PNC reports third-quarter earnings

Staff report

PITTSBURGH

PNC’s third-quarter earnings led the bank to its 10th-consecutive quarter with earnings of $1 billion or more.

Pittsburgh-based PNC Bank reported third-quarter 2015 net income of $1.1 billion or $1.90 per diluted common share Wednesday.

The earnings are compared with $1 billion of net income and $1.88 diluted earnings per share, or EPS, in the second quarter of 2015, and $1 billion of net income and $1.79 diluted EPS in the third quarter of 2014.

“Expenses were down, deposits were up, and we continued to execute on our strategic priorities designed to deepen customer relationships and grow our diverse fee businesses,” William S. Demchak, chairman, president and chief executive officer, said in a statement.

Third-quarter earnings reflected a strong contribution of noninterest income to total revenue of 45 percent and well-controlled expenses.

Noninterest expense of $2.4 billion decreased $14 million, or 1 percent, compared with the second quarter.

Noninterest income of $1.7 billion for the third quarter decreased $101 million, or 6 percent, compared with the second quarter, primarily due to higher second-quarter gains on asset sales.

Commercial lending saw an increase of $0.4 billion while consumer lending decreased $0.6 billion.

Loans declined by $0.2 billion down to $205 billion at Sept. 30 compared with June 30.

Deposits grew $5.3 billion, or 2 percent, compared with the second quarter due to higher demand, savings and money market deposits primarily driven by commercial deposit growth.

On Oct. 1, the PNC board of directors declared a quarterly common stock cash dividend of 51 cents per share payable Nov. 5.