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PNC Financial Services Group, Inc. (PNC)

- NYSE
  • May. 21, 2014, 2:33 PM
    • The latest issue for the crusader from the NY Dept. of Financial Services is a Reuters report on Ocwen Financial (OCN -2.5%) - along with banks like PNC Financial, and Bank of America (BAC) - routinely demand homeowners promise to say bad things about them publicly in exchange for mortgage modifications.
    • "Deeply troubling and offensive," Lawsky tells Reuters, promising an investigation.
    • A PNC spokesperson: "These clauses are part of the consideration we receive for agreeing to settle the case. This helps to ensure that the discussion is not re-opened in public after the case has been settled."
    • "When [we] take a closer look at some of these non-bank servicers, we find corners being cut, to the disadvantage of homeowners," said Lawsky in a speech yesterday, in which he makes clear his serious issues with the business models of companies like Ocwen (and affiliates like ASPS), Nationstar Mortgage (NSM -0.7%), and Walter Investment (WAC -2.4%).
    | 8 Comments
  • May. 14, 2014, 10:24 AM
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  • May. 14, 2014, 9:34 AM
    • Bank of New York's (BK) corporate trust unit is also drawing the interest of PNC Financial and Sumitomo Mitsui Financial Group (SMFG), according to Bloomberg.
    • Mitsubishi UJF has previously been reported as maybe prepping a bid as well.
    • For PNC, a purchase of the BNY business would return it to a line it exited from 16 years ago when it sold its corporate trust unit. For Sumitomo, it's another Japanese bank looking for growth abroad to offset slow business at home.
    • BNY's corporate trust division could be worth as much as $2.5B, according to sources.
    | 1 Comment
  • May. 6, 2014, 10:52 AM
    • Pressed by investors for greater capital returns, but muzzled by the Fed on regular quarterly payouts, a number of large banks are considering asking their D.C. bosses to approve special one-time dividends.
    • PNC CEO Bill Demchak - in the bank's recent earnings call (transcript) - said he's discussed the idea informally with regulators, and BB&T (BBT -0.9%) chief Kelly King raised the possibility of a special payout during his call (transcript). U.S. Bancorp (USB -0.6%) hinted at it as well.
    • “At some point the regulators will have to say to the banks, ‘You’ve done good, you’ve fixed your internal system, you’ve raised enough capital, now we don’t have any restrictions on your excess capital,’” says RBC's Gerard Cassidy.
    • Farr, Miller's Keith Davis isn't too excited by the prospect. “The lack of certainty would not play well ... You want stability, you want visibility, you want to know what your returns are going to be.”
    • Previously: UBS higher after beat and special dividend
    | 1 Comment
  • Apr. 23, 2014, 2:45 PM
    • BNY Mellon (BK +2.1%) has hired Goldman Sachs to find a buyer for the unit, reports Bloomberg, and is expected to begin receiving offers in about a month. The corporate trust arm assists companies with making payments on debt they issue as well as helping customers recover funds in event of default.
    • The business services about $12T in outstanding debt, with 3.5K employees at 61 global offices, but has become less lucrative since the financial crisis made the packaging and selling of loans a more difficult business. Possible buyers could be large commercial banks looking to build out their own trust business such as Bank of America (BAC), U.S. Bancorp (USB), Wells Fargo (WFC), or PNC Financial, says Guggenheim's Marty Mosby.
    • On a recent earnings call, BNY management said run-off in the unit would cut annual revenue by $50M-$75M annually, roughly 0.5% of total bank revenue.
    | 1 Comment
  • Apr. 22, 2014, 3:02 PM
    • The chairman and CEO roles are no longer split at PNC Financial, where the board officially elects CEO William Demchak as chairman to replace the retiring James Rohr.
    • Demchak joined PNC in 2002 as CFO, and last year succeeded Rohr as CEO.
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  • Apr. 16, 2014, 7:38 AM
    • Net income of $1.1B of $1.82 per share compares to $995M or $1.74 per share one year ago.
    • Net interest income of $2.2B fell 8% Y/Y with NIM of 3.26% falling 55 bps thanks to lower interest-earnings asset yields and the decline in purchase accounting accretion. Noninterest income of $1.6B gained 1% Y/Y, with residential mortgage income of $161M falling 31%, but asset management income of $364M up 18%.
    • Noninterest expense of $2.2B fell 4% Y/Y thanks to personnel cuts.
    • Tier 1 capital ratio of 9.7% compares to 9.4% at the end of 2013 and 8% one year ago. Tangible book value per share of $56.33 is up from $54.57 at the end of 2013 and $50.30 one year ago.
    • Press release, Q1 results
    • CC at 10 ET
    • PNC +2% premarket
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  • Apr. 16, 2014, 6:31 AM
    • PNC Financial Services Group, Inc. (PNC): Q1 EPS of $1.82 beats by $0.18.
