Earnings Reports

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PNC Financial report fourth quarter earnings before the bell on Wednesday after Bank of America $BAC, Wells Fargo $WFC, Citigroup $C and JPMorgan $JPM.  They have been beating on a growing loan book with improving interest rate margins.

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PNC Financial Services Group Inc NYSE: PNC · Reported Before Open Wednesday

$2.75EPS Missed $2.78 AND $4.34B Missed $4.39 billion in revenue forecast

Earnings 

The PNC Financial Services Group Inc. (PNC) reported Q4 earnings and revenue that missed analysts’ predictions. PNC reported earnings of $2.75 per share compared to $4.18 in the prior year. Revenue rose 2% to $4.34 billion. Analysts had expected quarterly earnings of $2.78 per share which represents a year-over-year gain of +21.4%. Revenues were expected to be $4.39 billion, up 3% from the year-ago quarter.  Analysts are looking for near-term efficiency targets with  an articulated commitment to flattish expenses. 

PNC Financial Services Group Inc NYSE: PNC

Market Reaction Pre-market $120.16 −0.96 (-0.79%)

Highlights

  • Net interest income grew 6% year-over-year
  • Non-interest income decreased 3% in the recently ended quarter.
  • Average loans and average deposits both increased 2% versus the year-ago quarter.
  • As of Q4 end, provision for credit losses rose 18% compared to the end of the prior-year quarter.
  • On January 3, 2019, the PNC Board declared a quarterly cash dividend of 95 cents per share effective with the February 5, 2019 dividend payment date.

PNC Q4 2018 earnings

PNC Financial Services Q3 Earnings Recap

$2.82 Beat Forecast $2.73 EPS BUT $4.3 billion Missed $4.35 billion in revenue 

Earnings 

The PNC Financial Services Group Inc. (PNC) reported total revenues of $4.3 billion for the third quarter of 2018, up 6% compared to the same period last year. Net income attributable to common shares was $1.31 billion or $2.82 per share compared to $1 billion or $2.16 per share in the same period last year. The result beat analysts’ consensus estimates of $2.73 in EPS but missed on revenue of $4.35 billion. Shares of PNC have a 52-week trading range is $130.46 to $163.59.

PNC Financial Services Group Inc NYSE: PNC

Market Reaction Pre-market 130.50 −1.11 (-0.84%)  

Highlights

      • Net interest income grew 5% while non-interest income grew 6% during the quarter compared to the prior year period.
      • Net interest margin increased to 2.99% from 2.91% last year. 
      • Asset management revenue grew $65 million, reflecting benefits from the lower federal statutory income tax rate on BlackRock earnings and higher equity markets.
      • Average total assets were $377.9 billion in the third quarter.
      • Average loans grew 2% to $223.3 billion while average deposits grew 1% to $262.5 billion.
      • PNC benefited from higher interest rates, allowing it to charge more on loans.
      • Net interest income grew 7% from a year ago.
      • The bank's net interest margin also grew.
      • Total deposits were up 2%.
      • PNC decreased the amount it set aside for possible credit losses. 

Segments

      • Commercial lending grew 3% from a year ago. This business is a key revenue driver for Regional midsized banks like PNC.
      • Consumer lending grew 1% from a year ago. 

 

Source: PNC Earnings Release 

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