PNC Financial Services Group reported fourth-quarter earnings per share of $4.88, surpassing the consensus estimate of $4.23 by 15%. Net income for the quarter reached $2.03 billion, up 12% from $1.82 billion in the prior quarter. Total revenue was $6.07 billion, topping analysts’ forecasts of $5.95 billion and reflecting a 3% sequential increase driven by stronger net interest income and fee income. The bank’s return on average common equity improved to 14.33%, compared with 13.24% in the prior quarter.

Net interest income rose 2% quarter-over-quarter to $3.73 billion, benefiting from lower funding costs and continued repricing of fixed-rate assets. The net interest margin widened by five basis points to 2.84%. Average loans grew by $2 billion, or 1%, to $327.9 billion, while average deposits climbed by $7.7 billion, or 2%, to $439.5 billion. Loan growth was led by commercial and industrial lending, and deposit growth reflected both commercial client activity and consumer inflows.

Noninterest income increased 3% to $2.34 billion, driven by a 3% rise in fee income from higher capital markets and advisory fees. Noninterest expense rose 4% to $3.60 billion, resulting in an efficiency ratio of 59%. The provision for credit losses declined to $139 million from $167 million in the prior quarter. PNC maintained a strong capital base with a common equity tier 1 ratio of 10.6% and tangible book value per share of $112.51, up 4% from the third quarter.

PNC expects total revenue growth of approximately 11% for full-year 2026, with net interest income projected to increase by about 14% and average loans to rise by 8%. The bank anticipates positive operating leverage of around 400 basis points. In the first quarter, it plans $600 million to $700 million in share repurchases and will pay a quarterly dividend of $1.70 per share. PNC also completed its acquisition of FirstBank on January 5, 2026, adding $26 billion in assets, $16 billion in loans and $23 billion in deposits to its balance sheet.