PNC Reports $1 Billion Net Income for 2nd Quarter
PITTSBURGH – PNC Financial Services Group Wednesday reported second-quarter net income of $1.044 billion, or $1.88 per diluted common share.
This compares to the $1.004 billion in net income, or $1.75 per diluted common share, it reported for the first quarter and $1.052 billion net income, or $1.85 per diluted common share, the second quarter of 2014.
Net income available to common shares was $987 million compared to $926 million in the first quarter and $995 million the year-ago quarter.
“The result reflect revenue growth, well-controlled expenses, improved credit quality and higher loans securities and deposits,” PNC said.
Highlights PNC cited included:
- Total revenue growth rose $135 million from the first quarter, a reflection of increased fee income and higher gains on sales of assets.
- “A well-positioned balance sheet [that] remained core funded with a loans to deposits ratio of 86% at June 30.”
- Total deposits for the quarters ended June 30, March 31 and June 30, 2014, were $239.7 billion, $236.5 billion and $222.6 billion respectively.
- A return of capital to shareholders through PNC repurchasing 5.9 million common shares for $600 million while maintaining a strong capital position.
- The transformation of its retail banking sector “remained on track,” PNC said, with 52% of its consumer customers using ATMs, online banking or banking through their smartphones instead of tellers to transact their business. That figure was 50% the first quarter and 45% the second quarter of 2014.
- Deposits made through ATMs and mobile channel rose to 42% of all deposits made, up from two in five the first quarter and one in three a year earlier.
Key financial ratios for the quarters ended June 30, March 31, and June 30, 2014:
- Return on average assets, 1.19%, 1.17%, 1.31%.
- Return on average common equity, 9.75%, 9.32%, 10.12%.
- Net interest margin, 2.73%, 2.82%, 3.12%.
- Efficiency, 61%, 63%, 61%.
Net interest income was $2.052 billion compared to $2.072 billion reported for the first quarter and $2.129 billion the year-ago quarter.
Noninterest income was $1.814 billion, compared to $1.859 billion the preceding quarter and $1.681 billion for the quarter ended June 30, 2014, while noninterest expense (such as wages and benefits, rents, advertising and Federal Deposit Insurance Corp. premiums) was $2.366 billion, $2.349 billion and $2.328 billion respectively.
Total assets increased to $353.945 billion during the quarter.
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