PNC Bank

PNC Income Increases 5% Despite Total Revenue Decrease

PITTSBURGH, Pa. – PNC Bank’s third-quarter 2023 net income was $1.6 billion, an increase of 5%, according to numbers released by the bank Friday.

The net income represented an increase of $70 million, while total revenue decreased by $60 million, but still stood at $5.2 billion. Higher noninterest income was more than offset by lower net interest income, according to PNC. 

The net interest income of $3.4 billion decreased $92 million, or 3%, as higher yields on interest-earning assets were more than offset by increased funding costs.

Noninterest income of $1.8 billion increased by $32 million, or 2%. Noninterest expenses were down $127 million.

“PNC delivered strong results in the third quarter. We generated positive operating leverage, controlled expenses well, maintained strong credit quality and further increased our capital levels,” said Bill Demchak, PNC chairman, president and CEO. “The strength of our balance sheet positions us well for the current economic environment, inclusive of proposed regulatory changes.”

Some other highlights of PNC’s third-quarter report compared with the second quarter:

  • Average loans decreased by $5 billion, including a decrease of $5.5 billion in average commercial loans.
  • Delinquencies increased by $75 million, and nonperforming loans increased by $210 million. PNC attributed the delinquencies to consumer loan delinquencies, while the nonperforming loans were mainly due to an increase in commercial real estate nonperforming loans.
  • Average deposits decreased by $3.2 billion; average investment securities decreased by $1.3 billion; and average Federal Reserve Bank balances increased by $7.3 billion.

PNC directors declared a quarterly cash dividend on common stock of $1.55 per share, and PNC returned $0.6 billion of capital to shareholders through dividends on common shares.

Published by The Business Journal, Youngstown, Ohio.