tiprankstipranks
Trending News
More News >
PNC Financial (PNC)
NYSE:PNC

PNC Financial (PNC) AI Stock Analysis

Compare
1,680 Followers

Top Page

PN

PNC Financial

(NYSE:PNC)

Rating:79Outperform
Price Target:
$202.00
▲(15.63%Upside)
PNC Financial Services demonstrates solid financial health and profitability, supported by strong earnings call outcomes and strategic corporate events. Despite mixed technical signals and challenges from market volatility, PNC's attractive valuation and disciplined management provide a stable outlook for growth.
Positive Factors
Earnings
PNC's earnings beat expectations, with an EPS of $3.51 versus the consensus of $3.38, driven by better net interest income, lower expenses, and lower provisions.
Growth Potential
PNC has an opportunity to grow more in its new SW markets, taking advantage of a faster growing pie.
Stock Valuation
Analyst recommends a buy rating with a price objective of $216, indicating confidence in the stock's potential to appreciate.
Negative Factors
Credit Losses
Credit losses are expected to drift higher, with stress in the commercial real estate office portfolio, which could apply upward pressure to credit losses.
Loan Growth
Loan growth has been disappointing, with a decrease in spot loans compared to the original forecast, which is seen as a downside risk.
Tariff Impact
The primary risk is a tariff-driven recession that causes higher reserves, especially given 70% C&I loan in mix.

PNC Financial (PNC) vs. SPDR S&P 500 ETF (SPY)

PNC Financial Business Overview & Revenue Model

Company DescriptionPNC Financial Services Group, Inc. is a diversified financial services company based in Pittsburgh, Pennsylvania. It operates in several sectors including retail banking, corporate and institutional banking, asset management, and residential mortgage banking. PNC offers a wide range of financial products and services such as deposits, loans, credit cards, treasury management, and wealth management services to individuals, small businesses, corporations, and government entities.
How the Company Makes MoneyPNC Financial generates revenue primarily through interest income from its lending activities, including loans and mortgages to consumers and businesses. Additionally, PNC earns non-interest income through fees and commissions from various services such as asset management, investment banking, and transaction services. The company also benefits from income generated through its investment portfolio. Key revenue streams include retail banking, which offers traditional banking services to individual customers, and corporate and institutional banking, which provides financial solutions to larger businesses and government entities. Strategic partnerships and technological investments, such as in digital banking platforms, also contribute to its revenue streams by enhancing customer engagement and operational efficiency.

PNC Financial Key Performance Indicators (KPIs)

Any
Any
Deposits
Deposits
Measures the total amount of client deposits, providing insight into the bank's liquidity and funding base. Strong deposit growth can indicate customer trust and a stable source of low-cost capital.
Chart InsightsPNC Financial's deposits have been gradually declining since mid-2022, reflecting a strategic shift towards optimizing balance sheet efficiency amid market volatility. Despite this trend, the latest earnings call highlights strong financial performance with a focus on loan growth and capital returns. Management remains confident in achieving record net interest income in 2025, despite potential challenges from market volatility and tariff uncertainties. This strategic focus on profitability over deposit volume suggests a deliberate move to enhance shareholder value through disciplined expense management and capital efficiency.
Data provided by:Main Street Data

