PNC Financial Services Group Inc. (NYSE: PNC) said on Friday that its profit came in better than last year in the fiscal fourth quarter as it released funds that it had previously set aside for credit losses. The company also expressed confidence that macroeconomic conditions were now showing signs of improvement.
PNC Financial opened more than 2.5% down on Friday. The stock is now trading at £115 per share. In comparison, it had tumbled to as low as £60 per share in the last week of March 2020.
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PNC Financial reports £1.06 billion of net income in Q4
PNC Financial said that its net income printed at £1.06 billion in Q4 that translates to £2.40 per share. In the same quarter last year, its net income was capped at a lower £1.01 billion or £2.18 per share. According to FactSet, experts had forecast the company to earn £1.92 per share in the fourth quarter. PNC Financial declared 85 pence per share of quarterly common-stock dividend last week.
The bank holding company reported £3.10 billion of revenue in the recent quarter versus the year-ago figure of £3.18 billion. PNC Financial said that its net interest income stood at £1.78 billion in Q4 as compared to £1.83 billion last year. At £1.31 billion, non-interest income in the fourth quarter also registered lower than £1.35 billion in the comparable quarter of the previous year.
FactSet Consensus for PNC Financial’s fourth-quarter net interest and non-interest income stood at £1.82 billion and £1.23 billion, respectively. The Pittsburgh-based company valued average deposits at £264.41 billion in Q4 that represents a 4% annualised growth.
PNC Financial suspended its share buyback program in March 2020
PNC Financial suspended its share repurchase program through the fourth quarter last year in March when the impact of the ongoing Coronavirus pandemic was at its peak. The COVID-19 crisis has so far infected more than 23 million people in the United States and caused a little under 400 thousand deaths.
In separate news from the U.S., the American multinational financial services company, Wells Fargo said on Friday that its profit in the fiscal fourth quarter came in better than the experts’ forecast.
PNC Financial performed slightly downbeat in the stock market last year with an annual decline of roughly 6%. At the time of writing, the bank holding company is valued at almost £49 billion and has a price to earnings ratio of 9.37.