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Sep 30, 2024
PNC Q3 2024 Earnings Report
Reported net income of $1.5 billion and diluted EPS of $3.49, driven by positive operating leverage, growth in NII, and a substantial increase in fee income and TBV.
Key Takeaways
PNC Financial Services Group reported a strong third quarter in 2024, with positive operating leverage, increased net interest income (NII), substantially increased fee income, and tangible book value (TBV). The company's diluted earnings per share (EPS) was $3.49, and net income reached $1.5 billion.
Generated 1% positive operating leverage.
Net Interest Income (NII) grew by 3% and Net Interest Margin (NIM) increased by 4 bps.
Fee income increased by 10%, with strong capital markets and advisory revenue.
Tangible Book Value (TBV) per share increased by 9%.
Revenue by Segment
Forward Guidance
PNC expects record NII in 2025.
Positive Outlook
- Job and income gains will continue to support consumer spending growth in the near term.
- Real GDP growth this year and next will be close to trend at around 2%.
- The unemployment rate will remain somewhat above 4% through the rest of 2024 and in 2025.
- Inflation will continue to slow as wage pressures abate, gradually moving back to the Federal Reserve’s 2% long-term objective.
- With slowing inflation PNC expects two additional federal funds rate cuts of 25 basis points each at the Federal Open Market Committee’s remaining meetings in 2024, with the rate ending this year in a range between 4.25% and 4.50%.
Challenges Ahead
- Economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account potential legal and regulatory contingencies.
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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