PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 as Adjusted

PNC Reports Second Quarter 2026 Net Income of $2.1 Billion, $4.81 Diluted EPS or $4.85 as Adjusted

PR Newswire

PITTSBURGH, July 15, 2026

Generated record revenue, net interest income and fee incomeIncreased quarterly common stock dividend 30 cents, or 18%, to $2.00 per sharePITTSBURGH, July 15, 2026 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported:For the quarterIn millions, except per share data and as noted2Q261Q262Q25Second Quarter HighlightsFinancial ResultsComparisons reflect 2Q26 vs. 1Q26Net interest income (NII)$ 4,107$ 3,961$ 3,555 Income StatementAdjusted EPS was $4.85 which excludes the net impact of FirstBank integration costs and 2Q26significant items, resulting in a 4 cent reduction to EPSGenerated 3% positive operating leverage; PPNR increased 16%; ROTCE of 17.9%NII increased 4%; NIM of 2.96% increased 1 bpFee income increased 10%, driven by strong capital markets activityNoninterest expense of $4.1 billion included $140 million of PNC Foundation contribution expense, $121 million of integration expenses and the impact of increased business activity Balance Sheet Average loans increased $12.3 billion, or 4%Average deposits were stableAverage noninterest-bearing deposits grew 4%Rate paid on interest-bearing deposits declined 5 basis pointsNet loan charge-offs were $226 million, or 0.25% annualized to average loansMaintained strong capital positionCET1 capital ratio of 9.9%Returned $1.3 billion to shareholders, including $0.6 billion of share repurchasesIncreased quarterly common stock dividend 30 cents, or 18% to $2.00 per shareConverted FirstBank customers, employees, systems and branches as of June 22, 2026 Fee income (non-GAAP)2,2792,0791,894 Other noninterest income489125212Noninterest income2,7682,2042,106Revenue6,8756,1655,661Noninterest expense4,0983,7683,383Pretax, pre-provision earnings (PPNR) (non-GAAP)2,7772,3972,278Provision for credit losses191210254Net income 2,0551,7721,643Per Common Share Diluted earnings per share (EPS)$ 4.81$ 4.13$ 3.85EPS impact of integration costs and 2Q26 significant items0.040.19—Diluted EPS - as adjusted (non-GAAP)4.854.323.85Average diluted common shares outstanding403405397Book value145.52143.65131.61Tangible book value (TBV) (non-GAAP)111.09109.42103.96Balance Sheet & Credit Quality Average loans In billions$ 363.2$ 350.9$ 322.8Noninterest-bearing deposits In billions103.599.193.1Interest-bearing deposits In billions353.5359.3329.8Average deposits In billions457.0458.4423.0Accumulated other comprehensive income (loss) (AOCI) In billions(4.1)(3.8)(4.7)Net loan charge-offs226253198Allowance for credit losses to total loans1.48 %1.52 %1.62 %Selected RatiosReturn on average common shareholders' equity13.61 %11.92 %12.20 %Return on avg. tangible common equity (ROTCE) (non-GAAP)17.8815.6615.55Return on average assets1.341.191.17Net interest margin (NIM) (non-GAAP)2.962.952.80Noninterest income to total revenue403637Efficiency606160Common equity tier 1 (CET1) capital ratio9.910.110.5See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release. Totals may not sum due to rounding. 1Q26 Diluted EPS - as adjusted, excludes $98 million of integration costs related to the FirstBank acquisition.From Bill Demchak, PNC Chairman and Chief Executive Officer:"Our strong second quarter performance reflects the disciplined execution of our growth strategy and positions us well for the second half of the year. We remain focused on delivering results that support our customers, shareholders and communities. Our successful FirstBank conversion, strong capital position and announced dividend increase provide further evidence of the strength and resilience of our franchise."Acquisition of FirstBankAs of June 22, 2026, PNC has converted approximately 780,000 customers, more than 1,620 employees and 95 branches across Colorado and Arizona, merging FirstBank into PNC Bank. Second quarter of 2026 results include the full quarter benefit of FirstBank. First quarter of 2026 results include FirstBank operations since acquisition close on January 5, 2026.Integration Costs and 2Q26 Significant ItemsIn the second quarter of 2026, PNC incurred integration costs related to the FirstBank acquisition of $127 million. Results for the quarter also reflected the impact of several significant items. PNC participated in the Visa exchange program monetizing 50% of its Visa Class B-2 shares resulting in a gain of $448 million and converting its remaining holdings into 0.9 million of Visa Class B-3 shares. This gain was substantially offset by a $140 million PNC Foundation contribution expense, a $139 million securities loss related to the repositioning of approximately $4 billion of available-for-sale investment securities into higher yielding instruments, and negative $85 million of Visa Class B-3 derivative fair value adjustments, driven by the extension of anticipated litigation resolution timing. The combined impact of both integration costs and 2Q26 significant items resulted in a $15 million decline in net income, or a 4 cent reduction to EPS.Impact of Integration Costs and 2Q26 Significant ItemsIn millions2Q26 Integration Costs and Significant ItemsNoninterest IncomeIntegration CostsSignificant ItemsNet ImpactGain on exchange of Visa Class B-2 shares$ 448$ 448Visa Class B-3 derivative fair value adjustments(85)(85)Loss on sale of securities(139)(139)Integration costs$ (6)(6)Noninterest income impact of integration costs and 2Q26 significant items$ (6)$ 224$ 218Noninterest ExpenseContribution to PNC Foundation$ 140$ 140Integration costs$ 121121Noninterest expense impact of integration costs and 2Q26 significant item$ 121$ 140$ 261Net Income and EPSPretax, pre-provision impact $ (127)$ 84$ (43)Income taxes (benefit)(26)(2)(28)Net Income decrease from integration costs and 2Q26 significant items$ (101)$ 86$ (15)EPS impact of integration costs and 2Q26 significant items$ (0.25)$ 0.21$ (0.04)Income taxes on integration costs and 2Q26 significant items are calculated at a statutory tax rate of 21% on pretax, pre-provision earnings. Significant items tax impact also includes the benefit of shares donated to the PNC Foundation. Income Statement HighlightsSecond quarter 2026 compared with first quarter 2026Total revenue of $6.9 billion increased $710 million, or 12%, driven by growth in both noninterest income and net interest income.Net interest income of $4.1 billion increased $146 million, or 4%, and included the benefit of commercial loan growth and higher noninterest-bearing deposit balances.Net interest margin increased 1 basis point to 2.96%.Fee income of $2.3 billion increased $200 million, or 10%, driven by growth across all fee categories, including record capital markets and advisory revenue.Other noninterest income of $489 million included both integration costs and 2Q26 significant items totaling $218 million as well as positive valuation adjustments of private equity investments.Noninterest expense of $4.1 billion increased $330 million, or 9%, and included $261 million of both integration expenses