PNC Financial Services Group Inc.'s second-quarter earnings nearly quadrupled absent prior-year charges and as the Pittsburgh-based regional bank posted lower loan-loss provisions.
The results beat analysts' expectations.
PNC is one of the large U.S. lenders that grew during the banking crisis by purchasing troubled rivals. The company purchased Ohio's National City in late 2008 for $2 billion.
PNC reported a profit of $803 million, or $1.47 a share, up from $207 million, or 14 cents a share, a year earlier as per-share earnings were hurt by the company ending its participation in the Treasury's Troubled Asset Relief Program. Excluding items such as integration costs, earnings rose to $1.60 from 34 cents a share.
Revenue increased 2.9% to $3.91 billion as net interest income rose 11%.
Analysts polled by Thomson Reuters most recently forecast earnings of $1.28 a share on revenue of $3.78 billion.
Loan-loss provisions fell to $823 million from $1.09 billion a year earlier but rose from $751 million in the first quarter. Net charge-offs, or loans lenders expect are uncollectable, rose to 2.18% from 1.89% and 1.77%, respectively. Nonperforming loans, or those near default, were 3.42%, compared with 2.52% and 3.66%, respectively.
The retail-banking business, its largest segment by revenue, saw profit rise 39%, mostly owing to lower credit costs and cost controls. Corporate and institutional banking profit more than quadrupled, aided by lower credit-loss provisions and higher net interest income.
Shares closed Wednesday at $58.54 and were inactive premarket. The stock is up 56% in the past year.
