PNC PNC Financial Services Group Inc

By Joshua Jamerson 

PNC Financial Services Group Inc. reported an increase in earnings on higher revenue, despite greater costs, while a key metric of lending profitability remained relatively steady.

The bank posted earnings of $1.03 billion, compared with $1.01 billion in the prior-year period. On a per-share basis, earnings rose to $1.97 from $1.87 amid a lower share count. Analysts expected $1.84 a share in earnings, according to Thomson Reuters.

Revenue at the Pittsburgh-based bank rose to $3.87 billion from $3.85 billion a year ago, meeting analysts expectations.

Like other regional banks, PNC has faced pressure from low interest rates. In December, the Federal Reserve decided to raise rates for the first time during 2016 and it anticipates three increases this year.

At PNC, net interest income rose 2% to $2.1 billion, driven by higher securities and loan balances, and higher loan yields. Noninterest income grew 1%.

Net interest margin, a key metric of lending profitability, came in at 2.69% in the quarter, compared with 2.68% for the third quarter and 2.70% in the year-ago period.

Noninterest expenses grew 2% to $2.44 billion in the quarter amid higher spending on marketing as well as new technology and business infrastructure.

Shares, which have risen 34% in the past three months through Thursday's close, were inactive in premarket trading.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

January 13, 2017 07:29 ET (12:29 GMT)

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