New York, January 16, 2026, 3:20 PM EST — Regular session
Shares of PNC Financial Services Group (PNC) climbed roughly 3.9% on Friday, hitting $225.47—a four-year peak—while trading near $223.32. The bank reported fourth-quarter earnings of $4.88 per share, surpassing the $4.22 consensus. It also forecast net interest income growth of about 14% in 2026, outpacing the 11.1% estimate. Oppenheimer analyst Chris Kotowski noted that “Credit metrics were stable at excellent levels.” 1
The bounce arrives as bank earnings shape expectations for the market’s next phase, with traders searching for clues on whether loan growth and fee income can endure if rates remain elevated longer. The KBW Nasdaq Bank Index slipped roughly 0.2% in afternoon trading, putting PNC’s advance far ahead of its peers. 2
Rate expectations are still the focal point. Federal Reserve Governor Michelle Bowman indicated the central bank should be prepared to cut rates again if inflation keeps easing. The benchmark rate currently stands at 3.50% to 3.75%, just before the Fed’s policy meeting on Jan. 27-28. 3
PNC’s latest quarterly filing shows fourth-quarter revenue hitting $6.071 billion, climbing from $5.567 billion the previous year. Net interest income rose to $3.731 billion. Capital markets and advisory fees jumped to $489 million from $348 million, pushing noninterest income up to $2.340 billion. 4
PNC reported its net interest margin, a key measure of lending profitability, climbed to 2.84%, up 5 basis points from the previous quarter. The bank finalized its FirstBank acquisition on Jan. 5. CEO Bill Demchak noted the company is heading into 2026 with “great momentum.” PNC plans $600 million to $700 million in share buybacks during the first quarter. The board also approved a $1.70 common dividend, payable Feb. 5 to shareholders of record Jan. 20. 5
But the upside hinges on two factors that can change quickly: credit costs and funding. If commercial credit takes a turn or deposit pricing heats up again, margins could tighten even if loan volumes hold steady.
Broader markets hovered near record highs as earnings season gained momentum, AP reported, with regional banks posting mixed results. Regions Financial dropped 2.6% after falling short of forecasts. Wells Fargo Investment Institute strategist Doug Beath warned he “would not be surprised if markets experience volatility” once fourth-quarter reports start coming in. 6
PNC now faces scrutiny over whether it can keep up share buybacks at the speed investors anticipate, and if advisory fee growth holds steady. The next major macro event is the Fed’s rate decision on Jan. 28, which will influence how traders forecast bank margins heading into spring.
