5 Bank Earnings Winners From Jefferies

PNC Financial Services Group
Shares of PNC Financial Services (PNC) of Pittsburgh closed at $64.60 Thursday, returning 13% year-to-date.

The shares trade for 1.4 times tangible book value, according to HighlineFI, and for nine times the consensus 2013 earnings estimate of $6.88 a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $6.15.

Based on a quarterly payout of 40 cents, the shares have a dividend yield of 2.48%.

PNC on Wednesday reported first-quarter earnings of $811 million, or $1.44 a share, compared to $493 million, or 85 cent a share, during the fourth quarter of 2011. The bank reported a profit of $832 million, or $1.57 a share, during the first quarter of 2011.

The first-quarter results came in a penny ahead of the consensus estimate.

Following the industry trend, PNC's mortgage revenue increased 18% year-over-year, to $230 million.

Following PNC's earnings announcement, Usdin reiterated his "Buy" rating for PNC, while raising his price target for the shares by two dollars to $72, and increasing is 2012 EPS estimate to $6.90 from $5.85, and his 2013 EPS estimate to $6.60 from $6.45, saying that the "outsized jump in '12 is based on the switch to exclude merger and integration charges ($0.46)."�

Aside from the merger expense accounting from PNC's acquisition of RBC Bank (USA), Usdin said his estimate increases were "primarily the result of higher [net interest margin] and lower provision [for loan losses] assumptions," with some offset from increasing expenses.

Interested in more on PNC Financial Services Group? See TheStreet Ratings' report card for this stock.

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