PNC Reports Record Revenue, Strong Loan and Deposit Growth in 2025—Momentum Builds with FirstBank Acquisition

Record Revenue, Operational Efficiency, and Earnings Growth Mark 2025 Results

PNC Financial Services Group capped 2025 reporting record annual revenue of $23.1 billion—a 7% increase from a year prior—led by a combination of higher net interest income and expanding noninterest income streams. The bank's net income climbed to $7.0 billion, translating to diluted earnings per share (EPS) of $16.59, up 21% year-over-year, with the fourth quarter alone delivering $2.0 billion in profit.

Table: Key Financial Results

Positive Operating Leverage and Expanding Margins

PNC achieved 5% positive operating leverage in 2025, demonstrating effective cost discipline as revenues outpaced a 2% increase in operating expenses. The efficiency ratio improved to 60% for the year, reflecting operational improvements. Meanwhile, net interest income rose to $14.4 billion for 2025, supported by both volume growth in loans and lower funding costs, while net interest margin widened to 2.84% in the latest quarter—a 9-basis-point jump from a year ago.

Continued Strength in Loans and Deposits

Average loans rose 1% sequentially to $327.9 billion in Q4, primarily driven by commercial and industrial lending. On the funding side, average deposits increased $7.7 billion (2%) quarter-over-quarter to $439.5 billion, supported by broad-based growth in both commercial and consumer accounts. Brokered time deposits continued to decline, favoring core deposit growth. Credit quality remains healthy, with net loan charge-offs dropping 9% quarter-over-quarter and the allowance for credit losses stable at 1.58% of loans.

Table: Loan and Deposit Trends

Fee Income and Business Segment Diversity Support Results

Noninterest income jumped 14% year-over-year to $8.7 billion for 2025, with growth spread across asset management, capital markets, and advisory businesses. Notably, capital markets and advisory revenues surged 41% in the fourth quarter compared to the prior year, reflecting heightened corporate activity. Segment-level performance remained diverse: Corporate & Institutional Banking led with $1.5 billion in Q4 earnings, while Retail Banking and Asset Management also contributed positively.

Table: Segment Earnings Snapshot (Q4 2025)

Capital and Shareholder Returns Remain Robust

PNC closed 2025 with a Common Equity Tier 1 (CET1) capital ratio of 10.6%, supporting robust shareholder distributions. For the year, the company returned $1.1 billion to shareholders through dividends and share buybacks, and signaled ongoing repurchase activity of $600–700 million expected in Q1 2026. Tangible book value per share climbed 4% quarterly to $112.51. The acquisition of FirstBank—adding $26 billion in assets and solidifying PNC’s foothold in key Western U.S. markets—was completed in January 2026, with integration set to begin in Q1 2026.

Looking Ahead: Momentum and Improved Diversification

PNC’s strong finish to 2025 and its enhanced scale from the FirstBank deal provide a platform for further loan and deposit opportunities in 2026. Management emphasized the company's disciplined approach and the “great momentum” entering the year, with continued focus on balancing growth and operational efficiency. Investors and industry watchers will be paying close attention to credit trends, deposit pricing, and integration updates as the regional banking landscape remains competitive.

For more detailed data, visit the PNC Investor Relations site or download the full quarterly earnings presentation.

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