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PNC Financial 2nd-quarter profit beats on higher interest income

  • Regional bank PNC Financial Services reported a better-than-expected quarterly profit.
  • The company's bottom line was helped by a higher interest income and fall in provision for credit losses.
  • Net interest income rose 9.2 percent to $2.3 billion, while non-interest expenses increased 5 percent to $2.5 billion.

Regional bank PNC Financial Services reported a better-than-expected quarterly profit on Friday helped by a higher interest income and fall in provision for credit losses.

Banks in the United States have got a much-needed boost from the Federal Reserve raising overnight interest rates. The Fed has raised rates three times since second quarter last year, the latest increase coming in June.

Net interest income rose 9.2 percent to $2.3 billion, while non-interest expenses increased 5 percent to $2.5 billion.

Net income attributable to diluted common shares rose to $1.03 billion in the second quarter ended June 30, from $914 million a year earlier.

Earnings per share rose to $2.10 from $1.82.

Analysts on average had expected earnings of $2.02 per share, according to Thomson Reuters I/B/E/S.

Total loans rose to $218 billion from $212.8 billion in the preceding quarter. The bank said provisions for bad loans dropped 23 percent to $98 million for the reported quarter.

Share of PNC, which have risen 8.6 percent this year, were unchanged in premarket trading on Friday.