- PNC reported a solid first quarter 2024, delivering net income of approximately $1.33 billion and earnings per share of $3.10 (GAAP). Excluding the FDIC special assessment, adjusted EPS was $3.36, underscoring disciplined cost management and stable core profitability despite a higher funding cost environment. Total revenue was around $5.1 billion for the quarter, with net interest income of about $3.3 billion and non-interest income of roughly $1.7 billion. The results reflect a balance of pressure from higher funding costs and a favorable shift in asset mix as fixed-rate assets roll down.
- Management reaffirmed full-year 2024 guidance, signaling a trough in net interest income (NII) in Q2 2024, with NII down about 4-5% and total revenue expected to be stable to down 2%. Fee income is expected to grow 1-2% in Q2, while other non-interest income is guided to $150-200 million (excluding Visa activity). Core non-interest expense is expected to be stable, with a target of roughly $750 million in annual cost savings via cost-management initiatives. The firm continues to invest in growth initiatives, including a nearly $1 billion, multiyear branch-renovation program targeting 1,200+ locations and expansions in major markets.
- The quarter showcased meaningful strength in capital and liquidity, with a CET1 ratio around 10.1% and tangible book value per share of $85.70. The balance sheet remains well positioned, though CRE office exposures continue to experience stress. The company returned approximately $759 million to shareholders in the quarter through share repurchases and dividends, highlighting an active capital deployment stance.
- Looking ahead, PNC expects modest loan growth (~1% for 2024) and anticipates the 2H 2024 NII rebound driven by the repricing of fixed-rate assets and securities maturities into higher-yielding assets. Management emphasized that deposit betas have likely peaked, and the NII trajectory will depend on the balance between asset repricing and deposit dynamics as rate expectations evolve. Investors should monitor CRE office delinquencies and charge-offs, deposit-cost dynamics, and the pace of rate cuts embedded in the forecast.