PNC Financial Services Group, Inc. has reported a net income of $1.5 billion for the first quarter of 2025, with diluted earnings per share of $3.51. The net interest income decreased by 1% to $3.476 billion, while the noninterest income decreased by 3% to $1.976 billion. However, the net interest margin expanded by 3 basis points to 2.78%.
The average loans decreased by $2.4 billion, or 1%, while the average deposits decreased by $4.6 billion, or 1%. The net loan charge-offs were $205 million, or 0.26% annualized to average loans, which was a decrease from the previous period.
PNC maintained a strong capital position with a CET1 capital ratio of 10.6% and returned approximately $0.8 billion of capital to shareholders through dividends and share repurchases.
The effective tax rate was 18.8% for the first quarter of 2025, compared to 14.6% for the fourth quarter of 2024. The provision for credit losses was $219 million in the first quarter, reflecting changes in macroeconomic factors and portfolio activity.
Overall, the first quarter of 2025 saw a decrease in total revenue by $115 million compared to the fourth quarter of 2024, driven by seasonality and a slowdown in capital markets activity. However, compared to the first quarter of 2024, total revenue increased by $307 million, reflecting broad-based revenue growth.
In terms of noninterest expense, it decreased by $119 million, or 3%, compared to the fourth quarter of 2024, primarily due to asset impairments recognized in the fourth quarter. However, it increased by $53 million compared to the first quarter of 2024, driven by increased business activity, technology investments, and higher marketing spend.
Following these announcements, the company's shares moved 0.9%, and are now trading at a price of $156.69. If you want to know more, read the company's complete 8-K report here.
