PNC's Profit Rises on Growth in Commercial Lending
October 13 2017 - 8:05AM
Dow Jones News
By Allison Prang
PNC Financial Services Group Inc. delivered a stronger
third-quarter profit, bolstered by growth in commercial
lending.
Net income was $1.11 billion, or $2.16 diluted earnings per
share, compared with $988 million, or $1.84 a share, a year
earlier. Analysts polled by FactSet were predicting the bank would
earn $2.13 a share.
Commercial lending at the Pittsburgh-based company rose 7% to
$148.5 billion, compared with $138.2 billion a year earlier.
The net interest margin expanded by 23 basis points to 2.91%.
Net interest income at the company rose 12% to $2.3 billion.
PNC increased its credit-loss provision to $130 million from $87
million. A total of $10 million of the increase was because of the
hurricanes that hit the southern U.S., the company said.
Chief Executive William Demchak said PNC benefited from higher
short-term rates and acquired new clients. The company recently
grew its presence by expanding into Minneapolis, Dallas and Kansas
City. In July, it said it would also expand into Nashville, Houston
and Denver in 2018.
Income from the company's retail and corporate divisions grew
but decreased in asset management.
Deposits stood at $260.7 billion, virtually unchanged from a
year ago.
PNC shares were inactive in premarket trading.
(END) Dow Jones Newswires
October 13, 2017 07:50 ET (11:50 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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