    • Revenue of $3.77B (-4.8% Y/Y) misses by $80M.
    • Press Release
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  • Apr. 16, 2014, 12:05 AM
  • Apr. 15, 2014, 5:30 PM
  • Apr. 3, 2014, 9:53 AM
    • PNC Financial Services Group (PNC) declares $0.48/share quarterly dividend, 9% increase from prior dividend of $0.44.
    • Forward yield 2.20%
    • Payable May 5; for shareholders of record April 15; ex-div April 10.
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  • Mar. 28, 2014, 11:41 AM
    • Count Credit Suisse's Moshe Orenbuch as surprised about the Fed's denial of Citigroup's (C -0.5%) capital return plan. Maybe Citi is just too tough for regulators to get their arms around as it is the most complicated of all the bank holding companies.
    • Included in the Credit Suisse report is this handy chart of dividends, buybacks, and payout ratios for all of the CCAR banks for 2013 and 2014. Things are loosening up - the median payout ratio (includes dividends and buybacks) this year of 71% compares to 59% in 2013. The dividend payout ratio rises to 26% from 23%.
    • It helps to be smaller - among the TBTFs, Citi's payout ratio is just 8%, BofA (BAC) 37%, JPMorgan (JPM) 56%, Morgan Stanley (MS) 41%. Wells Fargo is above the median though, being allowed a payout of 79%.
    • The regionals (KRE), trust banks, and credit card companies - for the most part - were all allowed payout ratios above the median.
    • The strongest capital returns vs. CS's expectations are those for BNY Mellon (BK), Capital One (COF), KeyCorp (KEY), Huntington Bancshares (HBAN), PNC Financial, and Wells Fargo.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, PFI, KBWB, FNCL, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, PSCF, KRS, FINZ, AIRR
    | 4 Comments
  • Mar. 27, 2014, 8:36 AM
    • It's a slow grind for bank capital returns (at least those subject to the CCAR), notes Goldman' Richard Ramsden, with payout ratios boosted just four percentage points to 62% this year. There are clear winners, he says: The credit card companies led by AXP and COF and the trust banks led by BK. Regional banks (KRE) boosted returns but generally fell short of expectations (with HBAN and PNC being the exceptions). Worst-performing were the TBTFs, though JPM and WFC were positives.
    • "CCAR highlighted the challenges large-caps have in returning excess capital," he says, with Citigroup's (C) failure a reminder the process is unpredictable. With all that excess capital remaining on the balance sheet, Ciit's 2015 goal of a 10% ROTCE appears unlikely to be met.
    • For Bank of America (BAC), it's resubmission - a better outcome than outright failure - reminds that even well-capitalized banks are "bound by stressed capital and could have trouble returning outsized capital."
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, PFI, KBWB, FNCL, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, PSCF, KRS, FINZ, AIRR
    | 6 Comments
  • Mar. 26, 2014, 5:50 PM
    • Regions Financial (RF) increases quarterly dividend 67% to $0.05 per share, sets $350M buyback. (PR)
    • KeyCorp (KEY) increases dividend 18% to $0.065 per share, sets $542M buyback. (PR)
    • PNC Financial (PNC) has no detail yet on dividend change, sets $1.5B buyback, including up to $200M related to employee benefit plans. (PR)
    • Fifth Third Bancorp (FITB) is approved for 8.3% dividend boost to $0.13 per share and $669M in buybacks. Additional repurchases can be made with any gains from the sale of its Vantiv stake. Shares -0.5% AH. (PR)
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  • Mar. 26, 2014, 2:51 AM
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  • Mar. 20, 2014, 5:07 PM
    • Again, all 30 lenders subject to the Fed stress test passed with the exception of Zions Bancorp. Checking the individual results:
    • Regional banks passing: BB&T Corp. (BBT), Comerica (CMA), Fifth Third (FITB), Huntington (HBAN), KeyCorp (KEY), M&T (MTB), PNC, Regions (RF), SunTrust (STI), U.S. Bancorp (USB).
    • Credit card lenders: American Express (AXP), Discover (see here), Capital One (COF).
    • Those controlled by overseas holding companies: BBVA Compass, BMO FInancial, HSBC North America, RBS Citizens Financial, Santander Holdings USA (SAN), UnionBanCal (MTU).
    • Trust banks: Bank of New York (BK), State Street (STT), Northern Trust (NTRS).
    • TBTFs: See here.
    • More on Zions (ZION): The failure likely has something to do with CDOs on its books backed by trust-preferred securities. The bank signaled earlier this year it would likely resubmit its capital plan to the Fed as the test's calculation of its capital ratio wouldn't reflect Zion's planned sale of these.
    | 2 Comments
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Company Description
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.
Sector: Financial
Country: United States