PNC’s financials surge beyond expectations in third quarter due to higher sales and significant fee increases
PNC Financial Services Group (NYSE:PNC) stock is on the rise following the release of its third quarter results.
Revenues increased 4% year over year to $5,432 million, beating the consensus of $5,389 million. Revenue increased compared to the previous year due to an increase in non-interest income.
Net interest income was $3.41 billion, flat year over year, with net interest margin of 2.64%.
Non-interest income increased 11% year over year to $2.02 billion, driven by strong capital markets and higher fee income from advisory income (up 13% year over year).
Average loans and average deposits were both stable year-over-year in the third quarter. EPS of $3.49 beat the consensus of $3.32.
The company reported an allowance for credit losses of $243 million in the quarter, compared to $129 million in the year-ago period. The CET1 capital adequacy ratio was 10.3%, compared to 9.8% in the same period last year.
Dividend: On October 3, 2024, PNC’s board of directors declared a quarterly cash dividend of $1.60 on common stock, payable on November 5, 2024, to shareholders of record as of October 16, 2024. did.
PNC returned $800 million in capital to shareholders during the quarter, including more than $100 million in share repurchases.
The company expects share repurchase activity in the fourth quarter of 2024 to be consistent with recent quarterly averages.
said Bill Demchak, Chairman and CEO. Both NII and NIM increased, fee income increased significantly and expenses remained well controlled, resulting in positive operating leverage. ”
“Importantly, we continued to grow TBV, add customers and strengthen our capital levels. We continue to capitalize on opportunities and are well-positioned to achieve record NII in 2025.”
Guidance: For the fourth quarter, the bank expects average loan size and total revenue to be stable, with net interest income increasing 1% sequentially.
Investors can gain exposure to equities through the IShares Regional Bank ETF (NYSE:IAT) and the Invesco Exchange Traded Fund II Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV).
Price Action: PNC stock was up 0.78% at a pre-market price of $190.00 at last check on Tuesday.
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The article PNC’s financials soar above expectations in third quarter due to higher revenue and big fee increases originally appeared on Benzinga.com.
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