and 2Q26 significant items, compared to $97 million of integration expenses in the first quarter. Excluding these items from each quarter, noninterest expense was $3.8 billion, increasing $166 million, or 5%, primarily due to increased business activity.Provision for credit losses was $191 million in the second quarter and reflected portfolio activity as well as updates to macroeconomic factors.The effective tax rate was 20.5% for the second quarter and 19.0% for the first quarter.Balance Sheet HighlightsSecond quarter 2026 compared with first quarter 2026 or June 30, 2026 compared with March 31, 2026Average loans of $363.2 billion increased $12.3 billion, or 4%. Average commercial loans increased $13.0 billion, or 5%, driven by strong new production and increased utilization. Average consumer loans decreased $0.7 billion, or 1%, due to declines in both residential mortgage and auto loans, partially offset by growth in credit card loans.Loans at June 30, 2026 of $368.0 billion increased $7.0 billion, or 2%, from March 31, 2026 and included commercial loan growth, reflecting strong new production.Credit quality performance:Delinquencies of $1.4 billion decreased $122 million, or 8%, due to lower commercial loan delinquencies.Total nonperforming loans of $2.0 billion decreased $216 million, or 10%, driven by lower commercial real estate nonperforming loans.Net loan charge-offs of $226 million decreased $27 million primarily due to FirstBank acquired net loan charge-offs of $45 million recognized in the first quarter.The allowance for credit losses of $5.5 billion was stable. The allowance for credit losses to total loans was 1.48% at June 30, 2026 and 1.52% at March 31, 2026.Average investment securities of $147.1 billion increased $2.6 billion, or 2%, reflecting higher residential mortgage-backed securities.Average deposits of $457.0 billion were stable. The rate paid on interest-bearing deposits of 1.91%, declined 5 basis points.PNC maintained a strong capital and liquidity position:On July 6, 2026, the PNC board of directors raised the quarterly cash dividend on common stock to $2.00 per share, an increase of 30 cents, or 18%. The dividend is payable on August 5, 2026 to shareholders of record at the close of business July 20, 2026.PNC returned $1.3 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.6 billion of common share repurchases.Share repurchase activity in the third quarter of 2026 is expected to approximate second quarter of 2026 share repurchase levels.The Basel III common equity tier 1 capital ratio was an estimated 9.9% at June 30, 2026 and was 10.1% at March 31, 2026.PNC's average LCR for the three months ended June 30, 2026 was 106%, exceeding the regulatory minimum requirement throughout the quarter.Earnings SummaryIn millions, except per share data2Q261Q262Q25Net income$ 2,055$ 1,772$ 1,643Net income attributable to diluted common shareholders$ 1,941$ 1,675$ 1,532Net income attributable to diluted common shareholders - as adjusted (non-GAAP)$ 1,956$ 1,752$ 1,532Diluted earnings per common share$ 4.81$ 4.13$ 3.85Diluted earnings per common share - as adjusted (non-GAAP)$ 4.85$ 4.32$ 3.85Average diluted common shares outstanding403405397Cash dividends declared per common share$ 1.70$ 1.70$ 1.60See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.The Consolidated Financial Highlights accompanying this news release include additional information regarding reconciliations of non-GAAP financial measures to reported (GAAP) amounts. This information supplements results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, GAAP results. Information in this news release, including the financial tables, is unaudited.CONSOLIDATED REVENUE REVIEWRevenueChangeChange2Q26 vs2Q26 vsIn millions2Q261Q262Q251Q262Q25Net interest income$ 4,107$ 3,961$ 3,5554 %16 %Noninterest income2,7682,2042,10626 %31 %Total revenue$ 6,875$ 6,165$ 5,66112 %21 %Total revenue for the second quarter of 2026 increased $710 million compared to the first quarter of 2026 and $1.2 billion compared to the second quarter of 2025. In both comparisons, the increase was driven by both higher noninterest income and net interest income.Net interest income of $4.1 billion increased $146 million from the first quarter of 2026 and $552 million from the second quarter of 2025. In each comparison, the increase included the benefit of commercial loan growth and higher noninterest-bearing deposit balances. In comparison to the second quarter of 2025, the increase also reflected the benefit of FirstBank and lower funding costs.Net interest margin was 2.96% in the second quarter of 2026, increasing 1 basis point from the first quarter of 2026. Compared to the second quarter of 2025, net interest margin expanded 16 basis points.Noninterest IncomeChangeChange2Q26 vs2Q26 vsIn millions2Q261Q262Q251Q262Q25Asset management and brokerage$ 440$ 420$ 3915 %13 %Capital markets and advisory57746332125 %80 %Card and cash management7727387375 %5 %Lending and deposit services3463403172 %9 %Residential and commercial mortgage14411812822 %13 %Fee income (non-GAAP)2,2792,0791,89410 %20 %Other489125212291 %131 %Total noninterest income$ 2,768$ 2,204$ 2,10626 %31 %Integration costs and 2Q26 significant items218(1)—Noninterest income, excluding integration costs and 2Q26 significant items (non-GAAP)$ 2,550$ 2,205$ 2,10616 %21 %See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.Noninterest income for the second quarter of 2026 of $2.8 billion included $218 million of both integration costs and 2Q26 significant items. The first quarter of 2026 included $1 million of FirstBank related integration costs. Excluding these items from each quarter, noninterest income was $2.6 billion, increasing $345 million, or 16%, from the first quarter of 2026 and $444 million, or 21%, from the second quarter of 2025.In comparison to the first quarter of 2026, fee income increased $200 million, or 10%, driven by growth across all fee categories. Asset management and brokerage fees increased $20 million as a result of higher average equity markets and increased client activity. Capital markets and advisory revenue increased $114 million driven by record merger and acquisition advisory fees as well as strong activity across other capital markets businesses. Card and cash management revenue increased $34 million due to seasonally higher consumer transaction volumes and growth in treasury management product revenue. Lending and deposit related revenue increased $6 million primarily due to increased customer activity. Residential and commercial mortgage revenue increased $26 million primarily driven by a first quarter of 2026 negative valuation of residential mortgage servicing rights, net of economic hedge, which did not recur.Compared to the second quarter of 2025, fee income increased $385 million, or 20%, driven by an increase in capital markets and advisory revenue of $256 million as well as broad-based growth across the other fee income categories.Other noninterest income of $489 million in the second quarter of 2026 included both integration costs and 2Q26 significant