PNC Financial Stock Falls As Lower Q1 NII, Loan Projections Outweigh Q4 Profit Beat: Retail Shrugs It Off

Shares of PNC Financial Services Group Inc (PNC) fell over 4% on Thursday morning after the company reported upbeat fourth-quarter (Q4) earnings but projected a decline in first-quarter loans and net interest income.

PNC reported earnings per share (EPS) of $3.77 compared to a Wall Street estimate of $3.31. Revenue rose nearly 2.5% year-over-year (YoY) to $5.57 billion, versus an analyst estimate of $5.49 billion. Net income rose 8% to $1.63 billion.

Net interest income (NII), the difference between interest earned and expended, rose 3% YoY to $3.52 billion, driven by lower funding costs and the continued repricing of fixed-rate assets.

The provision for credit losses decreased quarter-on-quarter to $156 million in Q4, reflecting improved macroeconomic factors and portfolio activity. The third-quarter provision for credit losses was $243 million.

Delinquencies rose 8% during the quarter to $1.4 billion, led by higher commercial loan delinquencies. However, total non-performing loans of $2.3 billion decreased by 10%, driven by lower commercial and industrial non-performing loans.

CEO Bill Demchak said PNC achieved strong results in 2024 while continuing to invest in the franchise's future.

“We grew customers, deepened relationships, and continued to support all of our constituents. We generated record revenue and strengthened our capital levels. At the same time, we maintained our disciplined approach to expenses and delivered positive operating leverage,” he said.

On Stocktwits, retail sentiment jumped into the ‘extremely bullish’ territory (84/100) from ‘bullish’ a day ago. The move was accompanied by ‘extremely high’ retail chatter that hit a year-high level.

For 2025, PNC Financial expects NII to rise 6% to 7% from 2024 levels, while total revenue is expected to grow approximately 6%.

Notably, shares of the firm have gained over 28% over the past year.

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