PNC Stock Forecast & Price Target

PNC Financial Services Group has demonstrated strong financial performance, with a notable increase in tangible book value per share to $96.98 and a common equity tier 1 (CET1) ratio rising to 10.3%, indicating improved capital strength compared to the previous quarter. The management expects a 6-7% growth in net interest income for the full year, supported by positive trends in fixed asset repricing and a significant increase in the receive-fixed rate on active swap balances for the commercial loan portfolio. Additionally, the anticipation of a 5% growth in fee income, accompanied by sustained mid- to high-single-digit growth across various segments, positions the company for substantial operating leverage and overall financial resilience in 2025.

PNC Financial Services Group has experienced a 4% quarter-over-quarter decline in key segments such as mortgage, asset management, and capital markets, contributing to a concerning outlook for the company's growth potential. Loan growth remains stagnant due to low utilization rates of 50.4%, which is significantly below historical averages, underscoring challenges in demand and overall economic conditions. Furthermore, pressures on net interest income and anticipated declines in earnings per share estimates—particularly in light of a challenging banking environment post-March crisis—raise alarms about the bank's ability to maintain profitability in upcoming quarters.