PNC Reports Net Income of $1.5B in Second Quarter

PITTSBURGH, Pa. – PNC Financial Services Group reported a second quarter 2024 net income of $1.5 billion, an increase of $133 million from the first quarter.

Total revenue was $5.4 billion, an increase of $266 million, while net interest income was $3.3 billion, a $38 million increase. Noninterest income was $2.1 billion, an increase of $228 million. 

Average loans were stable at $319.9 billion, with average commercial loans at $219.1 billion. Delinquencies were also stable at $1.3 billion, while nonperforming loans totaled $2.5 billion, an increase of $123 million, or 5%.

Diluted earnings per share also increased to $3.39 in the second quarter from $3.10 at the end of the first quarter and $3.36 a year ago.

“PNC delivered strong results in the second quarter, generating positive operating leverage through revenue growth and well-controlled expenses while adding customers, and strengthening our capital levels,” said Bill Demchak, PNC chairman and CEO. “Importantly, net interest income and net interest margin increased, marking the beginning of our growth trajectory towards expected record NII in 2025. In June, the Federal Reserve announced the results of the annual stress test, and PNC’s start-to-trough CET1 ratio depletion was 1.6%, the best in our peer group. And earlier this month, our board approved a 5-cent increase to our quarterly common stock dividend.”

During the second quarter, PNC participated in the Visa exchange program, which allowed the bank to monetize 50% of its Visa Class B-1 shares and convert the remaining holdings into 1.8 million of Visa Class B-3 Shares. The move resulted in a gain of $754 million. Additionally, PNC reported a Visa Class B-2 derivative fair value adjustment of negative $116 million, which was primarily related to the extension of anticipated resolution timing, as well as a $120 million expense related to a PNC Foundation contribution.

During the quarter, PNC repositioned its investment securities portfolio, selling available-for-sale securities with a market value of $3.8 billion and a weighted average yield of about 1.5%. The sale of securities resulted in a loss of $497 million.

PNC reported it redeployed the sale of proceeds into available-for-sale securities with a market value of $3.8 billion and a weighted average yield of about 5.5%. 

The combined impact of all these changes was $35 million, or 9 cents per common share.

PNC was considered “well capitalized” as of June 30, based on the applicable U.S. regulatory capital requirements.

The complete report can be found HERE.

Published by The Business Journal, Youngstown, Ohio.