PNC Financial Services, based in Pittsburgh, reported lower earnings for the third quarter of this year. The decline can be attributed to the sluggish M&A market and lower trading activity, which affected non-interest income, while higher funding costs impacted net interest income.
Earnings and Revenue
In the third quarter, PNC Financial Services recorded a net income of $1.55 billion, or $3.60 per share. This is a decrease from $1.62 billion, or $3.78 per share, in the same period last year. Analysts surveyed by FactSet had predicted earnings of $3.10 per share.
Revenue also experienced a decline, dropping to $5.23 billion from $5.55 billion. However, it is worth noting that this still exceeded the expectations of analysts surveyed by FactSet, who had forecasted revenue of $5.32 billion.
Deposit and Income Figures
Average deposits witnessed a 4% decrease from the previous year and amounted to $422.5 billion.
Net interest income slipped around 2% from the previous year, amounting to $3.42 billion. Meanwhile, non-interest income saw a significant 12% decline from last year, reaching $1.82 billion.
Credit Loss Provision
PNC Financial Services set aside $129 million for credit losses in the third quarter. This figure is lower than the $241 million allocated in the same period last year and the $146 million in the second quarter.
