Summary
PNC Financial Services Group, Inc. reported solid financial results for the second quarter and first half of 2010, showing significant improvement over the prior year. Total revenue saw an increase to $3.9 billion for the quarter and $7.7 billion for the first half, driven by higher net interest income due to lower funding costs, partially offset by a decline in noninterest income, primarily from residential mortgage revenues. Noninterest expense decreased considerably, reflecting disciplined management and acquisition-related cost savings. The company successfully completed the integration of National City, achieving substantial cost savings ahead of schedule and closing over 1,300 branches. Credit quality showed signs of stabilization, with nonperforming assets declining and provision for credit losses lower year-over-year. PNC also announced the sale of its Global Investment Servicing business, expected to close in July 2010, which will further strengthen its capital position. The company continues to focus on re-establishing a moderate risk profile while maintaining strong capital and liquidity.
Financial Highlights
31 data points| Revenue | $3.91B |
| Operating Income | $1.43B |
| Interest Expense | $438.00M |
| Net Income | $803.00M |
| EPS (Basic) | $1.49 |
| EPS (Diluted) | $1.47 |
| Shares Outstanding (Basic) | 524.00M |
| Shares Outstanding (Diluted) | 527.00M |
Key Highlights
- 1Total revenue increased to $3.9 billion in Q2 2010 from $3.8 billion in Q2 2009, and to $7.7 billion for the first six months of 2010 from $7.5 billion in the prior year.
- 2Net income attributable to common shareholders was $786 million ($1.47 per diluted share) in Q2 2010, a significant increase from $65 million ($0.14 per diluted share) in Q2 2009.
- 3Provision for credit losses decreased to $823 million in Q2 2010 from $1.09 billion in Q2 2009, and to $1.57 billion for the first six months of 2010 from $1.97 billion in the prior year.
- 4Noninterest expense declined by 20% to $2.0 billion in Q2 2010 from $2.5 billion in Q2 2009, driven by cost savings from the National City integration.
- 5PNC completed the integration of National City branches, achieving $1.6 billion in annualized cost savings, exceeding original targets.
- 6Nonperforming assets decreased by $636 million in Q2 2010 to $5.9 billion, indicating stabilization in credit quality.
- 7PNC announced the sale of PNC Global Investment Servicing Inc. for $2.3 billion, expected to close in July 2010, which will enhance regulatory capital and capital ratios.