Weakness in the energy sector is weighing on PNC Financial Services Group's profits.
The Pittsburgh company said early Thursday that it earned $943 million in the first quarter, a nearly 6% decline from the same period last year. Its earnings per share of $1.68 fell 2 cents shy of consensus analysts' estimates.
PNC, with the $361 billion of assets, attributed the decline largely to a dip in asset-management fees and increased reserves for oil, gas and coal loans.
Net interest income rose slightly, to $2.1 billion, on modest loan growth, but those gains were largely erased by a 6% drop in noninterest income, to $1.6 billion. Weakness in the equity markets reduced its asset-management fees by 9%, to $341 million.
On the lending front, PNC set aside $80 million for energy loans in the quarter, up from $23 million just three months earlier. Overall, the company set aside $152 million for losses in the quarter, up 181% from the same period last year.