PNC Financial Services Group in Pittsburgh said its second-quarter profit declined, citing lower yields on loans and securities.
The $354 billion-asset company said net income fell 0.8% to $987 million, or $1.88 per share, from a year earlier.
Net interest income fell 3.6%, to $2.05 billion, because of lower loan and securities yields and a decline in purchase accounting accretion. The net interest margin narrowed 39 basis points to 2.73%.
Fee income rose 7.9% to $1.81 billion on higher corporate service fees, asset management revenue and consumer service fees. PNC also recorded higher gains on sales of Visa class B common shares, compared with a year earlier.
Noninterest expense rose 1.6%, to $2.37 billion, on costs associated with upgrades to technology and business infrastructure, and higher employee compensation costs. The efficiency ratio remained 61%.