PNC Financial Services Group Boosts Quarterly Common Stock Dividend to $1.70 Per Share

PITTSBURGH, July 3, 2025 – The PNC Financial Services Group, Inc. (NYSE: PNC) today announced a significant increase in its quarterly common stock dividend, signaling confidence in its financial health and commitment to shareholder returns. The company's board of directors declared a cash dividend of $1.70 per share, marking a notable increase of $0.10 cents per share, or 6%, from the previous quarter's dividend of $1.60 per share. This decision underscores PNC's robust capital position and its strategy to return value to its investors.

The increased dividend will be payable on August 5, 2025, to shareholders of record as of the close of business on July 15, 2025. This move is likely to be well-received by the market, as dividend increases often reflect a company's strong earnings outlook and stable cash flow generation.

Strategic Implications of the Dividend Hike

PNC's decision to raise its dividend comes amidst a dynamic economic landscape. For a financial institution of PNC's stature, a dividend increase is more than just a payout; it's a strategic statement. It suggests that the company's management and board are confident in their ability to maintain profitability and generate sufficient free cash flow to support higher distributions, even as interest rate environments and economic growth forecasts fluctuate.

• Confidence in Financial Performance: A higher dividend typically indicates management's belief in sustained earnings power and a healthy balance sheet. This can reassure investors about the company's long-term viability and growth prospects.
• Attractive to Income Investors: For investors seeking stable income streams, a rising dividend makes PNC's stock more attractive. This can broaden the investor base and potentially provide support for the stock price.
• Capital Allocation Strategy: The dividend increase is part of PNC's broader capital allocation strategy, which also includes potential share buybacks and investments in growth initiatives. Balancing these elements is crucial for maximizing shareholder value.

Market Context and Industry Trends

The banking sector has been navigating a complex environment, characterized by evolving regulatory frameworks, technological disruption, and shifts in consumer behavior. Despite these challenges, well-managed regional banks like PNC have demonstrated resilience. This dividend increase positions PNC favorably against its peers, many of whom are also focused on returning capital to shareholders while maintaining strong capital ratios.

• Interest Rate Environment: While the exact trajectory of interest rates is always a factor, banks with diversified revenue streams and strong deposit bases, like PNC, are better positioned to manage interest rate fluctuations. A higher dividend can signal confidence in their net interest margin outlook.
• Economic Outlook: The broader economic outlook plays a significant role. A positive economic forecast, even if moderate, supports loan growth and reduces credit risk, thereby bolstering bank profitability and their capacity for dividends.
• Regulatory Landscape: Banks operate under strict capital requirements. The ability to increase dividends while adhering to these regulations speaks volumes about PNC's robust capital planning and risk management.

Investment Insights for Shareholders

For current and prospective investors, PNC's dividend increase offers several key insights:

• Dividend Reinvestment Potential: Shareholders can consider reinvesting their dividends to compound their returns over time, taking advantage of PNC's consistent payouts.
• Signal of Stability: The dividend hike reinforces PNC's reputation as a stable, income-generating investment within the financial sector. This can be particularly appealing during periods of market volatility.
• Monitoring Future Announcements: Investors should continue to monitor PNC's earnings reports, future dividend declarations, and any share repurchase programs, as these will provide further insights into the company's financial health and capital allocation priorities.

This dividend increase by PNC Financial Services Group is a positive development, reflecting the company's strong operational performance and a clear commitment to enhancing shareholder value. It reinforces PNC's position as a leading financial institution with a robust outlook.