PNC Financial Services Group Inc.'s (PNC) first-quarter earnings
rose 27%, handily beating analysts' estimates, following
year-earlier write-downs as revenue increased and credit-loss
provisions fell.
"We began to see signs that the pace of credit deterioration had
eased at the end of 2009, which is reflected in our lower first
quarter provision for credit losses," said Chairman and Chief
Executive James Rohr.
The Pittsburgh-based bank saw its revenue boosted last year
because of its acquisition of National City. Regional banks have
largely reported improved first-quarter results in the past week as
the economy has gotten better. In February, PNC sold stock and paid
off the $7.6 billion it owed the U.S. Treasury under the Troubled
Asset Relief Program.
PNC, which has a big presence in New Jersey and eastern
Pennsylvania, reported its earnings rose to $671 million from $530
million, but they fell to 66 cents a share from $1.03 due to
preferred-stock impacts largely related to TARP. Shares outstanding
also were 18% higher in the most-recent quarter.
Excluding the TARP related impacts and other adjustments,
earnings rose to $1.31 from $1.11 as revenue increased 2.1% to
$3.76 billion. But the per-share loss narrowed to $1.05 from $1.10
as shares outstanding rose 13%.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 71 cents on $3.85 billion in revenue.
Credit-loss provisions were $751 million, down from $880 million
a year earlier and $1.05 billion in the prior quarter. Net
charge-offs, or loans lenders don't think are collectible, were
1.77%, compared with 1.01% and 2.09%, respectively. Nonperforming
loans, those near default, climbed to 2.46% from 1.23% and
2.34%.
Shares closed at $65.30 Wednesday and were inactive premarket.
The stock has risen 72% in the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;