PNC report $1 billion 3Q 2014 profit

Staff report

PITTSBURGH

PNC Bank reported a net income of $1 billion, or $1.79 per common share, for the third quarter of 2014.

The bank’s earnings report is a 1 percent decrease from last quarter, when it reported a profit of $1.1 billion, or $1.85 per share. Net income was $1 billion, or $1.77 per common share, for the third quarter of 2013.

In a press release Wednesday, the bank said earnings reflected revenue and capital growth and that expenses were controlled.

“We added customers, grew deposits, and increased fee income and capital. We also effectively managed expenses even as we made targeted investments in our businesses and technology,” William S. Demchak, chairman, president and chief executive officer, said in a statement.

Net-interest income, or the difference between the bank’s revenue and liabilities, was $2.1 billion in the third quarter, down 4.5 percent from the same time last year and 1 percent from last quarter due to lower earning asset yields, lower investment securities balances and the impact of increasing the company’s liquidity position.

Loans grew by 4 percent from last year to reach $200.9 billion. Although commercial lending increased, there was a slight decrease for consumer lending at the bank.

Nonperforming assets and charge-offs, or loans that can’t be collected, continued to decline in the third quarter from the second quarter and a year ago from the same time period, which gave a boost to credit quality.

“Looking ahead, balance-sheet discipline should continue to differentiate PNC and help to drive long-term shareholder value,” Demchak said.