EmailStory Stocks®
Archive
Last Update: 16-Oct-12 09:10 ET
PNC shares fall 2% following disappointing earnings
PNC (PNC $61.72 -1.21) reported third quarter GAAP earnings of $1.64 per share, $0.04 better than the GAAP Capital IQ consensus of $1.60, while revenues rose 12.8% year/year to $4.09 billion versus the $4.02 bln consensus. Loans grew $1.5 billion, or 1 percent, during the third quarter to $182 billion at September 30, 2012 compared with June 30, 2012 reflecting continued growth but at a slower pace. Net interest income of $2.4 billion for the third quarter decreased $.1 billion compared with the second quarter primarily due to the impact of lower purchase accounting accretion. The net interest margin decreased to 3.82 percent for the third quarter of 2012 compared with 4.08 percent for the second quarter of 2012 and 3.89 percent for the third quarter of 2011. The linked quarter decrease in the net interest margin was 26 basis points, with 16 basis points of the decline due to lower purchase accounting accretion. Provision for credit losses declined to $228 million for the third quarter compared with $256 million for the second quarter.
Net charge-offs for the third quarter of 2012 were .73 percent of average loans on an annualized basis compared with .71 percent for the second quarter of 2012 and .95 percent for the third quarter of 2011. Net charge-offs for the third quarter of 2012 included $83 million related to the additional consumer loan troubled debt restructurings resulting from bankruptcy. PNC strengthened its strong capital levels. The Tier 1 common capital ratio increased to an estimated 9.5 percent at September 30, 2012 from 9.3 percent at June 30, 2012. "On the strength of our products, brand and execution we continued to increase the number of customers we serve resulting in revenue and loan growth. We also remained focused on controlling costs while investing for the future and managing risk and capital. As a result, PNC is well positioned to continue to create shareholder value."
Net charge-offs for the third quarter of 2012 were .73 percent of average loans on an annualized basis compared with .71 percent for the second quarter of 2012 and .95 percent for the third quarter of 2011. Net charge-offs for the third quarter of 2012 included $83 million related to the additional consumer loan troubled debt restructurings resulting from bankruptcy. PNC strengthened its strong capital levels. The Tier 1 common capital ratio increased to an estimated 9.5 percent at September 30, 2012 from 9.3 percent at June 30, 2012. "On the strength of our products, brand and execution we continued to increase the number of customers we serve resulting in revenue and loan growth. We also remained focused on controlling costs while investing for the future and managing risk and capital. As a result, PNC is well positioned to continue to create shareholder value."