items totaling $218 million as well as positive valuation adjustments of private equity investments.CONSOLIDATED EXPENSE REVIEWNoninterest ExpenseChangeChange2Q26 vs2Q26 vsIn millions2Q261Q262Q251Q262Q25Personnel$ 2,273$ 2,106$ 1,8898 %20 %Occupancy252262235(4) %7 %Equipment4354153945 %10 %Marketing110879926 %11 %Other1,02889876614 %34 %Total noninterest expense$ 4,098$ 3,768$ 3,3839 %21 %Integration costs and 2Q26 significant items26197—Noninterest expense, excluding integration costs and 2Q26 significant items (non-GAAP)$ 3,837$ 3,671$ 3,3835 %13 %See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.Noninterest expense for the second quarter of 2026 of $4.1 billion included both integration costs and 2Q26 significant items totaling $261 million. The first quarter of 2026 included $97 million of FirstBank integration costs.Noninterest expense excluding both integration costs and 2Q26 significant items was $3.8 billion, increasing $166 million from the first quarter of 2026 and $454 million compared to the second quarter of 2025. In each comparison the increase reflected the impact of increased business activity, higher marketing spend and continued investments to support business growth. Compared with the second quarter of 2025, the increase also included the impact of FirstBank operating expenses.The effective tax rate was 20.5% for the second quarter of 2026, 19.0% for the first quarter of 2026 and 18.8% for the second quarter of 2025.CONSOLIDATED BALANCE SHEET REVIEW Loans ChangeChange2Q26 vs2Q26 vsIn billions2Q261Q262Q251Q262Q25AverageCommercial and industrial$ 223.7$ 211.4$ 191.56 %17 %Commercial real estate35.134.431.82 %10 %Commercial$ 258.8$ 245.7$ 223.45 %16 %Consumer104.4105.299.4(1) %5 %Average loans$ 363.2$ 350.9$ 322.84 %13 %Quarter endCommercial and industrial$ 227.9$ 221.2$ 195.83 %16 %Commercial real estate36.034.831.33 %15 %Commercial $ 263.9$ 256.0$ 227.03 %16 %Consumer 104.1105.099.3(1) %5 %Total loans$ 368.0$ 360.9$ 326.32 %13 %Totals may not sum due to roundingAverage loans for the second quarter of 2026 increased $12.3 billion compared to the first quarter of 2026 and $40.4 billion compared to the second quarter of 2025.Average commercial loans increased $13.0 billion and $35.4 billion compared to the first quarter of 2026 and the second quarter of 2025, respectively. In comparison to the first quarter of 2026, growth was driven by strong new production and increased utilization. Compared to the second quarter of 2025, the increase was attributable to strong new production as well as acquired FirstBank loans.Average consumer loans decreased $0.7 billion compared to the first quarter of 2026, primarily due to declines in both residential mortgage and auto loans, partially offset by growth in credit card loans. Compared to the second quarter of 2025, average consumer loans increased $5.0 billion driven by the benefit of FirstBank loans.Loans at June 30, 2026 increased $7.0 billion and $41.6 billion from March 31, 2026 and June 30, 2025, respectively. In each comparison, the increase included growth in commercial loans, reflecting strong new production. Compared to the second quarter of 2025, the increase was also attributable to acquired FirstBank commercial and consumer loans.Average Investment SecuritiesChangeChange2Q26 vs2Q26 vsIn billions2Q261Q262Q251Q262Q25Available for sale$ 73.7$ 71.6$ 67.83 %9 %Held to maturity73.472.974.21 %(1) %Total$ 147.1$ 144.5$ 141.92 %4 %Totals may not sum due to roundingAverage investment securities of $147.1 billion in the second quarter of 2026 increased $2.6 billion compared to the first quarter of 2026 and $5.2 billion compared to the second quarter of 2025. In both comparisons, the increase reflected higher residential mortgage-backed securities.During the second quarter of 2026, PNC completed a repositioning of the investment securities portfolio, selling approximately $4 billion of available-for-sale securities with a weighted average yield of approximately 3.2%. The proceeds from the sale were then redeployed into an equivalent amount of investment securities with a weighted average yield of approximately 4.4%.The duration of the investment securities portfolio was 3.6 years as of June 30, 2026 and March 31, 2026 and 3.4 years as of June 30, 2025. Net unrealized losses on available-for-sale securities were $2.1 billion at both June 30, 2026 and March 31, 2026 and $2.6 billion at June 30, 2025. Average DepositsChangeChange2Q26 vs2Q26 vsIn billions2Q261Q262Q251Q262Q25Commercial$ 228.2$ 229.6$ 205.8(1) %11 %Consumer228.4226.9210.51 %9 %Brokered time deposits0.41.96.7(79) %(94) %Total$ 457.0$ 458.4$ 423.0—8 %IB % of total avg. deposits77 %78 %78 %NIB % of total avg. deposits23 %22 %22 %IB - Interest-bearingNIB - Noninterest-bearingSecond quarter 2026 average deposits of $457.0 billion were stable compared to the first quarter of 2026, as higher consumer deposits were offset by both lower brokered time deposits and a seasonal decline in commercial deposits. Average deposits increased $34.0 billion compared to the second quarter of 2025 and included the addition of FirstBank deposits.Average noninterest-bearing deposits as a percentage of total average deposits increased to 23% in the second quarter of 2026 from 22% in both the first quarter of 2026 and second quarter of 2025.Average Borrowed FundsChangeChange2Q26 vs2Q26 vsIn billions2Q261Q262Q251Q262Q25Total $ 78.9$ 62.9$ 65.325 %21 %Avg. borrowed funds to avg. liabilities14 %12 %13 %Totals may not sum due to roundingAverage borrowed funds of $78.9 billion in the second quarter of 2026 increased $16.1 billion compared to the first quarter of 2026 and $13.6 billion compared to the second quarter of 2025. In both comparisons, the increase was primarily due to higher Federal Home Loan Bank advances.Capital June 30, 2026March 31, 2026June 30, 2025Common shareholders' equity In billions$ 58.1$ 57.8$ 51.9Accumulated other comprehensive income (loss) In billions$ (4.1)$ (3.8)$ (4.7)Basel III common equity tier 1 capital ratio *9.9 %10.1 %10.5 %*June 30, 2026 ratio is estimated.PNC maintained a strong capital position. Common shareholders' equity at June 30, 2026 increased $0.3 billion from March 31, 2026 primarily due to net income, partially offset by dividends paid and share repurchases as well as a decline in accumulated other comprehensive income.As a Category III institution, PNC has elected to exclude accumulated other comprehensive income related to both available-for-sale securities and pension and other post-retirement plans from CET1 capital. Accumulated other comprehensive income was negative $4.1 billion at June 30, 2026 compared to negative $3.8 billion at March 31, 2026 and negative $4.7 billion at June 30, 2025. The change in each comparison reflected the impact of interest rate movements on securities and swaps and the continued accretion of unrealized losses.In the second quarter of 2026, PNC returned $1.3 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.6 billion of common share repurchases. The Stress Capital Buffer (SCB) framework permits capital return in amounts in excess of