PITTSBURGH (AP) — PNC Financial Services Group Inc. said Thursday its fourth-quarter net income jumped 50 percent, helped by a jump in non-interest in non-interest income and lower expenses.
The regional bank operator posted a profit attributable to common shareholders of $998 million, or $1.85 per share, up from $664 million, or $1.24 per share, in the same quarter of 2012.
Total revenue was flat at $4.07 billion.
The results beat Wall Street predictions. Analysts, on average, expected a profit of $1.65 per share on $3.83 billion in revenue, according to FactSet.
Net interest income, or earnings from deposits and loans, fell 7 percent to $2.27 billion, partially as a result of lower income from loans and securities. Non-interest income, or earnings from fees and other charges, jumped 10 percent to $1.65 billion, mainly as a result of the release of reserves for residential mortgage repurchase obligations.
The company also cut costs, reducing its non-interest expense by 27 percent to $243 million. And its provision for loan losses, or the amount of money set aside to cover soured loans, fell 64 percent to $113 million.
For the full year, PNC earned $3.97 billion, or $7.39 per share, up from $2.83 billion, or $5.30 per share, in 2012. Revenue increased to $16.01 billion from $15.51 billion.
PNC shares rose $1.71, or 2.2 percent, to $80.55 in premarket trading an hour before the market open.