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The bank reported adjusted earnings per share (EPS) of $3.36, which was $0.34 higher than the analyst consensus of $3.02. However, revenue for the quarter was reported at $5.15 billion, marginally below the consensus estimate of $5.19 billion.
Despite the mixed financial outcomes, PNC’s stock experienced a modest decline of 0.69% following the announcement, indicating a somewhat tepid reaction from the market. The slight earnings and revenue beat was the primary driver behind the stock’s movement.
In the first quarter, PNC saw a 4% decrease in revenue compared to the previous quarter and an 8% decline year-over-year (YoY). The bank’s net interest income was $3.3 billion, down by 4% from the fourth quarter of 2023 and a 9% drop from the same period last year. Noninterest income also saw a reduction, with a 4% quarter-over-quarter decrease and a 7% fall YoY.
PNC’s Chairman and Chief Executive Officer, Bill Demchak, commented on the results, stating, “PNC delivered solid first-quarter results generating net income of $1.3 billion which included an additional $130 million pre-tax FDIC special assessment. During the quarter, we grew customers, reduced expenses, increased spot deposits, maintained stable credit quality and continued to build upon our strong liquidity and capital positions. The strength of our balance sheet, diverse business mix, and the quality of our people, position us well for continued growth across our franchise as the year progresses.”
The bank’s provision for credit losses was $155 million, reflecting portfolio activity and improved macroeconomic factors. This was a decrease from the $232 million provision in the fourth quarter of 2023. The bank also reported an 18% effective tax rate for the first quarter.
PNC’s balance sheet remained robust, with average loans decreasing by 1% and average deposits also seeing a 1% reduction. The bank maintained a strong capital position, with a common equity Tier 1 (CET1) capital ratio of 10.1%.
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