July 15 (Reuters) - U.S. bank PNC Financial reported

record quarterly revenue on Wednesday, boosted by robust capital

markets activity and its acquisition of regional lender

FirstBank.

Dealmaking on Wall Street has accelerated in 2026 as

companies take advantage of a more relaxed regulatory

environment to pursue scale.

PNC completed the $4.1 billion acquisition of FirstBank in

January, bolstering presence ‌in Colorado ⁠and Arizona.

Its capital markets and advisory revenue surged 80% over the

year earlier to $577 million during the second quarter,

underpinned by record M&A advisory fees and strong activity

across other businesses.

During the period, PNC's Harris Williams advised electrical

equipment maker Hubbell on the $3 billion acquisition

of NSI Industries.

Net interest income, the difference between what a bank

earns on loans and pays out on deposits, jumped 16% to $4.11

billion, driven by strong loan growth, the FirstBank acquisition

and lower deposit costs.

The results reflect the broad-based strength of the U.S.

economy. Robust consumer spending has kept credit quality strong

and boosted loan demand.

Average loans rose 13% during the quarter, while net

interest margin - a key measure of profitability - expanded 16

basis points.

Profit jumped 25% to $2.06 billion, or $4.81 per share, in

the three months ended June 30. Revenue increased 21% to $6.88

billion.

BOND PORTFOLIO REJIG

PNC booked a one-time gain of $448 million during the

quarter, after monetizing a portion of its long-held stake in

card giant Visa.

Several U.S. banks have used one-time gains, including those

from asset sales, in recent years to rejig their bond securities

portfolio and soften the hit from selling securities.

PNC took a $139 million hit after repositioning about $4

billion of investment securities into higher-yielding paper in

the quarter. It had implemented a similar strategy in 2024.