PNC Financial Services Group, one of the largest diversified financial services organizations in the United States, reported a solid financial performance for the fourth quarter of 2024, contributing to a strong full-year result. The company showed stable growth with net income of $1.6 billion for the fourth quarter, or $3.77 per diluted share, and total net income for 2024 reached $6 billion, reflecting a year-over-year increase of 5% to $13.74 per diluted share.

For the fourth quarter, total revenue rose to $5.6 billion, a 2% increase from the previous quarter, primarily driven by net interest income, which grew 3% to $3.5 billion. The net interest margin also expanded by 11 basis points to 2.75%. Noninterest income was stable at $2.0 billion, although it experienced a 4% decline compared to the third quarter, attributed to previous elevated activity in residential mortgage and capital markets.

Total average loans remained stable at $319 billion in the fourth quarter. On the balance sheet, average deposits increased by $3.1 billion or 1%, reaching $425.3 billion. The company’s allowance for credit losses stood at $5.2 billion, slightly down from $5.3 billion in the prior quarter, indicating resilience in credit quality with nonperforming loans decreasing by 10% to $2.3 billion.

A key aspect of PNC’s financial strategy is the return of capital to shareholders. In the fourth quarter, it returned approximately $900 million through dividends and share repurchases. The bank’s Common Equity Tier 1 (CET1) capital ratio was 10.5%, an increase from 10.3% in the prior quarter, reinforcing its well-capitalized status.

Looking ahead, PNC provided cautious guidance for the first quarter of 2025, including expectations for a slight decline in average loans by approximately 1% and a decrease in net interest income by 2% to 3%, partly due to seasonal factors and the impact of fewer days in the quarter. Fee income is anticipated to remain stable, while noninterest expense may decrease by 2% to 3%.

In 2025, PNC expects stable average loan growth, an increase in net interest income of 6% to 7%, and a 5% rise in noninterest income. Noninterest expense guidance for the year points to an increase of about 1%, alongside an expected effective tax rate of 19%.

The bank’s performance is underscored by strategic investments aimed at enhancing its market position and customer service, including an increased focus on expanding in growth markets and upgrading its online banking platform. Overall, PNC is positioned firmly entering 2025 with established operational leverage and a strong capital base to navigate potential economic uncertainties.