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Key Takeaways
- PNC Financial Services Group posted a first-quarter profit and revenue decline, and it sees little improvement ahead.
- The financial firm’s net income slumped 21% year-over-year, and revenue was down 8%.
- PNC predicted current-quarter and full-year net interest income and revenue will be little changed or lower compared with the first quarter and 2023.
PNC Financial Services Group (PNC) shares lost ground Tuesday as the bank posted a big drop in first-quarter profit and revenue, and offered soft guidance.
PNC reported first-quarter net income fell 21% year-over-year to $1.34 billion, although adjusted earnings per share (EPS) of $3.36 exceeded estimates. Revenue declined 8% to $5.15 billion, short of forecasts.
Net interest income declined 9% from Q1 2023 to $3.26 billion. Noninterest income dropped 7% to $1.88 billion.
PNC noted that it paid $130 million in a special Federal Deposit Insurance Corporation (FDIC) charge to cover the costs of the federal takeover of failed banks.
Chief Executive Officer (CEO) Bill Demchak remained upbeat, saying that PNC ”grew customers, reduced expenses, increased spot deposits, maintained stable credit quality and continued to build upon our strong liquidity and capital positions.”
However, the company projected current-quarter net interest income to be down about 1% from the first quarter, with total revenue “stable.” It left its full-year outlook compared to 2023 unchanged, with net interest income falling 4% to 5% and revenue in the range of stable to 2% lower.
Shares of PNC Financial Services Group were down 1.5% to $147.39 as of about 11:45 a.m. ET. They are down almost 6% in 2024 but up more than 17% in the past year.