Pittsburgh-based PNC Financial Services Group saw profits for the second quarter fall 6 percent as revenue — under pressure from low interest rates — also declined.
Net income for the three months ended June 30 was $1 billion, or $1.85 per share, down from $1.06 billion, or $1.98, in the same quarter last year.
Revenue also slipped 6 percent to $3.81 billion, down from $4.06 billion a year earlier.
“We delivered solid earnings in the second quarter,” CEO William Demchak said in a statement Wednesday. “While our near-term outlook is for a continuation of the low interest rate environment, we are making important progress on our strategic priorities, which we expect will benefit our long-term performance.”
Overall, expenses fell and the bank set aside less money to cover bad loans. The provision for loan losses was $72 million for the quarter, down from $157 million a year ago.
Looking ahead, revenue for the full year is expected to decline due to continued pressure from low rates, chief financial officer Robert Reilly told analysts in a conference call. “In this environment, we will remain focused on disciplined expense management,” he said.
Pittsburgh’s biggest bank, which slashed expenses by some $775 million in 2013, has set a goal of cutting another $500 million this year. The bank had met two-thirds of that target by the end of June, Mr. Reilly said.
PNC is continuing to redesign its branches to be more technology-driven, with no teller windows.
The bank is on track to convert 150 offices to the new format across its multistate footprint by the end of the year and some 300 by the end of the first quarter of 2015, Mr. Demchak told analysts.
PNC, the seventh-biggest bank in the country, has nearly 3,000 branches.
Its shares skidded $3.06 Wednesday, or 3.47 percent, to close at $85.18.
Patricia Sabatini: firstname.lastname@example.org or 412-263-3066. First Published July 16, 2014 12:00 AM