PNC Financial Services Group Inc. reported a stronger-than-expected fourth-quarter revenue, driven by a significant increase in fees from its capital markets business. Shares of the regional bank surged to a four-year high following the announcement.

The Pittsburgh-based bank's fourth-quarter revenue rose 9% year-over-year, surpassing analysts' estimates. Non-interest income saw a 14% increase, reaching $2.34 billion, exceeding the consensus estimate of $2.26 billion. A key contributor to this growth was the capital-markets and advisory business, where fees surged 41% to $489 million compared to the previous year. This surge was attributed to increased financing and dealmaking activity among the bank's middle-market clientele.

The positive earnings report had an immediate impact on the market, with PNC's stock price climbing to its highest level in four years. This performance reflects growing investor confidence in the bank's ability to capitalize on opportunities within the capital markets sector.

PNC Financial Services Group is a major regional bank operating primarily in the Eastern United States. The bank provides a wide range of financial services, including retail banking, corporate banking, and asset management. The strong performance in capital markets suggests a successful strategic focus on expanding its advisory and dealmaking capabilities.

Looking ahead, PNC's management will likely focus on sustaining this momentum in its capital markets division. The bank's ability to continue attracting middle-market clients and facilitating successful deals will be crucial for maintaining its growth trajectory and delivering value to shareholders.