PNC Profit Jumps 18% on FirstBank Buy and Loan Growth
PNC Financial reported an 18% rise in quarterly profit today following its acquisition of FirstBank. Strong loan growth and increased fee income drove results.
PNC FINANCIAL SERVICES GROUP reported an 18% increase in first-quarter profit on Wednesday, driven by the acquisition of regional lender FirstBank and robust growth in its loan portfolio. The Pittsburgh-based financial institution finalized its $4.1 billion purchase of FirstBank in January, a move that integrated $26 billion in assets and significantly broadened its footprint across Colorado and Arizona. The bank's performance was further supported by a resurgence in loan demand across the United States, as recent interest rate cuts by the Federal Reserve incentivized borrowing. PNC's net interest income rose 14% to $3.96 billion compared to the previous year, aided by the FirstBank integration, commercial lending expansion, and reduced deposit costs. The net interest margin, a critical indicator of lending profitability, grew by 17 basis points to reach 2.95%, while total loans increased 13% to $360.9 billion. > 2026 is off to a great start for PNC. During the first quarter, we... generated strong legacy loan growth. Client activity remains robust across all our geographies, PNC CEO Bill Demchak said. Non-interest revenue also showed strength, with fee income rising 13% year-over-year. This growth was particularly evident in capital markets and advisory services, where revenue surged 51% to $463 million, reflecting a recovery in dealmaking and trading activities. For the quarter, PNC reported a net profit of $1.77 billion, or $4.13 per share, up from $1.50 billion, or $3.51 per share, in the same period last year. When excluding costs related to the FirstBank integration, the bank's adjusted profit stood at $4.32 per share. Capital management remained a priority, with the bank executing nearly $700 million in share buybacks during the first three months of the year. Management expects to continue this trend with an additional $600 million to $700 million in buybacks planned for the second quarter. PNC's shares have risen approximately 6% since the beginning of the year.
