PNC Financial Services Q1 2024 Net Income – $1.3 Billion

PNC Financial Services Group, Inc. has reported first-quarter 2024 net income of $1.3 billion, with a diluted EPS of $3.10. When excluding a $130 million FDIC special assessment, the adjusted diluted EPS stands at $3.36. The company's revenue decreased by 4% in comparison to the fourth quarter of 2023. Net interest income decreased by 4%, totaling $3.3 billion, and the net interest margin decreased by 9 basis points to 2.57%.

Noninterest income for the first quarter of 2024 decreased by $77 million compared with the fourth quarter of 2023. Asset management and brokerage revenue increased by 1%, capital markets and advisory revenue decreased by 16%, and card and cash management fees decreased by 2%. The total noninterest expense decreased by 18% to $3.3 billion, including non-core noninterest expenses of $130 million related to the increased FDIC special assessment. Excluding the impact of these items, core noninterest expense was $3.2 billion for the first quarter of 2024, decreasing by 6% from the fourth quarter of 2023.

Average loans for the first quarter of 2024 decreased by 1% to $320.6 billion, mainly driven by a 2% decline in average commercial loans, while average consumer loans declined by less than 1%. Additionally, average deposits decreased by 1% to $420.2 billion, and the average investment securities of $135.4 billion declined by 1% compared to the fourth quarter of 2023.

PNC maintained a strong capital and liquidity position, with the Basel III common equity tier 1 capital ratio at an estimated 10.1% at March 31, 2024, exceeding the regulatory minimum requirement throughout the quarter. The company returned $0.8 billion of capital to shareholders, representing more than $0.6 billion of dividends on common shares and more than $0.1 billion of common share repurchases, representing 0.9 million shares.

The market has reacted to these announcements by moving the company's shares -1.4% to a price of $147.44. For the full picture, make sure to review PNC Financial Services's 8-K report.

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