PNC Financial Earnings Call Summary

Earnings Call Date:Apr 15, 2025
(Q1-2025)
|
% Change Since: 13.65%|
Next Earnings Date:Jul 16, 2025
Earnings Call Sentiment Neutral
PNC delivered strong financial performance in the first quarter with solid net income growth, positive operating leverage, and a strategic focus on capital return to shareholders. However, challenges such as market volatility, tariff uncertainties, and potential credit risks weigh on the outlook. Despite these challenges, PNC's disciplined approach to expense management and loan growth position it well for 2025.
Q1-2025 Updates
Positive Updates
Strong Net Income and EPS Growth
PNC reported a strong net income of $1.5 billion or $3.51 per share, with EPS growth of 13% year over year.
C&I Loan Growth
Spot C&I loans grew by 3% during the quarter, with strong new commitments, marking the largest increase since Q4 2022.
Positive Operating Leverage
PNC remains on track to deliver positive operating leverage, with total revenue up 6% and non-interest expense up only 2% year over year.
Capital Return to Shareholders
PNC returned approximately $800 million of capital to shareholders through common dividends and share repurchases.
Improved CET1 Ratio
PNC reported a CET1 ratio of 10.6%, with an estimated CET1 ratio inclusive of AOCI at 9.4%.
Negative Updates
Challenges from Market Volatility and Tariffs
Increased market volatility due to uncertainty regarding tariffs could pressure non-interest income throughout the year.
Decline in Investment Securities
Average investment securities decreased by $2 billion to $142 billion, with prepayments and maturities outpacing purchases.
Potential Credit Risks
Concerns about potential recession and the impact of tariffs could increase the probability of a recession, potentially affecting credit quality.
Slight Decline in Total Revenue
Total revenue of $5.5 billion decreased by $115 million or 2% linked quarter due to seasonality and fewer days in the quarter.
Higher Net Charge-Offs Expected
Second quarter net charge-offs are expected to be approximately $300 million, up from $205 million in the first quarter, due to lumpiness in CRE office charge-offs.
Company Guidance
During The PNC Financial Services Group's first quarter 2025 earnings call, the company highlighted strong financial performance, emphasizing key metrics and strategic goals. PNC reported a net income of $1.5 billion or $3.51 per share, with a 3% year-over-year growth in spot C&I loans and a net interest margin increase to 2.78%. Despite a 2% decrease in total revenue due to seasonality, non-interest expenses were well-managed, allowing PNC to maintain positive operating leverage. The bank remains committed to delivering record net interest income (NII) for the year. PNC's capital levels improved, with a CET1 ratio of 10.6% and ongoing shareholder returns through $800 million in dividends and share repurchases. Looking forward, PNC expects full-year 2025 revenue growth of approximately 6%, with net interest income expected to rise by 6% to 7%, and non-interest income up by approximately 5%, despite potential challenges from market volatility and tariff uncertainties.

PNC Financial Financial Statement Overview

Summary
PNC Financial exhibits solid financial health with strong profitability metrics and a stable balance sheet. Effective cost management and cash flow generation underpin their financial stability, but attention to revenue growth and rising debt levels is advisable.
Income Statement
85
Very Positive
PNC Financial demonstrated strong profitability with a stable gross profit margin reflecting consistent performance in TTM (Trailing-Twelve-Months). The net profit margin and EBIT margin remained robust, showcasing efficient cost management. However, revenue growth was slightly negative in the most recent annual report, indicating some challenges in expanding their top line.
Balance Sheet
78
Positive
The balance sheet reveals a sound financial position with a moderate debt-to-equity ratio, indicating balanced leverage. Return on equity is healthy, reflecting effective use of shareholders' funds to generate profit. The equity ratio is stable, showcasing adequate equity financing, though the rising debt levels warrant monitoring.
Cash Flow
80
Positive
PNC's cash flow statement highlights a strong operating cash flow to net income ratio, implying efficient cash generation from operations. Free cash flow growth, however, has been inconsistent, suggesting potential volatility in capital expenditure or cash management strategies.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
20.90B20.77B21.51B21.11B19.21B16.90B
Gross Profit
20.90B20.77B21.51B21.11B19.21B16.90B
EBIT
6.31B7.24B6.74B7.47B6.99B3.43B
EBITDA
3.84B75.54B6.95B8.12B8.76B4.93B
Net Income Common Stockholders
6.04B5.89B5.58B6.04B5.67B7.52B
Balance SheetCash, Cash Equivalents and Short-Term Investments
55.64B55.64B61.46B78.52B213.79B179.55B
Total Assets
560.04B560.04B561.58B557.26B558.45B466.68B
Total Debt
61.67B61.67B72.74B58.71B33.00B39.29B
Net Debt
15.42B15.42B22.01B24.35B-49.25B-52.90B
Total Liabilities
505.57B505.57B510.44B511.45B30.78B37.20B
Stockholders Equity
54.42B54.42B51.10B45.77B55.70B54.01B
Cash FlowFree Cash Flow
6.12B7.88B10.11B9.08B7.21B4.66B
Operating Cash Flow
6.12B7.88B10.11B9.08B7.21B4.66B
Investing Cash Flow
3.13B-3.23B-6.38B-13.43B-2.79B-51.12B
Financing Cash Flow
-12.74B-9.12B-3.85B3.38B-3.43B48.42B

PNC Financial Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price174.70
Price Trends
50DMA
165.95
Positive
100DMA
176.62
Negative
200DMA
182.06
Negative
Market Momentum
MACD
2.32
Positive
RSI
55.91
Neutral
STOCH
74.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNC, the sentiment is Neutral. The current price of 174.7 is below the 20-day moving average (MA) of 174.73, above the 50-day MA of 165.95, and below the 200-day MA of 182.06, indicating a neutral trend. The MACD of 2.32 indicates Positive momentum. The RSI at 55.91 is Neutral, neither overbought nor oversold. The STOCH value of 74.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PNC.

