PNC Reports First Quarter Net Income Of $1.0 Billion And $1.75 Diluted EPS
"PNC delivered solid results in the first quarter, continuing the consistent performance that has been characteristic of our strategic execution," said William S. Demchak, chairman, president and chief executive officer. "We grew average loans and deposits, controlled expenses and benefited from modestly improved credit quality this quarter. We completed our existing share repurchase program and announced new actions to return more capital to shareholders. Looking ahead, we like how we are positioned to help our customers achieve their financial goals and to perform for our shareholders."
Income Statement Highlights
- First quarter earnings reflected average loan and deposit growth, disciplined expense management, modestly improved credit quality and seasonal client trends.
- Net interest income of \$2.1 billion for the first quarter was relatively stable with the fourth quarter, declining slightly by \$25 million, or 1 percent, primarily as a result of two fewer days in the first quarter.
- Noninterest income of \$1.7 billion for the first quarter decreased \$191 million, or 10 percent, compared with the fourth quarter due to higher fourth quarter gains on asset dispositions as well as seasonally lower client revenue.
- Noninterest income increased 5 percent over first quarter 2014 driven by strong fee income growth from success in deepening client relationships and product penetration.
- Noninterest expense of \$2.3 billion for the first quarter declined substantially by \$190 million, or
7 percent, compared with the fourth quarter reflecting elevated fourth quarter expenses and continued expense management. - Provision for credit losses was \$54 million for the first quarter compared with \$52 million in the fourth quarter as overall credit quality improved modestly.
Balance Sheet Highlights
- Average loans grew \$2.3 billion, or 1 percent, compared with the fourth quarter. Total loans of \$205 billion at March 31, 2015 decreased \$.1 billion compared with December 31, 2014 as loan activity declined from higher fourth quarter levels.
- Average commercial lending increased \$2.9 billion primarily in PNC's corporate banking and real estate businesses.
- Average consumer lending decreased \$.6 billion.
- Overall credit quality for the first quarter improved modestly compared with the fourth quarter.
- Nonperforming assets of \$2.8 billion at March 31, 2015 declined \$126 million, or 4 percent, compared with December 31, 2014.
- Net charge-offs decreased to \$103 million for the first quarter from \$118 million in the fourth quarter.
- Investment securities increased by \$5.0 billion, or 9 percent, during the first quarter to
\$61 billion at March 31, 2015, primarily funded by deposit growth. - Deposits grew \$4.3 billion, or 2 percent, to \$237 billion at March 31, 2015 compared with December 31, 2014 reflecting higher retail deposits.
- PNC's well-positioned balance sheet remained core funded with a loans to deposits ratio of
87 percent at March 31, 2015. - PNC maintained a strong liquidity position.
- New regulatory short-term liquidity standards became effective for PNC as an advanced approaches bank beginning January 1, 2015, with a minimum phased-in Liquidity Coverage Ratio requirement of 80 percent in 2015, calculated as of month end.
- The estimated Liquidity Coverage Ratio at March 31, 2015 exceeded 100 percent for both PNC and PNC Bank, N.A.
- PNC returned capital to shareholders through repurchases of 4.4 million common shares for
\$.4 billion during the first quarter of 2015.- PNC completed its common stock repurchase program for the four quarter period that began in second quarter 2014 with total repurchases of 17.3 million common shares for \$1.5 billion.
- In March 2015 PNC announced new share repurchase programs of up to \$2.875 billion for the five quarter period beginning in the second quarter of 2015.
- In April 2015 the board of directors raised the quarterly dividend on common stock to 51 cents per share, an increase of 3 cents per share, or 6 percent, effective with the May dividend.
- PNC maintained a strong capital position.
- Transitional Basel III common equity Tier 1 capital ratio was an estimated 10.4 percent at March 31, 2015 and 10.9 percent at December 31, 2014, calculated using the regulatory capital methodologies applicable to PNC during 2015 and 2014, respectively.
- Pro forma fully phased-in Basel III common equity Tier 1 capital ratio was an estimated 9.9 percent at March 31, 2015 and 10.0 percent at December 31, 2014 based on the standardized approach rules.
Комментарии