PNC Bank

PNC Reports 2Q Income of $1.1B

PITTSBURGH, Pa. – PNC Financial Services Group reports second-quarter net income of $1.1 billion, or $2.43 diluted earnings per share.

That’s a drop from $1.8 billion in the first quarter, which President and CEO Bill Demchak attributed to the initial provision for credit losses related to PNC’s acquisition of BBVA USA. PNC bought the American arm of the Spanish financial group for $11.5 billion and closed on the deal June 1.

“We closed on our acquisition of BBVA USA earlier than anticipated, organically grew fee income, deployed excess liquidity through securities purchases and maintained solid credit quality metrics,” Demchak said in the bank’s quarterly financial report. “Underscoring our strong financial position and commitment to capital return, our board recently approved a 10 cent per share, or 9%, increase to our common stock dividend and announced $2.9 billion in share repurchase programs. Looking ahead, we are working towards a successful conversion of BBVA USA and are excited about the substantial opportunities for growth and efficiency improvements as we move forward as a combined company.”

Revenue for PNC increased to $4.66 billion, up from $4.22 billion in the first quarter, as a result of the BBVA acquisition and “strong PNC legacy non interest income growth.”

Total loans rose 24% from the year-ago quarter to $294.7 billion, while deposits were up 21% to $452.9 billion. Both increases were attributed to the addition of BBVA accounts.

Other highlights offered by PNC in its earnings report include net interest income of $2.6 billion, up 10%; noninterest income of $2.1 billion, up 11%; and noninterest expenses of $3.1 billion, including $179 million of operating expenses from BBVA.

Key performance ratios for the quarters ended June 30, March 31 and June 30, 2020 include:

  • Return on average assets: 0.88%, 1.58%, 3.21%.
  • Return on average common shareholder’s equity: 8.32%, 14.31%, 30.11%.
  • Net interest margin: 2.29%, 2.27%, 2.52%.
  • Efficiency: 65%, 61%, 62%.

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