Start trading now on Poste Italiane

PNC Financial Q3 net income rises to $1.6 billion despite revenue drop

|

©

PNC Financial (NYSE:) Services’ third quarter of 2023 net income has seen a 5% rise to $1.6 billion, even though total revenue dropped by 1% to $5.2 billion. This increase in net income was influenced by higher noninterest income and a decrease in noninterest expense by 4%, reflecting successful cost management efforts. The provision for credit losses also decreased, down from the second quarter’s $146 million to $129 million.

Average commercial loans saw a decrease by $5.5 billion to $217.7 billion due to lower corporate banking balances. Contrarily, average consumer loans rose slightly by $0.5 billion to $101.8 billion, driven by an increase in residential mortgage and credit card loans. Delinquencies rose by 6%, primarily due to increased consumer loan delinquencies.

Nonperforming loans increased by 11% to $2.1 billion, largely due to a surge in commercial real estate nonperforming loans, although this was somewhat offset by lower consumer nonperforming loans. There was a decrease in net loan charge-offs, reflecting lower commercial real estate net loan charge-offs. The allowance for credit losses remained stable at $5.4 billion.

Average deposits fell marginally by 1% to $422.5 billion, as growth in commercial deposits was counteracted by lower consumer deposits. Average investment securities similarly dropped by 1% to $139.7 billion, while Federal Reserve Bank balances at the end of the third quarter stood at $41.1 billion.

Average borrowed funds increased by 3% to $67.5 billion, primarily due to parent company senior debt issuances near the end of the second quarter.

In October 2023, PNC declared a quarterly cash dividend of $1.55 per share, which will be payable in November 2023. The company returned $0.6 billion of capital to shareholders via dividends on common shares.

PNC Bank’s average Liquidity Coverage Ratio (LCR) for the third quarter was 132%. The Basel III common equity Tier 1 capital ratio was estimated at 9.8% at the end of the third quarter, up from 9.5% at the end of the second quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Previous Post
Applied Materials, Lam Research shares inch higher premarket after Needham upgrade
Next Post
Crude oil soars after U.S. sanctions owners over Russian price cap

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed

Invest on crypto with Gianluca Vacchi project and start making money now
Win money trading on Amazon
INVEST NOW
keyboard_arrow_up