The PNC Financial Services Group Inc (NYSE: PNC) fell 2.14% after releasing its Q2 results, where its revenues came in at $5.29 billion, missing analysts' consensus estimates of $5.45 billion. However, the bank's earnings were $3.36 a share, which was relatively flat compared to last year but slightly above analysts' expectations of $3.29 per share.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Despite the mixed results from the regional bank, it remained stable given that its loans remained stable and its deposits fell by 2% compared to other regional lenders that saw a massive outflow of capital from customers withdrawing their deposits.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The regional bank was spared the bank runs on some of its peers, including Signature Bank, Silicon Valley Bank and First Republic Bank. As a show of confidence in the bank’s prospects, the company’s board decided to increase its dividend payment by 5 cents to $1.55.
The bank also noted that Effective Oct. 1, 2023, its Stress Capital Buffer (SCB) will improve to the regulatory minimum of 2.5%. The bank also revealed that its net interest income fell by 2%, while its net interest margin declined by 0.05%.
PNC Financial Services reported a net income of $1.5 billion, marking a $194 million decline, representing an 11% decline from previous figures. The bank’s total revenue of $5.3 billion marked a $310 million decline, equivalent to 6%. The lower figures were driven by lower non-interest income and net interest income.
Bill Demchak, PNC Chairman, President and CEO, said: “For the second quarter, PNC delivered solid financial results and maintained strong credit quality metrics, reflecting the power of our national franchise and the competitive positioning of our balance sheet in the current environment. The Federal Reserve's annual stress test recently demonstrated PNC’s through-the-cycle financial strength and stability, and starting in the fourth quarter, our stress capital buffer requirement will improve to the regulatory minimum of 2.5%.”
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PNC stock price.
The PNC stock price was down 2.14% to trade at $124.44, falling from Monday’s closing price of $127.16.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
