Net interest income climbed 15% on commercial loan growth
PNC Financial Services Group reported third-quarter net income of $2.1 billion, up from $1.82 billion a year earlier, with revenue growth supported by national expansion efforts and the integration of its FirstBank acquisition.
The bank’s revenue rose 11% from a year earlier to $6.56 billion, falling short of the $6.61 billion Wall Street consensus estimate compiled by FactSet. Earnings per share came in at $4.97, compared with $4.35 a year earlier. Adjusted earnings per share were $5.09, exceeding analyst estimates of $4.98, according to FactSet.
Net interest income climbed 15% year-over-year to $4.21 billion. PNC attributed the gain to commercial loan growth, the FirstBank acquisition, and lower funding costs. Noninterest income rose 4% to $2.36 billion.
Total loans at the end of the quarter reached $378.8 billion, up 16% from a year earlier, as the bank pushed further into key markets and expanded its national footprint.
The bank’s profit was dented by $36 million in integration costs tied to the FirstBank acquisition.
Chief Executive Bill Demchak said the bank’s strategy to expand nationally is driving growth. “We are well positioned, and remain confident in our long-term outlook,” Demchak said.
PNC raised its provision for credit losses to $189 million from $167 million in the year-ago quarter.