PNC · 10-Q · 2026Q2 · Full report

Operating Expense Trends

PNC FINANCIAL SERVICES GROUP, INC. · 2026-08-05 · Importance 42 · Surprise 40 · No source text

Retail Banking noninterest expense increased $434 million to $4,226 million in the first six months of 2026 from $3,792 million, primarily due to FirstBank operating expenses and technology investments. Corporate & Institutional Banking noninterest expense increased $301 million to $2,207 million from $1,906 million, reflecting higher variable compensation associated with increased business activity. Asset Management Group noninterest expense increased because of investments supporting business growth and higher variable compensation. Higher noninterest expense partially offset earnings growth in all three reportable segments.

Key facts

• Guidance - the three months ended September 30, 2026 outlook for noninterest expense (excluding integration costs and significant items) is a (2)% to (3)% change versus the three months ended June 30, 2026 (low end (3)% and high end (2)% shown respectively). source
• Guidance for full year 2026 excludes anticipated $325 million of integration costs for the full year, $218 million of which was recognized in the first half of 2026. source
• The guidance for noninterest expense for the three months ended September 30, 2026 excludes an expectation for non-recurring merger and integration costs of approximately $50 million. source
• Noninterest expense for the three months ended June 30, 2026 was $4,098 million, a (8)% change year-over-year; noninterest expense excluding integration costs and significant items was $3,837 million, a (3)% change. source
• The guidance for noninterest expense, excluding integration costs and significant items, excludes expected non-recurring merger and integration expenses of approximately $325 million, $218 million of which was recognized in the first half of 2026 and approximately $50 million expected to be incurred in Q3 2026, and excludes the pre-tax impacts of the $140 million expense in Q2 2026 related to a contribution to the PNC Foundation source
• PNC updated its internal FTP methodology during Q2 2026; update resulted in impacts to net interest income and associated income statement line items for all business segments and prior periods have been adjusted source
• Noninterest expense for the three months ended June 30, 2026 was $4,098 million, an increase of $330 million, or 9%, compared to the first quarter of 2026 and included $121 million of integration expenses related to the FirstBank acquisition and a PNC Foundation contribution expense of $140 million pre-tax source
• Retail Banking six months ended June 30 2026 total noninterest expense: $4,226 million; 2025: $3,792 million source

Impact estimates