PNC 4Q Earnings Rise as Some Credit-Loss Provisions Recaptured
By Matt Grossman
PNC Financial Services Group Inc. Friday logged a larger
fourth-quarter profit year-over-year as it recaptured some funds
previously provisioned for credit losses, noting improving
The Pittsburgh-based regional bank recorded fourth-quarter net
income attributable to the company of $1.44 billion, or $3.26 a
share. In the year-ago quarter, net income was $1.37 billion, or
$2.97 a share.
Analysts surveyed by FactSet were expecting earnings of $2.61 a
PNC's revenue in the quarter was $4.21 billion. Net interest
income was $2.42 billion, while non-interest income was $1.78
billion. In last year's fourth quarter, revenue was $4.32 billion,
with net interest income of $2.49 billion and non-interest income
of $1.83 billion.
Analysts had forecast net interest income of $2.48 billion and
non-interest income of $1.67 billion.
In the quarter, PNC recaptured $254 million it had previously
provisioned for credit losses, citing improving macroeconomic
conditions. In the third quarter, the bank had provisioned $52
million for credit losses. At the end of the latest quarter, the
bank's allowance for credit losses was 2.46% of total loans, down
from 2.58% at the end of the third quarter.
Average deposits in the fourth quarter increased sequentially by
$8.9 billion, or 3%, to $359.4 billion, with growth in both
consumer and commercial deposits.
Write to Matt Grossman at email@example.com
(END) Dow Jones Newswires
January 15, 2021 07:29 ET (12:29 GMT)
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