PNC Financial 1Q Earnings, Revenue Grow As Rates Rise

By Dean Seal

PNC Financial Services Group Inc. logged stronger-than-expected earnings growth in the first quarter as rising interest rates boosted revenue.

The Pittsburgh-based bank posted net income attributable to common shareholders of $1.61 billion, up from $1.36 billion in the same quarter a year ago.

Earnings came in at $3.98 a share, compared with $3.23 a share in the year-ago period. Analysts surveyed by FactSet were expecting earnings of $3.66 a share.

Revenue rose 19% to $5.6 billion, in line with analyst expectations, according to FactSet.

Net interest income jumped to $3.59 billion from $2.8 billion in the same quarter last year, driven by higher yields on interest-earning assets and partially offset by higher funding costs.

Noninterest income was up 6.9% at $2.02 billion thanks to business growth across the franchise and higher private equity revenue, though the uptick was partially offset by the impact of lower average equity markets.

Provision for credit losses in the quarter was $235 million, down from $408 million in the preceding quarter. In the year-ago period, the company booked a benefit of $208 million from its provision for credit losses.

Shares were up 4% at $126.30 in premarket trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

April 14, 2023 07:25 ET (11:25 GMT)

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