SCB minimum levels. Consistent with this framework, PNC had approximately 29% of the 100 million common shares still available for repurchase at June 30, 2026 under the repurchase program previously approved by our board of directors.Share repurchase activity in the third quarter of 2026 is expected to approximate second quarter of 2026 share repurchase levels. PNC may adjust share repurchase activity depending on market and economic conditions, as well as other factors. PNC's SCB will be maintained at the regulatory minimum of 2.5% through September 30, 2027.On July 6, 2026, the PNC board of directors raised the quarterly cash dividend on common stock to $2.00 per share, an increase of 30 cents, or 18%. The dividend is payable on August 5, 2026 to shareholders of record at the close of business July 20, 2026.At June 30, 2026, PNC was considered "well capitalized" based on applicable U.S. regulatory capital ratio requirements. For additional information regarding PNC's Basel III capital ratios, see Capital Ratios in the Consolidated Financial Highlights.CREDIT QUALITY REVIEWCredit QualityChangeChangeJune 30, 2026March 31, 2026June 30, 202506/30/26 vs06/30/26 vsIn millions03/31/2606/30/25Provision for credit losses (a)$ 191$ 210$ 254$ (19)$ (63)Net loan charge-offs (a)$ 226$ 253$ 198(11) %14 %Allowance for credit losses (b)$ 5,461$ 5,495$ 5,282(1) %3 %Total delinquencies (c)$ 1,436$ 1,558$ 1,303(8) %10 %Nonperforming loans$ 2,027$ 2,243$ 2,108(10) %(4) %Net charge-offs to average loans (annualized)0.25 %0.29 %0.25 %Allowance for credit losses to total loans1.48 %1.52 %1.62 %Nonperforming loans to total loans0.55 %0.62 %0.65 %(a) Represents amounts for the three months ended for each respective period(b) Excludes allowances for investment securities and other financial assets(c) Total delinquencies represent accruing loans 30 days or more past dueProvision for credit losses was $191 million in the second quarter of 2026 and reflected portfolio activity as well as updates to macroeconomic factors. Provision for credit losses was $210 million in the first quarter of 2026 and $254 million in the second quarter of 2025.Net loan charge-offs were $226 million in the second quarter of 2026, decreasing $27 million compared to the first quarter of 2026. The decrease was primarily due to FirstBank acquired net loan charge-offs of $45 million recognized in the first quarter. Compared to the second quarter of 2025, net loan charge-offs increased $28 million primarily due to higher commercial loan net charge-offs.The allowance for credit losses was $5.5 billion at both June 30, 2026 and March 31, 2026 and $5.3 billion at June 30, 2025. The allowance for credit losses as a percentage of total loans was 1.48% at June 30, 2026, 1.52% at March 31, 2026 and 1.62% at June 30, 2025. Delinquencies at June 30, 2026 were $1.4 billion, decreasing $122 million from March 31, 2026 due to lower commercial loan delinquencies. Compared to June 30, 2025, delinquencies increased $133 million due to higher consumer loan delinquencies.Nonperforming loans of $2.0 billion at June 30, 2026 decreased $216 million compared to March 31, 2026 and $81 million compared to June 30, 2025. In both comparisons, the decrease was driven by lower commercial real estate nonperforming loans.BUSINESS SEGMENT RESULTSBusiness Segment Income (Loss)In millions2Q261Q262Q25Retail Banking$ 1,747$ 1,349$ 1,386Corporate & Institutional Banking1,5881,4801,318Asset Management Group135121132Other(1,430)(1,190)(1,209)Net income excluding noncontrolling interests$ 2,040$ 1,760$ 1,627Retail BankingChangeChange2Q26 vs2Q26 vsIn millions2Q261Q262Q251Q262Q25Net interest income$ 3,291$ 3,237$ 3,010$ 54$ 281Noninterest income$ 1,227$ 770$ 782$ 457$ 445Noninterest expense$ 2,111$ 2,115$ 1,890$ (4)$ 221Provision for credit losses$ 120$ 124$ 83$ (4)$ 37Earnings$ 1,747$ 1,349$ 1,386$ 398$ 361In billionsBrokerage account client assets$ 97$ 91$ 87$ 6$ 10In billionsAverage loans$ 110.5$ 110.9$ 97.5$ (0.4)$ 13.0Average deposits$ 271.6$ 268.2$ 243.5$ 3.4$ 28.1Net loan charge-offs In millions $ 123$ 118$ 120$ 5$ 3During the second quarter of 2026, PNC updated its internal funds transfer pricing methodology. The update resulted in impacts to net interest income and associated income statement line items for all business segments. Prior periods have been adjusted to conform with the current presentation.Retail Banking HighlightsSecond quarter 2026 compared with first quarter 2026Earnings increased 30%, reflecting higher noninterest income and net interest income.Noninterest income increased 59% and included a gain of $448 million related to PNC's participation in the Visa exchange program as well as the benefit of seasonally higher customer activity and positive residential mortgage servicing rights valuation, net of economic hedge. These increases were partially offset by Visa Class B-3 derivative fair value adjustments of negative $85 million.Noninterest expense was stable.Brokerage account client assets increased 7%, driven by higher spot equity markets.Average loans were stable.Average deposits increased 1%, primarily due to higher noninterest-bearing and savings deposits. Second quarter 2026 compared with second quarter 2025Earnings increased 26%, driven by higher noninterest income and net interest income, partially offset by higher noninterest expense as well as a higher provision for credit losses.Noninterest income increased 57%, and included the second quarter of 2026 Visa exchange impacts and Visa class B-3 derivative fair value adjustments. The increase also reflects growth in client activity and the addition of FirstBank customers.Noninterest expense increased 12%, and included the impact of continued technology and branch investments as well as increased costs related to FirstBank.Brokerage account client assets increased 11%, driven by higher spot equity markets.Average loans increased 13%, driven by higher commercial and residential real estate loans, primarily attributable to acquired FirstBank loans. Average deposits increased 12% and included the benefit of acquired FirstBank deposits.Corporate & Institutional BankingChangeChange2Q26 vs2Q26 vsIn millions2Q261Q262Q251Q262Q25Net interest income$ 1,992$ 1,942$ 1,814$ 50$ 178Noninterest income$ 1,291$ 1,144$ 1,022$ 147$ 269Noninterest expense$ 1,131$ 1,076$ 950$ 55$ 181Provision for credit losses $ 76$ 77$ 184$ (1)$ (108)Earnings$ 1,588$ 1,480$ 1,318$ 108$ 270In billionsAverage loans$ 236.1$ 223.5$ 208.6$ 12.6$ 27.5Average deposits$ 158.6$ 161.2$ 146.5$ (2.6)$ 12.1Net loan charge-offs In millions $ 105$ 92$ 83$ 13$ 22During the second quarter of 2026, PNC updated its internal funds transfer pricing methodology. The update resulted in impacts to net interest income and associated income statement line items for all business segments. Prior periods have been adjusted to conform with the current presentation.Corporate & Institutional Banking HighlightsSecond quarter 2026 compared with first quarter 2026Earnings increased 7%, reflecting higher noninterest income and net interest income, partially offset by higher noninterest