The PNC Financial Services Group, Inc. reported net income of $2.097 billion for the third quarter of 2026, a decrease from the $2.055 billion recorded in the second quarter of 2026. Diluted earnings per share (EPS) were $4.97, with an adjusted diluted EPS of $5.09. The adjusted figure excludes integration costs and significant items, which had a combined after-tax impact of $48 million, or a $0.12 reduction in EPS, during the quarter.
Net interest income (NII) increased by $99 million, or 2%, to $4.206 billion. This growth was driven by commercial loan growth and higher yields on interest-earning assets, partially offset by increased funding costs. The net interest margin (NIM) was 2.94%. Total revenue for the quarter was $6.562 billion, a decrease of $313 million from the previous quarter, primarily due to lower noninterest income. Fee income decreased by 6% to $2.142 billion, attributed to elevated capital markets activity in the prior quarter. Noninterest expense declined by 8% to $3.751 billion, resulting in an efficiency ratio of 57%.
On the balance sheet, average loans increased by $9.0 billion, or 2%, to $372.2 billion, driven by commercial loan growth. Average deposits increased by 1% to $461.2 billion. PNC transferred a $1.4 billion student loan portfolio to held-for-sale. The company maintained a strong capital position, with a common equity tier 1 (CET1) capital ratio of 9.8%. During the quarter, PNC returned $1.4 billion to shareholders, consisting of $0.8 billion in common dividends and $0.6 billion in share repurchases.
Credit quality metrics showed mixed results. Delinquencies decreased by $135 million to $1.3 billion, while total nonperforming loans increased by $167 million to $2.2 billion. Net loan charge-offs were $257 million, including $35 million related to the student loan portfolio transfer. The allowance for credit losses was $5.4 billion, or 1.42% of total loans.
