PNC Financial Services Group 1Q Profit Falls 5.7% And Misses Estimations

PNC Financial Services Group Inc

announced net income of $943 million for the first quarter, down 5.7% from $1.0 billion in the year-ago quarter. Its earnings also fell 4% to $1.68 a share from $1.75 a share in the same period last year. Analysts expected the company to deliver EPS of $1.70. PNC Financial Services' total revenues slipped 1.77% to $3.665 billion from $3.731 billion in the previous year quarter. Street analysts predicted revenue of $3.75 billion in the first quarter. The company's Chairman, President and CEO, William Demchak, said that "PNC had solid first quarter earnings that were impacted by weaker equity markets and related fees, and continued deterioration in energy related credits". The CEO further added, "We lowered expenses, maintained a strong balance sheet and continued to return capital to shareholders. We also saw good underlying trends in our businesses to start the year, and we expect that momentum to continue in 2016." PNC's provision for credit losses was $152 million for the first quarter, which represented $78 million increase from the fourth quarter. On Wednesday, the stock ended higher by 3.4%.