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2 Months : From Oct 2018 to Dec 2018
By Allison Prang
Profit climbed at PNC Financial Services Group Inc. in the third quarter as the firm reported stronger revenue and lower credit costs from a year ago.
PNC reported earnings of $1.39 billion, up 25% from the comparable quarter a year ago. Earnings per share were $2.82, compared with $2.16 a year earlier. Profit rose across all of PNC's segments.
Revenue rose 5.6% to $4.36 billion as the bank's net interest income increased 5%. The company's net interest margin -- a key measure of lending profitability -- rose to 2.99%.
PNC, based in Pittsburgh, is the first large regional bank to report results for the third quarter.
Average loans were $223.3 billion, up 1.9% from the comparable quarter a year ago. On a linked-quarter basis, average loans rose 0.3%. The company said it expects loans to rise modestly in its fourth quarter.
PNC set aside $88 million for its credit-loss provision, down 32% from the comparable quarter a year ago. The bank said the provision was mainly tied to auto and credit-card loans.
PNC said it is expecting net interest income, fee income and noninterest expenses to rise in the low single digits in the fourth quarter. It expects its loan-loss provision to be between $100 million and $150 million.
PNC shares fell 3.7% in morning trading, bringing the stock's decline this year to 12%.
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(END) Dow Jones Newswires
October 12, 2018 10:06 ET (14:06 GMT)
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