PNC 2Q Earnings, Revenue Boost from Growth in Net Interest Income

By Will Feuer

 

PNC Financial Services Group Inc. reported higher revenue and profit for the second quarter as growth in net interest income offset a year-over-year decline in non-interest income.

The Pittsburgh bank said second-quarter net income rose to $1.5 billion from $1.1 billion a year earlier. Earnings were $3.39 per share, down from $2.43 per share.

Adjusted for costs associated with the integration of recently acquired BBVA USA, adjusted earnings were $3.42 per share. Analysts polled by FactSet were looking for adjusted earnings of $3.14 per share. PNC completed its deal with BBVA USA in October 2021.

Second-quarter revenue rose nearly 10% to $5.12 billion, driven by higher net interest income and non-interest income. Analysts polled by FactSet were looking for revenue of $5.13 billion.

Net interest income of $3.1 billion increased 18%, driven by higher yields on interest-earning assets and increased loan balances, partially offset by higher funding costs. Non-interest revenue fell 1% from a year ago as the benefit of the BBVA USA acquisition and higher M&A advisory fees were more than offset by lower other non-interest income and a decline in residential and commercial mortgage banking.

The quarter included a provision for credit losses of $36 million, down from $208 million in the prior quarter.

 

Write to Will Feuer at [email protected]

 

(END) Dow Jones Newswire

July 15, 2022 07:27 ET (11:27 GMT)

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