PNC Financial recorded its highest quarterly revenue on record, driven by robust capital markets activity and the integration of regional lender FirstBank, the bank said Wednesday. Executives pointed to an active dealmaking environment in 2026 and the completed FirstBank acquisition as material contributors to the results.
The bank completed the $4.1 billion purchase of FirstBank in January, a deal that strengthened PNC's footprint in Colorado and Arizona. That acquisition, combined with a pickup in market transactions, helped push capital markets and advisory revenue up 80% from a year earlier to $577 million in the second quarter. Management highlighted record M&A advisory fees and broad-based strength across related businesses as underpinnings of the growth.
PNC's Harris Williams advisory unit was active during the period, advising electrical equipment maker Hubbell on its $3 billion acquisition of NSI Industries, a deal cited by the bank as an example of the elevated M&A environment.
Net interest income - the spread between interest earned on loans and interest paid on deposits - rose 16% to $4.11 billion. The increase reflected strong loan growth, the effect of the FirstBank acquisition and lower deposit costs. Average loans climbed 13% during the quarter and net interest margin expanded by 16 basis points, underscoring the profitability gains from lending.
PNC reported profit of $2.06 billion, or $4.81 per share, in the three months ended June 30, a 25% increase from the prior year period. Total revenue for the quarter increased 21% to $6.88 billion, the bank said.
One-time items and portfolio repositioning
The quarter included a one-time gain of $448 million after PNC monetized a portion of its long-held stake in card company Visa. That gain added to the quarter's reported revenue. At the same time, PNC recorded a $139 million charge related to repositioning roughly $4 billion of investment securities into higher-yielding paper, a move the bank has used before to adjust its bond portfolio.
Several U.S. banks have recently used one-time gains from asset sales to adjust bond securities holdings and mitigate the realized losses associated with selling securities. PNC implemented a similar repositioning strategy in 2024 and applied it again in the most recent quarter.
Macro context cited by the bank
PNC characterized the results as reflecting broad-based strength in the U.S. economy. Management cited robust consumer spending as a factor that has kept credit quality strong and supported loan demand, contributing to the bank's expanded loan book and improved profitability metrics.