The ax is swinging at
The Pittsburgh-based bank on Tuesday said it will eliminate 3,000 jobs as part of move to cut costs by $300 million.
The bank said about half of the job cuts will be achieved through attrition over the next two years. Most of the cuts will be carried by the end of this year.
"I am confident that PNC will emerge from this process a much stronger, much more efficient unified organization,'' said PNC Chairman and CEO James Rohr.
The news of the job cuts comes two months after PNC completed its $652 million acquisition of scandal-tainted Riggs National. The Washington, D.C., area bank pleaded guilty earlier this year to a criminal charge of failing to report suspicious transactions to bank regulators, stemming from its past dealings with former Chilean dictator Augusto Pinochet.
The bank late Tuesday also reported that second-quarter earnings fell by 7% from a year ago.
In the quarter, the bank earned $282 million, or 98 cents a share, compared with $304 million, or $1.07 a share a year ago. Second-quarter earnings included a charge of $18 million, or 8 cents a share, related to the Riggs acquisition.
The Thomson Financial consensus estimate had the bank earning $1.05 a share in the quarter. Taking out the merger charge, PNC exceeded the analysts' forecast by a penny.