PNC Financial Services Group Inc. (PNC:US), the second-largest U.S. regional bank, fell the most in 20 months after forecasting expenses may rise in the third quarter while revenue declines.
PNC slid 3.5 percent to $85.18 at 10:30 a.m. in New York, the most since November 2012 and the biggest decline on the KBW Bank Index. (BKX) The shares were the best performer on the 24-company index this year through yesterday.
Net interest income should decline “modestly” in the third quarter while noninterest expenses rise by low single digits, the Pittsburgh-based lender said today in a presentation on its website. Fee revenue should be stable with “modest” loan growth, the bank said.
Net income in the second quarter dropped to $1.05 billion, or $1.85 a share, from $1.12 billion, or $1.98, a year earlier, PNC said today in a statement. The average estimate (PNC:US) of 28 analysts surveyed by Bloomberg was for adjusted profit of $1.78 a share. Operating expenses and net interest margin for the quarter missed analysts’ estimates, while PNC said it set aside $85 million less for bad loans than a year earlier.
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