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PNC Reports Second Quarter 2017 Net Income of $1.1 Billion, $2.10 Diluted EPS

Loans, revenue grew; expenses well managed

PITTSBURGH, July 14, 2017 /PRNewswire/ -- The PNC Financial Services Group, Inc. (PNC) today reported:

"In the second quarter, PNC grew loans and revenue, and we controlled expenses well," said William S. Demchak, chairman, president and chief executive officer. "We've maintained a strong capital position and recently increased our common stock dividend by 36 percent to an all-time high. Our ongoing execution on our strategic priorities across the enterprise has positioned us for continued success in the current credit and interest rate environment, as well as for the long term."

Income Statement Highlights

Second quarter 2017 compared with first quarter 2017

  • Total revenue grew $176 million, or 5 percent, to $4.1 billion, and PNC continued to generate positive operating leverage.
  • Noninterest expense increased $77 million, or 3 percent, to $2.5 billion reflecting the impact of seasonal activity.
  • Provision for credit losses increased $10 million to $98 million and included an initial provision for a loan and lease portfolio obtained through a business acquisition offset by a benefit from the performance of certain residential real estate loans and home equity lines of credit reaching draw period end dates.

Balance Sheet Highlights

  • Loans grew $5.2 billion, or 2 percent, to $218.0 billion at June 30, 2017 compared with March 31, 2017.
  • Overall credit quality remained stable.
  • Deposits were $259.2 billion at June 30, 2017, a decrease of $1.5 billion, or 1 percent, compared with March 31, 2017 reflecting a seasonal decline in consumer deposits.
  • PNC completed common stock repurchase programs for the four quarter period ending in the second quarter of 2017 and returned a total of $3.4 billion of capital to shareholders over this period through repurchases of 21.5 million common shares for $2.3 billion and dividends on common shares of $1.1 billion.
  • PNC's board of directors raised the quarterly cash dividend on common stock to 75 cents per share, an increase of 20 cents per share, or 36 percent, effective with the August dividend.
  • In June 2017 PNC announced share repurchase programs of up to $2.7 billion for the four-quarter period beginning in the third quarter of 2017, including repurchases of up to $.3 billion related to employee benefit plans.
  • PNC maintained strong capital and liquidity positions.
...

Earnings Summary


In millions, except per share data




2Q17




1Q17




2Q16



Net income



$

1,097



$

1,074



$

989



Net income attributable to diluted common shares



$

1,025



$

963



$

914



Diluted earnings per common share




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