Summary
PNC Financial Services Group, Inc. reported a net income of $671 million for the first quarter of 2010, a significant increase from $530 million in the same period of the prior year. Diluted earnings per share were $0.66, down from $1.03 year-over-year. Total revenue rose to $3.76 billion from $3.69 billion, driven by a strong net interest income of $2.38 billion, which benefited from deposit repricing and a reduction in lower-yielding deposits. The company successfully redeemed its $7.6 billion TARP preferred stock on February 10, 2010, utilizing proceeds from a recent common stock offering and other available funds. This action significantly improved PNC's capital ratios, with the Tier 1 common capital ratio increasing to 7.9% from 6.0% at year-end 2009. PNC is actively managing its business portfolio, with a pending sale of its Global Investment Servicing (GIS) business for $2.3 billion expected to close in the third quarter of 2010, which will result in a substantial after-tax gain. The integration of National City continues to progress, with expected annualized cost savings now projected to exceed $1.5 billion by the fourth quarter of 2010, ahead of schedule. While the provision for credit losses decreased from the prior year, nonperforming assets saw a slight increase, though the pace of deterioration showed signs of easing.
Financial Highlights
31 data points| Revenue | $3.76B |
| Operating Income | $648.00M |
| Interest Expense | $526.00M |
| Net Income | $671.00M |
| EPS (Basic) | $0.67 |
| EPS (Diluted) | $0.66 |
| Shares Outstanding (Basic) | 498.00M |
| Shares Outstanding (Diluted) | 500.00M |
Key Highlights
- 1Net income increased to $671 million ($0.66 diluted EPS) from $530 million ($1.03 diluted EPS) in Q1 2009.
- 2Total revenue increased to $3.76 billion from $3.69 billion in Q1 2009, with net interest income improving due to deposit repricing.
- 3PNC successfully redeemed its $7.6 billion TARP preferred stock on February 10, 2010.
- 4Tier 1 common capital ratio improved to 7.9% from 6.0% at the end of 2009.
- 5Pending sale of Global Investment Servicing (GIS) for $2.3 billion expected to close in Q3 2010.
- 6National City integration cost savings are expected to exceed $1.5 billion annually by Q4 2010, ahead of schedule.
- 7Provision for credit losses decreased to $751 million from $880 million in Q1 2009, though nonperforming assets slightly increased to $6.5 billion.