PNC Financial Services Posts Lower 1Q Profit on Higher Provision for Credit Losses

By Dave Sebastian

PNC Financial Services Group Inc. said its profit for the first quarter fell as it had a higher provision for credit losses.

The regional bank on Wednesday had net income of $908 million after noncontrolling interests, or $1.95 a share, compared with $1.26 billion, or $2.61 a share, in the same quarter last year. Analysts polled by FactSet were expecting $2.08 a share.

Revenue was $4.52 billion, up from $4.29 billion in the year-ago period. Analysts were targeting $4.39 billion.

Provision for credit losses were $914 million, compared with $189 million in the same period last year.

"Extraordinary changes in the economic backdrop occurring in March and the implications of the broad-based response to the Covid-19 outbreak had a material impact on our provision for credit losses," said Bill Demchak, PNC's chairman, chief executive and president.

Net interest income was $2.51 billion, compared with $2.48 billion in the same period last year. Noninterest income rose to $2.01 billion from $1.81 billion, while noninterest expense ticked lower to $2.54 billion from $2.58 billion.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

April 15, 2020 07:21 ET (11:21 GMT)

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