Summary
PNC Financial Services Group, Inc. reported solid financial results for the second quarter and first half of 2011, driven by improved credit quality and growing client relationships. Total revenue for the first six months of 2011 was $7.2 billion, a decrease from $7.7 billion in the prior year period, primarily due to lower net interest income resulting from purchase accounting adjustments and the low interest rate environment. However, net income attributable to common shareholders saw a significant increase to $1.7 billion for the first six months of 2011, up from $1.1 billion in the same period of 2010. This improvement was fueled by a substantial reduction in the provision for credit losses, which fell to $701 million from $1.6 billion year-over-year, reflecting better overall asset quality. Diluted earnings per common share from continuing operations were $3.24 for the first half of 2011, a notable increase from $2.06 in the prior year. PNC also announced strategic growth initiatives, including the pending acquisition of RBC Bank (USA) for $3.45 billion, expected to close in March 2012, and the acquisition of 27 branches in Atlanta from Flagstar Bank. Capital actions in 2011 included the issuance of $1 billion in preferred stock and an increase in the common stock dividend to $0.35 per share. The company's capital ratios remain strong, with a Tier 1 common capital ratio of 10.5% at June 30, 2011.
Financial Highlights
32 data points| Revenue | $3.60B |
| Operating Income | $1.74B |
| Interest Expense | $397.00M |
| Net Income | $912.00M |
| EPS (Basic) | $1.69 |
| EPS (Diluted) | $1.67 |
| Shares Outstanding (Basic) | 524.00M |
| Shares Outstanding (Diluted) | 527.00M |
Key Highlights
- 1Net income attributable to common shareholders increased by 54% to $1.7 billion for the first six months of 2011, compared to $1.1 billion for the same period in 2010.
- 2Diluted earnings per common share from continuing operations rose to $3.24 for the first six months of 2011, up from $2.06 in the prior year.
- 3Provision for credit losses decreased significantly by 55% to $701 million for the first six months of 2011, reflecting improved credit quality.
- 4Total revenue decreased slightly to $7.2 billion for the first six months of 2011 from $7.7 billion in the prior year, driven by lower net interest income.
- 5The company announced a pending acquisition of RBC Bank (USA) for $3.45 billion, expected to close in March 2012.
- 6Tier 1 common capital ratio strengthened to 10.5% at June 30, 2011, up from 9.8% at December 31, 2010.
- 7Quarterly common stock dividend increased from $0.10 to $0.35 per share, paid in May 2011.