Boston, MA 10/15/2014 (wallstreetpr) – PNC Financial Services Group Inc (NYSE:PNC) witnessed average loan growth of $0.6 billion in the third quarter over the second quarter. It was driven by average commercial lending growth, partly offset by consumer and residential real estate sector.
Credit Quality Improves
PNC Financial Services Group Inc (NYSE:PNC) indicated its commercial lending increased by $0.9 billion in real estate and corporate banking during the third quarter, its statement revealed. However, residential real estate and consumer segment played the spoil sport by witnessing a drop of $0.3 billion on average. Its total loans slackened by $0.1 billion to $200.9 billion.
PNC said that its overall credit quality continued to record an improvement during the third quarter on a sequential basis. Its non-performing assets witnessed a drop of $193 million or 6% to $3.0 billion at the end of the third quarter. PNC Financial Services Group Inc (NYSE:PNC)’s net charge-offs also fell to $82 million from $145 million sequentially.
PNC Financial Services Group Inc (NYSE:PNC)’s total deposits advanced 2% or $3.7 billion sequentially to $226.3 billion at the end of the third quarter. It has indicated that it has lifted its liquidity position and expects to surpass the Federal Reserve Bank norms at the commencement of the next year.
Revenue & Profit
PNC’s total revenue fell 2% to $3.84 billion from $3.92 billion in the year-ago quarter. It was primarily due to 6% drop in net interest income to $2.1 billion from $2.23 billion in the prior year quarter. It was partly offset by 3% growth in non-interest income to $1.74 billion from $1.69 billion in the previous year quarter. PNC Financial Services Group Inc (NYSE:PNC) attributed the fall in net interest income to weak yields for its earning asset and lower investment securities apart from increasing its liquidity position.
PNC Financial Services Group Inc (NYSE:PNC)’s net income advanced 1% to $1.04 billion or $1.79 a share from $1.77 billion or $1.77 a share in the year-ago quarter. Provision for credit losses slipped to $55 million from $137 million in the third quarter of the last year. It has bought back 4.2 million shares worth about $0.4 billion during the third quarter