Summary
PNC Financial Services Group, Inc. reported net income of $943 million, or $1.68 per diluted common share, for the first quarter of 2016. This represents a 6% decrease compared to the prior year's first quarter ($1.0 billion, or $1.75 per diluted common share). The decline was primarily attributed to a higher provision for credit losses and a decrease in noninterest income, partially offset by lower noninterest expenses and a modest increase in net interest income. Despite the year-over-year net income decrease, PNC maintained a strong balance sheet with total assets of $361.0 billion at March 31, 2016. The company also reported strong liquidity and capital positions, with its Transitional Basel III Common Equity Tier 1 capital ratio at 10.6%. PNC continued to return capital to shareholders through share repurchases and dividends.
Financial Highlights
31 data points| Revenue | $3.67B |
| Interest Expense | $309.00M |
| Net Income | $943.00M |
| EPS (Basic) | $1.70 |
| EPS (Diluted) | $1.68 |
| Shares Outstanding (Basic) | 501.00M |
| Shares Outstanding (Diluted) | 507.00M |
Key Highlights
- 1Net income decreased 6% year-over-year to $943 million ($1.68 per diluted share).
- 2Total revenue declined 2% to $3.7 billion, driven by a 6% drop in noninterest income, partially offset by a 1% increase in net interest income.
- 3Provision for credit losses increased significantly to $152 million from $54 million in the prior year, largely due to $80 million allocated for energy-related loans.
- 4Noninterest expense decreased 3% to $2.3 billion due to lower legal and variable compensation costs.
- 5Total loans increased slightly to $207.5 billion, with commercial lending growth offsetting a decline in consumer lending.
- 6Total deposits grew 1% to $250.4 billion, primarily driven by an increase in savings deposits.
- 7PNC maintained strong capital ratios, with the Transitional Basel III Common Equity Tier 1 capital ratio at 10.6%.