PNC Financial Risk Analysis

PNC Financial disclosed 29 risk factors in its most recent earnings report. PNC Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

PNC Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PNPNC
79
Outperform
$69.74B12.4511.15%3.66%3.07%19.01%
76
Outperform
$24.13B10.3911.46%0.41%0.33%-3.13%
MTMTB
74
Outperform
$28.87B12.059.39%3.00%1.20%1.12%
73
Outperform
$25.67B12.1711.71%3.80%5.75%0.68%
USUSB
70
Outperform
$68.40B10.8111.50%4.53%2.19%34.00%
64
Neutral
$12.77B9.777.59%16985.66%12.31%-7.69%
TFTFC
60
Neutral
$51.88B11.680.10%5.26%-27.31%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PNC
PNC Financial
174.70
24.40
16.23%
TFC
Truist Financial
39.63
5.16
14.97%
FITB
Fifth Third Bancorp
38.30
3.47
9.96%
FCNCA
First Citizens BancShares
1,814.09
131.50
7.82%
MTB
M&T Bank
179.91
37.22
26.08%
USB
US Bancorp
43.68
6.41
17.20%

PNC Financial Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
PNC Financial Completes $1.25 Billion Senior Notes Offering
Positive
May 13, 2025

On May 13, 2025, PNC Financial Services Group, Inc. successfully completed the public offering and sale of $1.25 billion in Fixed Rate/Floating Rate Senior Notes due in 2031. This issuance, underwritten by major financial institutions and governed by existing indentures, reflects PNC’s strategic financial maneuvers to enhance its capital structure and potentially strengthen its market position.

The most recent analyst rating on (PNC) stock is a Buy with a $184.00 price target. To see the full list of analyst forecasts on PNC Financial stock, see the PNC Stock Forecast page.

Executive/Board ChangesShareholder Meetings
PNC Financial Announces COO Transition and Shareholder Meeting
Neutral
Apr 25, 2025

On April 23, 2025, PNC Financial announced a reorganization of certain operating functions, resulting in E William Parsley, III stepping down as Chief Operating Officer effective July 1, 2025, transitioning to an Executive Advisor role until the end of the year. During this transition, Parsley will be eligible for severance benefits and equity awards, contingent on compliance with certain conditions. Additionally, PNC held its annual shareholder meeting on the same day, where all 13 director nominees were elected, PricewaterhouseCoopers LLP was ratified as the independent auditor for 2025, and the executive compensation was approved on an advisory basis.

Financial Disclosures
PNC Financial Reports Strong Q1 2025 Earnings
Positive
Apr 15, 2025

On April 15, 2025, PNC Financial Services Group held a conference call to discuss its first-quarter earnings for 2025. The company reported solid financial results, including a net income of $1.5 billion and a diluted earnings per share of $3.51. PNC saw growth in customer relationships, increased commercial and industrial loan commitments, and an expanded net interest margin. Despite a slight decline in total loans, the company maintained strong credit quality and increased its capital position, demonstrating resilience in navigating the current economic environment.

Executive/Board ChangesBusiness Operations and Strategy
PNC Financial Appoints Mark Wiedman as President
Positive
Apr 7, 2025

On April 7, 2025, PNC Financial Services Group announced the appointment of Mark Wiedman as President, effective April 3, 2025. Wiedman, who previously held senior roles at BlackRock, brings extensive experience in driving growth and business transformation. His appointment aligns with PNC’s strategy to leverage technology and expand its client base through diversified products and services. Wiedman will report to CEO William S. Demchak and oversee PNC’s primary operating lines and Regional Presidents Office. This strategic move aims to accelerate PNC’s growth and strengthen its leadership team, positioning the company to better navigate the evolving banking landscape.

Executive/Board ChangesBusiness Operations and Strategy
PNC Financial Implements Executive Severance Plan
Neutral
Mar 27, 2025

On March 21, 2025, PNC Financial Services Group, Inc. implemented an Executive Severance Plan to offer payments and benefits to certain employees, including named executive officers, upon specified employment terminations. This plan, developed with an independent consultant, aims to provide a standardized severance framework, ensuring certainty and protection for both the executives and the corporation in non-change in control scenarios.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.