PNC's third-quarter profit rises to $2.1 billion as revenue grows 11%

PNC reported third-quarter 2026 net income of $2.1 billion, or $4.97 a diluted share, up from $1.82 billion, or $4.35 a share, in the third quarter of 2025. Revenue rose 11% to $6.56 billion as net interest income grew 15% from a year earlier and noninterest expense fell 8% from the second quarter.

Third-quarter results, filed with the Securities and Exchange Commission on the morning of October 15, 2026, cover the three months ended September 30, 2026 and carry comparisons for the second quarter of 2026 and the third quarter of 2025. Through the first nine months of 2026, PNC reported revenue of $19.6 billion and net income of $5.92 billion, against $17.03 billion and $4.96 billion in the same period a year earlier.

Net interest income carries a lighter fee quarter

Net interest income of $4.21 billion rose 2% from the second quarter and 15% from a year earlier, helped by commercial loan growth and higher yields on interest-earning assets. The net interest margin was 2.94%, down from 2.96% in the second quarter and up from 2.79% in the third quarter of 2025. Fee income, a non-GAAP measure that excludes other noninterest income, was $2.14 billion, down 6% from the second quarter and up 4% from a year earlier. Capital markets and advisory revenue fell 25% to $433 million from $577 million as the second quarter's elevated activity normalized, while asset management and brokerage fees rose 2% to $447 million.

Total revenue of $6.56 billion decreased $313 million, or 5%, from the second quarter's $6.88 billion, and rose 11% from a year earlier. Noninterest expense of $3.75 billion fell 8% sequentially and included $27 million of FirstBank integration costs; adjusting for integration costs and significant items in both quarters, expense declined 3%. The efficiency ratio improved to 57% from 60%.

Credit costs steady as commercial lending grows

The provision for credit losses was $189 million, little changed from $191 million in the second quarter and above the $167 million recorded a year earlier. Net loan charge-offs of $257 million rose 14% sequentially and 44% from a year earlier and included $35 million tied to the transfer of a $1.4 billion student loan portfolio to held-for-sale. The allowance for credit losses was $5.39 billion, or 1.42% of total loans, down from 1.48% at June 30, 2026 and 1.61% a year earlier. Nonperforming loans of $2.19 billion rose 8% from the second quarter, driven by commercial borrowers.

Balance-sheet growth came mostly from business lending. Average loans of $372.2 billion increased 2% sequentially and 14% from a year earlier, with average commercial loans up $10.4 billion in the quarter; average consumer loans slipped 1% as residential mortgages declined and the student book moved to held-for-sale. Average deposits of $461.2 billion were up 1% from the second quarter and 7% from a year earlier, and deposits at September 30, 2026 of $466.4 billion rose 4% sequentially.

Capital return, buybacks and a bigger dividend

PNC's estimated Basel III common equity tier 1 capital ratio was 9.8%, against 9.9% at June 30, 2026 and 10.7% a year earlier, as risk-weighted assets grew. Accumulated other comprehensive income was negative $6.5 billion, compared with negative $4.1 billion at both prior dates, which the release attributes to higher interest rates on securities and swaps. The bank returned $1.4 billion to shareholders in the quarter, split between $800 million of common dividends and $600 million of repurchases, and it said share repurchase activity in the fourth quarter of 2026 is expected to approximate third-quarter levels.

The board declared a quarterly cash dividend of $2.00 per common share on October 2, 2026, payable November 5, 2026 to holders of record on October 14, up from $1.70 per share a year earlier. Return on average tangible common equity was 18.28%, and book value per common share ended the quarter at $142.17, with tangible book value at $107.64.

Chairman and Chief Executive Officer Bill Demchak said: “Our strategy continues to drive growth across our businesses,” and he pointed to the 18.3% return on average tangible common equity. In the same release he added: “We are well positioned, and remain confident in our long-term outlook.”

Segments, the Fed path and the next filing

Retail Banking earnings of $1.43 billion fell 18% from the second quarter, which had included a $448 million gain related to the Visa share exchange. Corporate & Institutional Banking earnings decreased 2% and the Asset Management Group's earnings fell 5% sequentially, while the category PNC calls Other absorbed corporate items, funding costs and the transfer-pricing change applied this year. The effective tax rate was 20.0% for the quarter.

The release sets out no formal guidance for the fourth quarter, and its forward-looking section carries PNC's baseline forecast: real GDP growth above 2% in 2026, and two further Federal Reserve rate increases, at the December 2026 and March 2027 meetings, bringing the federal funds rate to a range of 4.25% to 4.50%. Demchak and Chief Financial Officer Robert Q. Reilly hold a conference call at 10:00 a.m. Eastern Time on October 15, 2026, and the company's third-quarter Form 10-Q will add the full financial statements and risk disclosures.