PITTSBURGH – PNC Financial Services Group, Inc. (NYSE: NYSE:) reported its first-quarter financial results that slightly beat Wall Street’s expectations but fell short of revenue forecasts.
The bank reported adjusted earnings per share (EPS) of $3.36, which was $0.34 above analysts’ consensus estimate of $3.02. However, revenue for the quarter was $5.15 billion, slightly below the consensus estimate of $5.19 billion.
Despite mixed financial results, PNC shares posted a modest decline of 0.69% following the announcement, indicating a somewhat muted market reaction. A slight increase in earnings and revenue was the main driver of the stock’s move.
In the first quarter, PNC’s revenue declined 4% quarter-over-quarter and 8% year-over-year (YoY). The bank’s net interest income was $3.3 billion, down 4% from the fourth quarter of 2023 and down 9% from the same period last year. Non-interest income also decreased: by 4% quarter-on-quarter and by 7% year-on-year.
PNC Chairman and CEO Bill Demchak commented on the results, stating: “PNC delivered strong results in the first quarter, reporting net income of $1.3 billion, including an additional pre-tax FDIC special assessment of $130 million. During the quarter, we grew customers, reduced costs, increased spot deposits, maintained strong credit quality and continued to strengthen our strong liquidity and capital position. The strength of our balance sheet, the diversification of our business and the quality of our people position us well for continued growth around the world. our franchise for a year.”
The bank’s provision for credit losses was $155 million, reflecting portfolio activity and improving macroeconomic factors. This is down from a provision of $232 million in the fourth quarter of 2023. The bank also reported an effective tax rate of 18% for the first quarter.
PNC’s balance sheet remained strong, with average loans down 1% and average deposits also down 1%. The Bank maintained a strong capital position: the capital adequacy ratio of the first level (CET1) amounted to 10.1%.
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