expense.Noninterest income increased 13%, driven by higher capital markets and advisory fees, including record merger and acquisition advisory activity.Noninterest expense increased 5%, reflecting higher variable compensation associated with increased business activity.Average loans increased 6%, driven by strong new production and increased utilization of loan commitments.Average deposits decreased 2%, reflecting seasonal declines in corporate deposits.Second quarter 2026 compared with second quarter 2025Earnings increased 20%, driven by higher noninterest income and net interest income as well as a lower provision for credit losses, partially offset by higher noninterest expense.Noninterest income increased 26%, primarily due to broad-based increases across the capital markets and advisory businesses and growth in treasury management product revenue.Noninterest expense increased 19%, reflecting higher variable compensation associated with increased business activity.Average loans increased 13%, driven by strong new production within the commercial and industrial portfolio.Average deposits increased 8%, due to growth in both interest-bearing and noninterest-bearing deposits.Asset Management GroupChangeChange2Q26 vs2Q26 vsIn millions2Q261Q262Q251Q262Q25Net interest income$ 191$ 193$ 184$ (2)$ 7Noninterest income$ 271$ 262$ 244$ 9$ 27Noninterest expense$ 289$ 292$ 268$ (3)$ 21Provision for (recapture of) credit losses $ (3)$ 5$ (13)$ (8)$ 10Earnings$ 135$ 121$ 132$ 14$ 3In billions Discretionary client AUM$ 247$ 230$ 217$ 17$ 30Nondiscretionary client AUM$ 256$ 233$ 204$ 23$ 52Client AUM at quarter end$ 503$ 463$ 421$ 40$ 82In billionsAverage loans$ 14.6$ 14.4$ 14.2$ 0.2$ 0.4Average deposits$ 27.0$ 27.7$ 26.9$ (0.7)$ 0.1Net loan charge-offs (recoveries) In millions $ 1—$ (1)$ 1$ 2AUM - Assets under managementDuring the second quarter of 2026, PNC updated its internal funds transfer pricing methodology. The update resulted in impacts to net interest income and associated income statement line items for all business segments. Prior periods have been adjusted to conform with the current presentation.Asset Management Group HighlightsSecond quarter 2026 compared with first quarter 2026Earnings increased 12%, due to higher noninterest income, a provision recapture and lower noninterest expense, partially offset by a modest decline in net interest income.Noninterest income increased 3%, reflecting higher average equity markets.Noninterest expense decreased 1%.Discretionary client AUM increased 7%, driven by higher spot equity markets and positive net flows.Nondiscretionary client AUM increased 10%, driven by higher spot equity markets.Average loans increased 1%, primarily due to growth in securities-based lending.Average deposits decreased 3%, driven by the timing of annual client income tax payments.Second quarter 2026 compared with second quarter 2025Earnings increased 2%, due to higher noninterest income and net interest income, partially offset by higher noninterest expense and a lower provision recapture.Noninterest income increased 11%, reflecting higher average equity markets and positive net flows.Noninterest expense increased 8%, and included continued investments to support business growth as well as higher variable compensation associated with increased business activity.Discretionary client AUM increased 14% and nondiscretionary client AUM increased 25%. In both instances, the increase was driven by higher spot equity markets and positive net flows.Average loans increased 3%, primarily due to growth in securities-based lending and higher commercial loan balances.Average deposits were stable.OtherThe "Other" category, for the purposes of this release, includes remaining corporate operations that do not meet the criteria for disclosure as a separate reportable business, such as asset and liability management activities, including net securities gains or losses, ACL for investment securities, certain trading activities, certain runoff consumer loan portfolios, private equity investments, intercompany eliminations, corporate overhead net of allocations, tax adjustments that are not allocated to business segments, exited businesses and the residual impact from funds transfer pricing operations.CONFERENCE CALL AND SUPPLEMENTAL FINANCIAL INFORMATIONPNC Chairman and Chief Executive Officer William S. Demchak and Executive Vice President and Chief Financial Officer Robert Q. Reilly will hold a conference call for investors today at 10:00 a.m. Eastern Time regarding the topics addressed in this news release and the related earnings materials. Dial-in numbers for the conference call are (866) 604-1697 and (215) 268-9875 (international) and Internet access to the live audio listen-only webcast of the call is available at www.pnc.com/investorevents. PNC's second quarter 2026 earnings materials to accompany the conference call remarks will be available at www.pnc.com/investorevents prior to the beginning of the call. A telephone replay of the call will be available for four weeks at (877) 660-6853 and (201) 612-7415 (international), Access ID 13760708 and a replay of the audio webcast will be available on PNC's website for 30 days.The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.CONTACTSMEDIA:Anne Pace(631) 338-3268anne.pace@pnc.com INVESTORS:Bryan Gill(412) 768-4143investor.relations@pnc.comThe PNC Financial Services Group, Inc.Consolidated Financial Highlights (Unaudited)FINANCIAL RESULTSThree months endedSix months endedDollars in millions, except per share data June 30March 31June 30June 30June 3020262026202520262025Revenue Net interest income$ 4,107$ 3,961$ 3,555$ 8,068$ 7,031Noninterest income2,7682,2042,1064,9724,082 Total revenue6,8756,1655,66113,04011,113Provision for credit losses191210254401473Noninterest expense4,0983,7683,3837,8666,770Income before income taxes and noncontrolling interests$ 2,586$ 2,187$ 2,024$ 4,773$ 3,870Income taxes531415381946728Net income$ 2,055$ 1,772$ 1,643$ 3,827$ 3,142Less:Net income attributable to noncontrolling interests1512162734Preferred stock dividends (a)857383158154Preferred stock discount accretion and redemptions21234Net income attributable to common shareholders$ 1,953$ 1,686$ 1,542$ 3,639$ 2,950Less: Dividends and undistributed earnings allocated to nonvested restricted shares1211102319Net income attributable to diluted common shareholders$ 1,941$ 1,675$ 1,532$ 3,616$ 2,931Per Common ShareBasic$ 4.82$ 4.13$ 3.86$ 8.95$ 7.37Diluted$ 4.81$ 4.13$ 3.85$ 8.94$ 7.37Cash dividends declared per common share$ 1.70$ 1.70$ 1.60$ 3.40$ 3.20Effective tax rate (b)20.5 %19.0 %18.8 %19.8 %18.8 %PERFORMANCE RATIOSNet interest margin (c)2.96 %2.95 %2.80 %2.96 %2.79 %Noninterest income to total revenue40 %36 %37 %38 %37 %Efficiency (d)60 %61 %60 %60 %61 %Return on:Average common shareholders' equity13.61 %11.92 %12.20 %12.77 %11.91 %Average assets1.34 %1.19 %1.17 %1.27 %1.13 %(a)Dividends are payable quarterly, other than Series S preferred stock, which is payable semiannually.(b)The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.