PNC Financial Q4 Earnings: Credit Losses Provision Dips, Forecasts Sequential Fall In Q1 Revenue And Loans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2025
0mins
Should l Buy PNC?
Source: Benzinga
Fourth Quarter Performance: PNC Financial Services reported a 4% year-over-year revenue increase to $5.57 billion, driven by higher net interest income and noninterest income, with EPS of $3.77 exceeding expectations.
Future Guidance and Shareholder Returns: The bank anticipates a slight decline in average loans and total revenue for the first quarter of 2025, while also declaring a quarterly cash dividend of $1.60 and returning $0.9 billion in capital to shareholders.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PNC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PNC
Wall Street analysts forecast PNC stock price to fall
17 Analyst Rating
12 Buy
4 Hold
1 Sell
Moderate Buy
Current: 235.480
Low
201.00
Averages
234.40
High
271.00
Current: 235.480
Low
201.00
Averages
234.40
High
271.00
About PNC
The PNC Financial Services Group, Inc. is a diversified financial services company in the United States. It is engaged in the 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. Its Retail Banking segment provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers. Its Corporate & Institutional Banking segment provides lending, treasury management, capital markets and advisory products and services to mid-sized and large corporations and government and not-for-profit entities. Its Asset Management Group segment provides private banking for high-net worth and ultra-high net worth clients and institutional asset management. The Company's bank subsidiary is PNC Bank.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PNC Launches Premier Client Wealth Management Service
- High-End Client Service: PNC Wealth Management has launched the PNC Premier Client℠, designed to provide integrated banking and investment solutions for clients with over $100K, aiming to meet the increasingly complex financial needs of emerging and mass affluent clients.
- Market Demand Analysis: Internal research from PNC indicates that there are over 26 million 'mass affluent' households in the U.S. who actively manage their finances and seek long-term wealth growth, highlighting a strong market demand for personalized, high-touch services.
- Service Model Innovation: This offering combines expert guidance, personalized service, and advanced technology to provide a comprehensive portfolio of products, aiming to support clients' success at every stage of their financial journey, particularly for high-asset clients not yet eligible for PNC Private Bank services.
- Strategic Positioning: The launch of PNC Premier Client not only enhances PNC's competitiveness in the wealth management sector but also reinforces its leadership in the U.S. financial services market by delivering a high-net-worth client experience to a broader audience.
See More
Analysis of PNC Financial Services Group's Dividend
- Dividend Yield Expectation: PNC Financial Services Group's latest dividend is projected to yield an annualized 2.9%, based on historical dividend data analysis, indicating that the sustainability of dividends remains a concern amid profitability fluctuations.
- Volatility Assessment: With a trailing twelve-month volatility of 25% calculated from the last 251 trading days' closing prices, this metric provides investors with a foundation for evaluating risk versus reward, particularly when considering selling covered calls at a $260 strike price for January 2028.
- Options Trading Dynamics: As of Wednesday afternoon, the put volume among S&P 500 components reached 1.16 million contracts, while call volume was at 2.26 million contracts, resulting in a put:call ratio of 0.51, indicating a significant preference for call options among investors, which may reflect optimistic expectations for PNC's future performance.
- Market Sentiment Analysis: The current put:call ratio is below the long-term median of 0.65, suggesting a bullish market sentiment where investors are more inclined to purchase call options, potentially influencing PNC's stock price trajectory.
See More
PNC Bank Aims at Wealthy Middle Class with New Banking and Investment Offerings
- New Service Launch: PNC Bank’s parent company is introducing an integrated wealth management and banking service.
- Target Audience: The service is aimed at clients on the lower end of the wealth spectrum.
See More
AI-Exposed Stocks Face Challenges Amid Market Shift
- Market Sentiment Shift: As fears grow that artificial intelligence could disrupt demand rather than enhance it, software and AI-exposed stocks have faced significant sell-offs at the start of 2023, particularly in February, leading investors to reassess their risk exposure.
- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
- Strong Dow Jones Performance: Amid the decline in software stocks, the Dow Jones Industrial Average has rallied towards all-time highs, suggesting increased investor confidence in industries tied to physical assets and cyclical activity, further emphasizing the market's demand for safety from AI-driven productivity risks.
See More
U.S. Big Banks' Performance Review for 2025
- Bank Performance Overview: In 2025, the six largest U.S. banks saw an average increase of 42%, with an average return of 45.51%, significantly outperforming tech stocks at 22.74%, indicating strong performance driven by high interest rates and M&A activity, yet facing risks from tightening regulations and softening loan demand ahead.
- Declining Loan Demand: As demand for commercial real estate and small business loans weakens, banks' net interest margins are peaking, with analysts warning of potential rate cuts ahead, creating a mismatch between investor expectations and the reality for bank stocks.
- Sell Recommendations for Major Banks: Analysts suggest investors consider selling Bank of America (BAC), PNC Financial Services (PNC), and Wells Fargo (WFC) due to challenges such as slowing loan growth and rising compliance costs, which could negatively impact stock performance.
- Increased Regulatory Pressure: The Trump administration's scrutiny of bank stock buyback programs may lead to declining profits, particularly for WFC, which missed earnings expectations in its latest report, highlighting ongoing legal and market challenges that could further affect its stock price.
See More
PNC Foundation Grants $2 Million to Pittsburgh for Snow Removal Equipment
- Funding Support: The PNC Foundation has announced a $2 million grant to the City of Pittsburgh for the purchase of new snow removal equipment, addressing challenges posed by a recent record-setting snowstorm and ensuring the city's preparedness for winter weather.
