Regional bank PNC Financial Services Group, Inc. (PNC) Wednesday reported a rise in third-quarter profit, as provision for credit losses fell 60 percent from last year. The firm generated lower revenues in a challenging revenue environment, but was marginally ahead of analysts' expectations.
For the third quarter, net income attributable to diluted common shares rose to $959 million or $1.79 per share from $947 million or $1.77 per share in the prior year.
On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $1.71 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenue for the quarter declined 2 percent to $3.84 billion from $3.92 billion in the year-ago quarter. Wall Street expected revenues of $3.80 billion for the quarter.
Net interest income dropped to $2.10 billion from $2.23 billion last year. Meanwhile, non-interest income was $1.74 billion, up from $1.69 billion in the previous year.
The net interest margin was 2.98 percent for the third quarter of 2014, compared with 3.12 percent for the second quarter and 3.47 percent for the third quarter of 2013.
Provision for credit losses fell 60 percent to $55 million from $137 million a year ago, as overall credit quality continued to improve.
William Demchak, chairman, president and chief executive officer of the company said, "We added customers, grew deposits, and increased fee income and capital. We also effectively managed expenses even as we made targeted investments in our businesses and technology."
Non-interest expense was $2.36 billion, lower than $2.39 billion in the prior year.
Deposits grew 5 percent to $226.3 billion from $216.1 billion last year. Total loans were $200.9 billion at September 30, 2014, an increase of 4 percent from the same period last year.
PNC Financial said its transitional Basel III common equity Tier 1 capital ratio, calculated using the regulatory capital methodology applicable to PNC during 2014, increased to an estimated 11.1 percent at September 30, 2014 from 11.0 percent at June 30, 2014.
Pro forma fully phased-in Basel III common equity Tier 1 capital ratio was 10.1 percent, up from 8.7 percent at the end of September 2013.
PNC closed Tuesday's trading at $81.59, up 0.67 percent.
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