PNC Reports 2019 Income of $5.4B

PITTSBURGH – PNC Financial Services Group Inc. reports 2019 net income of $5.4 billion, or $11.39 per diluted share, and fourth-quarter income of $1.38 billion, down 1% in 2018.

In addition, PNC received approval from the Federal Reserve to repurchase up to $1 billion more in stock through the end of the second quarter. That is in addition to the $4.3 billion buyback through the end of the third quarter of 2019.

“PNC delivered excellent results in 2019 against the backdrop of continued change across our industry. Earnings per share increased and we generated record revenue and positive operating leverage for the year,” said President and CEO Bill Demchak in a statement. “We increased loans and deposits and leveraged our strong product set to grow clients in existing and new markets. At the same time, we made important investments in the development of our employees and their careers and to support employees’ health and wellness and long-term financial wellbeing.

“With the announced increase to our authorized share buybacks,” he continued, “we are well positioned with capital flexibility for the opportunities and challenges ahead as we remain focused on creating long-term shareholder value by doing what is best for our customers.”

In the fourth quarter, total revenue was $4.6 billion, up 3% from the same period in 2018. Net interest income of $2.5 billion was down 1% from the year prior, due to lower loan and securities yields offset by lower rates on deposits and borrowings.

Key financial ratios for the quarters ended Dec. 31, Sept. 30 and Dec. 31, 2018 are:

• Return on average assets: 1.33%, 1.36%, 1.4%.
• Return on average common equity: 11.54%, 11.56%, 11.83%,
• Net interest margin: 2.78%, 2.84%, 2.96%.
• Efficiency: 60%, 58%, 59%.

Deposits at PNC in the fourth quarter were $2.488 billion, up from both the previous quarter’s $285.6 billion and the year-ago quarter’s $267.9 billion.

Loans totaled $239.8 billion, up from $237.3 billion in the third quarter and $226.2 billion in the fourth quarter of 2018.

Noninterest income was $2.488 billion, down slightly from $2.5 billion in the third quarter but up slightly from the year-ago quarter mark of $2.484 billion.

Total assets in the fourth quarter were $410.3 billion, ahead of the third-quarter level of $408.9 billion and the year-ago quarter mark of $382.3 billion.

Nonperforming assets were $1.752 billion in the fourth quarter, down from both the third quarter’s $1.847 billion and the 2018 fourth-quarter mark of $1.808 billion.

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