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PNC Financial Services Group, Inc. (PNC)

- NYSE
  • Mar. 20, 2014, 10:54 AM
    • Much of the financial sector is lit up bright green, continuing to outperform following yesterday's suggestion by the FOMC and Janet Yellen that rate hikes could come sooner than expected. XLF +1.1%, KBE +1.6%, KRE +1.6%.
    • At new 52-week or even multi-year highs are JPMorgan (JPM +2.3%), Wells Fargo (WFC +1.7%), Morgan Stanley (MS +1.4%), and Bank of America (BAC +1.6%).
    • Regional lenders: U.S. Bancorp (USB +1%), Huntington (HBAN +1.5%), PNC (PNC +1.3%), BB&T (BBT +1.5%), Fifth Third (FITB +1.8%), First Niagara (FNFG +2.1%).
    • Leading among the life insurers are Lincoln National (LNC +1.9%), Protective Life (PL +1.6%), Manulife (MFC +1.2%), and Sun Life (SLF +1.1%).
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, PFI, KBWB, RKH, QABA, FNCL, FINU, KRU, RWW, KBWR, RYF, PSCF, KBWI, KBWP, KRS, FINZ
    | 5 Comments
  • Mar. 20, 2014, 6:56 AM
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  • Mar. 17, 2014, 10:57 AM
    • "We maintain our contention that as the tailwind of credit improvement subsides, banks must renew their focus on core profitability to compensate for the persistent low interest rate environment, increased regulations and modest loan growth," writes RBC Capital, trying to say the easy money's been made for banks and now those with the strongest managements will be the ones to prosper going forward.
    • No surprise, an RBC survey finds Wells Fargo (WFC +1%) and U.S. Bancorp (USB +0.8%) as the best-managed banks (defining this by ROA and ROTCE), with Capital One (COF +1.4%) ranking high as well. The team comes up with a list of seven "up and comers" perhaps poised to join the ranks of "best managed":
    • BB&T (BBT +0.5%), Huntington Bancshares (HBAN +0.9%), Fifth Third (FITB +0.7%), JPMorgan (JPM +0.9%), M&T Bank (MTB), PNC Financial (PNC +1%), and SunTrust (STI +0.7%).
    | 2 Comments
  • Mar. 3, 2014, 11:16 AM
    • The U.S. attorney's office for the Southern District of New York has issued two subpoenas regarding National City's practices involving FHA-insured loans as well for certain loans not insured by the agency. Previously, PNC had disclosed subpoenas from the same office over claims for costs incurred while foreclosing on mortgages insured or guaranteed by the FHA or the GSEs.
    • Separately, PNC received a subpoena from the DOJ seeking information on the "return rate" for certain merchant and payment processors the bank deals with. "We believe that the subpoena is intended to determine whether, and to what extent, PNC may have facilitated fraud committed by third-parties against consumers," says the bank.
    • 10-K
    | Comment!
  • Feb. 25, 2014, 12:59 PM
    • With bank capital levels really no longer in question, don't expect any big pops in the banks surrounding the stress tests and CCAR results, says Citi in its "2014 CCAR Playbook." If anything - given that the stress tests are supposedly tougher this year - the risk to banks could be on the downside.
    • The team expects the stress test results - which looks at bank balance sheets under different scenarios - sometime around March 7 and the CCAR results - on which the Fed approves/disapproves capital return plans - about a week later.
    • Look for modestly higher average gross payout ratios of 62% vs. 55% last year. Individual banks: BAC 11% dividend (payout ratio) + 32% buyback for 43%; BBT 33% dividend +19% buyback; FITB 32% dividend + 37% buyback; JPM 27% dividend + 18% buyback; WFC 28% dividend + 43% buyback; GS 14% dividend + 78% buyback for an industry-leading payout ratio of 91%; MTB 34% dividend + 0% buyback; MS 17% dividend + 36% buyback; PNC 31% dividend + 49% buyback; USB 30% dividend +46% buyback.
    • Related ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAI, IAT, SEF, IYG, FXO, PFI, KBWB, RKH, QABA, FINU, FNCL, KCE, KRU, RWW, KBWR, RYF, PSCF, KRS, FINZ, KBWC
    | 4 Comments
  • Feb. 20, 2014, 3:29 PM
    • Expecting dividends to grow 49% on average for the banks subject to the Fed's stress tests (about the same as last year), Markit, says Citigroup (C) and Bank of America (BAC) will lead the way with 400% boosts. "They are the last of the major banks paying minimal dividends ... change is overdue."
    • While 400% is a big number, Citi and BofA will continue to lag their peers in terms of yield (400% growth on a penny just leads to a nickel).
    • Also expected to have a significant pop is Morgan Stanley (MS) - a doubling of the payout to $0.10 per share and a 1.4% yield. Others in the top 5 in increases are Zions Bancorp (ZION) with a 75% boost to $0.07 and Regions Financial (RF) up 67% to $0.05.
