PNC beats by $0.08, beats on revs :
- Reports Q4 (Dec) earnings of $1.87 per share, $0.08 better than the Capital IQ Consensus of $1.79; revenues fell 2.4% year/year to $3.85 bln vs the $3.79 bln Capital IQ Consensus.
- Fourth quarter results reflected revenue growth over the third quarter in both net interest income and fee income, a continued focus on disciplined expense management, and higher loans and deposits.
- Loans grew $1.7 billion to $206.7 billion at Dec 31, 2015 compared with Sept 30, 2015. Total commercial lending grew $2.4 billion, or 2%, primarily in PNC's real estate business, including an increase in multifamily agency warehouse lending. Total consumer lending decreased $.7 billion reflecting declines in the non-strategic consumer loan portfolio.
- The net interest margin of 2.70% for Q4 increased over the Q3 margin of 2.67% driven by the impact of a reduction in low-yielding balances on deposit with the Federal Reserve Bank partially offset by lower securities yields. The margin declined from 2.89% in 4Q14 primarily as a result of lower interest-earning asset yields and lower benefit from purchase accounting accretion.
- Overall credit quality in the fourth quarter remained relatively stable with the third quarter.
- PNC maintained a strong capital position.
- Tangible book +0.5% QoQ to $81.84/share.
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