Seeking Alpha

PNC shows large improvement in capital ratio in latest stress test

PNC Bank easily passes its self-administered stress test, showing a Tier 1 common capital ratio of 10.2% after 9 quarters of "severely adverse" conditions. This compares to the current ratio of 9.8% and the 7.9% result seen at the March exam.

Why the big improvement? Two quarters of additional earnings have been booked, two quarters of house price increases have occurred, higher forecast revenues, higher projected economic activity, and lower-than-forecasted mortgage rates.

Previous: A number of other lenders pass their stress tests.

The results of the Fed's CCAR - and the determination on approval of banks' capital plans - are due in March.

PNC's Mid-Year Stress Test Results.

Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs