Q2 2025 Earnings Summary
| Metric | YoY Change | Reason |
|---|---|---|
Total Revenue | 4.6% increase ( ) | Total Revenue increased from $5,411 million to $5,661 million YoY, reflecting moderate growth driven by higher net interest income and fee growth in some segments that helped offset declines in others. This mirrors past periods where improvements in fee‐based revenues and interest margins supported overall revenue even when some segments underperformed ( ). |
Retail Banking Revenue | 8.8% decrease ( ) | Retail Banking revenue declined from $4,118 million to $3,756 million YoY, likely due to trends such as lower deposit balances and declines in noninterest fee income—factors consistent with earlier periods where seasonal fee declines and reduced deposit activity impacted performance ( ). |
Corporate & Institutional Banking | 10.1% increase ( ) | Corporate & Institutional Banking revenue rose from $2,473 million to $2,720 million YoY, driven by higher net interest income from wider deposit spreads and improved fee income. This growth is in line with previous period trends where performance in fee and interest-based activities bolstered this segment ( ). |
Capital Markets and Advisory | 18% increase ( ) | Capital Markets and Advisory revenue surged from $272 million to $321 million YoY, mainly due to higher merger and acquisition advisory fees and increased trading revenue, reflecting a rebound from earlier volatile periods where declines had been noted ( ). |
Asset Management Group | 6.3% increase ( ) | Asset Management Group revenue increased from $398 million to $423 million YoY, attributed to gains in net interest income and benefits from favorable equity market conditions, continuing trends observed in prior periods ( ). |
Asset Management and Brokerage | 7.4% increase ( ) | Asset Management and Brokerage revenue grew from $364 million to $391 million YoY, driven by higher average equity market levels and increased client activity, similar to earlier improvements noted when market value trends boosted client assets under management ( ). |
Other Revenue | 21.5% reduction in negative impact ( ) | The negative Other revenue improved from –$1,578 million to –$1,238 million YoY, due to a substantial reduction in negative adjustments (such as Visa derivative adjustments) that had been adversely affecting prior results, following a trend where similar adjustments were moderated compared to earlier periods ( ). |
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
Average Loans | FY 2025 | stable, equating to spot loan growth of 2%-3% | Up approximately 1% (revised from prior guidance of stable) | raised |
Net Interest Income | FY 2025 | up 6%-7% | Increase approximately 7% | raised |
Noninterest Income | FY 2025 | up approximately 5% | Up approximately 4%-5% (slightly down from prior guidance of up 5%) | lowered |
Total Revenue | FY 2025 | up approximately 6% | Up approximately 6% | no change |
Noninterest Expenses | FY 2025 | up approximately 1% | Up approximately 1% | no change |
Effective Tax Rate | FY 2025 | approximately 19% | Approximately 19% | no change |
Average Loans | Q2 2025 | Expected to be up approximately 1% compared to Q1 2025 | no current guidance | no current guidance |
Net Interest Income | Q2 2025 | Expected to be up 1%-2% compared to Q1 2025 | no current guidance | no current guidance |
Fee Income | Q2 2025 | Expected to be up 1%-3% compared to Q1 2025 | no current guidance | no current guidance |
Other Noninterest Income | Q2 2025 | Expected to be in the range of $150 million to $200 million | no current guidance | no current guidance |
Total Revenue | Q2 2025 | Expected to be up 1%-3% compared to Q1 2025 | no current guidance | no current guidance |
Noninterest Expense | Q2 2025 | Expected to be stable compared to Q1 2025 | no current guidance | no current guidance |
Net Charge-Offs | Q2 2025 | Expected to be approximately $300 million | no current guidance | no current guidance |
Average Loans | Q3 2025 | no prior guidance | Up approximately 1% | no prior guidance |
Net Interest Income | Q3 2025 | no prior guidance | Up approximately 3% | no prior guidance |
Fee Income | Q3 2025 | no prior guidance | Up between 3%-4% | no prior guidance |
Other Noninterest Income | Q3 2025 | no prior guidance | In the range of $150 million | no prior guidance |
Total Revenue | Q3 2025 | no prior guidance | Up between 2%-3% | no prior guidance |
Noninterest Expenses | Q3 2025 | no prior guidance | Up approximately 2% | no prior guidance |
Net Charge-Offs | Q3 2025 | no prior guidance | In the range of $275 million to $300 million | no prior guidance |
| Metric | Period | Guidance | Actual | Performance |
|---|---|---|---|---|
Net Interest Income | Q2 2025 | Expected to be up 1%-2% vs Q1 2025.(Q1 2025 was 3,476) | 3,555(derived from Q2 2025 Total Revenue 5,661Minus Noninterest Income 2,106) | Beat |
Fee Income | Q2 2025 | Expected to be up 1%-3% vs Q1 2025.(Q1 2025 was 1,927) | 2,106 | Beat |
Other Noninterest Income | Q2 2025 | Expected to be $150M-$200M | 212 | Beat |
Total Revenue | Q2 2025 | Expected to be up 1%-3% vs Q1 2025.(Q1 2025 was 5,452) | 5,661 | Beat |
Research analysts covering PNC FINANCIAL SERVICES GROUP.