PNC FINANCIAL SERVICES GROUP, INC.

Table 2: Balance Sheet Highlights and Other Selected Ratios

(a)The Executive Summary and Consolidated Balance Sheet Review portions of this Financial Review provide information regarding items impacting the comparability of applicable periods presented.

Income Statement Highlights

Net income of $1.8 billion, or $4.13 per diluted common share, for the first quarter of 2026 decreased $261 million, or 13%, compared to $2.0 billion, or $4.88 per diluted common share, for the fourth quarter of 2025, due to increased noninterest expense, lower noninterest income and higher provision for credit losses, partially offset by higher net interest income.

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

•For the three months ended March 31, 2026 compared to the three months ended December 31, 2025:

•Total revenue of $6.2 billion increased $94 million, or 2%.

•Net interest income of $4.0 billion increased $230 million, or 6%, reflecting the benefit of FirstBank, lower funding costs and commercial loan growth.

•Net interest margin increased 11 basis points to 2.95%, reflecting an 18 basis point decline in the rate paid on interest-bearing deposits.

•Noninterest income of $2.2 billion decreased $136 million, or 6%, primarily due to lower private equity revenue, a decline in mortgage servicing rights valuation, net of economic hedge, and lower capital markets and advisory fees.

•Provision for credit losses was $210 million in the first quarter of 2026 and reflected portfolio activity, including loan growth and the addition of FirstBank, as well as updates to macroeconomic factors. The fourth quarter of 2025 included a provision for credit losses of $139 million.

•Noninterest expense increased $165 million, or 5%, and included FirstBank operating and integration expenses, partially offset by seasonally lower marketing spend.

First quarter 2026 net income increased $273 million, or 18%, compared to $1.5 billion, or $3.51 per diluted common share, for the first quarter of 2025, primarily due to higher net interest and noninterest income, partially offset by increased noninterest expense.

•For the three months ended March 31, 2026 compared to the three months ended March 31, 2025:

•Total revenue increased $713 million, or 13%.

•Net interest income increased $485 million, or 14%, reflecting the benefit of FirstBank, loan growth and lower funding costs.

•Net interest margin increased 17 basis points and included the continued benefit of fixed rate asset repricing.

•Noninterest income increased $228 million, or 12%, primarily due to higher capital markets and advisory fees.

•Provision for credit losses was $210 million for the first three months of 2026. The first three months of 2025 included a provision for credit losses of $219 million.

•Noninterest expense increased $381 million, or 11%, compared to the first three months of 2025, and included FirstBank operating and integration expenses, higher personnel costs as a result of increased business activity and higher equipment expenses reflecting continued investments in technology.

For additional detail, see the Consolidated Income Statement Review section of this Financial Review.

Balance Sheet Highlights

Our balance sheet was well positioned at March 31, 2026. In comparison to December 31, 2025:

•Total assets of $603.0 billion increased primarily due to higher loans and higher securities balances, including the impact of the FirstBank acquisition, partially offset by lower balances held with the FRB.

•Total loans of $360.9 billion increased $29.4 billion, or 9%.

•Total commercial loans increased $23.5 billion, or 10%, to $256.0 billion, due to growth in the commercial and industrial portfolio, reflecting new production and higher utilization of loan commitments as well as the addition of FirstBank loans.

•Total consumer loans increased $5.9 billion, or 6%, to $105.0 billion, driven by the benefit of acquired FirstBank residential mortgage loans.

•Investment securities increased $4.9 billion, or 4%, to $143.1 billion, primarily due to the acquisition of FirstBank investment securities and net purchase activity in both the available-for-sale and held-to-maturity portfolios.

•Interest-earning deposits with banks, primarily with the FRB, decreased $6.9 billion, or 21%, to $26.1 billion, as higher loan and security balances outpaced funding growth from deposits and borrowed funds.

•Total deposits increased $16.8 billion, or 4%, driven by higher interest-bearing and noninterest-bearing deposits, primarily due to the addition of FirstBank deposits, partially offset by lower brokered time deposits.

•Borrowed funds increased $9.6 billion, or 17%, to $66.7 billion, primarily due to higher FHLB advances.

For additional detail, see the Consolidated Balance Sheet Review section of this Financial Review.

The PNC Financial Services Group, Inc. –Form 10-Q 3

Credit Quality Highlights

In the first quarter of 2026, PNC maintained strong credit quality performance.

•At March 31, 2026 compared to December 31, 2025:

•Overall loan delinquencies of $1.6 billion increased $115 million, or 8%, due to the addition of FirstBank commercial and consumer loans.

