PNC Stock Surges on Q2 Revenue, Earnings Beat

PNC Financial (PNC) shares surged over 4% Tuesday after the bank reported second-quarter profit and revenue that beat analysts’ estimates. The bank also gave a stronger outlook for net interest income (NII). 

PNC reported revenue rose 2.2% from a year ago to $5.41 billion, slightly above expectations. Earnings per share (EPS) of $3.39 also exceeded projections.  

PNC Gets a Boost From Higher Fees, Visa Exchange

The stronger-than-expected results came as PNC benefitted from higher fees, as well as an exchange of Visa stock.

Fee income increased 1.8% to $1.78 billion, which the company primarily attributed to “seasonally higher card and cash management fees and increased capital markets and advisory activity.”

PNC also got a boost from the Visa (V) exchange program, which allowed the bank to monetize half of its Visa Class B-1 shares and convert the rest into 1.8 million Visa Class B-2 shares, resulting in a gain of $754 million.

NII fell 5.9% from the year before to $3.30 billion. However, that figure represented an improvement from the first quarter, with the company saying it now anticipates full-year NII to fall 4%, compared to its previous outlook of a 4% to 5% decline.

PNC CEO Bill Demchak said the bank is at the “beginning of our growth trajectory towards expected record NII in 2025.”

PNC shares were up 4.4% at $176.33 as of 12:50 p.m. ET Tuesday, and have gained close to 14% since the start of the year.