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
PNC Financial Services Is Doing Well But Has Limited Upside
Fri, Jan. 15, 6:33 AM
- PNC Financial (NYSE:PNC): Q4 EPS of $1.87 beats by $0.07.
- Revenue of $3.85B (-2.5% Y/Y) beats by $60M.
Thu, Jan. 14, 5:30 PM
Dec. 17, 2015, 3:18 PM
- The Fed's first rate hike may not drive higher net interest margins in Q1, says Deutsche, as the yield curve has flattened and some banks are more levered to the middle and longer end of the yield curve than they are to short rates.
- The team does see PNC Financial (PNC -1.1%) as seeing the largest increase, noting bank management recently said a 25 basis point boost in the Fed Funds rate could lift NIM by 10 basis points next quarter.
Dec. 16, 2015, 3:04 PM
- Wells Fargo's quick post-FOMC boost in its prime rate while leaving the deposit rate unchanged makes clear why bank bulls have been banking on a higher Fed Funds rate - higher net interest margins.
- U.S. Bancorp (USB +1.3%) has quickly followed suit.
- Owing to the glut of deposits, it could be several quarters before lenders begin raising rates for savers, reminds CNBC's Kayla Tausche.
- The XLF is higher by 1.5%.
- Individual names: Bank of America (BAC +1.6%), JPMorgan (JPM +2%), PNC Financial (PNC +2.1%), First Niagara (FNFG +2.1%), Regions Financial (RF +1.2%), Schwab (SCHW +1.5%), MetLife (MET +2.1%), Prudential (PRU +1%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, FINZ, KRS, XLFS
- Previously: Fed officially puts an end to ZIRP (Dec. 16)
- Previously: Yellen: Factors holding down inflation to fade (Dec. 16)
Dec. 10, 2015, 1:12 PM
- Raymond James (NYSE:RJF), Bank of New York Mellon (NYSE:BK), Northern Trust (NASDAQ:NTRS), and Bank of America (NYSE:BAC) are best-positioned in the event of a one-and-done move from the Fed, says Goldman, as they get most the earnings upside from the initial move higher in rates, rather than needing "normalization."
- "Deposit betas" may be a source of underappreciated surprise, says Goldman, which doesn't believe banks will pass along much of the initial 50 basis point hike in rates to customers. Poised to benefit here: JPMorgan (NYSE:JPM), BofA, Wells Fargo (NYSE:WFC), PNC Financial (NYSE:PNC), and E*Trade (NASDAQ:ETFC).
- Finally, clarity on the interest rate picture should allow bank managements to get moving in growing returns, Favored "self-help" stories: AIG, Ally Financial (NYSE:ALLY), Oaktree Capital (NYSE:OAK), Voya Financial (NYSE:VOYA), and Zions Bancorp (NASDAQ:ZION).
Dec. 9, 2015, 7:42 AM
- "The Fed raising rates drops money to the bottom line immediately," said PNC Financial (NYSE:PNC) CEO Bill Demchak, speaking at an investor conference yesterday. "It's important ... It's a big part of our  budget."
- The bank, he says, has marketing campaigns to attract depositors ready to go.
- As for the bank's economic outlook, it's expecting more of the same, but consumer spending should get a boost as lower energy prices finally start to flow through.
Nov. 17, 2015, 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)
Nov. 6, 2015, 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
Oct. 14, 2015, 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
Oct. 14, 2015, 6:30 AM
- PNC Financial (NYSE:PNC): Q3 EPS of $1.90 beats by $0.18.
- Revenue of $3.78B (-1.6% Y/Y) misses by $20M.
Oct. 13, 2015, 5:30 PM
Oct. 1, 2015, 9:36 AM
- PNC Financial (NYSE:PNC) declares $0.51/share quarterly dividend, in line with previous.
- Forward yield 2.28%
- Payable Nov. 5; for shareholders of record Oct. 15; ex-div Oct. 13.
Sep. 29, 2015, 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.
Sep. 2, 2015, 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.
Jul. 15, 2015, 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
Jul. 15, 2015, 6:38 AM
- PNC Financial (NYSE:PNC): Q2 EPS of $1.88 beats by $0.12.
- Revenue of $3.87B (+1.6% Y/Y) beats by $90M.
PNC Financial Services Group, Inc. provides diversified financial services, including retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-backed lending; wealth... More
Industry: Money Center Banks
Country: United States
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