11:03 AM EDT, 07/18/2025 (MT Newswires) -- PNC Financial Services' ( PNC ) Q2 earnings beat was driven mainly by lower-than-expected loan losses and slightly stronger pre-provision earnings, partially offset by higher reserve builds, Oppenheimer said in a note Friday.

The company reported second-quarter earnings of $3.85 per diluted share, topping both Oppenheimer's estimate of $3.61 and the consensus forecast of $3.55.

The bank delivered a 15.6% return on tangible common equity and a 14% year-over-year increase in earnings per share, with continued strong credit quality, the firm said.

Average loans rose 1.9% from the prior quarter, reversing a gradual decline since early 2023. Growth was led by commercial and industrial lending, improved loan production, and share gains in newer markets.

Net interest income increased 7.7% from a year earlier and 2.3% sequentially, outpacing loan and deposit growth due to favorable asset repricing trends.

The analysts described PNC's performance as stable and consistent and made only modest adjustments to their model. While shares appear slightly undervalued, the gap isn't wide enough to justify an upgrade at this point, according to the note.

Oppenheimer has a perform rating on the stock.

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