PNC Financial Services Group posted first-quarter 2025 net income of USD 1.5 billion, or $3.51 per diluted share, as net interest margin expanded and commercial lending grew, while fee income softened on seasonality and slower capital markets activity, according to results published by the Pittsburgh-based bank.
Net interest income for the quarter came in at USD 3.476 billion, and the net interest margin widened by three basis points on a sequential basis to 2.78%. The bank repurchased approximately USD 200 million of common shares during the quarter, and its CET1 ratio was 10.6%.
COMMERCIAL LENDING GAINS GROUND
Spot commercial and industrial loan balances grew 3% quarter-on-quarter. PNC said the growth reflected increased utilisation and new production, partly offset by lower commercial real estate and consumer loan balances.
Net loan charge-offs were $205 million, or 0.26% annualised to average loans, down from $250 million in the fourth quarter. Tangible book value per share rose 5% to $100.40, and accumulated other comprehensive income improved by $1.3 billion to negative $5.2 billion, reflecting the movement of interest rates.
Fee income declined 2% on a sequential basis, a movement the bank attributed to a slowdown in capital markets activity and seasonality.
CAPITAL
The CET1 ratio of 10.6% was up from 10.5% at the end of 2024.