PNC Financial posts 10 percent jump in 3Q net income
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PITTSBURGH (AP) – PNC Financial Services Group Inc. said Wednesday its third-quarter net income rose 10 percent, helped by gains from a stock sale.
The regional bank operator posted a profit attributable to common shareholders of $966 million, or $1.79 per share, up from $876 million, or $1.64 per share, in the 2012 third quarter. The recent quarter’s results included a gain of $55 million, or 10 cents per share, related to the sale of Visa Inc. shares.
Revenue fell 4 percent to $3.92 billion from $4.09 billion.
The results beat Wall Street predictions. Analysts, on average, expected a profit of $1.62 per share on $3.88 billion in revenue, according to FactSet.
Net interest income, or earnings from deposits and loans, fell 7 percent to $2.23 billion, mainly because of lower yields on loans. Noninterest income, or earnings from fees and other charges, was flat at $1.69 billion, as the Visa share sale offset a decline in residential mortgage sales.
Total loans rose 6 percent to $192.9 billion as of Sept. 30, helped by a 9 percent increase in commercial loans, which make up the bulk of the bank’s lending.
PNC’s provision for loan losses, or the amount of money set aside to cover soured loans, dropped by 40 percent to $137 million. Nonperforming loans, or those considered in danger of default, fell 6 percent, while net charge-offs, or loans written as uncollectable, dropped 32 percent.
PNC shares rose 78 cents to $73.30 in premarket trading. The stock closed Tuesday up 24 percent since the start of the year.