Summary
PNC Financial Services Group, Inc. (PNC) filed an 8-K on March 3, 2006, to provide an update on their 2006 outlook during a meeting with securities analysts. The company reaffirmed its expectation for continued growth in net interest income for the full year 2006 compared to 2005. They also anticipate noninterest income to perform in line with historical trends and project noninterest expense growth in the low single-digit range for 2006, primarily due to fourth-quarter 2005 acquisitions. The company also provided a comprehensive discussion of forward-looking statements and the associated risks and uncertainties. These include potential impacts from economic and industry conditions, regulatory developments, competition, business initiatives, customer behavior, technological changes, and the integration of recent acquisitions, notably Riggs National Corporation. Investors should note that these forward-looking statements do not account for the impact of BlackRock's pending acquisition of Merrill Lynch's Investment Management businesses.
Key Highlights
- 1PNC expects net interest income to grow year-over-year in 2006.
- 2Noninterest income is projected to perform in line with historical trends for 2006.
- 3Noninterest expense growth for full-year 2006 is anticipated to be in the low single-digit range.
- 4The increase in noninterest expense is largely attributed to acquisitions made in late 2005.
- 5The company reiterated its goal to drive positive operating leverage in 2006.
- 6Forward-looking statements included extensive risk factors related to economic, regulatory, and operational environments.
- 7The reported expectations do not include the impact of BlackRock's pending acquisition of Merrill Lynch's Investment Management businesses.