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.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by ‌Shilpi Majumdar)

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