•The ACL related to loans, which consists of the ALLL and the allowance for unfunded lending related commitments, totaled $5.5 billion at March 31, 2026, compared to $5.2 billion at December 31, 2025. The increase was driven by portfolio activity, including the addition of FirstBank loans. ACL to total loans was 1.52% at March 31, 2026, compared to 1.58% at December 31, 2025.

•Nonperforming assets of $2.4 billion were stable.

•Net loan charge-offs of $253 million, or 0.29% of average loans, in the first quarter of 2026 increased $91 million compared to the fourth quarter of 2025, and included $45 million of acquired net loan charge-offs related to purchase accounting treatment for certain FirstBank loans.

For additional detail see the Credit Risk Management portion of the Risk Management section of this Financial Review.

Capital and Liquidity Highlights

We maintained our strong capital and liquidity positions.

•Common shareholders’ equity of $57.8 billion at March 31, 2026, increased $2.9 billion, or 5%, compared to December 31, 2025, primarily due to common stock issuances related to the FirstBank acquisition.

•In the first quarter of 2026, PNC returned $1.4 billion of capital to shareholders, reflecting $0.7 billion of dividends on common shares and $0.7 billion of common share repurchases.

•On April 2, 2026, the PNC Board of Directors declared a quarterly cash dividend on common stock of $1.70 per share paid on May 5, 2026 to shareholders of record at the close of business April 14, 2026.

•Our CET1 ratio was 10.1% at March 31, 2026 and 10.6% at December 31, 2025.

For additional information on our liquidity and capital actions as well as our capital ratios, see Capital Management in the Risk Management section in this Financial Review, the Recent Regulatory Developments section in this Financial Review and the Supervision and Regulation section in our 2025 Form 10-K.

Business Outlook

Statements regarding our business outlook are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account potential legal and regulatory contingencies. These statements are based on our views that:

•PNC’s baseline forecast remains for continued expansion in 2026, but slower economic growth in 2026 than in 2025 and 2024. The baseline forecast anticipates real GDP growth slowing to around 1.7% in 2026, with continued modest job gains and the unemployment rate moving slightly higher, to around 4.6% at year’s end. CPI inflation will peak at around 3.5% in mid-2026, with core CPI inflation at around 2.6%. An extended conflict with Iran and higher energy prices are significant risks to the outlook, both for inflation and growth, and a reversal in sentiment around AI or a large decline in equity prices would be drags. Weaker labor force growth could lead to weaker long-run growth.

•Our baseline forecast is for the Federal Reserve to keep the federal funds rate unchanged throughout 2026 and into 2027, in a range between 3.50% and 3.75%. However, there are two-sided risks to this outlook: (1) if the conflict with Iran persists and inflation proves more persistent than expected the Federal Reserve may raise rates, or (2) if growth falters or recession emerges there could be a deep and prolonged easing in monetary policy.

Consistent with the forward guidance we provided on April 15, 2026, for the second quarter of 2026, compared to the first quarter of 2026, we expect:

•Average loans to be up 2% to 3%,

•Net interest income to be up approximately 3%,

•Fee income to be up approximately 2.5%,

•Other noninterest income to be $150 million to $200 million,

•Total revenue to be up approximately 3.5%,

•Noninterest expense excluding integration expense to be up approximately 2%, and

•Net loan charge-offs to be approximately $225 million.

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

Consistent with the forward guidance we provided on April 15, 2026, for the full year of 2026, compared to the full year of 2025, we expect:

•Average loans to be up approximately 11%,

•Net interest income to be up approximately 14.5%,

•Noninterest income to be up approximately 6%,

•Total revenue to be up approximately 11%,

•Noninterest expense excluding integration expense to be up approximately 7%, and

•Effective tax rate to be approximately 19.5%.

Other noninterest income, noninterest income and total revenue guidance does not forecast net securities gains or losses, or Visa activity. Additionally, noninterest expense excluding integration expense does not include our expectation for non-recurring merger and integration costs. We expect to incur integration costs of $150 million and $325 million for the second quarter of 2026 and full year of 2026, respectively.

We are unable to provide a meaningful or accurate reconciliation of forward-looking non-GAAP measures, without unreasonable effort, to their most directly comparable GAAP financial measures. This is due to the inherent difficulty of forecasting the timing and amounts necessary for the reconciliation, when such amounts are subject to events that cannot be reasonably predicted, as noted in our Cautionary Statement. Accordingly, we cannot address the probable significance of unavailable information.

See the Cautionary Statement Regarding Forward-Looking Information section in this Financial Review and Item 1A Risk Factors included in our 2025 Form 10-K for other factors that could cause future events to differ, perhaps materially, from those anticipated in these forward-looking statements.