PNC Q1 Income More than Doubles to $1.82B

PITTSBURGH – PNC Financial Services Group reports first-quarter net income of $1.82 billion, or $4.10 diluted earnings per share, more than double its income in the first quarter of 2020.

A year ago, the bank reported net income of $759 million, or $1.59 diluted earnings per share. Fourth-quarter income was $1.45 billion, or $3.26 per share.

“PNC had a solid start to 2021. We grew revenue, managed expenses and achieved positive operating leverage. We recorded a substantial provision recapture, saw improvement in our credit metrics and capital and liquidity are at record levels,” said President and CEO Bill Demchak in a statement. “Considerable progress was made in planning for our pending BBVA USA acquisition, and we launched Low Cash Mode, an innovative digital offering that helps Virtual Wallet customers avoid overdraft fees and over time is expected to drive significant growth in new and existing customer relationships through the continued execution of our national expansion strategy. Looking ahead we see significant growth opportunities as the economy recovers and rates improve.” 

Among the quarterly highlights offered by PNC in its earnings report are total revenue of $4.2 billion, up $12 million from the same period a year ago; net interest income of $2.3 billion, down $76 million, resulting from a decrease in loans outstanding, lower securities yields and two fewer days in the quarter; and non interest income of $1.9 billion, down $88 million from the first quarter of 2020.

PNC expects to close on its acquisition of BBVA USA Bancshares midyear. The deal to buy the American American operations of the Spanish financial group is expected to increase PNC’s assets by $102 billion and add 600 branches, creating the country’s fifth-largest bank by assets and giving PNC a presence in 29 of the country’s 30 largest markets.

At the end of the first quarter, PNC had $474.41 billion in assets, up from $466.68 billion at the end of 2020 and $445.49 billion at the end of the year-ago quarter.

Average loans in the first quarter were $238.1 billion – $164.9 billion commercial and $73.2 billion consumer – an increase of 2% from a year ago and up 3% from the fourth quarter.

Key performances ratios for the quarters ended March 31, Dec. 31 and March 31, 2020 include:

  • Return on average assets: 1.58%, 1.24, 0.89%.
  • Return on average common shareholder’s equity: 14.31%, 11.16%, 7.51%.
  • Net interest margin: 2.27%, 2.32%, 2.84%.
  • Efficiency: 61%, 64%, 59%.

Copyright 2021 The Business Journal, Youngstown, Ohio.