PNC Reports Growth in Capital, Deposits in Q1

PITTSBURGH, Pa. – PNC Financial Services announced Friday a first quarter net income of $1.7 billion with a $3.98 diluted earnings per share.

The net income was up 9%, or $146 million, from the $1.5 billion reported in the fourth quarter of 2022. The bank reported net income of $1.4 billion in the first quarter a year ago.

“PNC’s first quarter results reflected the strength of our balance sheet and the power of our national franchise,” said Bill Demchak, PNC chairman, president and CEO. “During a quarter characterized by heightened market volatility, we grew deposits, increased our capital position and drove strong financial results. At the same time, we controlled expenses well, achieved positive operating leverage and our credit quality metrics remained solid. Looking ahead, PNC remains well positioned to deliver for all stakeholders through the current environment and beyond.”

PNC reported average deposits increased by $1.3 billion to $436.2 billion, but still down from the $453.3 billion in deposits from March 31, 2022. The average investment securities of $143.4 billion were relatively stable.

The Pittsburgh-based company reported first quarter total revenue of $5.6 billion, a decrease of $160 million, or 3%, from the fourth quarter of 2022, which it attributed to lower net interest income and noninterest income.

Net interest income amounted to $3.6 billion, a decrease of $99 million, or 3%, from the fourth quarter, which was driven by two fewer days in the quarter and higher funding costs partially offset by higher yields on interest-earning assets.

Additionally, the net interest margin of 2.84% decreased eight basis points as higher yields on interest-earning assets were offset by increased funding costs.

Noninterest income was $2 billion, a decrease of $61 million, or 3%. Fee income was down $72 million, or 4%, while other noninterest income increased by $11 million, or 4%. Noninterest expenses were $3.3 billion, a decrease of $153 million, or 4%.

The $325.5 billion in average loans reported was an increase of $3.6 billion, or 1%, from the fourth quarter of 2022 – average commercial loans of $224.6 billion and average consumer loans of $100.9 billion.

The larger increase was average commercial loans at $3 billion, with average consumer loans growing by $0.6 billion. Delinquencies decreased $164 million, or 11%.

The complete report is available HERE.

Published by The Business Journal, Youngstown, Ohio.