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First-Quarter Net Income is $811M at PNC
PITTSBURGH -- The PNC Financial Services Group Inc. reports first quarter net income of $811 million, or $1.44 per diluted common share. This compares with net income of $493 million, or 85 cents per diluted common share, for the fourth quarter of 2011 and $832 million, or $1.57 per diluted common share, for the first quarter of 2011.
"PNC had excellent results for the first quarter reflecting strong performance across our markets," said James E. Rohr, chairman and CEO. "Our success in growing revenue is a direct result of our success in growing customers and loans. With the completion of our acquisition of RBC Bank (USA), we plan to leverage our brand and innovative product set to grow market share in the southeast. We are confident that our strong capital levels and our ability to execute will lead to another good year in 2012."
Strong results for the first quarter reflected positive operating leverage compared with fourth quarter 2011 due to strong revenue growth and well-managed expenses. Net interest income of $2.3 billion for the first quarter increased 4%compared with the fourth quarter of 2011 driven by loans from the RBC Bank (USA) acquisition, loan growth and lower funding costs.
The provision for credit losses essentially was unchanged at $185 million for the first quarter compared with fourth quarter 2011 and overall credit quality remained stable.
PNC completed the acquisition of RBC Bank (USA), the U.S. retail banking subsidiary of Royal Bank of Canada, on March 2. PNC now has 2,900 branches across 17 states and the District of Columbia and has successfully converted 900,000 customers and over 400 branches in North Carolina, Florida, Alabama, Georgia, Virginia and South Carolina.
Other highlights include:
- Retail banking checking relationships increased 517,000 in the first quarter, including 460,000 from the RBC Bank (USA) acquisition.
- Loans increased $17 billion during the first quarter to $176 billion at March 31 compared with year- end 2011.
- Loans of approximately $15 billion were added in the RBC Bank (USA) acquisition.
- Total deposits were $206 billion at March 31 compared with $188 billion at Dec. 31, 2011.
- Deposits of approximately $18 billion were added in the RBC Bank (USA) acquisition.
- Transaction deposits also grew organically during the first quarter and increased to $165 billion, or 80% of deposits, at March 31.
PNC maintained strong capital levels with a Tier 1 common capital ratio of an estimated 9.3% at March 31 and 10.3% at Dec. 31, 2011. The impact on the ratio of the acquisition of RBC Bank (USA) was a decrease of approximately 1.2 percentage points.
Published by The Business Journal, Youngstown, Ohio.