New York, Jan 18, 2026, 13:25 EST — Market closed
- After its quarterly report, PNC closed Friday at $223.18, rising roughly 3.7%
- The bank forecasted $600 million to $700 million in share repurchases for the first quarter
- U.S. markets will be closed Monday in observance of Martin Luther King Jr. Day; trading picks back up Tuesday
PNC Financial Services Group’s stock ended Friday at $223.18, climbing roughly 3.7%. That performance puts the regional bank near the top among financial services shares as the holiday-shortened week begins. U.S. markets will be closed Monday for Martin Luther King Jr. Day and resume trading Tuesday. (The PNC Financial Services Group, Inc.)
The timing is crucial as bank earnings hit a market that kicked off the year on a strong note but now shows signs of nervousness over rates and regulation. Investors zoom in on two key factors for lenders: net interest income — the difference between what banks make on loans and what they pay out on deposits — and the earliest indicators of credit stress.
Policy noise adds another wrinkle. A Reuters Week Ahead report highlighted worries about President Donald Trump’s plan to cap credit card interest rates at 10%. It also flagged Wednesday’s U.S. Supreme Court hearing on Trump’s attempt to oust Federal Reserve Governor Lisa Cook as a new macro driver. Art Hogan, chief market strategist at B Riley Wealth, said the market needs “earnings actually carry the news cycle.” (Reuters)
PNC posted a clean set of numbers. The bank’s fourth-quarter net income hit $2.03 billion, or $4.88 per diluted share, driven by record revenue of $6.07 billion. Net interest income increased to $3.73 billion, while capital markets and advisory revenue rose to $489 million. Looking ahead, PNC plans share repurchases in the range of $600 million to $700 million for Q1 2026. (The PNC Financial Services Group, Inc.)
Credit, for the moment, appeared solid. Oppenheimer analyst Chris Kotowski noted that “Credit metrics were stable at excellent levels” following the results. (Reuters)
The Financial Select Sector SPDR Fund (XLF), a key benchmark for U.S. financial stocks, ended Friday at $54.44. (Nasdaq)
Investors got a mixed signal from Regions Financial. The bank reported a rise in fourth-quarter profit and net interest income climbed to $1.28 billion. However, its forecast for interest-income growth through 2026 fell short of what analysts had anticipated, Reuters noted. Regions’ shares slipped roughly 2.6% on Friday. (Reuters)
M&T Bank posted a jump in fourth-quarter profit, boosted by rising interest income and improved mortgage banking results, Reuters reported. The bank projects net interest income between $7.2 billion and $7.35 billion for 2026. M&T shares closed Friday with a modest decline. (Reuters)
The catch for bank stocks is that a strong quarter doesn’t guarantee the next. If loan demand eases once rate cuts kick in, or deposit rates heat up again, margins could tighten fast. Plus, any negative news tied to credit cards poses a threat to a sector heavily reliant on fee and interest income from consumer spending.
When trading resumes Tuesday, eyes will be on PNC to see if it can maintain its post-earnings gains. Other regional banks face pressure to meet guidance without triggering fresh sell-offs. Then on Wednesday, the Supreme Court hears arguments on the Fed governor dispute, a key event that could shake up rate outlooks and, in turn, impact financial stocks.
