PNC Reports Lower Q2 Earnings; Strong Loan Growth
PNC Financial reported net income of $546 million for the second quarter of 2012 compared to $912 million in the same year-ago period. PNC said
Second-quarter earnings were reduced by $403 million after tax consisting of $284 million after tax for a provision for residential mortgage loan repurchase obligations, non-cash charges of $85 million after tax, related to redemption of trust preferred securities and integration costs of $34 million after tax.
The bank said commercial lending increased $3.5 billion during the second quarter of 2012 as a result of strong loan growth primarily in corporate banking, real estate finance and asset-based lending. Total loan originations and new commitments and renewals were $41 billion for the second quarter of 2012, including $1.2 billion of small business loans, compared with $35 billion for the first quarter of 2012 and $38 billion for the second quarter of 2011.
“PNC’s results for the second quarter reflected strong operating performance in a challenging environment,” said James E. Rohr, chairman and chief executive officer. “While we experienced a few items that reduced our earnings in the short term, we were very pleased with our success in continuing to grow customer relationships and loans resulting in strong revenue. We are excited about the opportunities we see in our newly acquired southeastern markets and across our entire franchise to drive long-term value.”
To read the PNC Financial news release, click here.