5 days Ago By John Reosti
PNC Financial raised its provisions for credit losses in the first quarter, taking a cautious approach to economic uncertainty, even as earnings beat analysts' expectations. The Pittsburgh-based bank reported earnings per share of $3.51, up from $3.
10 in the first three months of 2024 and above the analysts' forecast of $3.38 as determined by S&P. Revenue totaled $5.
45 billion, up 6% from the first quarter of 2024 and roughly in line with estimates. Provisions for credit losses rose to $219 million from $155 million, which PNC said reflected "changes in macroeconomic factors and portfolio activity." "We grew customers and commercial loans, expanded our net interest margin, increased capital levels and maintained solid credit quality metrics," Chairman and CEO Bill Demchak said.
"While market uncertainty impacted our capital markets activity, expenses remained well-controlled, resulting in another quarter of strong results." PNC's chargeoffs for the three months ended March 31 totaled $205 million, down 16% from a year ago. Nonperforming loans slid 4% to $2.
3 billion, but delinquencies rose 12% year-over-year to $1.4 billion. Forbearance activity related to the wildfires that struck Southern California in January accounted for some of the increase, according to the company.
PNC reported a slowdown in capital markets activity from the fourth quarter to the first, but capital markets and advisory income rose 18% from a year ago to $306 million. Overall noninterest income jumped 5% from the first quarter of 2024 to $1.98 billion paced by growth in all fee categories, except mortgage banking.
PNC's loan portfolio totaled $319 billion on March 31, roughly even with the result a year ago. Commercial and industrial loans increased 2% to $180.5 billion, but commercial real estate loans declined 9% to $32.
3 billion. Period-ended deposits totaled $423 billion, down 1% from a year ago. Tuesday's result followed a solid 2024.
The Pittsburgh-based PNC reported full-year earnings of $6 billion, up 5% from 2023, while revenue totaled a company record $21.6 billion. The report came a week after PNC named former Black Rock executive Mark Wiedman as president, tasking him with preparing the $554.
72 billion-asset bank for a "significant opportunity to scale." PNC views the market volatility that has accompanied the implementation of President Trump's tariff policy as laden with opportunity. "When things get a little messier, that's when PNC can actually move.
So that is exciting for me, in terms of what I'm going to be coming here to do," Wiedman told American Banker in an interview last week. PNC's most recent bank acquisition was in June 2021, when it acquired the $104 billion-asset BBVA USA Bancshares in Houston. PNC ranked as the seventh-largest U.
S.-headquartered bank by asset size at the end of 2024, according to the Federal Reserve..