(c) Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025 were $27 million, $29 million and $28 million, respectively. The taxable-equivalent adjustments to net interest income for both the six months ended June 30, 2026 and 2025 were $56 million.(d)Calculated as noninterest expense divided by total revenue.The PNC Financial Services Group, Inc.Consolidated Financial Highlights (Unaudited)June 30March 31June 30202620262025BALANCE SHEET DATADollars in millions, except per share data and as notedAssets$ 616,034$ 603,028$ 559,107Loans (a)$ 367,953$ 360,923$ 326,340Allowance for loan and lease losses$ 4,652$ 4,663$ 4,523Interest-earning deposits with banks$ 22,794$ 26,053$ 24,455Investment securities$ 149,506$ 143,112$ 142,348Total deposits (a)$ 449,792$ 457,648$ 426,696Borrowed funds (a)$ 85,723$ 66,666$ 60,424Allowance for unfunded lending related commitments$ 809$ 832$ 759Total shareholders' equity$ 64,008$ 63,627$ 57,607Common shareholders' equity$ 58,131$ 57,752$ 51,854Accumulated other comprehensive income (loss)$ (4,120)$ (3,773)$ (4,682)Book value per common share$ 145.52$ 143.65$ 131.61Tangible book value per common share (non-GAAP) (b)$ 111.09$ 109.42$ 103.96Period end common shares outstanding (In millions)399402394Loans to deposits82 %79 %76 %Common shareholders' equity to total assets9.4 %9.6 %9.3 %CLIENT ASSETS (In billions)Discretionary client assets under management$ 247$ 230$ 217Nondiscretionary client assets under administration256233204Total client assets under administration503463421Brokerage account client assets999389Total client assets $ 602$ 556$ 510CAPITAL RATIOSBasel III (c) Common equity tier 19.9 %10.1 %10.5 % Tier 1 risk-based11.1 %11.3 %11.8 % Total capital risk-based12.9 %13.1 %13.6 % Leverage9.0 %9.1 %9.3 % Supplementary leverage7.2 %7.4 %7.6 %ASSET QUALITYNonperforming loans to total loans0.55 %0.62 %0.65 %Nonperforming assets to total loans, OREO, foreclosed and other assets (d)0.58 %0.66 %0.66 %Nonperforming assets to total assets0.35 %0.40 %0.38 %Net charge-offs to average loans (for the three months ended) (annualized)0.25 %0.29 %0.25 %Allowance for loan and lease losses to total loans1.26 %1.29 %1.39 %Allowance for credit losses to total loans (e) 1.48 %1.52 %1.62 %Allowance for loan and lease losses to nonperforming loans230 %208 %215 %Total delinquencies (In millions) (f)$ 1,436$ 1,558$ 1,303(a)Amounts include assets and liabilities for which we have elected the fair value option. Our first quarter 2026 Form 10-Q included, and our second quarter 2026 Form 10-Q will include, additional information regarding these Consolidated Balance Sheet line items.(b)See the Tangible Book Value per Common Share table on page 19 for additional information. (c)All ratios are calculated using the regulatory capital methodology applicable to PNC during each period presented and calculated based on the standardized approach. See Capital Ratios on page 16 for additional information. The ratios as of June 30, 2026 are estimated.(d)Amounts include nonaccrual servicing advances primarily to single asset/single borrower trusts with commercial real estate as collateral totaling $90 million and $103 million at June 30, 2026 and March 31, 2026, respectively.(e)Excludes allowances for investment securities and other financial assets.(f)Total delinquencies represent accruing loans 30 days or more past due.The PNC Financial Services Group, Inc. Consolidated Financial Highlights (Unaudited)CAPITAL RATIOSPNC's regulatory risk-based capital ratios in 2026 are calculated using the standardized approach for determining risk-weighted assets. Under the standardized approach for determining credit risk-weighted assets, exposures are generally assigned a pre-defined risk weight. Exposures to high volatility commercial real estate, past due exposures and equity exposures are generally subject to higher risk weights than other types of exposures.Our Basel III capital ratios may be impacted by changes to the regulatory capital rules and additional regulatory guidance or analysis. The following table summarizes our March 31, 2026, June 30, 2025 and estimated June 30, 2026 capital balances and ratios.Basel lll Common Equity Tier 1 Capital RatiosBasel IIIJune 302026 (estimated)March 312026June 30 2025Dollars in millionsCommon stock, related surplus and retained earnings, net of treasury stock$ 62,249$ 61,523$ 56,536Less regulatory capital adjustments:Goodwill and disallowed intangibles, net of deferred tax liabilities(13,752)(13,757)(10,896)All other adjustments(84)(80)(81)Basel III Common equity tier 1 capital$ 48,413$ 47,686$ 45,559Basel III standardized approach risk-weighted assets (a)$ 487,609$ 472,981$ 433,190Basel III Common equity tier 1 capital ratio9.9 %10.1 %10.5 %(a)Basel III standardized approach risk-weighted assets are based on the Basel III standardized approach rules and include credit and market risk-weighted assets.The PNC Financial Services Group, Inc. Consolidated Financial Highlights (Unaudited)NON-GAAP MEASURESFee Income (non-GAAP)Three months endedJune 30March 31June 30Dollars in millions202620262025Noninterest incomeAsset management and brokerage$ 440$ 420$ 391Capital markets and advisory577463321Card and cash management772738737Lending and deposit services346340317Residential and commercial mortgage144118128 Fee income (non-GAAP)$ 2,279$ 2,079$ 1,894Other income489125212 Total noninterest income$ 2,768$ 2,204$ 2,106Fee income is a non-GAAP measure and is comprised of noninterest income in the following categories: asset management and brokerage, capital markets and advisory, card and cash management, lending and deposit services, and residential and commercial mortgage. We believe this non-GAAP measure serves as a useful tool for comparison of noninterest income related to fees.Pretax Pre-Provision Earnings (non-GAAP)Three months endedJune 30March 31June 30Dollars in millions202620262025Income before income taxes and noncontrolling interests$ 2,586$ 2,187$ 2,024Provision for credit losses191210254Pretax pre-provision earnings (non-GAAP)$ 2,777$ 2,397$ 2,278Pretax pre-provision earnings is a non-GAAP measure and is based on adjusting income before income taxes and noncontrolling interests to exclude provision for credit losses. We believe that pretax, pre-provision earnings is a useful tool to help evaluate the ability to provide for credit costs through operations and provides an additional basis to compare results between periods by isolating the impact of provision for credit losses, which can vary significantly between periods.The PNC Financial Services Group, Inc. Consolidated Financial Highlights (Unaudited)Noninterest Expense Excluding Integration Costs and 2Q26 Significant Items (non-GAAP)Noninterest Income Excluding Integration Costs and 2Q26 Significant Items (non-GAAP)Three months endedThree months endedJune 30March 31ChangeJune 30June 30ChangeDollars in millions20262026$%20262025$%Noninterest expense$ 4,098$ 3,768$ 3309 %$ 4,098$ 3,383$ 71521 %Contribution to PNC Foundation(140)—(140)—Integration costs(121)(97)(121)—Noninterest expense excluding integration costs and 2Q26 significant items (non-GAAP)$ 3,837$ 