By Dave Sebastian
PNC Financial Services Group Inc. said its profit for the fiscal first quarter rose on provision recapture driven by improved macroeconomic expectations.
The Pittsburgh-based regional bank on Friday posted net income attributable to the company of $1.82 billion, compared with $908 million in the prior year. Earnings were $4.10 a share, compared with $1.95 a share in the same period last year. Analysts polled by FactSet were expecting earnings of $2.72 a share.
Provision for credit losses was negative $551 million, compared with positive $914 million in the year-ago period.
"We recorded a substantial provision recapture, saw improvement in our credit metrics and capital and liquidity are at record levels," Chief Executive Bill Demchak said. "We see significant growth opportunities as the economy recovers and rates improve."
Revenue fell to $4.22 billion from $4.34 billion. Analysts were looking for $4.12 billion.
Net interest income fell to $2.35 billion from $2.51 billion, while noninterest income rose to $1.87 billion from $1.83 billion a year earlier.
Analysts were looking for net interest income of $2.41 billion and noninterest income of $1.72 billion.
Average deposits were $365.4 billion, compared with $289.7 billion in the year-ago period.
Net loan charge-offs were $146 million, compared with $212 million in the same period last year.
Write to Dave Sebastian at firstname.lastname@example.org
(END) Dow Jones Newswires