PNC Financial Services Group Earnings: Streak of Two Straight Profit Rises Snapped

S&P 500 (NYSE:SPY) component PNC Financial Services Group (NYSE:PNC) reported its results for the third quarter. PNC Financial Services Group offers corporate and institutional banking, retail banking, asset management, residential mortgage banking, and global investment services.

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PNC Financial Services Group Earnings Cheat Sheet for the Third Quarter

Results: Net income for PNC Financial Services Group fell to $830 million ($1.55 per share) vs. $1.1 billion ($2.07 per share) a year earlier. This is a decline of 24.6% from the year earlier quarter.

Revenue: Fell 1.5% to $3.54 billion from the year ago.

Actual vs. Wall St. Expectations: The mean estimate for PNC was $1.49 per share.

Quoting Management: “PNC’s results for the third quarter were driven by strong performance across our businesses and markets as we continued to grow customers, loans and deposits,” said James E. Rohr, chairman and chief executive officer. “We increased capital and managed risk by improving overall credit quality. We are managing expenses effectively so we can further invest in products and services. Despite softness in the economy, we believe our business model will continue to deliver quality growth in the future.”

Key Stats:

Last quarter’s profit decrease breaks a streak of two consecutive quarters of year-over-year profit increases. Net income rose 12.2% in the second quarter and 23.8% in the first quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1.46 per share to $1.42, indicating that analysts are growing pessisimistic about the company’s performance next quarter. Over the past three months, the average estimate for the fiscal year has climbed from $5.97 per to share to $6.16.

Competitors to Watch: Wells Fargo & Company (NYSE:WFC), Bank of America Corp. (NYSE:BAC), SunTrust Banks, Inc. (NYSE:STI), JPMorgan Chase & Co. (NYSE:JPM), KeyCorp (NYSE:KEY), Citigroup Inc. (NYSE:C), Regions Financial Corp. (NYSE:RF), BB&T Corporation (NYSE:BBT) and First Horizon National Corp. (NYSE:FHN).

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(Source: Xignite Financials)