PNC Financial Services Sets Aside $2.46 Billion to Cover Covid-19 Loan Losses
July 15 2020 - 8:07AM
Dow Jones News
By Dave Sebastian
PNC Financial Services Group Inc. said it set aside $2.46
billion to cover potential loan losses caused by the Covid-19
pandemic.
The regional bank on Wednesday posted second-quarter net income
attributable to the company of $3.65 billion, or $8.40 a share,
compared with $1.36 billion, or $2.88 a share, in the same period
last year. The company said it accounted for proceeds of $14.2
billion from its sale of equity stake in BlackRock.
"While our pre-provision results for the second quarter were
good in the context of a lower rate environment and business
headwinds, the uncertainty in the economy related to the pandemic
resulted in a substantial loan loss reserve build," said Bill
Demchak, chairman, president and chief executive.
PNC said revenue fell to $4.08 billion from $4.22 billion in the
year-ago period. Net interest income fell to $2.53 billion from
$2.5 billion as lower yields on earning assets offset lower rates
on deposits and borrowings and higher average loans, balances held
with the Federal Reserve Bank and securities, the company said.
Noninterest income fell to $1.55 billion from $1.72 billion.
The company said average loans rose 10% to $268.1 billion in the
second quarter, compared with the first quarter. Average commercial
loans rose 15%, or $25.2 billion, reflecting the Cares Act's
Paycheck Protection Program and higher use of loan commitments due
to the pandemic's economic effect.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
July 15, 2020 07:52 ET (11:52 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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