PNC FINANCIAL SERVICES GROUP, INC.

Net Interest Income

Table 3: Summarized Average Balances and Net Interest Income (a)

(a)Interest income calculated as taxable-equivalent interest income. To provide more meaningful comparisons of interest income and yields for all interest-earning assets, as well as net interest margins, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement. For more information, see Table 35 Reconciliation of Taxable-Equivalent Net Interest Income (non-GAAP).

(b)Interest income from Interest-earning deposits with banks primarily includes interest earned on our balances held with the FRB and is reported as Other interest income on our Consolidated Income Statement.

Changes in net interest income and margin result from the interaction of the volume and composition of interest-earning assets and related yields, interest-bearing liabilities and related rates paid and noninterest-bearing sources of funding. See Table 34 Average Consolidated Balance Sheet and Net Interest Analysis for additional information.

Net interest income increased $93 million, or 3%, compared to the second quarter of 2025, driven by the continued benefit of fixed rate asset repricing, loan growth and one additional day in the quarter. Net interest income increased $703 million, or 7%, compared to the first nine months of 2024, driven by lower funding costs, the continued benefit of fixed rate asset repricing and loan growth. Net interest margin decreased 1 basis point compared to the second quarter of 2025 driven by average commercial deposit growth of 5%.

6 The PNC Financial Services Group, Inc. –Form 10-Q

In the year-to-date comparison, net interest margin increased 19 basis points due to the benefit of lower funding costs and the continued repricing of fixed rate assets.

Average investment securities increased $2.5 billion, or 2%, compared to the second quarter of 2025, reflecting net purchase activity, primarily of agency residential mortgage-backed securities. Average investment securities increased $3.2 billion, or 2%, compared to the first nine months of 2024, driven by net purchase activity of U.S. Treasury and government agency securities and agency residential mortgage-backed securities. Average investment securities represented 28% of average interest-earning assets for both the third and second quarters of 2025, and 28% for the first nine months of 2025 compared to 27% for the first nine months of 2024.

Average loans increased $3.2 billion, or 1%, compared to the second quarter of 2025, and $1.8 billion, or 1%, compared to the first nine months of 2024. In both comparisons, the increase is primarily due to growth in commercial and industrial loans, partially offset by a decline in commercial real estate loans. Average loans represented 63% of average interest-earning assets for the third quarter of 2025, compared to 64% for the second quarter of 2025, and 63% for the first nine months of 2025 compared to 62% for the first nine months of 2024.

Average interest-earning deposits with banks increased $3.4 billion, or 11%, compared to the second quarter of 2025, primarily driven by commercial deposit growth. Compared to the first nine months of 2024, average interest-earning deposits with banks decreased $11.1 billion, or 25%, primarily due to lower borrowed funds outstanding.

Average interest-bearing deposits increased $9.2 billion, or 3%, compared to the second quarter of 2025, reflecting higher commercial deposits. Compared to the first nine months of 2024, average interest-bearing deposits increased $9.6 billion, or 3%, as higher commercial and consumer deposits were partially offset by lower brokered time deposits. In total, average interest-bearing deposits represented 84% of average interest-bearing liabilities for the third quarter of 2025, compared to 83% for the second quarter of 2025, and 84% for the first nine months of 2025 compared to 81% for the first nine months of 2024.

Average borrowed funds increased $1.0 billion, or 2%, compared to the second quarter of 2025, and included higher senior debt outstanding, partially offset by lower FHLB advances. Average borrowed funds decreased $11.0 billion, or 14%, in the year-to-date comparison, primarily driven by lower FHLB advances, partially offset by higher senior debt outstanding.

Further details regarding average loans and deposits are included in the Business Segments Review section of this Financial Review.