Banking & Finance

PNC Reports Q1 Net Income of $1.2 Billion

PITTSBURGH — PNC Financial Services Group today reported first-quarter net income of $1.239 billion, or $2.43 per diluted common share.

This compares to fourth-quarter net income of $2.091 billion, or $4.18 per diluted common share, and year-ago income of $1.074 billion, or $1.96 per diluted common share.

In a prepared statement, PNC chairman, president and CEO William Demchak said, “Our expanded net interest margin, well-managed expenses and stable credit quality contributed to our results as we maintained strong capital returns. We see loan demand strengthening and look forward to launching our national retail digital strategy as the year goes on.”

Highlights PNC cited include:

  • Total revenue growth rose $4.111 billion, or 3% decrease, from the fourth quarter of $4.260 billion.
  • Net interest margin increased 3 basis points to 2.91%.
  • Provision for credit losses was $92 million, a decline of $33 million, reflecting stable credit quality.

Key financial ratios for the quarters ended March 31, Dec. 31, and March 31, 2017:

  • Return on average assets, 1.34%, 2.20%, 1.19%.
  • Return on average common equity, 11.04%, 18.90%, 9.50%.
  • Net interest margin, 2.91%, 2.88%, 2.77%.
  • Efficiency, 61%, 72%, 62%.

Net interest income increased slightly to $2.361 billion for the first quarter of 2018 compared to $2.345 at Dec. 31, 2017 and $2.160 billion the year-ago quarter.

Noninterest income was $1.750 billion, compared to $1.915 billion the preceding quarter and $1.724 billion for the quarter ended March 31, 2017, while noninterest expense (such as wages and benefits, rents, advertising and Federal Deposit Insurance Corp. premiums) was $2.527 billion, $3.061 billion and $2.402 billion respectively.

Total deposits reaching $264.703 billion at March 31, down from $265.053 billion at Dec. 31, 2017 and $260.710 billion at March 31, 2017.

Total loans grew to $221.614 billion for the first quarter, from $220.458 billion at the fourth quarter of 2017 and $212.826 billion the year-ago quarter driven by growth in commercial lending. Average loans with the first quarter were stable with the fourth quarter.

Nonperforming loans fell to $1.842 billion from the fourth quarter of $1.865 billion, and the year-ago quarter of $1.998 billion. Credit quality remained stable with the fourth quarter.

Total assets increased to $379.161 billion during the quarter, compared to $380.768 billion at Dec. 31, 2017, and $370.944 billion the year-ago quarter.

Published by The Business Journal, Youngstown, Ohio.