- Equipment Procurement Plan: Mayor Corey O'Connor stated that this funding will assist the Department of Public Works in acquiring 15 new vehicles this year, enhancing snow removal capabilities and thereby improving community safety and economic vitality.
- Community Collaboration: PNC's investment increases the total number of reliable equipment for the Pittsburgh Department of Public Works to over 50, demonstrating a strong partnership with local government aimed at enhancing the city's emergency response capabilities.
- Long-term Commitment: The PNC Foundation is committed to supporting community development and early childhood education, and through this donation, it further reflects its long-term investment in the Pittsburgh area and concern for the well-being of its residents.
See More
PNC Launches Premier Client Wealth Management Service
- High-End Client Service: PNC Wealth Management has launched the PNC Premier Client℠, designed to provide integrated banking and investment solutions for clients with over $100K, aiming to meet the increasingly complex financial needs of emerging and mass affluent clients.
- Market Demand Analysis: Internal research from PNC indicates that there are over 26 million 'mass affluent' households in the U.S. who actively manage their finances and seek long-term wealth growth, highlighting a strong market demand for personalized, high-touch services.
- Service Model Innovation: This offering combines expert guidance, personalized service, and advanced technology to provide a comprehensive portfolio of products, aiming to support clients' success at every stage of their financial journey, particularly for high-asset clients not yet eligible for PNC Private Bank services.
- Strategic Positioning: The launch of PNC Premier Client not only enhances PNC's competitiveness in the wealth management sector but also reinforces its leadership in the U.S. financial services market by delivering a high-net-worth client experience to a broader audience.
See More
Analysis of PNC Financial Services Group's Dividend
- Dividend Yield Expectation: PNC Financial Services Group's latest dividend is projected to yield an annualized 2.9%, based on historical dividend data analysis, indicating that the sustainability of dividends remains a concern amid profitability fluctuations.
- Volatility Assessment: With a trailing twelve-month volatility of 25% calculated from the last 251 trading days' closing prices, this metric provides investors with a foundation for evaluating risk versus reward, particularly when considering selling covered calls at a $260 strike price for January 2028.
- Options Trading Dynamics: As of Wednesday afternoon, the put volume among S&P 500 components reached 1.16 million contracts, while call volume was at 2.26 million contracts, resulting in a put:call ratio of 0.51, indicating a significant preference for call options among investors, which may reflect optimistic expectations for PNC's future performance.
- Market Sentiment Analysis: The current put:call ratio is below the long-term median of 0.65, suggesting a bullish market sentiment where investors are more inclined to purchase call options, potentially influencing PNC's stock price trajectory.
See More
PNC Bank Aims at Wealthy Middle Class with New Banking and Investment Offerings
- New Service Launch: PNC Bank’s parent company is introducing an integrated wealth management and banking service.
- Target Audience: The service is aimed at clients on the lower end of the wealth spectrum.
See More
AI-Exposed Stocks Face Challenges Amid Market Shift
- Market Sentiment Shift: As fears grow that artificial intelligence could disrupt demand rather than enhance it, software and AI-exposed stocks have faced significant sell-offs at the start of 2023, particularly in February, leading investors to reassess their risk exposure.
- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
- Strong Dow Jones Performance: Amid the decline in software stocks, the Dow Jones Industrial Average has rallied towards all-time highs, suggesting increased investor confidence in industries tied to physical assets and cyclical activity, further emphasizing the market's demand for safety from AI-driven productivity risks.
See More
U.S. Big Banks' Performance Review for 2025
- Bank Performance Overview: In 2025, the six largest U.S. banks saw an average increase of 42%, with an average return of 45.51%, significantly outperforming tech stocks at 22.74%, indicating strong performance driven by high interest rates and M&A activity, yet facing risks from tightening regulations and softening loan demand ahead.
- Declining Loan Demand: As demand for commercial real estate and small business loans weakens, banks' net interest margins are peaking, with analysts warning of potential rate cuts ahead, creating a mismatch between investor expectations and the reality for bank stocks.
- Sell Recommendations for Major Banks: Analysts suggest investors consider selling Bank of America (BAC), PNC Financial Services (PNC), and Wells Fargo (WFC) due to challenges such as slowing loan growth and rising compliance costs, which could negatively impact stock performance.
- Increased Regulatory Pressure: The Trump administration's scrutiny of bank stock buyback programs may lead to declining profits, particularly for WFC, which missed earnings expectations in its latest report, highlighting ongoing legal and market challenges that could further affect its stock price.
See More
PNC Foundation Grants $2 Million to Pittsburgh for Snow Removal Equipment
- Funding Support: The PNC Foundation has announced a $2 million grant to the City of Pittsburgh for the purchase of new snow removal equipment, addressing challenges posed by a recent record-setting snowstorm and ensuring the city's preparedness for winter weather.
- Equipment Procurement Plan: Mayor Corey O'Connor stated that this funding will assist the Department of Public Works in acquiring 15 new vehicles this year, enhancing snow removal capabilities and thereby improving community safety and economic vitality.
- Community Collaboration: PNC's investment increases the total number of reliable equipment for the Pittsburgh Department of Public Works to over 50, demonstrating a strong partnership with local government aimed at enhancing the city's emergency response capabilities.
- Long-term Commitment: The PNC Foundation is committed to supporting community development and early childhood education, and through this donation, it further reflects its long-term investment in the Pittsburgh area and concern for the well-being of its residents.
See More
