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 macroeconomic conditions.

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 share.

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 matt.grossman@wsj.com

 

(END) Dow Jones Newswires

January 15, 2021 07:29 ET (12:29 GMT)

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