PNC Financial Services Group, Inc.NYSE
PNC Financial Doing Enough In A 'Good Enough Is Good Enough' Environment
Stephen Simpson, CFA
Stephen Simpson, CFA
PNC Financial Running A More Cautious, Steady Long-Term Plan
Stephen Simpson, CFA
Stephen Simpson, CFA
Yesterday, 11:51 AM
- The financial sector is taking a breather from its staggering post-election run, with a post-jobs report dip in rates a good enough excuse for satiated bulls to cash in some chips.
- XLF -1%, KBE -0.7%, KRE -0.7%.
- Individual issues: Bank of America (BAC -1.8%), Morgan Stanley (MS -1.2%), Citigroup (C -1.9%), M&T (MTB -1.1%), Flagstar (FBC -1.7%), Fifth Third (FITB -1.6%), PNC Financial (PNC -1.4%), Prudential (PRU -1.1%), Lincoln National (LNC -1.9%), Schwab (SCHW -2.1%), State Street (STT -1.8%)
- No longer part of the financial sector as far as the GICS classification, REITs are enjoying the respite in rates. IYR +1.6%, VNQ +1.6%
- Realty Income (O +4.1%), Vereit (VER +3%), Omega Healthcare (OHI +3.2%), Welltower (HCN +3.5%), HCP (HCP +2.7%), Universal Health (UHT +4.4%), W.P. Carey (WPC +2%), Lexington Realty (LXP +2.5%), Essex Property (ESS +1.2%), Aimco (AIV +1.5%), General Growth (GGP +2.6%), Brixmor (BRX +1.6%), Federal Realty (FRT +1.8%), Kimco (KIM +1.2%), Public Storage (PSA +1.4%), Life Storage (LSI +1.4%), Boston Properties (BXP +1.2%), Stag Industrial (STAG +2.4%).
Wed, Nov. 30, 11:45 AM
- While the pick of ex-Goldmanite and Hollywood player Steven Mnuchin for Treasury Secretary can hardly be called "draining the swamp," Pantheon's Ian Shepherdson says it should make Wall Street happy.
- In his first public comments after being selected, Mnuchin promised to "kill" swaths of Dodd-Frank.
- Also making Wall Street (and other bankers/insurers/brokers) happy today is another big move higher in interest rates, with the 10-year Treasury yield up 10 basis points to 2.394%.
- The S&P 500 is just marginally higher, but the KBE is ahead 1.9%, and the KRE 2%. XLF +1.35%
- Bank of America (BAC +3.4%), Citigroup (C +1.9%), JPMorgan (JPM +1.5%), Wells Fargo (WFC +1.8%), Morgan Stanley (MS +2.1%), Goldman Sachs (GS +3.9%), U.S. Bancorp (USB +1%), PNC Financial (PNC +1.4%), KeyCorp (KEY +2.2%), Fifth Third (FITB +2.5%), Regions Financial (RF +2.9%), BB&T (BBT +2.4%), SunTrust (STI +2%)
- MetLife (MET +2%), AIG (AIG +0.8%), Lincoln National (LNC +1.7%), Prudential (PRU +1.1%), Hartford (HIG +1.3%)
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
Tue, Nov. 29, 3:11 PM
- More confidence that rates are rising for real this time, "wide-sweeping" regulatory changes to come, and a better FICC environment have analyst Brian Kleinhanzi upgrading Bank of America (BAC) and Goldman Sachs (GS +0.9%) to Outperform from Market Perform.
- Kleinhanzi keeps JPMorgan (JPM +0.8%) and Bank of New York (BK +0.2%) at Outperform.
- Turning to regional banks, KBW boosts its estimates for 2017 and 2018 for the large players, and upgrades Citizens Financial (CFG +1.9%) and Comerica (CMA +1.6%) to Outperform, while downgrading KeyCorp (KEY +0.3%) and PNC (PNC -0.2%) to Market Perform. The switch comes as KBW turns its focus on those lenders best positioned for a rising rate environment, and from regulatory relief, not to mention other levers should rates not rise.
