PNC Financial Services Q1 2025 Earnings Surpass Estimates, But Revenue Falls Short Of Expectations

PNC Financial Services Group, Inc. (PNC) drew investor attention on Tuesday after the company’s first-quarter earnings surpassed Wall Street estimates, but revenues failed to meet expectations.

Revenue rose 6% year-over-year (YoY) to $5.45 billion during the quarter but fell short of an analyst estimate of $5.48 billion. However, earnings per share (EPS) of $3.51 surpassed a Street estimate of $3.39.

Net interest income (NII), the difference between interest earned and expended, fell 1% YoY to $3.48 billion, led by two fewer days in the quarter but partially offset by the benefit of lower funding costs and fixed rate asset repricing.

The net interest margin rose three basis points to 2.78%.

CEO Bill Demchak highlighted that the lender grew customers and commercial loans, expanded its net interest margin, and increased capital levels. “While market uncertainty impacted our capital markets activity, expenses remained well-controlled, resulting in another quarter of strong results,” he said.

Notably, provision for credit losses increased to $219 million during the quarter from $155 million in the same period a year ago, reflecting changes in macroeconomic factors and portfolio activity.

Delinquencies rose 4% to $1.4 billion. It included higher consumer loan delinquencies, primarily related to forbearance activity associated with the California wildfires.

During the first quarter (Q1), PNC returned $0.8 billion of capital to shareholders, including $0.6 billion of dividends on common shares and $0.2 billion of common share repurchases.

The company expects second-quarter (Q2) share repurchase activity to approximate recent quarterly average share repurchase levels.

PNC shares rallied nearly 2% on Tuesday morning. The stock lost over 17% in 2025 but has gained over 5% in the past 12 months.

Also See: Citi Q1 2025 Earnings Beat Estimates, CEO Jane Fraser Says US Will Still Be World’s Leading Economy Once Structural Shifts Are Over

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