** charts before earnings **
** charts after earnings **
PNC beats by $0.07, reports revs in-line :
- Reports Q2 (Jun) earnings of $1.82 per share, $0.07 better than the Capital IQ Consensus of $1.75; revenues fell 1.9% year/year to $3.79 bln vs the $3.83 bln Capital IQ Consensus, due to lower other noninterest income partially offset by higher fee income and higher net interest income.
- Second quarter results reflected higher fee income, increased noninterest expense driven by business activity, lower provision for credit losses, and growth in average loans and deposits compared with the first quarter of 2016.
- Net interest income of $2.1 bln for the second quarter decreased $30 mln, or 1 percent, compared with the first quarter mainly from a decline in purchase accounting accretion.
- Noninterest income of $1.7 bln for the second quarter increased $159 mln, or 10 percent, compared with the first quarter primarily due to strong growth in fee income from higher client activity and seasonality.
- Loans grew $1.6 bln, or 1 percent, to $209.1 bln at June 30, 2016 compared with March 31, 2016.
- Total commercial lending increased $1.9 bln, or 1 percent, primarily to large corporate customers in PNC's corporate banking business and from growth in real estate loans.
- Total consumer lending decreased $.3 bln due to lower home equity and education loans partially offset by growth in auto and credit card loans.
- Overall credit quality in the second quarter remained stable with the first quarter.
- The net interest margin was 2.70 percent for the second quarter of 2016 compared with 2.75 percent for the first quarter and 2.73 percent for the second quarter of 2015. The decrease in the margin in both comparisons was driven by a lower benefit from purchase accounting accretion, partially offset in the second quarter 2015 comparison by the impact of lower balances on deposit with the Federal Reserve Bank.
- TBV +2.7% Q/Q to $66.89/share.
