PNC Financial Services (NYSE:PNC) has reported second-quarter results that beat market expectations but trimmed forecasts for its 2023 net interest income.
The Pittsburgh-based bank posted a 3.5% rise in revenue to $5.29 billion for the three months to June 30, 2023, supported by a 15% year-over-year increase in net interest income to $3.5 billion. Net income came in 0.3% higher at $1.5 billion, resulting in diluted earnings per share of $3.36, down from $3.39 but ahead of the $3.31 consensus forecast from the nine analysts that follow the stock, according to Zacks Investment Research.
"For the second quarter, PNC delivered solid financial results and maintained strong credit quality metrics, reflecting the power of our national franchise and the competitive positioning of our balance sheet in the current environment,” chairman, president and CEO Bill Demchak said in a statement.
“The Federal Reserve's annual stress test recently demonstrated PNC's through-the-cycle financial strength and stability, and starting in the fourth quarter, our stress capital buffer requirement will improve to the regulatory minimum of 2.5%.
“In consideration of our strong capital levels and the board's confidence in our strategy and outlook, in July the board approved a 5-cent increase to our quarterly stock dividend.”
The bank now expects full-year 2023 net interest income to be 5% to 6% higher than in 2022, down from its previous forecast of a 6% to 8% rise.
Its shares traded 2.9% lower at $123.44 ahead of the market open.
Contact the author at stephen.gunnion@proactiveinvestors.com