PNC reports rise in net income

Staff report

PNC Financial Services Inc. reported a net income of $1.06 billion for the first quarter, up $995 million from the same period a year ago, as the bank recorded its fourth- consecutive quarter with net income greater than $1 billion.

Total revenue fell nearly 5 percent to $3.8 billion because of lower noninterest and net interest income, according to the Pittsburgh-based bank’s quarterly filing with the U.S. Securities and Exchange Commission.

But noninterest expenses fell to $2.26 billion, down 4 percent from the same time last year and 10 percent from the previous quarter. The bank attributed the decline to overall discipline and reduced personal and marketing costs.

“PNC had a successful first quarter,” William S. Demchak, president and chief executive officer, said in a statement.

“We grew loans and deposits, and we lowered expenses even as we continue to make investments across our businesses to enhance the customer experience and become more efficient,” he said.

Loans and deposits each grew by 1 percent over the course of the first quarter, and overall credit quality continued to rise.

Reflecting strong income and balance-sheet results, PNC announced it increased its quarterly cash dividend on common stock by 4 cents per share, a 4 percent bump from what the bank originally projected. The bank also will buy back up to $1.5 billion in stock over the next four quarters.

Both measures, part of the bank’s capital plan, were approved by the Federal Reserve last month.