PNC Financial Services Group, Inc. Reports Revenue Growth in Second Quarter FY24

PNC Financial Services Group, Inc. shares are on the rise following the release of their second-quarter FY24 results. The bank reported a revenue increase of 2% year-over-year, reaching $5.411 billion, just slightly below the expected $5.412 billion consensus. The growth in revenue was primarily driven by higher noninterest income. However, net interest income experienced a 6% decline year-over-year, dropping to $3.30 billion, with the net interest margin decreasing to 2.60% from 2.79% in the previous year quarter due to increased funding costs and lower loan balances. Noninterest income, on the other hand, saw an 18% year-over-year increase to $2.11 billion, largely propelled by higher fee income across all categories.”

The adjusted earnings per share (EPS) of PNC Financial Services Group, Inc. came in at $3.30, surpassing the consensus estimate of $2.98. The bank reported a provision for credit losses of $235 million in the quarter, compared to $146 million in the same period last year, reflecting portfolio activity. PNC also engaged in the Visa exchange program during the second quarter of FY24, resulting in a gain of $754 million. Moreover, the company’s board of directors approved an increase in the quarterly cash dividend per share to $1.60, up from $1.55, payable on August 5, 2024, to shareholders of record as of July 15, 2024.

Looking ahead, PNC Financial Services Group, Inc. anticipates a 1%-2% decrease in revenue for FY24, with net interest income projected to decline by 4% and average loans to decrease by less than 1%. In the third quarter, the bank expects average loans to remain stable and net interest income to increase by 1%-2%. PNC’s CEO, Bill Demchak, expressed satisfaction with the second-quarter results, highlighting the company’s revenue growth and controlled expenses, as well as its strengthened capital levels. The reported growth in net interest income and net interest margin signals the beginning of PNC’s growth trajectory towards an expected record net interest income in 2025.”