Tue, Nov. 17, 4:36 PM
- "I call them aggravators," says PNC Financial (NYSE:PNC) CEO Bill Demchak, asked at a conference about restricting access to data aggregators like Mint.com, Quicken, and Digit.co. "We don't know how well they are protected," says Demchak, talking about the security of the apps. "They slow down service to the rest of our accounts, and we react to that."
- Demchak then turned the question over to Bank of America (NYSE:BAC) CEO Brian Moynihan who was seated next to him" "There's a safety and soundness issue," says Moynihan. "There's a risk."
- Previously: WSJ: BofA joined those cutting off finance sites from its data (Nov. 10)
Fri, Nov. 6, 10:04 AM
- The major averages are lower following the blowout jobs number, but the financial sector (XLF +1%) is charging ahead, enthused at what appears to finally be the near-certain prospect of higher interest rates.
- Short-term interest rate futures are pricing in about a 75% chance of a rate hike next month, and the 10-year Treasury yield is up nine basis points to 2.32%. The two-year yield has soared all the way to 0.90% - its highest level in more than five years.
- The green in this yield-starved sector is everywhere: Bank of America (BAC +3.5%), Citigroup (C +3.4%), U.S. Bancorp (USB +2.8%), Regions Financial (RF +3.7%), PNC Financial (PNC +2.4%), Capital One (COF +1.4%), Bank of New York Mellon (BK +1.9%), E*Trade (ETFC +3.5%), Schwab (SCHW +5.1%), Interactive Brokers (IBKR +3.4%), MetLife (MET +3.2%), Prudential (PRU +3.6%).
- Previously: Big beat on jobs number (Nov. 6)
- Previously: December rate hike back on after big jobs number (Nov. 6)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, KIE, IAT, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KRU, KBWR, RWW, RYF, KBWP, KBWI, FINZ, KRS, XLFS
Wed, Oct. 14, 7:39 AM
- Q3 net income of $987M or $1.90 per share vs. $959M and $1.79 one year ago. Float falls to 520M from 537M.
- ROA of 1.19% down six basis points Y/Y; ROE of 9.61% up nine bps. Tangible book value per share of $63.37 up from $59.24. Fully phased-in CET 1 ratio of 10.1% up 10 basis points from last quarter.
- 6.2M shares bought back during quarter for $600M.
- Net interest income of $2.062B slips 2% from a year ago, with NIM of 2.67% falling 31 basis points.
- Noninterest income of $1.713B falls 1% Y/Y. Asset management income of $376M down 9%, Residential mortgage income of $125M down 11%. Consumer services income of $341M up 7%. Corporate services income of $384M up 3%. Mortgage banking income fell $39M.
- Noninterest expense of $2.352B flat from a year ago.
- Total loans at quarter end of $205B up 2% Y/Y, with commercial loans of $131.2B up 6%; consumer loans of $73.8B down 4%.
- Conference call at 11 ET
- Previously: PNC Financial beats by $0.18, misses on revenue (Oct. 14)
- PNC +0.15% premarket
Wed, Oct. 14, 6:30 AM
Tue, Oct. 13, 5:30 PM
Thu, Oct. 1, 9:36 AM
Tue, Sep. 29, 3:09 PM
- The brand new tellerless branch is in Dayton, OH, and PNC Financial (PNC +0.1%) plans to convert another ten in that city by year-end 2016, and hundreds more across the rest of its footprint.
- The tellers are gone - their functions largely handled by mobile or "smart" ATMs - and the branch is instead staffed with financial consultants. A smaller footprint is another cost-saving change.
Wed, Sep. 2, 9:45 AM
- PNC Financial (NYSE:PNC) is lower by about 12% since early August - more than surrendering its gain for the year. The move is enough for KBW, which upgrades to Market Perform from Underperform. The $101 price target remains the same.
- PNC's 1.6% gain today is inline with that of the regional bank sector.
Wed, Jul. 15, 7:28 AM
- Q2 net income of $1B or $1.88 per share vs. $1.1B and $1.85 one year ago.
- Net interest income of $2.05B down 4% Y/Y, with net interest margin of 2.73% falling 39 basis points.
- Noninterest income of $1.8B up 8% Y/Y. Asset management revenue of $416M up 15%, partly the result of a trust settlement. Consumer service fees of $334M up 3%. Corporate service fees of $369M up 8%. Residential mortgage revenue of $164M down 10%.
- Noninterest expense of $2.37B up 2% Y/Y. Personnel expense of $1.2B up 2%.
- Total loans of $205.1B up % Y/Y, with commercial lending up 5% and consumer lending down 3%.
- CET 1 ratio of 10.6% up 10 basis points from last quarter. Tangible book value per share of $61.75 vs. $61.21.
- Conference call at 10:30 ET
- Previously: PNC Financial beats by $0.12, beats on revenue (July 15)
- PNC +0.5% premarket
Wed, Jul. 15, 6:38 AM
Tue, Jul. 14, 5:30 PM
Wed, Jun. 17, 11:30 AM
- While the OCC lifted consent orders against Bank of America (NYSE:BAC), Citibank (NYSE:C), and PNC Financial (NYSE:PNC) after finding unsafe and unsound mortgage-servicing and foreclosure practices back in 2011, Wells Fargo (NYSE:WFC) is part of a group facing new restrictions.
- Among other items, report Deon Roberts and Rick Rothacker, Wells Fargo is banned from entering new contacts to perform mortgage servicing for other lenders. The bank may still make and service new mortgages.
- OCC Deputy Controller Morris Morgan expects corrections from the group to be made in months, not years. “We have reserved the ability to take additional action against the six, and we plan to do so based on how quickly and effectively they remediate the remaining actions."
