PNC Reports 40% Drop in Q4 Net Income
PNC Financial reported fourth quarter 2011 net income was $493 million, or $.85 per diluted common share, compared with fourth quarter 2010 net income of $820 million, or $1.50 per diluted common share. Analysts polled by Thomson Financial had expected EPS of $1.41. PNC said full-year 2011 net income of $3.1 billion was down from $3.4 billion in net income in 2010.
PNC said total revenue was $3.5 billion in the fourth quarter compared to $3.9 billion for the fourth quarter of 2010. The decline compared with the year ago quarter was primarily due to the fourth quarter 2010 gain of $160 million related to the sale of a portion of PNC’s BlackRock shares, lower corporate service fees primarily related to a fourth-quarter 2010 recovery in the value of commercial mortgage servicing rights, and the fourth-quarter 2011 regulatory impact of lower interchange fees of $75 million on debit card transactions.
Net interest income was $2.2 billion was consistent with the fourth quarter of 2010. Strong growth in core net interest income driven by loan growth and lower funding costs was partially offset by a decline in purchase accounting accretion including lower cash recoveries on impaired loans. The net interest margin was 3.86% for the fourth quarter compared with 3.89% for the third quarter and 3.93% in the fourth quarter of 2010.
Non-interest income was $1.4 billion for both the fourth and third quarters of 2011 and $1.7 billion for the fourth quarter of 2010.
“PNC had a solid year of accomplishments in a challenging regulatory and economic environment. We increased market share across our businesses by continuing to grow the number of customers we serve,” said James E. Rohr, chairman and chief executive officer.
To read the full text of PNC Financial news release, click here.