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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.
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