Friday, October 23, 2009 11:16:25 AM
Article Tools Sponsored By
By THE ASSOCIATED PRESS
Published: October 22, 2009
Filed at 2:49 p.m. ET
NEW YORK (AP) -- Shares of PNC Financial Services Group Inc. soared Thursday after the nation's fifth largest bank said its profit grew sharply during the third quarter, even as loan losses rose.
Echoing results at rivals Wells Fargo & Co. and US Bancorp, the Pittsburgh-based bank said rising interest and fee income, boosted by its acquisition of National City Corp., more than offset a big jump in loan losses, which rose to $650 million from $122 million in the third quarter of last year.
Earnings available to common shareholders totaled $467 million, or $1 per share, in the three months ended Sept. 30, as its revenue more than doubled to $4.05 billion. Both income and revenue were well above what Wall Street was anticipating. A year ago, the bank earned $248 million, or 70 cents a share.
Shares rallied $6.23, or 13.9 percent, to $51.19 in afternoon trading.
Last year at this time, PNC shares were trading near $75. But shortly after announcing its plans to buy National City in late October, shares began to plunge, along with the entire financial sector, as investors worried about the stability of banks amid a worsening economy.
PNC shares fell hard and fast in the final months of last year and beginning of 2009 as the credit crisis rocked the financial system, sinking 78 percent in a matter of five months to an 18-year low of $16.20 on March 6. Including Thursday's big gains, shares have rebounded about 214 percent since then.
Like nearly all banks, PNC has battled mounting loan losses as consumers struggle to repay debt. PNC set aside $914 million during the third quarter to cover faulty loans, nearly five times the amount set aside during the same period last year, but 16 percent less than the $1.1 billion in the second quarter.
Loan losses also declined from the second quarter, sliding 18 percent from $795 million.
Though many banks have warned this quarter that loan losses will continue to rise well into next year, PNC joined Minneapolis-based regional bank US Bancorp in offering a more hopeful outlook, saying bad loans aren't growing as fast as they were earlier this year, which could be a sign that losses have peaked.
The bank said its fourth-quarter provision for loan losses should be roughly the same as the third quarter.
Chairman and CEO James Rohr said he is encouraged that the pace of loan losses appears to be easing. But he is still cautious about the economy. Despite signs the economy is stabilizing, 'it doesn't feel like the recession is over,' he said during a conference call with investors.
With the outlook on the economy still cloudy, Rohr said the bank is in no rush to pay back the government's $7.6 billion TARP loan.
'We'll pay it back over a reasonable amount of time,' he said, perhaps as soon as in the next 15 months and so long as regulators approve.
As part of the government's stress tests of the 19 largest U.S. banks, PNC was required to raise an additional $600 million in capital this year as a buffer against potential futures losses. The bank met that requirement when it raised more than $600 million in a common stock offering in May.
Recent PNC News
- Form 13F-HR - Quarterly report filed by institutional managers, Holdings • Edgar (US Regulatory) • 05/10/2024 01:41:29 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 05/09/2024 02:39:31 PM
- Form FWP - Filing under Securities Act Rules 163/433 of free writing prospectuses • Edgar (US Regulatory) • 05/08/2024 08:19:02 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/08/2024 08:16:14 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 05/08/2024 12:34:54 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/07/2024 07:11:38 PM
- PNC Bank Introduces New Cash Unlimited Visa Signature® Credit Card Offering 2% Cash Back Across All Eligible Purchases • PR Newswire (US) • 05/07/2024 02:00:00 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 05/06/2024 09:03:38 PM
- PNC, TCW Partner To Expand Capabilities, Create Private Credit Platform • PR Newswire (US) • 05/06/2024 01:25:00 PM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- U.S. Index Futures Signal Mixed Trading, Oil Prices Dip • IH Market News • 04/16/2024 11:19:33 AM
- PNC Reports First Quarter 2024 Net Income of $1.3 Billion, $3.10 Diluted EPS, or $3.36 Excluding a $130 Million FDIC Special Assessment • PR Newswire (US) • 04/16/2024 10:33:00 AM
- PNC Declares Dividend of $1.55 on Common Stock • PR Newswire (US) • 04/03/2024 03:29:00 PM
- GENYOUth AND TASTE OF THE NFL INCREASE ACCESS TO 148 MILLION SCHOOL MEALS, FOSTERING NUTRITION SECURITY AMONG STUDENTS NATIONWIDE • PR Newswire (US) • 03/21/2024 01:07:00 PM
- PNC Bank Highlights Nearly 160 Years of Reliable and Responsible Banking With 'Boring' Brand Campaign • PR Newswire (US) • 03/18/2024 10:55:00 AM
- PNC Names Michael Thomas Head of Corporate & Institutional Banking • PR Newswire (US) • 03/13/2024 06:04:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/05/2024 06:57:34 PM
- The PNC Financial Services Group Announces First Quarter 2024 Earnings Conference Call, Virtual-Only Annual Shareholders Meeting Details • PR Newswire (US) • 03/05/2024 01:15:00 PM
- Form ARS - Annual Report to Security Holders • Edgar (US Regulatory) • 03/01/2024 01:29:25 PM
- PNC Survey Shows Business Owner Optimism Continues to Soar Amid Improving Economic Conditions • PR Newswire (US) • 02/28/2024 11:55:00 AM
- PNC Executive To Speak At RBC Capital Markets Conference • PR Newswire (US) • 02/21/2024 01:25:00 PM
- PNC Appoints Michael P. Lyons President • PR Newswire (US) • 02/20/2024 12:02:00 PM
- PNC Bank Announces Nearly $1 Billion Investment In Coast-to-Coast Branch Network • PR Newswire (US) • 02/14/2024 01:05:00 PM
- PNC Executive To Speak At Bank of America Conference • PR Newswire (US) • 02/07/2024 01:45:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 01/26/2024 09:23:47 PM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM