PNC Financial Services Group Inc. posted better-than-expected earnings in the last quarter as deposits and loans surged following the closing of the BBVA USA acquisition.
The Pittsburgh-based bank reported a diluted profit from continuing operations of $ 2.43 per share compared to a diluted loss from continuing operations of $ 1.90 per share in the same three-month period a year earlier. Net income attributable to ordinary shareholders was $ 1.04 billion, up from $ 3.59 billion in the second quarter of 2020.
Analysts polled by FactSet had expected earnings per share of $ 1.09.
Net interest income rose to $ 2.58 billion from $ 2.53 billion a year earlier. Non-interest income was $ 2.09 billion, up from $ 1.55 billion 12 months ago.
Analysts had forecast net interest income of $ 2.56 billion and non-interest income of $ 1.87 billion.
In the last quarter, PNC committed $ 302 million to cover loan losses. The return on PNC’s previous $ 704 million reserves was more than offset by an initial $ 1 billion reserve associated with the BBVA bank’s acquisition. In the second quarter of last year, the bank allocated $ 2.46 billion amid the exacerbation of the coronavirus pandemic and its consequences for the economy.
Loans rose to $ 294.7 billion after completing the first quarter at $ 237 billion. Deposits rose to $ 452.9 billion from $ 375.1 billion at the end of the first quarter. Provision for possible loan losses amounted to 2.16% of the total amount of loans.
PNC’s net interest margin was 2.29%, compared with 2.52% a year earlier.
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(END) Dow Jones Newswires
Jul 14, 2021 07:27 AM ET (11:27 AM GMT)
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