The PNC Financial Services Group reported Q3/16 net income of $1.0 billion, which compared to net income of $1.1 billion a year earlier. Earnings per share of $1.84 exceeded analysts’ estimates of $1.78.
The following highlights were excerpted from the news release:
- Total Q3/16 revenue of $3.83 billion was up 1% from $3.78 billion a year earlier driven by higher net interest income and growth in fee income.
- The net interest margin in Q3/16 of 2.68% compared to 2.67% in the same quarter in 2016.
- Average Q3/16 loans increased $4.0 billion driven primarily by commercial real estate and commercial loan growth.
- Net charge-offs in Q3/16 of $154 million increased $58 million due to higher commercial loan net charge-offs. The bank noted that net charge-offs for loans in the oil, gas and coal sectors declined to $29 million in Q3/16 compared with $47 million in Q2/16.
“PNC delivered another good quarter,” said William S. Demchak, chairman, president and CEO. “We grew revenue and managed expenses, loans and deposits increased, and capital levels were strong. Looking ahead, we continue to lay the groundwork for greater efficiencies and revenue growth to deliver positive operating leverage and create long-term shareholder value.”