PNC Financial Services Group (NYSE:PNC) saw its stock rise 1.85% in premarket trading on Wednesday after delivering second-quarter results that exceeded Wall Street forecasts, supported by robust loan expansion and increased operational efficiency.
The bank reported earnings of $3.85 per share, well above the analyst consensus of $3.55. Total revenue came in at $5.66 billion, beating expectations of $5.61 billion and marking a 4% gain from the prior quarter. Pre-tax, pre-provision earnings climbed 10%, driving 4% positive operating leverage.
“Our national growth strategy continues to deliver results,” said Chairman and CEO Bill Demchak. “New customer acquisition is accelerating, while we continue to deepen relationships with our existing customers across businesses. The strength of our franchise resulted in strong loan and revenue growth even through an uncertain macro environment, while expenses remained well controlled.”
Average loan balances increased by $6.1 billion, or 2% quarter-over-quarter, with commercial and industrial lending leading the way, growing 4%. Net interest income rose to $3.56 billion, up 2%, while the net interest margin widened slightly to 2.80%. Fee-based income also improved, rising 3% to $1.89 billion, supported by higher revenue from card services and cash management.
Asset quality remained strong, with net charge-offs totaling $198 million, or 0.25% of average loans annualized—down slightly from 0.26% in Q1. The bank’s efficiency ratio improved to 60%, compared with 62% in the previous quarter.
PNC also announced a dividend increase of 10 cents, bringing its quarterly payout to $1.70 per share. During the quarter, the bank returned $1 billion to shareholders through a combination of dividends and stock buybacks, while maintaining a Common Equity Tier 1 (CET1) capital ratio of 10.5%.
In comparison, the same quarter last year saw earnings per share of $3.39 and revenue of $5.41 billion, reflecting year-over-year growth of 14% and 5%, respectively.
PNC Financial Services Group stock price
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