PNC Reports Better-Than-Expected Profit & Revenue As Loan Losses Subside
From StockNews.com: PNC Financial Services Group Inc (NYSE:PNC) early Friday posted better-than-expected fourth quarter earnings results, as total loans and net interest margins edged higher.
The Pittsburgh-based company reported Q4 EPS of $1.97, which was $0.13 better than the $1.84 that Wall Street had expected. Revenues were mostly flat from last year to $3.874 billion, also topping analyst estimates for $3.858 billion.
PNC noted that its provision for credit losses continued to fall in the latest period, down to $67 million from $87 million previously, as overall credit quality of its borrowers remained stable.
Total loans grew by $0.4 billion to $210.8 billion at the end of December in comparison to the end of September. Average loans grew $2.0 billion, or 1%, on the same sequential basis. PNC’s net interest margin was 2.69% in Q4, up slightly from 2.68% in Q3, but down slightly from 2.70% in Q4 2015.
The company commented via press release:
“PNC delivered a solid year in 2016. Although the financial results finished slightly below 2015, this was due in part to our disciplined risk management efforts throughout the year to position PNC well in the current credit and interest rate cycle,” said William S. Demchak, chairman, president and chief executive officer. “At the same time in 2016, we grew net interest and fee income, and kept expenses essentially flat. We also returned capital to shareholders, grew our customer franchise and continued to invest in our strategic priorities, particularly core technology infrastructure that will be critical to our future success. As we look ahead, I’m confident the actions we took position us for further growth and long-term value.”
PNC Financial Services Group Inc shares were unchanged in premarket trading Friday. Year-to-date, PNC has gained 0.83%, versus a 1.34% rise in the benchmark S&P 500 index during the same period.
PNC currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #6 of 11 stocks in the Money Center Banks category.
This article is brought to you courtesy of StockNews.com.
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