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By Allison Prang
Profit climbed at PNC Financial Services Group Inc. in the third quarter as the firm reported stronger revenue and lower credit costs from a year ago.
PNC reported earnings of $1.39 billion, up 25% from the comparable quarter a year ago. Earnings per share were $2.82, compared with $2.16 a year earlier. Profit rose across all of PNC's segments.
Revenue rose 5.6% to $4.36 billion as the bank's net interest income increased 5%. The company's net interest margin -- a key measure of lending profitability -- rose to 2.99%.
PNC, based in Pittsburgh, is the first large regional bank to report results for the third quarter.
Average loans were $223.3 billion, up 1.9% from the comparable quarter a year ago. On a linked-quarter basis, average loans rose 0.3%. The company said it expects loans to rise modestly in its fourth quarter.
PNC set aside $88 million for its credit-loss provision, down 32% from the comparable quarter a year ago. The bank said the provision was mainly tied to auto and credit-card loans.
PNC said it is expecting net interest income, fee income and noninterest expenses to rise in the low single digits in the fourth quarter. It expects its loan-loss provision to be between $100 million and $150 million.
PNC shares fell 3.7% in morning trading, bringing the stock's decline this year to 12%.
Write to Allison Prang at email@example.com
(END) Dow Jones Newswires
October 12, 2018 10:06 ET (14:06 GMT)
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