PNC Financial 4Q profit rises 47 percent
PITTSBURGH (AP) — The PNC Financial Services Group Inc. said Thursday that its net income climbed 47 percent in the fourth quarter on an increase in loans and deposits and business expansion into more markets in the Southeast.
The regional bank operator said its interest income increased, aided by its acquisition of RBC Bank (USA).
PNC shares rose $2.22, or 3.7 percent, to $62 in midday trading. That is near the high end of its 52-week range of $55.36 to $67.89.
The company said its net income attributable to common shareholders increased to $664 million, or $1.24 per share, in the three months ended Dec. 31 from $451 million, or 85 cents per share.
Revenue rose 15 percent to $4.07 billion from $3.55 billion. That included a 10 percent rise in net interest income and a 22 percent increase in non-interest income. It also reported a $130 million gain after selling Class B shares of Visa.
Analysts were expecting earnings of $1.23 per share on $3.93 billion in revenue, according to estimates compiled by FactSet.
PNC said it set aside more money for the repurchase of bad mortgages from investors making legal claims. The company set aside $254 million before taxes during the latest quarter, up from $36 million it set aside a year ago.
For the year, the company's net income fell 6 percent, to $2.83 billion, or $5.30 per share, from $3 billion, or $5.64 per share. Revenue rose 8 percent, to $15.51 billion from $14.33 billion.
PNC has 2,881 branches and 7,282 ATMs in 17 states and Washington, D.C.
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