PNC Financial (PNP) Q2 2026 Earnings Report

The call presented a strong quarter with substantial revenue and EPS growth, robust loan growth, broad-based fee income strength, solid credit metrics, and continued capital returns (dividend increase and buybacks). Management acknowledged modest integration and one-time items, some near-term fee and margin volatility, and a temporary increase in wholesale borrowings, but provided constructive full-year guidance (notably NII +15–15.5% and loan growth ~12.5%) and reiterated execution on strategic initiatives. Overall the positives materially outweigh the negatives.

PNC’s guidance for 2026 (ex‑FirstBank integration/significant items) calls for full‑year average loan growth of ~12.5%, net interest income up 15–15.5%, noninterest income up ~9%, total revenue up ~13%, noninterest expense up ~8.5%, and an effective tax rate of ~19.5%; the company expects to remain well‑capitalized with an estimated CET1 of ~9.9%, returned $1.3B of capital in Q2 (≈$690M dividends, $610M buybacks) and expects Q3 repurchases to be roughly similar while the Board raised the quarterly dividend $0.30 (18%) to $2.00/share. For Q3 versus Q2, PNC expects average loans +1–2%, NII +3–3.5%, fee income down 5–5.5%, other noninterest income $150–$200M, adjusted noninterest expense down 2–3%, ~ $50M of integration expense and net charge‑offs of ~ $225M; management’s macro assumptions include ~2.1% GDP for 2026, a year‑end unemployment rate of ~4.3%, a stable Fed rate path for 2026, an exit NIM above 3% and an exit ROTCE target near the high‑teens (Q2 ROTCE was 17.9%), with a $350M cost‑reduction goal for 2026.