PNC Financial Services Group Wednesday reported earnings of $992 million in the first quarter, up 7 percent from $928 million a year earlier as the region’s biggest bank set aside less money to cover bad loans and expenses fell.
Per-share profits rose 6 percent to $1.82 from $1.74.
Revenue for the three months ended March 31 dropped 5 percent to $3.78 billion from $3.96 billion as net interest income, essentially profit on loans, slid 8 percent from a year ago. PNC, like other big banks, has been struggling to grow revenue in the face of low interest rates and weakening demand for home loans.
“PNC had a successful quarter,” CEO William Demchak said in a statement. “We grew loans and deposits, and we lowered expenses even as we continue to make investments across our businesses.”
The provision for credit losses in the first quarter was $94 million, down from $113 million in the fourth quarter and $236 million in the first quarter of 2013.
PNC, which slashed expenses by some $775 million last year, was on target to meet its goal of cutting another $500 million in costs this year, Chief Financial Officer Robert Q. Reilly told analysts in a conference call.
Mr. Demchak said PNC would continue to fine tune a model for a scaled-down, full-service bank branch of the future as customers find fewer reasons to bank in person.
PNC also will convert more branches to technology-heavy offices with fewer, if any, employees, he said.
PNC shares added $2.23, or 2.71 percent, Wednesday to close at $84.38.
Patricia Sabatini: email@example.com; 412-263-3066. First Published April 16, 2014 8:34 AM