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10-QPeriod: Q3 FY2014

PNC FINANCIAL SERVICES GROUP, INC. Quarterly Report for Q3 Ended Sep 30, 2014

Filed November 5, 2014For Securities:PNC

Summary

PNC Financial Services Group, Inc. (PNC) reported solid financial results for the nine months ended September 30, 2014. Net income attributable to common shareholders increased slightly to $2,959 million from $2,941 million in the prior year period. Diluted earnings per common share were $5.45, a slight decrease from $5.49 in the same period last year, impacted by a higher share count. The company demonstrated improved asset quality, with nonperforming assets decreasing and net charge-offs significantly lower year-over-year. Total assets grew to $334.4 billion, driven by increases in deposits and loans, while capital ratios remained strong, with the pro forma fully phased-in Basel III Common Equity Tier 1 capital ratio reaching 10.1%. PNC continued to execute its capital plan, returning capital to shareholders through dividends and share repurchases.

Financial Statements
Beta
Revenue$3.84B
Interest Expense$224.00M
Net Income$1.04B
EPS (Basic)$1.82
EPS (Diluted)$1.79
Shares Outstanding (Basic)529.00M
Shares Outstanding (Diluted)537.00M

Key Highlights

  • 1Net income attributable to common shareholders increased slightly to $2,959 million for the first nine months of 2014, compared to $2,941 million in the prior year period.
  • 2Diluted earnings per common share were $5.45 for the first nine months of 2014, down from $5.49 in the prior year period, influenced by a higher share count.
  • 3Asset quality improved, with nonperforming loans to total loans decreasing to 1.30% from 1.58% at the end of 2013, and net charge-offs to average loans (annualized) falling to 0.16% in the third quarter of 2014 from 0.47% in the third quarter of 2013.
  • 4Total assets grew to $334.4 billion at September 30, 2014, up from $320.2 billion at December 31, 2013, driven by increases in interest-earning deposits with banks and loans.
  • 5Total deposits increased to $226.3 billion at September 30, 2014, up from $220.9 billion at December 31, 2013, primarily due to growth in transaction deposits.
  • 6Capital ratios remained strong, with the pro forma fully phased-in Basel III Common Equity Tier 1 capital ratio increasing to an estimated 10.1% at September 30, 2014 from 9.4% at December 31, 2013.
  • 7PNC returned capital to shareholders by increasing the quarterly common stock dividend to $0.48 per share and repurchasing $583 million of common stock in the second and third quarters of 2014.

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