PNC Financial Strong 2Q Led By Capital Markets, NII; Outlook For Good NII Growth; Cap Mkts Guide Conservative?

Research evidence excerpt

PNC Financial Strong 2Q Led By Capital Markets, NII; Outlook For Good NII Growth; Cap Mkts Guide Conservative?

J P M O R G A N North America Equity Research

16 July 2026

PNC Financial Overweight

PNC, PNC US

Strong 2Q Led By Capital Markets, NII; Outlook For Price (15 Jul 26):$254.15

Good NII Growth; Cap Mkts Guide Conservative? Price Target (Dec-26):$264.50

PNC posted solid core 2Q EPS of $4.85, reported EPS was $4.81. Capital markets- Banks — Large-Cap

ACrelated revenues were the key driver of 2Q results - PNC benefited from Vivek Juneja

broadening its presence in capital markets businesses, which we expect will (1-212) 622-6465

continue. In addition, the bank saw good commercial-related loan growth, better vivek.juneja@jpmorgan.com

than seen in Fed data. However, this has raised some concerns about funding of Andrew J Dietrich

loan growth given large increase in wholesale funding in 2Q. PNC continues to (1-212) 622-4244

focus on growing consumer deposits and also expects C&I loan growth to slow in aj.dietrich@jpmorgan.com

2H which could temper funding cost pressure. The bank took advantage of higher Sai M Nettem

long term rates to add some securities in 2Q. PNC should continue to benefit from (1-212) 622-2666

sai.nettem@jpmorgan.com

good net interest income growth, partly due to benefit from fixed asset repricing. J.P. Morgan Securities LLC

PNC’s guidance for FY26 capital markets fees growth implies reversal of the

strong qoq growth in 2Q26 in this category, back close to 1Q26 level - this may be

conservative if markets activity holds up better than 1Q levels. CET1 ratio target Quarterly Forecasts (FYE Dec)

remains at 10% excluding OCI which lowered the ratio by about 80-90bp at 6/30. Reported EPS ($)

2025A 2026E 2027E