New York, January 16, 2026, 14:25 (EST) — Regular session
PNC Financial Services Group shares climbed roughly 3.7% to $223.09 Friday afternoon, hitting an intraday peak of $225.47 earlier. Meanwhile, the Invesco KBW Bank ETF, a broad bank index, showed little movement.
This comes as the first batch of fourth-quarter bank earnings rolls out, with investors weighing if lenders can sustain fee income growth and safeguard margins amid shifting rate expectations. As a major regional player, PNC’s results often influence sentiment well beyond its own stock.
Banks typically focus on two key points: their earnings on loans compared to what they pay on deposits, and whether credit conditions remain stable. These factors can shift quickly as short-term rate forecasts change.
PNC reported fourth-quarter net income of $2.03 billion, or $4.88 per share, driven by record revenue of $6.07 billion. Net interest income, the gap between loan earnings and deposit costs, hit $3.731 billion, while capital markets and advisory brought in $489 million. The bank plans share buybacks between $600 million and $700 million in Q1. CEO Bill Demchak described 2025 as “a successful year” and said the bank is entering 2026 with “great momentum,” citing the recent FirstBank acquisition. (The PNC Financial Services Group, Inc.)
PNC’s profit surpassed Wall Street expectations of $4.22 per share, according to LSEG data cited by Reuters, pushing its shares to a four-year high during the session. Analysts highlighted a boost in deal fees as mergers and acquisitions surged past $5 trillion in 2025. Oppenheimer analyst Chris Kotowski said “credit metrics were stable at excellent levels,” noting that investors are likely to zero in on faster buybacks. (Reuters)
U.S. banks showed a similar trend on Friday. M&T Bank posted a rise in fourth-quarter profits, boosted by increased interest income and stronger mortgage banking. Its net interest income climbed almost 3% to $1.78 billion. (Reuters)
Rates continue to drive the group’s direction. Federal Reserve Vice Chair for Supervision Michelle Bowman indicated the Fed must be prepared to cut rates further if the labor market deteriorates. This comes after the central bank trimmed its benchmark rate by 75 basis points late in 2025, settling it between 3.50% and 3.75%. (Reuters)
But the situation could unravel. A slowdown in dealmaking, increased competition for deposits, or rising loan losses would weigh on the positive spin from Friday’s results and reduce the cushioning effect of buybacks.
Keep in mind, U.S. stock markets will be closed Monday, Jan. 19, in observance of Martin Luther King Jr. Day. (New York Stock Exchange)
All eyes are on the Fed’s policy meeting set for Jan. 27-28. Bank investors are eager for any hints of a rate path change, directly impacting net interest income forecasts. (Federalreserve)
