This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

PNC Misses but Margin Expansion Offers Hope (Update 1)

  • PNC reports second-quarter earnings of 98 cents a share, missing the consensus estimate of $1.24.
  • Second-quarter results include mortgage putback charges of $284 million, or 54 cents, and $119 million in other charges for trust preferred redemptions and merger integration expenses.
  • Net interest income grows 10% sequentially, reflecting a full quarter benefit the March 2 RBC Bank (USA) acquisition; net interest margin expands to 4.08%.

Updated with comment from Stifel Nicolaus analyst Christopher Mutascio and market close information.

NEW YORK ( TheStreet) -- PNC Financial Services Group (PNC - Get Report) of on Wednesday reported that its net interest margin during the second quarter expanded to 4.08% from 3.90% the previous quarter, and 3.93% a year earlier, running counter to the trend for most large regional banks in the prolonged low-rate environment.

The Pittsburgh lender reported a second-quarter net income of $546 million, or 98 cents a share, missing the consensus estimate of a profit of $1.24 a share, among analysts polled by Thomson Reuters.

The second-quarter results included a mortgage putback provision of $284 million, or 54 cents a share after tax, noncash charges of $85 million, or 16 cents a share, related to trust preferred share redemptions, and integration expenses of $34 million, or six cents a share, related to the acquisition of RBC Bank (USA) on March 2.

In comparison, PNC earned $811 million, or $1.44 a share, during the first quarter, and $912 million, or $1.67 a share, during the second quarter of 2011.

PNC's shares pulled back 1% to close at $61.01.

The company reported that its net interest income during the second quarter totaled $2.5 billion, increasing 10% from the previous quarter and reflecting a full quarter benefit from the RBC Bank (USA) acquisition, as well as the redemption of roughly $1.8 billion in trust preferred shares.

PNC said that excluding the mortgage putback provision, second-quarter noninterest income increased 4% sequentially.

PNC had $299.6 billion in total assets as of June 30. Total loans grew 2% during the second quarter, with commercial loans increasing by 3% to $104.1 billion, at the end of the second quarter, "as a result of strong loan growth primarily in corporate banking, real estate finance and asset-based lending," according to the company.

Total deposits grew slightly during the second quarter, to $206.9 billion, as of June 30.

The company estimated that its June 30 Tier 1 common equity ratio was 9.3% as of June 30, unchanged from the previous quarter, and said "{NC expects to reach its Basel III Tier 1 common capital ratio goal of 8.0 to 8.5 percent by year end 2013 without benefit of phase-ins, based on Basel III proposed rules and including application of Basel II and Basel II.5 rules."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
PNC $96.47 0.00%
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs