Summary
The PNC Financial Services Group, Inc. reported solid results for the second quarter of 2017, with net income of $1.1 billion, or $2.10 per diluted common share, an increase of 11% compared to the prior year quarter. Total revenue grew 7% to $4.1 billion, driven by a 9% increase in net interest income to $2.3 billion, supported by higher loan yields and loan growth, as well as increased securities balances. The net interest margin also improved to 2.84% from 2.70% in the prior year quarter. Asset quality remained stable, with a decrease in nonperforming assets by 9% to $2.2 billion. The company maintained a strong capital position, with a Transitional Basel III Common Equity Tier 1 capital ratio of 10.3%. PNC also demonstrated a commitment to shareholder returns, repurchasing $0.7 billion of common stock and declaring a quarterly cash dividend of $0.55 per share, with a subsequent increase to $0.75 per share announced in July 2017. The company is optimistic about the economic outlook, expecting moderate GDP growth and a potential interest rate hike by the Federal Reserve later in the year.
Financial Highlights
31 data points| Revenue | $4.06B |
| Interest Expense | $416.00M |
| Net Income | $1.10B |
| EPS (Basic) | $2.12 |
| EPS (Diluted) | $2.10 |
| Shares Outstanding (Basic) | 484.00M |
| Shares Outstanding (Diluted) | 488.00M |
Key Highlights
- 1Net income increased by 11% year-over-year to $1.1 billion.
- 2Diluted earnings per common share rose by 15% year-over-year to $2.10.
- 3Total revenue grew 7% to $4.1 billion, driven by higher net interest income and noninterest income.
- 4Net interest margin improved to 2.84% from 2.70% in the prior year quarter.
- 5Provision for credit losses decreased by 23% year-over-year to $98 million.
- 6Total loans increased by 3% to $218.0 billion, primarily driven by commercial lending growth.
- 7PNC returned $1.0 billion to shareholders through share repurchases and dividends in the quarter.