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PNC Financial fails to meet Street’s expectations in Q4

The PNC Financial Group (PNC) reported Q4 earnings and revenue that missed analysts’ predictions. The company reported earnings of $2.75 per share compared to $4.18 in the prior year. Revenue increased 2% to $4.34 billion. Analysts had expected PNC to earn $2.79 a share on revenue of $4.4 billion. PNC stock was trading in the negative territory during the premarket session.

Net interest income grew 6% year-over-year and non-interest income decreased 3% in the recently ended quarter. Average loans and average deposits both increased 2% versus the year-ago quarter. As of Q4 end, provision for credit losses rose 18% compared to the end of the prior-year quarter.

On January 3, 2019, the PNC Board declared a quarterly cash dividend of 95 cents per share effective with the February 5, 2019 dividend payment date.

This quarter’s earnings season started with Citigroup (C) results on Monday, followed by JPMorgan (JPM) and Wells Fargo’s (WFC) results on Tuesday. Few more financial services companies are also reporting their earnings today including Bank of America (BAC), Goldman Sachs (GS), U.S. Bancorp (USB) and Bank of New York Mellon (BK).

The Pittsburgh-based banking firm’s stock had dropped 4% in the last three months and 21% in the one year. PNC’s shares closed Wednesday’s trading down 0.32% at $120.17.

PNC Financial sees a dip despite beating Q3 estimates

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