    • The others: KEY +27%, HBAN +20%, BK +20%, STI +20%, COF +17%, DFS +15%, AXP +13%, STT +12%, JPM +11%, CMA +11%, PNC +9%, USB +9%, GS +9%, FITB +8%, WFC +7%, NTRS +6%, and no soup for BBT and MTB where the dividends are expected to be flat at $0.23 and $0.70 per share, respectively.
    • As for ETFs, the dividend jumps are expected to have the biggest impact on the XLF which would see a 25% increase in payout: The ETF has 81 companies, but the top 5 holdings - BofA, Wells, JPM, Citi, USB - make up 41% of assets. In contrast, just two CCAR banks make up the top five holdings of the KBE and it should see a more muted increase of just 18%.
    • Related ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, PFI, KBWB, RKH, QABA, FNCL, FINU, KRU, RWW, KBWR, RYF, PSCF, KRS, FINZ
    | 13 Comments
  • Jan. 17, 2014, 12:37 PM
    • PNC Financial (PNC +3%) enjoys a second day of big gains following its earnings report on Thursday morning.
    • Upgraded to Buy late yesterday by Sandler O'Neill, PNC gets additional boosts from an upgrade to Buy at Rafferty Capital (with price target lifted to $93 from $81).
    • BMO Capital retains its Market Perform rating, but lifts the price target to $88, while Bernstein and RayJay raise to $90.
    | 1 Comment
  • Jan. 16, 2014, 3:59 PM
    • About the only green on the screen in the regional bank sector (KRE -0.9%) is PNC Financial (PNC +2.7%) after this morning's earnings beat. Sandler O'Neill is impressed enough to lift its rating to Buy with price target of $93.
    • Boding well for earnings in 2014? $130M remain in repurchase reserves - a number management (on the earnings call) says should come down thanks to settlements with the GSEs.
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  • Jan. 16, 2014, 8:38 AM
    • Net interest income of $2.27B falls 7% Y/Y, with NIM of 3.38% down from 3.85% a year ago.
    • Noninterest income of $1.8B grows 10% Y/Y and 7% from last quarter thanks to a benefit of mortgage repurchase obligations which boosted income by $158M this year after a $254M hit a year ago. Mortgage banking income of $147M falls 42% Y/Y. Asset management income of $364M up 21%.
    • Noninterest expense of $2.55B falls 10% Y/Y, the comparison helped by some extraordinary charges a year ago. Personnel expenses of $1.2B fall 1%.
    • Basel Tier 1 common capital ratio of 10.5% vs. 9.6% at the start of 2013. Tangible book value per share of $54.68 vs. $49.18 at the start of the year.
    • CC at 10 ET
    • Q4 results, press release
    • PNC flat premarket
    | Comment!
  • Jan. 16, 2014, 6:38 AM
    • PNC Financial Services Group, Inc. (PNC): Q4 EPS of $1.85 beats by $0.22.
    • Revenue of $4.07B beats by $230M.
    • Press Release
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  • Jan. 16, 2014, 12:05 AM
  • Jan. 15, 2014, 5:30 PM
  • Jan. 7, 2014, 2:47 PM
    • Fairly lukewarm on the large cap regional banking sector (KRE +0.7%) amid pricey valuations and the likelihood 2014 estimates are set to be trimmed after Q4 earnings reports, Citi's Keith Horowitz does have a favorite ...
    • BB&T Corporation (BBT +1.4%) deserves a premium multiple, says Horowitz, thanks to its above-average returns and quality of the management team.
    • The rest? Wells Fargo (WFC -0.1%) is likely to beat Q4 estimates due to lower expenses (the bank has been busy cutting mortgage staff), but Horowitz is Neutral on the name. U.S. Bancorp (USB +1%) is Neutral as well thanks to its premium valuation. Also not meriting a Buy rating are Fifth Third (FITB +0.4%), M&T (MTB +0.8%), and PNC Financial (PNC +0.9%).
    • JPMorgan today upgrades BB&T to a Buy with $42 price target.
    | 1 Comment
  • Jan. 2, 2014, 11:22 AM
    • PNC Financial Services Group, Inc. (PNC) declares $0.44/share quarterly dividend, in line with previous.
    • Forward yield 2.29%
    • Payable Feb. 5; for shareholders of record Jan 15; ex-div Jan 13.
    | Comment!
  • Dec. 17, 2013, 4:19 AM
    | 3 Comments
  • Dec. 16, 2013, 2:57 PM
    • Alongside upgrades to Citi and Fifth Third, Evercore removes its Buy rating on PNC Financial (PNC +0.3%). "Ongoing productivity improvements in newer markets [are] unlikely to offset continued spread revenue headwinds and limited expense flexibility," writes analyst Andrew Marquardt. At 11.5x 2014 EPS, valuation isn't unattractive, he says, but mixed near-term fundamentals and the potential for disappointment (his estimates are below consensus) has him moving to the sidelines.
    | 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