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.