3,671$ 1665 %$ 3,837$ 3,383$ 45413 %Noninterest income$ 2,768$ 2,204$ 56426 %$ 2,768$ 2,106$ 66231 %Gain on exchange of Visa Class B-2 shares448—448—Visa Class B-3 derivative fair value adjustments(85)—(85)—Loss on sale of securities(139)—(139)—Integration costs(6)(1)(6)—Noninterest income excluding integration costs and 2Q26 significant items (non-GAAP)$ 2,550$ 2,205$ 34516 %$ 2,550$ 2,106$ 44421 %Pretax, pre-provision impact of integration costs and 2Q26 significant items$ (43)$ (98)$ (43)$ —Income taxes (benefit) (a)(28)(21)(28)—After tax impact of integration costs and 2Q26 significant items$ (15)$ (77)$ (15)$ —(a)Income taxes on integration costs and 2Q26 significant items are calculated at a statutory tax rate of 21% on pretax, pre-provision earnings. Significant items tax impact also includes the benefit of shares donated to the PNC Foundation.Noninterest expense excluding integration costs and 2Q26 significant items is a non-GAAP measure and is based on adjusting noninterest expense to exclude integration costs related to the FirstBank acquisition and 2Q26 significant items during the period. The 2Q26 significant items are described in the Integration Costs and 2Q26 Significant Items section on page 2. We believe this non-GAAP measure to be a useful tool for comparison of operating expenses incurred during the normal course of business. The exclusion of integration costs and 2Q26 significant items increases comparability across periods, demonstrates the impact of significant items and provides a useful measure for determining PNC's expenses that are core to our business operations and expected to recur over time.Noninterest income excluding integration costs and 2Q26 significant items is a non-GAAP measure and is based on adjusting noninterest income to exclude integration costs related to the FirstBank acquisition and 2Q26 significant items during the period. The 2Q26 significant items are described in the Integration Costs and 2Q26 Significant Items section on page 2. We believe this non-GAAP measure to be a useful tool for comparison of noninterest income earned during the normal course of business. The exclusion of integration costs and 2Q26 significant items increases comparability across periods, demonstrates the impact of significant items and provides a useful measure for determining PNC's noninterest income generating activities that are core to our business operations and expected to recur over time.The PNC Financial Services Group, Inc.Consolidated Financial Highlights (Unaudited)Adjusted Diluted Earnings per Common Share Excluding Integration Costs and 2Q26 Significant Items (non-GAAP)Three months endedJune 30Per CommonMarch 31Per CommonDollars in millions, except per share data2026Share2026ShareNet income attributable to diluted common shareholders$ 1,941$ 4.81$ 1,675$ 4.13After tax impact of integration costs and 2Q26 significant items150.04770.19Adjusted net income attributable to diluted common shareholders excluding integration costs and 2Q26 significant items (non-GAAP)$ 1,956$ 4.85$ 1,752$ 4.32Average diluted common shares outstanding (In millions)403405The adjusted diluted earnings per common share excluding integration costs and 2Q26 significant items is a non-GAAP measure and excludes integration costs related to the FirstBank acquisition and 2Q26 significant items during the period. It is calculated based on adjusting net income attributable to diluted common shareholders by removing post-tax effects of integration costs and 2Q26 significant items in the period. The 2Q26 significant items are described in the Integration Costs and 2Q26 Significant Items section on page 2. We believe this non-GAAP measure serves as a useful tool in understanding PNC's results by providing greater comparability between periods, as well as demonstrating the effect of significant items.Tangible Book Value per Common Share (non-GAAP)June 30March 31June 30Dollars in millions, except per share data202620262025Book value per common share$ 145.52$ 143.65$ 131.61Tangible book value per common shareCommon shareholders' equity$ 58,131$ 57,752$ 51,854Goodwill and other intangible assets(14,161)$ (14,174)(11,137)Deferred tax liabilities on goodwill and other intangible assets408416242 Tangible common shareholders' equity$ 44,378$ 43,994$ 40,959Period-end common shares outstanding (In millions) 399402394Tangible book value per common share (non-GAAP) $ 111.09$ 109.42$ 103.96Tangible book value per common share is a non-GAAP measure and is calculated based on tangible common shareholders' equity divided by period-end common shares outstanding. We believe this non-GAAP measure serves as a useful tool to help evaluate the strength and discipline of a company's capital management strategies and as an additional, conservative measure of total company value.Return on Average Tangible Common Equity (non-GAAP)Three months endedJune 30March 31June 30Dollars in millions202620262025Return on average common shareholders' equity13.61 %11.92 %12.20 %Return on average tangible common equityAverage common shareholders' equity$ 57,556$ 57,382$ 50,676Average goodwill and other intangible assets(14,162)(14,056)(11,145)Average deferred tax liabilities on goodwill and other intangible assets412327241 Average tangible common shareholders' equity$ 43,806$ 43,653$ 39,772Net income attributable to common shareholders$ 1,953$ 1,6861,542Net income attributable to common shareholders, annualized$ 7,833$ 6,838$ 6,185Return on average tangible common equity (non-GAAP)17.88 %15.66 %15.55 %Return on average tangible common equity is a non-GAAP measure and is calculated based on annualized net income attributable to common shareholders divided by tangible common equity. We believe this non-GAAP measure serves as a useful tool to help measure and assess a company's use of common equity.The PNC Financial Services Group, Inc.Consolidated Financial Highlights (Unaudited)Taxable-Equivalent Net Interest Income (non-GAAP) Three months endedJune 30March 31June 30Dollars in millions202620262025Net interest income$ 4,107$ 3,961$ 3,555Taxable-equivalent adjustments272928Net interest income (Fully Taxable-Equivalent - FTE) (non-GAAP)$ 4,134$ 3,990$ 3,583The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP. Taxable-equivalent net interest income is only used for calculating net interest margin. Net interest income shown elsewhere in this presentation is GAAP net interest income.Cautionary Statement Regarding Forward-Looking InformationWe make statements in this news release and related conference call, and we may from time to time make other statements, regarding our outlook for financial performance, such as earnings, revenues, expenses, tax rates, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting us and our future business and operations, including our sustainability strategy, that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as "believe," "plan," "expect," "anticipate," "see," "look," "intend," "outlook," "project," "forecast," "estimate," "goal," "will," "should" and other similar words and expressions.Forward-looking statements