PNC Nets $925M in Third Quarter
PITTSBURGH -- The PNC Financial Services Group Inc. reports net income of $925 million, or $1.64 per diluted common share, for the third quarter of 2012. This compares with $546 million, or 98 cents per diluted common share, for the previous quarter.
Net income for the third quarter of 2011 was $834 million, or $1.55 per diluted common share.
For the first nine months of this year, the company earned net income of $2.3 billion, or $4.06 per diluted common share, compared with $2.6 billion, or $4.79 per diluted common share, for the first nine months of 2011.
"PNC reported excellent results for the third quarter with 2012 shaping up to be another good year," said James E. Rohr, chairman and CEO. "On the strength of our products, brand and execution we continued to increase the number of customers we serve resulting in revenue and loan growth. We also remained focused on controlling costs while investing for the future and managing risk and capital. As a result, PNC is well positioned to continue to create shareholder value."
Highlights from the financial results include:
- Retail Banking net checking relationships grew 230,000 organically in the first nine months, or 4% on an annualized basis.
- Approximately 775 new corporate banking primary clients were added in the first nine months of 2012.
- Asset management new primary client acquisitions were nearly 25% higher in the first nine months of 2012 compared with the same period of 2011.
- Net interest income of $2.4 billion for the third quarter decreased $0.1 billion compared with the second quarter primarily due to the impact of lower purchase accounting accretion.
- The provision for credit losses declined to $228 million for the third quarter compared with $256 million for the second quarter.
- Noninterest expense was stable at $2.65 billion for both the third and second quarters reflecting effective cost management while investing in products and markets.
- Loans grew $1.5 billion, or 1%, during the third quarter to $182 billion at Sept. 30 compared with June 30, reflecting continued growth but at a slower pace.
- Total commercial lending increased $1.1 billion, or 1%, over the second quarter.
- Consumer lending increased $.4 billion as an increase in automobile loans was partially offset by runoff in residential real estate loans and lower education loans.
- Nonperforming assets of $4 billion at Sept. 30 declined 4%.
- Accruing loans past due decreased 1%.
- Total deposits were $206 billion at Sept. 30 compared with $207 billion at June 30.
- PNC's balance sheet remained core funded with a loans to deposits ratio of 88% at Sept. 30, 2012 and retained a strong bank holding company liquidity position.
PNC strengthened its strong capital levels. The Tier 1 common capital ratio increased to an estimated 9.5% at Sept. 30, 2012 from 9.3% at June 30.
Published by The Business Journal, Youngstown, Ohio.