- Source: Bloomberg
Thu, Nov. 17, 12:18 PM
- In no surprise, the list is dominated by the ripping financial sector:
- Allstate (ALL +1.4%)
- Ameriprise (AMP +0.2%)
- TD Ameritrade (AMTD +1.6%)
- BB&T (BBT +2.1%)
- Citigroup (C +2.4%)
- Citizens Financial (CFG +2%)
- Comerica (CMA +1.5%)
- CNA Financial (CNA +0.6%)
- Loews Corp. (L +0.9%)
- Marsh & McLennan (MMC +1.9%)
- PNC Financial (PNC +2.6%)
- Royal Bank of Canada (RY +0.7%)
- U.S. Bancorp (USB +1.9%)
- Aetna (AET +1.5%)
- Best Buy (BBY +10.4%)
- CBS (CBS +0.6%)
- Celanese (CE +0.1%)
- Comcast (CMCSA +1.5%)
- Dell Technologies (DVMT +1.1%)
- The Gap (GPS +0.4%)
- Humana (HUM +1.4%)
- KLA-Tencor (KLAC +2.7%)
- Liberty Media (LMCA +1.6%)
- Lam Research (LRCX +1.9%)
- Micron (MU +5.3%)
- Nvidia (NVDA +2.7%)
- Rockwell (ROK -0.5%)
- Teck Resources (TCK +0.5%)
- Texas Instruments (TXN +1.1%)
- New lows:
- Novo Nordisk (NVO +0.3%)
Mon, Nov. 14, 3:47 PM
- Unsurprisingly given their run of late, financials dominate the list:
- Bank of America (BAC +5%)
- Citigroup (C +1.5%)
- Citizens Financial (CFG +3.1%)
- Discover (DFS +3.1%)
- First Republic (FRC +2.5%)
- Goldman Sachs (GS +2.2%)
- Humana (HUM +3%)
- Manulife (MFC +2.9%)
- Northern Trust (NTRS +3%)
- PNC Financial (PNC +1.7%)
- Regions Financial (RF +6.5%)
- Schwab (SCHW +1.6%)
Mon, Nov. 14, 11:33 AM
- The major averages are stuck in the red, but the XLF is up 2.2% and the KBE +3% as financial sector investors mull a world of higher interest rates and lowered regulation.
- REITs continue to fall, but thanks to this fall's sector reclassification, those names are no longer in the financial indexes.
- Regional banks: Regions Financial (RF +6.9%), New York Community (NYCB +2.9%), KeyCorp (KEY +3.1%), PNC Financial (PNC +2.4%), Fifth Third (FITB +4%), SunTrust (STI +3%), M&T (MTB +3.1%)
- Insurers: MetLife (MET +2.2%), Lincoln (LNC +3.2%), AIG (AIG +2.1%), Hartford (HIG +2.3%), Travelers (TRV +1.4%)
- Online brokerage: Schwab (SCHW +3.6%), Ameritrade (AMTD +2.5%)
- Asset management: Franklin Resources (BEN +3.2%), Och-Ziff (OZM +4.5%), Invesco (IVZ +2.2%), T. Rowe Price (TROW +2.8%), BlackRock (BLK +0.4%)
Thu, Nov. 10, 11:03 AM
- For now, the 10-year Treasury yield is holding onto the huge gain in posted yesterday, up two basis points today to 2.086%. TLT -0.4%, TBT +0.8%. Fed Funds futures have priced in about a 100% chance of a December rate hike.
- The yield curve has shifted both higher and steeper - pure manna for the companies that borrow short and lend long. There's also a new sheriff coming to town, and bank investors are no doubt mulling an eased regulatory regime. KBE +2.45%, KBE +2.4%
- Bank of America (BAC +3.5%), Wells Fargo (WFC +4.5%), JPMorgan (JPM +3.1%). Underperformers among the TBTF players: Citigroup (C +1.1%), Goldman (GS +1.1%)
- Regional banks: Regions (RF +4.2%), PNC Financial (PNC +3.3%), Fifth Third (FITB +1.7%). Online brokers: E*Trade (ETFC +2.9%), Schwab (SCHW +2.8%), Ameritrade (AMTD +2.6%), Interactive Brokers (IBKR +2.7%)
Mon, Nov. 7, 3:23 PM
- In the wake of the Wells Fargo account opening scandal, PNC Financial (PNC +1.6%) has removed multiple references to cross-selling in its Q3 quarterly report, writes Rachel Louse Ensign in the WSJ.
- Case in point: In the Q2 10-Q, the bank was "focused on growing customer share of wallet” through the sale of a wide range of products. That phrase has been replaced in the Q3 version with "focused on meeting the financial needs of our customers” through a variety of products.
- "The public's understanding of the phrase has changed," says a bank spokesman. Indeed.
- Though maybe not as loud at about it as Wells Fargo, PNC in the past has touted its cross-selling prowess, including the use of data-mining leads to target customers.
- Incentives: Branch employees do get bonuses for cross-selling, but aren't held to quotas, and the full bonus is received only if the account is used.
Thu, Oct. 27, 10:51 AM
- Rates are up across the globe again today, with the 10-year U.S. Treasury yield looking like it's ready for another assault on 2% - up 7 basis points on the session to 1.865%.
- Alongside a sharp move lower in REITs, the utility sector (XLU -0.9%) is facing a rough go of it.
- In the green though is the banking sector - (KBE +0.2%), (KRE +0.4%) - which has been awaiting a real move higher in rates for years. A big move on the long end while short rates hold (for now) is an added boost as it widens the yield curve.
