Categories AlphaGraphs, Earnings, Finance

PNC Financial sees a dip despite beating Q3 estimates

The PNC Financial Services Group Inc. (PNC) topped market estimates on revenues and earnings for the third quarter of 2018. Despite the beat, the stock was down 1% in premarket trade, hurt by higher expenses.

The financial services firm reported total revenues of $4.3 billion, up 6% compared to the same period last year. Net income attributable to diluted common shares was $1.31 billion or $2.82 per diluted share compared to $1 billion or $2.16 per diluted share in the same period last year.

PNC Financial third quarter 2018 Earnings Infographic
The PNC Financial Services Group Q3 2018 Earnings Infographic

Net interest income grew 5% while non-interest income grew 6% during the quarter compared to the prior year period. Higher loan and securities yields and balances were partially offset by higher deposit and borrowing costs, reflecting interest rate hike impacts.

Net interest margin increased to 2.99% from 2.91% last year. Asset management revenue grew $65 million, reflecting benefits from the lower federal statutory income tax rate on BlackRock earnings and higher equity markets.

Non-interest expense rose 6% from the same period last year due to ongoing business investments as well as higher variable compensation related to revenue growth, increased staffing, higher retail banking compensation and higher marketing expense.

Average total assets were $377.9 billion in the third quarter. Average loans grew 2% to $223.3 billion while average deposits grew 1% to $262.5 billion. Total loans grew 1% and total deposits grew 2% from the prior-year period. Non-performing loans and assets declined by 10% and 12% respectively.

PNC posted earnings increases across all its business segments during the quarter. The company returned $0.9 billion of capital to shareholders in the third quarter through repurchases of $0.5 billion and dividends of $0.4 billion.

On October 4, the board declared a quarterly cash dividend of $0.95 per common share, payable on November 5, 2018.

PNC’s stock is down 8.7% so far this year and over the past one month, it has dropped 8.1%.

PNC tops Q2 earnings estimate on higher NII

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top