are necessarily subject to numerous assumptions, risks and uncertainties, which change over time. Future events or circumstances may change our outlook and may also affect the nature of the assumptions, risks and uncertainties to which our forward-looking statements are subject. Forward-looking statements speak only as of the date made. We do not assume any duty and do not undertake any obligation to update forward-looking statements. Actual results or future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as from historical performance. As a result, we caution against placing undue reliance on any forward-looking statements.Our forward-looking statements are subject to the following principal risks and uncertainties.Our businesses, financial results and balance sheet values are affected by business and economic conditions, including:Changes in interest rates and valuations in debt, equity and other financial markets,Disruptions in the U.S. and global financial markets,Actions by the Federal Reserve Board, U.S. Treasury and other government agencies, including those that impact money supply, market interest rates and inflation,Changes in customer behavior due to changing business and economic conditions or legislative or regulatory initiatives,Changes in customers', suppliers' and other counterparties' performance and creditworthiness,Impacts of sanctions, tariffs and other trade policies of the U.S. and its global trading partners,Impacts of changes in federal, state and local governmental policy, including on the regulatory landscape, capital markets, taxes, infrastructure spending and social programs,Our ability to attract, recruit and retain skilled employees, andCommodity price volatility. Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting. These statements are based on our views that:PNC's baseline forecast remains for continued expansion in 2026, with economic growth expected to remain resilient despite oil prices that are up from early 2026, supported by strong AI-related capex, tax refunds, and an improving labor market. We expect real GDP growth of 2.1% in 2026, with continued modest job gains and the unemployment rate holding roughly steady, ending the year at around 4.3%. Inflation risks have eased somewhat but we still expect inflation to remain elevated, with CPI inflation staying above 3% through year-end. Risks to our growth and inflation outlook include a sudden reversal in AI-related sentiment, which would have knock-on effects on both capex and wealth-driven consumer spending, as well as any further sharp rise in oil prices.Our baseline forecast is for the Federal Reserve to keep the federal funds rate unchanged throughout 2026 and into 2027, in a range between 3.50% and 3.75%. However, risks remain skewed toward tighter monetary policy given persistent above-target inflation and inflationary pressures from higher energy prices and continued strength in capital spending. PNC's ability to take certain capital actions, including returning capital to shareholders, is subject to PNC meeting or exceeding minimum capital levels, including a stress capital buffer established by the Federal Reserve Board in connection with the Federal Reserve Board's Comprehensive Capital Analysis and Review (CCAR) process.PNC's regulatory capital ratios in the future will depend on, among other things, PNC's financial performance, the scope and terms of final capital regulations then in effect and management actions affecting the composition of PNC's balance sheet. In addition, PNC's ability to determine, evaluate and forecast regulatory capital ratios, and to take actions (such as capital distributions) based on actual or forecasted capital ratios, will be dependent at least in part on the development, validation and regulatory review of related models and the reliability of and risks resulting from extensive use of such models.Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities. Reputational impacts could affect matters such as business generation and retention, liquidity, funding, and ability to attract and retain employees. These developments could include:Changes to laws and regulations, including changes affecting oversight of the financial services industry, changes in the enforcement and interpretation of such laws and regulations, and changes in accounting and reporting standards.Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries resulting in monetary losses, costs, or alterations in our business practices, and potentially causing reputational harm to PNC.Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies.Costs associated with obtaining rights in intellectual property claimed by others and of adequacy of our intellectual property protection in general.Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, derivatives, and capital management techniques, and to meet evolving regulatory capital and liquidity standards.Our reputation and business and operating results may be affected by our ability to appropriately meet or address environmental, social or governance targets, goals, commitments or concerns that may arise.We grow our business in part through acquisitions and new strategic initiatives. Risks and uncertainties include those presented by the nature of the business acquired and strategic initiative, including in some cases those associated with our entry into new businesses or new geographic or other markets and risks resulting from our inexperience in those new areas, as well as risks and uncertainties related to the acquisition transactions themselves, regulatory issues, the integration of the acquired businesses into PNC after closing or any failure to execute strategic or operational plans.Competition can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect market share, deposits and revenues. Our ability to anticipate and respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands.Business and operating results can also be affected by widespread manmade, natural and other disasters (including severe weather events), health emergencies, dislocations, geopolitical instabilities or events, terrorist activities, system failures or disruptions, security breaches, cyberattacks, international hostilities, or other extraordinary events beyond PNC's control through impacts on the economy and financial markets generally or on us or our counterparties, customers or third-party vendors and service providers specifically.We provide greater detail regarding these as well as other factors in our most recent Form 10-K and in any subsequent Form 10-Qs, including in the Risk Factors and Risk Management sections and the Legal Proceedings and Commitments Notes of the Notes To Consolidated Financial Statements in those reports, and in our other subsequent SEC filings. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in our SEC filings, accessible on the SEC's website at www.sec.gov and on our corporate website at www.pnc.com/secfilings. We have included these web addresses as inactive textual references only. Information on these websites is not part of this document.