PNC Financial beats Q3 estimates, shares rise on strong results

NEW YORK – PNC Financial Services Group Inc (NYSE:PNC) reported third-quarter earnings and revenue that beat analyst expectations, sending shares up 1.26% in premarket trading on Tuesday.

The Pittsburgh-based bank posted earnings per share of $3.49, surpassing the $3.30 consensus estimate. Revenue came in at $5.43 billion, topping expectations of $5.39 billion.

PNC’s net interest income grew 3% quarter-over-quarter to $3.41 billion, driven by higher yields on interest-earning assets. The bank’s net interest margin expanded 4 basis points to 2.64%.

Fee income jumped 10% from the previous quarter to $1.95 billion, boosted by strong capital markets and advisory revenue as well as increased residential mortgage servicing income.

“Our results for the third quarter demonstrate PNC’s continued strong momentum across the franchise,” said PNC Chairman and CEO Bill Demchak. “NII and NIM both increased, fee revenue grew substantially and expenses remained well controlled, resulting in positive operating leverage.”

The bank maintained a robust capital position, with its common equity Tier 1 ratio rising to 10.3% from 10.2% in the prior quarter.

PNC’s provision for credit losses was $243 million, up slightly from $235 million in Q2. Net loan charge-offs increased to $286 million from $262 million last quarter.

Average loans were stable at $319.6 billion, while average deposits grew 1% to $422.1 billion.

The positive quarterly results and upbeat commentary from management appear to be driving the stock higher in early trading. PNC shares are up 1.26% premarket following the earnings release.

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