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PNC Financial profit tops estimates on higher interest rates

Reuters 

(Reuters) - Group Inc on Friday posted a quarterly profit that beat analysts' estimates, driven by higher net interest and improved fee income, sending shares of the regional lender up more than 1 percent in premarket trade.

The growing U.S. has triggered demand for loans, which along with rising interest rates has benefited U.S. banks.

PNC Financial, one of the largest U.S. lenders by assets, said its loan portfolio grew 2.2 percent to $222.8 billion with commercial lending accounting for nearly 70 percent of total loans.

Net attributable to diluted common shares rose to $1.28 billion in the second quarter ended June 30, from $1.03 billion, a year earlier.

On a per share basis, the Pittsburgh-based regional earned $2.72, blowing past analysts' estimates of $2.58, according to I/B/E/S.

Net interest rose 7 percent to $2.41 billion, helped by higher interest rates, which the has raised four times since the second quarter of last year.

Non-interest income climbed 6 percent to $1.91 billion due to growth in asset management and consumer service revenue, which offset a decline in residential mortgages.

Provision for loan losses came in at $80 million, down 18 percent from a year ago, and below the $100 million to $150 million forecast in April.

rose 4 percent to $2.58 billion from $2.48 billion a year earlier due to ongoing business investments, the company said.

Total revenue rose 6.5 percent to $4.32 billion from $4.06 billion a year ago.

Shares of the were up 1.4 percent at $139.97 in premarket trading on Friday.

(Reporting by in Bengaluru; Editing by Bernard Orr)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, July 13 2018. 18:28 IST
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