Banks

PNC Financial profit tops estimates on higher loan growth

An ATM is shown at company headquarters for the PNC Financial Services at One PNC Plaza in Pittsburgh, Pennsylvania.
Getty Images
Key Points
  • PNC Financial Services Group posted a better-than-expected third quarter profit on Wednesday, boosted by higher loan growth.
  • PNC Financial said net interest income rose 1.5% to $2.50 billion.
  • On a per share basis, quarterly earnings rose to $2.94 from $2.82 a year earlier.
An ATM is shown at company headquarters for the PNC Financial Services at One PNC Plaza in Pittsburgh, Pennsylvania.
Getty Images

PNC Financial Services posted a better-than-expected third-quarter profit on Wednesday, boosted by higher loan growth.

The U.S. regional bank's loan portfolio grew 6.5% to $237.4 billion, with commercial lending accounting for about 67% of total loans.

PNC Financial, one of the largest local U.S. lenders by assets, said net interest income rose 1.5% to $2.50 billion, as higher loans and lower borrowing costs offset lower interest rates. U.S. Federal Reserve has cut interest rates twice this year, pressuring banks' profits.

The Pittsburgh, Pennsylvania-based bank's net income attributable to common shareholders fell to $1.32 billion in the third quarter ended Sept. 30, from $1.33 billion, a year earlier.

On a per-share basis, quarterly earnings rose to $2.94 from $2.82 a year earlier.

Analysts on average expected the bank to earn $2.80 per share. Total revenue rose 3% to $4.49 billion.