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- **Record Q3 Performance**: $1.8B net income, 4% revenue growth, and 200+ bps operating leverage driven by loan/deposit expansion.
- **Strategic Acquisitions**: FirstBank deal triples Colorado branch footprint, positioning PNC as #1 retail deposit bank in Denver.
- **NII Growth Trajectory**: 6.5% in 2025, >$1B in 2026 (excluding FirstBank), supported by fixed-rate asset repricing.
- **Credit Resilience**: 22bp NCO ratio, stable provision, and improving CRE portfolio quality.
- **Deposit Growth Impact**: Commercial IB deposit surge (+$9B Q/Q) pressured NIM, but CFO expects 3%+ NIM in 2026.

**【CEO Summary Section】**
- Reported net income of $1.8 billion or $4.35 per share, with record revenue and PPNR driven by strong loan and deposit growth.
- Consumer DDA growth of 2% YoY, including 6% in the Southwest, supported by branch and digital channel expansion.
- Acquired FirstBank to triple branch footprint in Colorado and gain market leadership, enhancing retail deposit growth.
- CIB noninterest income reached record levels, with broad-based fee growth across capital markets, asset management, and card services.
- Credit quality remained strong with a net charge-off ratio of 22 basis points.

**【CFO Financial Commentary】**
- Net interest income (NII) grew $93 million Q/Q to $3.6 billion, with NIM of 2.79% (down 1bp due to deposit mix changes).
- Noninterest income increased $161 million Q/Q to $2.3 billion, driven by fee growth in capital markets, asset management, and mortgage.
- Noninterest expense rose $78 million Q/Q to $3.5 billion, reflecting higher variable compensation and tech investments.
- Full-year 2025 NII growth expected at 6.5%, with 2026 NII growth comfortably exceeding $1 billion (excluding FirstBank).
- CET1 ratio of 10.6% (9.7% AOCI-adjusted), with plans to reduce capital by $350 million through continuous improvement initiatives.

**【Q&A Highlights】**
- **Margin Dynamics**: Deposit growth (esp. commercial IB) pressured NIM, but CFO expects NIM to exceed 3% in 2026 as fixed-rate assets reprice.
- **Loan Growth**: CIB loan growth of $3.4 billion Q/Q driven by corporate banking and business credit; CRE runoff expected to end in 2026.
- **Regulatory Environment**: Positive on regulatory simplification (e.g., MRA proposals), which could reduce compliance costs and focus on financial strength.
- **Capital Strategy**: CET1 target of 10-10.5%, with potential to lower if Basel III reforms reduce risk-weighted assets.
- **Economic Outlook**: Expect below-2% GDP growth in 2025, but resilient consumer spending and cautious corporate optimism support loan demand.
- **NDFI Risk**: <1% of total loans, with >90% in investment-grade securitizations and low loss rates.
- **Organic Growth**: 25 new branches opened in 2025, with 200+ planned by 2029 to boost retail market share in expansion markets.

The PNC Financial Services Group, Inc. (PNC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PNC

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