Bloomberg News

PNC Decline Most Since 2012 on Revenue Forecast

July 16, 2014

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.

To contact the reporter on this story: Craig Giammona in New York at cgiammona@bloomberg.net

To contact the editors responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net Steven Crabill, Steve Dickson


Cash Is for Losers
LIMITED-TIME OFFER SUBSCRIBE NOW

Companies Mentioned

  • PNC
    (PNC Financial Services Group Inc/The)
    • $86.93 USD
    • -0.14
    • -0.16%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus