PNC Financial Services Group, Inc. has reported a net income of $1.5 billion for the second quarter of 2024, with a diluted earnings per share (EPS) of $3.39. This represents an increase from the first quarter of 2024 when the net income was $1.344 billion and the diluted EPS was $3.10.
The company saw positive operating leverage, with a 13% increase in pretax, pre-provision earnings (PPNR), and a 5% increase in revenue, which totaled $5.4 billion for the quarter. The net interest income (NII) for the quarter was $3.302 billion, up from $3.264 billion in the first quarter of 2024. The net interest margin (NIM) increased to 2.60% from 2.57% in the previous quarter.
Noninterest income for the second quarter of 2024 was $2.109 billion, compared to $1.881 billion in the first quarter, reflecting a 12% increase. The growth was primarily driven by higher fee income and other noninterest income, which was impacted by significant items such as the gain on the exchange of Visa class B-1 shares.
Noninterest expenses increased by 1% to $3.357 billion compared to the first quarter of 2024. This increase was attributed to a $120 million PNC Foundation contribution expense. The provision for credit losses also rose to $235 million in the second quarter, primarily reflecting the impact of portfolio activity.
In terms of the balance sheet, average loans remained stable at $319.9 billion, while average securities increased by 4% to $141.3 billion. Additionally, the company maintained a strong capital position with a Common Equity Tier 1 (CET1) capital ratio of 10.2% and a regulatory minimum Stress Capital Buffer (SCB) of 2.5%.
As a result of these announcements, the company's shares have moved 4.4% on the market, and are now trading at a price of $176.43. If you want to know more, read the company's complete 8-K report here.
