repurchase program previously approved by its board of directors.
What drove it
- Net interest income increased $99 million sequentially, driven by commercial loan growth and higher yields on interest-earning assets, partly offset by increased funding costs.
- Average commercial loans increased $10.4 billion, or 4%, driven by strong new production and increased utilization.
- Average deposits increased $4.2 billion, or 1%, primarily due to seasonally higher commercial interest-bearing deposits.
- Fee income declined $137 million sequentially, primarily due to elevated second-quarter capital markets and advisory revenue.
- Adjusted noninterest expense decreased $113 million sequentially, driven by lower compensation expense and continued expense discipline.
- Third-quarter results included $36 million of FirstBank acquisition integration costs and significant items of negative $25 million related to net Visa activity.
Concerns
- Net loan charge-offs increased to $257 million, including $35 million related to the student loan portfolio transfer; higher commercial loan net charge-offs also increased charge-offs from 3Q25.
- Nonperforming loans increased $167 million sequentially and $57 million year over year, driven by higher commercial nonperforming loans.
- Accumulated other comprehensive income was negative $6.5 billion, compared with negative $4.1 billion at June 30, 2026, reflecting the impact of higher interest rates on securities and swaps.
- Capital markets and advisory revenue declined $144 million sequentially following elevated second-quarter activity.
- Common shareholders' equity decreased $1.6 billion sequentially, due to the decline in AOCI, dividends and repurchases, partly offset by net income.
What to watch
- Whether commercial loan production and increased utilization continue to support net interest income.
- The trajectory of funding costs and net interest margin after the 2 basis point sequential decline to 2.94%.
- Commercial credit performance, including nonperforming loans, charge-offs and allowance coverage.
- Fourth-quarter share repurchases, which are expected to approximate third-quarter levels.
- The pace of FirstBank integration costs and operating-expense additions.
Balance sheet and cash flow
- Assets were $627,816 million at September 30, 2026, compared with $616,034 million at June 30, 2026.
- Total deposits were $466,362 million and borrowed funds were $79,757 million at September 30, 2026.
- Average borrowed funds were $85.7 billion, increasing 9% from 2Q26 and 29% from 3Q25, primarily due to higher Federal Home Loan Bank advances added late in 2Q26.
- PNC's average LCR for the three months ended September 30, 2026 was 106%.
- Operating cash flow and free cash flow were not reported.
Analysis
PNC reported third-quarter 2026 net income of $2,097 million and diluted EPS of $4.97. Adjusted diluted EPS was $5.09, up $0.24 from the second quarter, after excluding integration costs and significant items. Total revenue declined 5% sequentially to $6,562 million because the $99 million increase in net interest income was more than offset by lower noninterest income. Revenue increased 11% from the third quarter of 2025, with net interest income up 15% and noninterest income up 4%.
The core balance-sheet trend was favorable. Average loans increased $9.0 billion, or 2%, sequentially, led by a $10.4 billion increase in average commercial loans from strong new production and higher utilization. Average deposits increased $4.2 billion, or 1%, with seasonally higher commercial interest-bearing deposits. Net interest income benefited from commercial loan growth and higher yields on interest-earning assets, although net interest margin declined 2 basis points sequentially to 2.94% as funding costs increased.
Fee income declined 6% sequentially to $2,142 million, primarily because capital markets and advisory revenue declined after elevated second-quarter activity. Other noninterest income fell to $214 million from $489 million as the prior quarter included a benefit from integration costs and significant items. Expense performance improved: GAAP noninterest expense declined 8%, while adjusted noninterest expense declined 3%, driven by lower compensation expense and continued expense discipline. The efficiency ratio improved to 57% from 60% in the second quarter.
Credit metrics require attention. Net loan charge-offs increased to $257 million, including $35 million associated with the student loan portfolio transfer. Nonperforming loans increased 8% sequentially to $2,194 million, driven by higher commercial nonperforming loans, while the allowance for credit losses declined to $5,386 million and the allowance ratio declined to 1.42%. Delinquencies decreased 9% sequentially, due to lower consumer loan delinquencies.
PNC returned $1.4 billion of capital through $0.8 billion of common dividends and $0.6 billion of repurchases. The estimated CET1 ratio was 9.8%, down from 9.9% at June 30, 2026. Common shareholders' equity fell to $56.5 billion as AOCI moved to negative $6.5 billion. Management expects fourth-quarter repurchases to approximate third-quarter levels, but provided no numerical revenue, expense, tax-rate or earnings outlook.
Management, verbatim
Our strategy continues to drive growth across our businesses, as we deepen our presence in key markets and expand our reach nationally. During the third quarter, we continued to build on the strong momentum we delivered in the first half of the year, and we generated an 18.3% return on average tangible common equity. We are well positioned, and remain confident in our long-term outlook.
Bill Demchak, PNC Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Operating cash flow
- Free cash flow
- Gross margin
- Formal numerical revenue guidance
- Formal numerical operating expense guidance
- Formal numerical tax-rate guidance
- Prior-quarter and prior-year adjusted net income for all comparable periods where not printed
- Segment total revenue, as segment net interest income and noninterest income were reported separately but no segment revenue total was printed
- GAAP operating income, which is not reported as a line item
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
PNC's Q3 2026 filing provides the first public disclosure of its quarterly results, including loan growth, efficiency improvements, and integration costs from the FirstBank acquisition.
Ticker impact
PNC reported Q3 2026 net income of $2.1 billion and diluted EPS of $4.97 (adjusted $5.09).
likely modest upside as the beat may attract buying, though fee‑income decline could temper gains
The surprise increase in profit and strong loan growth provide a positive catalyst, while lower fee income and integration costs introduce some uncertainty.
Market effects
Banking sector may see slight uplift as PNC's loan growth signals continued credit demand.
U.S. financial stocks could experience modest buying pressure in early trading.
Limited; impact confined to U.S. banks and investors tracking earnings season.
Counterpoint
Fee‑income decline and integration costs suggest earnings quality may be weaker than headline numbers imply.
Key entities
- companyPNC Financial Services Group, Inc.
U.S. bank reporting Q3 2026 earnings.
- executiveBill Demchak
Chairman and CEO of PNC, quoted in the filing.
