PNC Financial reported better than expected second quarter earnings before the bell on Wednesday. $PNC saw lower income tax expenses as well as higher interest income and a rise in non-interest income. Reporting after Citigroup, Goldman Sachs, Wells Fargo $WFC and JPMorgan $JPM.
PNC Financial report second quarter earnings before the bell on Wednesday after Citigroup, Goldman Sachs, Wells Fargo $WFC and JPMorgan $JPM. PNC last quarter beat on revenue with a growing loan book with improving interest rate margins.
PNC Financial Services Group Inc NYSE: PNC · Reported Before Open Wednesday
$2.82 EPS Expected on $4.41 billion in revenue forecast
PNC Financial Services Group (NYSE: PNC) reported a 1% rise in earnings for the second quarter of 2019 helped by lower income tax expenses as well as higher interest income and a rise in non-interest income beating analysts’ expectations. Net income rose by 1% to $1.37 billion or $2.88 per share. Revenue increased 3% to $4.44 billion, helped by higher net interest income and an increase in non-interest income.
Net interest income grew 4% year-over-year as higher loan and securities yields and balances were partially offset by higher deposit and borrowing costs. The non-interest income rose 2% helped by higher debit and credit card revenue, as well as a gain on the sale of the retirement record keeping business and higher net securities gains.
- Zacks Investment Research, based on 10 analysts’ forecasts, has consensus EPS forecast for the quarter of $2.82.
- The reported EPS for the same quarter last year was $2.72.
- Which represents a year-over-year change of +3.7%.
- Revenues are expected to be $4.41 billion, up 2% from the year-ago quarter.
PNC Financial Services Group Inc NYSE: PNC
Market Reaction Pre-market $139.62 +0.86 (+0.62%)
- Non-interest expenses rose by 1% as a result of the asset write-offs and ongoing business investments reflected in higher personnel, occupancy and marketing expense.
- Decrease in FDIC insurance due to the elimination of the surcharge.
- Average loans rose by 5% year-over-year driven by growth in both commercial and consumer lending balances.
- The overall credit quality remained strong as non-performing assets remained virtually flat from last year, a 30% jump in net charge-offs, and allowance for loan and lease losses increased by 5%.
- Average total assets increased 6% primarily due to higher loans and investment securities.
- Average investment securities increased by 8% and quarter-end balances grew by 10% due to net purchase activity of primarily agency residential mortgage-backed securities near the end of the second quarter.
- Average balances held with the Federal Reserve Bank decreased to $13.2 billion from $20.7 billion a year ago as investment of liquidity continued.
PNC returned $1.2 billion of capital to shareholders in the second quarter of 2019 through repurchases of 6 million common shares for $802 million and dividends on common shares of $431 million.
On July 9, 2019, the PNC board of directors raised the quarterly cash dividend on common stock by 21% to $1.15 per share, effective with the August 5, 2019 dividend payment date.
PNC Financial Q1 Earnings Recap
$2.61 EPS as Expected and $4.28B beat $4.27 billion in revenue forecast
The PNC Financial Services Group Inc. (PNC) reported Q1 earnings and revenue Friday The PNC Financial Services Group (NYSE: PNC) first quarter earnings that met the analysts’ estimates with revenue beating forecasts. The company reported earnings of $2.61 per share on revenue of $4.28 billion. Analysts had expected PNC to earn $2.61 a share on revenue of $4.27 billion.
Shares closed at $127.91 last Friday and have a 52-week trading range of $108.45 to $152.98.
PNC Financial Services Group Inc NYSE: PNC
Market Reaction Pre-market 128.90 +0.18 (0.14%)
PNC delivered a very good first quarter. Year over year, we grew net income, and compared with fourth quarter 2018, net interest income was stable despite two fewer days, our net interest margin expanded and we kept expenses flat. While the provision increased reflecting our solid loan growth, overall credit quality remained strong. Additionally, we grew capital, providing us with flexibility into the future, said CEO Bill Demchak.
- Net interest income grew 5% year-over-year to $2.48 billion
- Non-interest income increased 3%
- Average loans and average deposits both increased 3% versus the year-ago quarter.
- Provision for credit losses more than doubled to $189 million.
- The lender’s expenses rose 2 percent to $2.58 billion.
- PNC Financial loan portfolio grew about 5 percent to about $232 billio
- Commercial lending accounting for nearly 68 percent of total loans.
On April 4, 2019, the PNC Board declared a quarterly cash dividend of 95 cents per share effective with the May 5, 2019 dividend payment date. Two other banking giants JPMorgan (JPM) and Wells Fargo (WFC) have reported their quarterly results today. Citigroup (C) is expected to report its quarterly results on Monday.
Source: PNC Earnings Release
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