PNC Financial Services Reports Strong Q4 Earnings Amid Diverse Challenges
The PNC Financial Services Group, Inc released its fourth-quarter 2024 adjusted earnings, posting earnings per share of $3.77, beating the Zacks Consensus Estimate of $3.30. Last year, the company recorded earnings per share of $1.85.
For current earnings estimates and surprises, check the Zacks Earnings Calendar.
The adjusted earnings per share for the full year was $13.74, exceeding the Zacks Consensus Estimate of $13.47, and reflecting growth from last year’s $12.79.
PNC’s positive results were driven by increased fee income, net interest income (NII), and higher deposit balances. Additionally, reduced expenses and lower provisions for credit losses contributed to the favorable outcome. However, a dip in loan balances posed challenges.
Net income on a GAAP basis reached $1.6 billion, marking an impressive 84.3% increase from the same quarter last year.
For the entirety of 2024, net income (GAAP basis) stood at $5.95 billion, up 5.4% year over year.
Revenue Growth and Cost Management at PNC
For the quarterly period, total revenues hit $5.57 billion, a 3.8% year-over-year increase, surpassing the Zacks Consensus Estimate of $5.47 billion.
Annual revenues reached $21.6 billion, with modest growth compared to the previous year, again exceeding the Zacks Consensus Estimate of $21.4 billion.
NII for the quarter was recorded at $3.5 billion, up 4% from last year. The net interest margin rose by 9 basis points to 2.75%. Our estimates for NII and NIM were $3.44 billion and 2.69%, respectively.
Non-interest income experienced a year-over-year increase of 4.4%, totaling $2 billion. This rise was largely attributed to growth in fee income components, except for mortgage income. We anticipated $1.99 billion in non-interest income.
Non-interest expenses were $3.5 billion, down 14% from last year, largely due to cuts in personnel and occupancy costs. Our estimate for these expenses stood at $3.43 billion.
The efficiency ratio improved to 61% from 62% in the previous year, reflecting increased profitability.
