PNC's Q3 revenue grows slightly less than expected on tepid capital markets activity

By Reuters News


Overview

  • U.S. banking group's Q3 revenue and net interest income grew yr/yr, slightly missed analyst expectations

  • Adjusted EPS for Q3 rose, driven by higher net interest income and reduced expenses

  • Company returned $1.4 bln to shareholders via dividends and share repurchases


Outlook

  • PNC expects Q4 2026 share repurchase activity to approximate Q3 2026 levels


Result Drivers

  • COMMERCIAL LOAN GROWTH - Co said net interest income rose due to strong new production and increased utilization of commercial loans

  • LOWER NONINTEREST INCOME - Co said revenue fell qtr/qtr as growth in net interest income was more than offset by lower noninterest income, mainly due to reduced capital markets and advisory revenue

  • REDUCED EXPENSES - Co said noninterest expense declined qtr/qtr, mainly due to lower compensation expense and continued expense discipline


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Miss*

$6.56 bln

$6.61 bln (17 Analysts)

Q3 EPS

$4.97

Q3 Net Income

$2.10 bln

Q3 Net Interest Income

Slight Miss*

$4.21 bln

$4.25 bln (12 Analysts)

Q3 Adjusted Net Interest Margin

2.94%

Q3 CET1 Capital Ratio

9.80%

Q3 Provision for Credit losses

$189 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for The PNC Financial Services Group, Inc. is $275.00, about 27.4% above its October 14 closing price of $215.80

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago


Reuters Recommended Reads

  • Oct 14 - US banks post solid third-quarter loan growth, but face more competition for deposits

  • Oct 15 - Wall St banks caught in capital markets lull after a strong first half of 2026

  • Oct 13 - Wells Fargo beats profit estimates, but net interest income, revenue fall short


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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