PNC OKs 9 percent hike in dividend, with Fed approval

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Directors of PNC Financial Services Group on Thursday approved a 9 percent hike in the quarterly common stock dividend to 48 cents per share, up from 44 cents.

Pittsburgh's biggest bank last week received the nod from regulators to increase the dividend, but at the time did not reveal the new rate. 

In a statement Thursday, CEO William Demchak said the increase reflected the bank's "strong capital levels and commitment to enhancing shareholder value."

The new dividend is payable May 5 to shareholders of record April 15.

PNC last raised the dividend a year ago, to 44 cents per share from 40 cents. The bank had been paying 66 cents before the payout was slashed to 10 cents in early 2009 during the financial crisis.

Since the meltdown in the banking industry, the nation's biggest banks have been required to undergo an annual "stress test" by the Federal Reserve and also must submit their dividend and other capital plans to the Fed for approval.

Bank of New York Mellon, which maintains a large presence in Pittsburgh, received the go-ahead from regulators last week to raise its quarterly dividend 13 percent to 17 cents per share, up from 15 cents.

BNY Mellon directors are to meet Tuesday to consider the hike.

The New York-based bank had been paying 24 cents before the dividend was cut to 9 cents in 2009.

Patricia Sabatini: or 412-263-3066.

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