PNC Reports Net Income of $1.3B in First Quarter

PITTSBURGH, Pa. – PNC Financial Services Group Inc. reported net income of $1.3 billion in the first quarter of 2024, which included an additional $130 million pre-tax FDIC special assessment, or $3.10 per diluted common share.

Highlights of the first quarter, as compared with the fourth quarter of 2023, included a 4% drop in revenue, net interest income and noninterest income; a 6% decline in core noninterest expenses; and 1% decrease in average loans, average deposits and investment securities.

Net loan charge-offs were $243 million, or 0.30% annualized to average loans. PNC repurchased $0.1 billion of common shares.

Average commercial loans decreased by 2%, driven by a lower utilization of loan commitments and paydowns outpacing new production, while average consumer loans decreased by less than 1%.

Delinquencies declined by 8%, with decreases in both consumer and commercial loan delinquencies. Total nonperforming loans increased by 9%, which was reportedly primarily due to higher commercial real estate nonperforming loans.

“PNC delivered solid first quarter results generating net income of $1.3 billion, which included an additional $130 million pre-tax FDIC special assessment,” Bill Demchak, PNC chairman and CEO, said in a statement. “During the quarter, we grew customers, reduced expenses, increased spot deposits, maintained stable credit quality and continued to build upon our strong liquidity and capital positions. The strength of our balance sheet, diverse business mix and the quality of our people, position us well for continued growth across our franchise as the year progresses.”

PNC’s average Federal Reserve Bank balances were $47.8 billion, an increase of $5.6 billion, with a balance as of March 31, 2024, of $53.2 billion, an increase of $9.9 billion.

The liquidity coverage ratio for the first quarter was 107%, exceeding the regulatory minimum requirement throughout the quarter. PNC had a common equity tier I capital ratio of 10.1%

The complete report can be viewed HERE.

Published by The Business Journal, Youngstown, Ohio.