PNC Financial Services (PNC) reported a strong Q1 marked by standout growth in net interest income and margin expansion, supported by its FirstBank acquisition, RBC Capital Markets said in a Wednesday note.

The company posted Q1 adjusted EPS of $4.32, above RBC's estimate of $4.14, while revenue rose 13% year over year to $6.17 billion, RBC said.

Higher net interest income and contributions from fee-based businesses led to revenue growth, the firm said.

Net interest income rose 14% from a year earlier, while net interest margin expanded 11 basis points to 2.95%, RBC said.

Loan growth also accelerated, with period-end loans rising 13% year over year to $360.9 billion, including 18% growth in commercial and industrial loans, the report said.

RBC maintained its outperform rating and $235 price target on PNC Financial Services.

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