- Bank of America (BAC +0.4%), Citigroup (C +0.4%), JPMorgan (JPM +0.4%), Wells Fargo (WFC +0.5%), PNC Financial (PNC +0.5%), Fifth Third (FITB +0.9%), U.S. Bancorp (USB +1.2%), BB& T(BBT +0.7%)
- Other high-yield beneficiaries include: MetLife (MET +0.9%), Lincoln Financial (LNC +1.3%), Schwab (SCHW +0.4%), Voya Financial (VOYA +0.9%).
- ETFs: XLF, FAS, FAZ, XLU, UTG, IDU, VPU, UYG, VFH, GUT, BUI, IYF, BTO, FUTY, IYG, FNCL, SEF, RYU, FXO, UPW, RYF, FXU, FINU, RWW, SDP, XLFS, FINZ, FUGAX, JHMF, FAZZ, FNCF, JHMU, UTLF
Tue, Oct. 25, 8:22 AM
- Citing an attractive entry point given underperformance this year, BAML makes PNC Financial (NYSE:PNC) a top pick. The $100 price target suggests 7.5% upside.
- PNC is down 2.4% YTD vs. a 3.85% advance for the broad regional bank sector. From the Feb. 11 bottom, PNC is higher by 14% vs. sector's 27% gain.
- Shares +0.17% premarket
Mon, Oct. 17, 1:07 PM
- Citing cost-reduction efforts and the earnings stability provided by a big stake in BlackRock, Argus' Stephen Biggar upgrades PNC Financial (PNC +0.5%) to a Buy. His $98 price target suggests nearly 11% upside.
- PNC owns about 34.6M shares, or 21% of BlackRock, and received ash dividends of $320M from that last year - this against total earnings in the $4B range.
- Given the BlackRock stake, PNC should trade at a premium to peers, says Biggar, but currently it's selling for just 11.6x 2017 estimates vs. 12.4x for players like SunTrust, BB&T, and U.S. Bancorp.
Fri, Oct. 14, 7:40 AM
- Q3 net income of $1B or $1.84 per share vs. $1.1B and $1.90 one year ago. ROA of 1.10% down 9 basis points. ROE of 8.74% down 87 basis points. Tangible book value per share of $67.93 up from $63.37.
- Net interest income of $2.095B up 2% Y/Y, with NIM of 2.68% up one basis point.
- Noninterest income of $1.734B up 1% Y/Y. Asset management revenue of $404M up 7%. Consumer services revenue of $348M up 2%. Corporate services revenue of $389M up 1%. Residential mortgage revenue of $160M up 28%. Service charges of $174M up 1%.
- Noninterest expense of $2.394B up 2% Y/Y, with personnel expense of $1.239B up 1%.
- Credit loss provisions of $87M down from $127M a quarter earlier, with NPLs down 5% and NPAs down 6%.
- Tier 1 capital ratio of 10.2% flat from last quarter.
- CC at 11 ET
- Previously: PNC Financial beats by $0.06, revenue in-line (Oct. 14)
- PNC flat premarket
Fri, Oct. 14, 6:48 AM
Thu, Oct. 13, 5:30 PM
Mon, Oct. 10, 12:36 PM
- Hovde group initiates research on Sterling Bancorp STL +0.8% with an outperform rating and set a PT of $20.00.
- FBR & Co. initiates New York Mortgage Trust NYMT +0.2% with a market perform rating and set a PT of $6.25.
- Oppenheimer Holdings downgrades Ameriprise Financial Services (NYSE:AMP) +0.6% to underweight.
- Nomura downgrades Fifth Third Bancorp FITB -0.02% to Reduce from Neutral and PNC Financial Services Group (NYSE:PNC) +0.3% to Neutral from Buy.
- Piper Jaffray downgrades Zions Bancorp (NASDAQ:ZION) +0.6% to Neutral from overweight.
Thu, Oct. 6, 10:24 AM
- Alongside an earlier-reported downgrade of Regions Financial (to Outperform from Strong Buy), Raymond James also downgrades Zions Bancorp (ZION -0.6%) to Market Perform from Outperform.
- As with Regions, the Zions call has been a good one, with the stock higher by 16% this year, far outpacing the regional bank index.
- PNC Financial (PNC -0.1%) is upgraded to Market Perform from Underperform - another good call as PNC's 4% decline this year has lagged peers.
- Turning to some smaller players, United Community Banks (UCBI +1.5%) is boosted to Strong Buy from Outperform. Park Sterling Bank (PSTB -0.6%) is cut to Market Perform from Outperform following its nice run higher. Bancorp South (BXS -0.9%) is cut to Underperform thanks to earnings uncertainty around the closing of two pending acquisitions.