PNC Reports 2020 Income of $7.55B

PITTSBURGH, Pa. – PNC Financial Services Group reports full-year income of $7.55 billion, up 39.5% from 2019.

PNC also reported  fourth-quarter net income of $1.45 billion, up 5.4% from the same quarter in 2019, or $3.26 per share.

“PNC had a notable year in 2020 amid the many challenges of the pandemic. We achieved solid financial results, grew loans and deposits, delivered positive operating leverage, and maintained our strong capital position,” said President and CEO Bill Demchak in a prepared statement. “Nonetheless, net income from continuing operations decreased as we built substantial reserves to address the uncertain economic environment that still remains. During the year, we sold our equity stake in BlackRock and are redeploying those proceeds towards the pending acquisition of BBVA USA Bancshares, Inc.”

On Nov. 16, PNC announced a definitive agreement to buy BBVA for $11.6 billion. The bank operates more than 600 branches in Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas and will add about $102 billion in assets to PNC. The deal is expected to close by midyear and will make PNC the fifth-largest bank in the country with a presence in 29 of the 30 largest markets. 

“Through the hard work and dedication of our employees, we supported the financial needs of our customers and communities, including committing more than $1 billion to advance economic empowerment and social justice,” Demchak continued. “As the new year begins, we are optimistic about PNC’s future. With the continued execution of our strategic priorities and the planned addition of BBVA USA we believe we are well positioned to deliver for all our stakeholders in 2021 and beyond.”

In the fourth quarter, revenue was $4.2 billion, down 2% from the third quarter. Net interest income was $2.4 billion, down 2%, reflecting a decrease in loans outstanding and lower securities balances and yields, partially offset by higher loan yields and a decline in deposit and borrowing costs.

Key ratios for the quarters ended Dec. 31, Sept. 30 and Dec. 31, 2019 include:

• Return on average assets: 1.24%, 1.32%, 1.33%.
• Return on average common equity: 11.16%, 11.76%, 11.54%.
• Net interest margin: 2.32%, 2.39%, 2.78%.
• Efficiency: 64%, 59%, 64%.

Average deposits were $359.4 billion, up about $9 billion from the previous quarter.

Loans totaled $245.8 billion at the end of the fourth quarter, down roughly $8 billion from the third quarter.

Noninterest income was $473 million, down from the $673 million reported in the previous quarter.

Assets at the end of the fourth quarter were $465 billion, up from $462 billion in the third quarter.

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