By Pittsburgh, PA – July 18, 2023
PNC Financial Services Group Inc. (NYSE: PNC), a leading regional bank, announced its second-quarter earnings today, revealing a slight drop in revenue that fell short of analyst estimates.
Financial Performance
- Net income for the second quarter was $1.500 billion, or $3.36 per share, compared to $1.496 billion, or $3.39 per share, in the same period last year.
- Revenue increased slightly to $5.293 billion from $5.116 billion.
- However, the FactSet consensus had projected earnings per share (EPS) of $3.29 and revenue of $5.449 billion.
Loan Stability and Deposit Decline
Despite stable loan figures, PNC reported a 2% decrease in deposits. The bank stated that this decline contributed to its overall performance for the quarter.
Net Interest Income and Margin
Net interest income dropped by 2% to $3.5 billion, while net interest margins fell by 5 basis points. This decline was attributed to various market factors impacting the bank’s profitability.
Decline in Fee and Noninterest Income
Fee income experienced a decline of 6%, mainly due to a $58 million reduction in mortgage servicing. Additionally, noninterest income fell by 50% during the quarter, reflecting challenging market conditions.
Loan Loss Provisions
PNC allocated $146 million for loan loss provisions in the second quarter, compared to $235 million in the first quarter. This reduction indicates an improvement in the bank’s loan portfolio quality and risk assessment.
Stock Performance
PNC’s stock has experienced a 19% decline year-to-date. In contrast, the S&P 500 has increased by 17.8% during the same period.
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