#United States #Pittsburgh #PNC Financial #Stress Capital Buffer #Capital Actions

PNC Financial Services Group's Capital Enhancements

In a noteworthy update, PNC Financial Services Group, Inc. (NYSE: PNC) has revealed the results of the Federal Reserve's 2025 Comprehensive Capital Analysis and Review (CCAR). The results are encouraging for stakeholders, as they highlight PNC's solid capital position and planned actions for the upcoming quarters starting in October 2025.

Stress Capital Buffer and Regulatory Standards

The Federal Reserve estimated PNC's minimum capital ratios under a hypothetical Supervisory Severely Adverse scenario, crucial for evaluating the bank's capacity to withstand financial stress. PNC reported a calculated Stress Capital Buffer (SCB) of 1.5% for the four-quarter period beginning October 1, 2025, falling below the regulatory SCB minimum, signifying strong financial performance. This positions their effective SCB at 2.5%, mirroring the SCB in effect until September 30, 2025.

Additionally, PNC’s Common Equity Tier 1 (CET1) ratio stood at 10.6% as of March 31, 2025. This robust figure surpasses the minimum regulatory threshold alongside the added SCB of 7.0%. Furthermore, forecasts suggest that even under stress scenarios, PNC's capital ratios are projected to stay well above the regulatory requirements, with an estimated CET1 ratio of 9.7% post-stress and a final CET1 result of 9.8%, significantly higher than the regulatory minimum of 4.5%.

Proposed Dividend Increase

In alignment with its solid capital position, PNC intends to propose to its board a quarterly cash dividend increase of 10 cents per share, up 6% from its previous rate, bringing it to $1.70 per share for the third quarter of 2025. This recommendation will be discussed during the next board meeting scheduled for July 3, 2025.

Share Buyback Program

In line with theSCB framework, which permits capital returns exceeding the minimum SCB levels, PNC's board has also authorized a share repurchase program. This program, already approved, allows for the buyback of up to 100 million common shares, with nearly 41% of this capacity remaining as of March 31, 2025. PNC's share repurchase activity for the third quarter is expected to align with the levels seen in the second quarter of 2025, demonstrating a methodical approach to capital management. The actual timing and execution of these buybacks may flex depending on market conditions and other variables, with shares potentially repurchased through various transaction methods, including privately negotiated deals.

About PNC Financial Services Group

PNC Financial Services Group is recognized as one of the largest diversified financial institutions in the United States. It prides itself on fostering strong relationships focused on community engagement and customer satisfaction. The institution provides a comprehensive array of retail and business banking services, lending products, corporate banking solutions, and asset management, tailored for both corporate and governmental clients. This strategic positioning underscores PNC’s commitment to sustained growth and financial resilience. For more information, visit www.pnc.com.