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Dec 31, 2024
PNC Q4 2024 Earnings Report
Achieved strong results with positive operating leverage, increased NII and NIM, and deposit and capital growth.
Key Takeaways
PNC Financial Services Group reported a net income of $1.6 billion, or $3.77 diluted EPS, for Q4 2024. The results reflect an increase in net interest income and net interest margin, as well as growth in average deposits. The company maintained a strong capital position and continued to invest in the future of the franchise.
Net interest income increased 3% and NIM expanded 11 bps.
Average deposits increased by $3.1 billion.
The effective tax rate was 14.6% and included income tax benefits of $60 million.
CET1 capital ratio of 10.5%.
PNC
PNC
PNC Revenue by Segment
Revenue by Segment
Retail Banking Revenue
CapyFin.comAsset Management Revenue
CapyFin.com Forward Guidance
PNC anticipates continued expansion, but slower economic growth in 2025 than in 2024.
Positive Outlook
- The labor market remains strong, and 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% throughout 2025 and into 2026.
- Inflation will continue to gradually ease as wage pressures abate.
- With slowing inflation, PNC expects two additional federal funds rate cuts of 25 basis points each in the first half of 2025, one in March and one in June.
Challenges Ahead
- High interest rates remain a drag on the economy.
- Consumer spending growth will slow to a pace more consistent with household income growth.
- Government’s contribution to economic growth will be smaller.
- With anticipated higher tariffs, inflation will remain above the Federal Reserve’s 2% objective throughout 2025.
- The federal funds rate will be in a range between 3.75% and 4.00% at mid-year, and remain in that range into 2026.