PNC Financial Q2 EPS Beats the Street
PNC Financial Services reported Q2/14 net income of $1.1 billion, or $1.85 per diluted common share, compared with net income of $1.1 billion, or $1.98 per diluted common share, for Q2/13. Analysts polled by Thomson Reuters expected Q2 EPS of $1.78.
“We delivered solid earnings in the second quarter of 2014,” said William S. Demchak, chairman, president and chief executive officer. “We grew loans, our fee businesses performed well, expenses were well managed, credit quality continued to improve and capital levels strengthened. While our near-term outlook is for a continuation of the low interest rate environment, we are making important progress on our strategic priorities, which we expect will benefit our long-term performance.”
- Second quarter earnings reflected ongoing loan growth, strong fee income, continued credit quality improvement and disciplined expense management.
- Provision for credit losses declined to $72 million for the second quarter compared with $94 million for the first quarter as overall credit quality continued to improve.
- Net interest income was $2.1 billion in the second quarter, a decrease of $66 million, or 3%, compared with the first quarter.
- Noninterest income of $1.7 billion increased $99 million, or 6%, compared with the first quarter.
- Strong fee income growth included higher consumer service fees, residential mortgage revenue and corporate service fees, which increased in part from the commercial facility fees classification change.
- Loans grew $2.7 billion, or 1%, to $201 billion at June 30, 2014 compared with March 31, 2014.
- Total commercial lending grew $3.3 billion, or 3%, primarily in corporate banking and real estate.
To read the entire PNC Financial news release, click here.