PNC Bank

PNC Reports Net Income of $5.7B in 2021

PITTSBURGH, Pa. – PNC Financial Services Group reported full-year net income of $5.7 billion or $12.70 diluted earnings per share, up from $3 billion reported last year.

PNC also reported fourth-quarter net income of $1.3 billion or $2.86 diluted EPS, down 12% from the third quarter, and down from $1.45 billion in Q4 2020.

“2021 was a pivotal year for PNC,” said President and CEO Bill Demchak in a prepared statement. “We delivered solid financial results, closed and converted BBVA USA in less than a year, launched our overdraft solution Low Cash Mode and announced an $88 billion plan to expand economic opportunities for minorities and low- and moderate-income individuals and communities.”

On June 1, PNC acquired BBVA USA, adding some 2.6 million customers, 9,000 employees and more than 600 branches across seven states. Since the acquisition was announced, PNC has incurred $925 million of merger and integration costs, including $120 million in write-offs of capitalized items, or about 95% of the $980 million expected, according to the release.

“While the acquisition of BBVA USA significantly increased our loan and deposit balances, we also organically grew revenue, and maintained solid credit quality metrics and a strong capital position,” Demchak said. “We continue to execute on our strategic priorities through our Main Street model, by building and deepening relationships in new and existing markets.”

In the fourth quarter, revenue was $5.12 billion, up from $5.19 billion in the third quarter. Net interest income was $2.9 billion, up $6 million primarily driven by higher securities balances.

Key ratios for the quarters ended Dec. 31 and Sept. 30, 2021 include:

  • Return on average assets: 0.92%, 1.06%
  • Return on average common equity: 9.61%, 10.95%
  • Net interest margin: 2.27%, 2.27%
  • Efficiency: 74%, 69%

Average deposits were $452.8 billion, down from $454.4 billion the previous quarter.

Average loans totaled $288.9 billion at the end of the fourth quarter, down $2.4 billion from the third quarter.

Noninterest income was $2.3 billion was down $76 million, or 3%, from the previous quarter, and included the negative impact of $47 million of integration costs.

Average total assets at the end of the fourth quarter were $560.3 billion, up from $559.2 billion in the third quarter, and up from $465 billion in the fourth quarter of 2020, driven largely by the BBVA USA acquisition.

Published by The Business Journal, Youngstown, Ohio.