PNC Financial Q4 Earnings: Credit Losses Provision Dips, Forecasts Sequential Fall In Q1 Revenue And Loans

PNC Financial Services Group, Inc. PNC reported fourth-quarter revenue increase of 4% year-over-year to $5.57 billion, beating the consensus of $5.50 billion. Revenue growth was led by higher net interest income and noninterest income.

Net interest income grew 4% year over year to $3.52 billion, thanks to a decline in funding costs and the continued repricing of fixed-rate assets. The net interest margin stood at 2.75%, 9 basis points higher year over year.

Noninterest income grew 4% to $2.04 billion, led by higher fee income (+3% Y/Y) thanks to strong growth in capital markets and advisory segment. EPS of $3.77 topped the consensus of $3.33.

The company reported a provision for credit losses of $156 million in the quarter (vs. $232 million a year ago) on improved macroeconomic factors and portfolio activity. 

CET1 capital ratio stood at 10.5% vs. 9.9% in the prior year quarter. 

On January 3, 2025, PNC’s board of directors declared a quarterly cash dividend on common stock of $1.60, payable on February 5, 2025, to shareholders of record as of January 15, 2025.

PNC returned $0.9 billion of capital to shareholders, comprising share repurchases over $0.2 billion in the quarter.

The company expects share repurchase activity for the first quarter of 2025 to match recent quarterly averages.

Guidance: For the first quarter, the bank expects average loans to be down 1%, total revenue to be lower 1% – 2%, and net interest income to be down 2% – 3% sequentially.

Investors can gain exposure to the stock via IShares U.S. Regional Banks ETF IAT and Davis Fundamental ETF Trust Davis Select Financial ETF DFNL.

Price Action: PNC shares are down 1.72% at $197.00  premarket at the last check Thursday.

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