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.
PNC Financial Services (NYSE:PNC)
Historical Stock Chart
From Jul 2020 to Aug 2020 Click Here for more PNC Financial Services Charts.
PNC Financial Services (NYSE:PNC)
Historical Stock Chart
From Aug 2019 to Aug 2020 Click Here for more PNC Financial Services Charts.