- The other five: JPMorgan (NYSE:JPM), HSBC Bank USA (NYSE:HSBC), Santander Bank (NYSE:SAN), U.S. Bank (NYSE:USB), and EverBank (NYSE:EVER)
Wed, Jun. 10, 2:48 PM
- PNC Financial (PNC +1.7%) hasn't made a major purchase since its buy of RBC Bank USA three years ago, but it sounds like the waters are starting to part if one reads between the lines of comments by CFO Robert Reilly.
- "“It wouldn’t be looking at an acquisition as a strategic necessity, it would be looking for the opportunity it presents,” he tells attendees at a financial services conference.
- Previously, Reilly and CEO WIlliam Demchak have brushed aside questions about big bank purchases, so the change in communications is what's important here, says Henry Beukema from Guyasuta Investment Advisors.
- For now, says Reilly, the bank will focus on its technology agenda, which is about reducing risk and enhancing client service.
- More from Beukema: "I’d be focused on adding to the fee businesses ... If you could find a niche player in credit or bid on some of the assets GE was selling or spinning off, that’s a scenario that’s interesting. You could potentially get good cross-sell. But if you’re looking to create a more stable business model — and we’ve seen PNC add 300 investment managers to the RBC assets — you’d buy an investment management business."
- Source: Pittsburgh Business Times
Tue, Jun. 9, 2:45 PM
- Yield-starved financial sector names were mercilessly punished to start 2015 as sharply falling interest rates in January again disappointed investors waiting for the return of some spread income.
- The rout in bond prices since, alongside what now seems the near-certainty of the beginning of Fed rate hikes in as soon as three months has helped turn things around, and the sector - as measured by the Financial Select SPDR (NYSEARCA:XLF) - is now in the green for the year, and trails the S&P 500 by just about 150 basis points.
- Among the notable movers today as the 10-year yield rises to another 2015 high: Bank of America (BAC +1.4%), Wells Fargo (WFC +1.2%), U.S. Bancorp (USB +1.4%), Regions Financial (RF +1.3%), Huntington Bancshares (HBAN +1.6%), KeyCorp (KEY +1.6%), PNC Financial (PNC +1.3%), M&T (MTB +1.1%), Bank of Hawaii (BOH +1.6%), First Horizon (FHN +1.2%), Lincoln National (LNC +1.1%), E*Trade (ETFC +0.9%)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, PSCF, FINZ, KRS
Fri, Jun. 5, 10:27 AM
- This morning's strong nonfarm payroll report may put to rest the idea of a continuing economic slowdown and puts on the table a rate hike maybe as soon as September.
- The 10-year Treasury yield is up nine basis points to 2.40%.
- The KRE +1.5%, KBE +1.6%, and the XLF +1.1% amid a flat S&P 500.
- Regional banks: Regions Financial (RF +3.3%), KeyCorp (KEY +2.5%), PNC Financial (PNC +1.9%), SunTrust (STI +2.3%), U.S. Bancorp (USB +2.2%), Zions (ZION +3.7%), First Niagara (FNFG +1.4%)
- Too Big Too Fails: Citigroup (C +2.2%), Bank of America (BAC +3.4%), JPMorgan (JPM +2.2%), Wells Fargo (WFC +1.9%)
- Life insurers: MetLife (MET +2.7%), Prudential (PRU +2.8%), Sun Life (SLF +1.9%), Lincoln Financial (LNC +2.5%)
- Online brokerage: Schwab (SCHW +3.8%), TD Ameritrade (AMTD +2.8%), E*Trade (ETFC +2.3%), Interactive Brokers (IBKR +2.5%)
- Previously: Jobs up 280K in May; UE rate ticks higher (June 5)
- Previously: Treasury yields surge amid strong job gains, boosted wage growth (June 5)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, FINZ, KRS
Tue, Apr. 21, 9:37 PM
- "This whole discussion today about when interest rates move is torture for us,” said U.S. Bancorp (NYSE:USB) CEO Richard Davis on last week's earnings call. “I remain very optimistic for the economy … a little less optimistic for the bankers until interest rates start to move up.”
- Earlier today, Regions Financial (NYSE:RF) and Fifth Third (NASDAQ:FITB) became the latest in a line of lenders reporting slimming net interest margins. For Regions, the average yield on its loan portfolio fell to 3.45% from 4.03% a year ago. "You’re trying to book the prudent loans that you have the opportunity to, but with the level of competition in the market, it’s hard to move those rates up absent some kind of interest-rate increase," said Regions chief Grayson Hall on the earnings call.
- On average, U.S. banks with more than $10B in assets showed a NIM of 2.97% in Q4, the lowest level in 25 years according to the FDIC ... And it got worse in Q1. Six of the nine big commercial banks reporting so far - including Wells Fargo (NYSE:WFC) and PNC Financial - had Q1 margins lower than Q4.
- Bank of America (NYSE:BAC) and Regions - two banks seen as particularly sensitive to interest rates - are unsurprisingly the worst performers in the KBW bank index (NYSEARCA:KBE) this year, off 13.9% and 9.3% respectively.
- What to do? Regions, for one, is trying to emulate the Wall Street big boys by bulking up its wealth management and capital markets operations. And maybe there's some more fat to trim. “We’re going to turn up the heat on expenses…and we’ll see where we get to,” said PNC boss William Demchak on last week's conference call.
- Source; WSJ's Peter Rudegeair
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, FINZ, KRS
PNC Financial Services Group Inc is a financial services company. It operates in six segments: Retail Banking; Corporate & Institutional Banking; Asset Management Group; Residential Mortgage Banking; BlackRock; and Non-Strategic Assets Portfolio.
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