Meanwhile, organic growth is also a strong point for PNC, especially due to loan growth spurred by higher consumer confidence. The Federal Reserve’s decision to increase interest rates as well as higher underwriting fees due to active M&A environment will complement PNC’s ongoing cost-optimization measures in boosting organic growth.
Net interest income for the quarter is predicted to grow high-single-digit to $2.34 billion as the Fed rate hikes expand the interest rate margin.
This quarter, the company is expected to report a mid-single digit growth in revenue to about $4.16 billion, while earnings are estimated to be around $2.43 per share, driven by lower effective tax rates.
PNC’s strong point, its loan balance growth, has been the primary driving factor behind its solid performances in the trailing quarters. In the fourth quarter, the Pittsburg-based company posted 5% improvement in loan balances, commercial and consumer combined. The company anticipates another mid-single-digit increase in 2018 and we have no reason to doubt this figure, given the positive environment.
With PNC stock having an impressive growth of 30% in the past one year, we are not sure if the stock is set for another earnings beat. But positive fundamentals and a favorable market environment make the stock one of the better picks.