Categories AlphaGraphs, Earnings, Finance

PNC Financial (PNC) Q3 earnings rise on higher interest income, beat Street view

PNC Financial Services Group (NYSE: PNC) reported a 4% increase in third-quarter earnings, aided by higher interest income. The results also exceeded analysts’ expectations. The bank’s stock gained modestly early Wednesday, immediately after the announcement.

PNC Financial (PNC) Q3 earnings rise on higher interest income, beat Street view

Third-quarter earnings rose to $2.94 per share from $2.82 per share last year. Driving the growth, revenues advanced 3% to $4.49 billion. Both earnings and the top-line came in above the estimates. Net income was broadly unchanged at $1.4 billion.

Loans Increase

Net interest income moved up 2% year-over-year and non-interest income rose by 5%. The results benefited from strong loan growth in both the commercial and consumer segments, higher securities balances and lower borrowing costs, which were partially offset by lower loan and securities yields.

Average loans increased 6% annually to $237.7 billion during the quarter, while average investment securities rose by 5% to $85.2 billion. There was a 6% growth in average deposits to $279.1 billion.

Interest Margin Dips

Meanwhile, net interest margin decreased to 2.84% from 2.99% in the third quarter of 2018. At the end of the quarter, the bank’s book value per common share was $103.3 million, up 11% year-over-year.

Also See: PNC Financial Q2 2019 Earnings Call Transcript

“Net interest income and fee income increased and we managed expenses well even as we continued to make investments. We are pleased with our performance and expect that continued execution of our strategies will drive differentiated growth across our franchise and generate long-term value for our shareholders,” said CEO Bill Demchak.

Stock Buyback

During the three-month period, the bank returned $1.5 billion of capital to shareholders by repurchasing 7.5 million shares for about $1 billion and through dividends of $0.5 billion. Earlier this month, the management declared a quarterly cash dividend of $1.15 per share, effective with the November 5, 2019, dividend payment date.

Also Read:  Square Earnings: Stock down on weak Q4 outlook

PNC Financial shares gained 13% in the past twelve months and moved up 17% since the beginning of the year. The stock closed the last trading session higher.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Most Popular

Levi Strauss (LEVI) Q1 profit beats estimates, withdraws annual outlook

Levi Strauss & Co. (NYSE: LEVI) reported a 4% increase in earnings for the first quarter of 2020 helped by lower income tax expenses despite a rise in operating expenses.

Vail Resorts (MTN) can reward investors once it gets past market crisis

The recent travel restrictions have taken a heavy toll on the tourism industry, leaving almost all destinations deserted. Vail Resorts Inc. (NYSE: MTN), a leading operator of mountain ski resorts,

The coming months will prove to be a testing time for Boeing (BA)

Shares of Boeing Co. (NYSE: BA) were up 13% in afternoon hours on Monday. The stock is down 63% from its 52-week high of $391. As the aviation industry suffers

Top