PNC Financial Services 3Q Profit Rises

By Dave Sebastian

PNC Financial Services Group Inc. said its profit rose for the September quarter from a year ago, and the amount it set aside to cover potential loan losses fell significantly from the previous quarter.

The regional bank Wednesday posted third-quarter net income attributable to the company of $1.52 billion, or $3.39 a share, compared with $1.38 billion, or $2.94 a share, in the same period last year.

PNC said revenue rose to $4.28 billion from $4.24 billion in the year-ago period. Net interest income fell to $2.48 billion from $2.5 billion due to lower yields on loans and securities and a decline in loan balances, the company said. Noninterest income rose to $1.8 billion from $1.74 billion.

The company set aside $52 million to cover potential loan losses, compared with $2.46 billion in the second quarter. The decline reflects stable reserve levels, said Chief Executive Bill Demchak. The provision for commercial loans of $219 million was largely tied to borrowers in industries hurt by the Covid-19 pandemic, PNC said.

The company said average loans fell 6% to $253.1 billion in the third quarter, compared with the second quarter. Average commercial loans fell 7%, while average consumer loans fell 2%.

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

(END) Dow Jones Newswires

October 14, 2020 07:29 ET (11:29 GMT)

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