Latest news with #PNCFinancial
Yahoo
3 days ago
- Business
- Yahoo
KeyCorp Q2 profit rises on higher interest income and fees
(Refiles to fix formatting) By Atharva Singh (Reuters) -KeyCorp posted a 63% jump in its second-quarter profit on Tuesday, helped by increased interest income and a surge in investment banking fees. Lower deposit costs at regional lenders in the U.S., which are falling faster than the returns on assets, have helped keep profit margins steady and boosted net interest income, even as loan demand remains uneven. Net interest income — difference between earnings on loans and payments on deposits — jumped nearly 28% to $1.15 billion in the quarter. KeyCorp expects its NII to grow roughly 20-22% in 2025 compared to analysts' expectation of a near 22% jump. Peer lenders, including PNC Financial and Citizens Financial, posted higher quarterly profits last week, driven by improved fee income and stabilizing credit trends, though NII pressures remained in focus. Recent rate cuts and easing bond yields have prompted some U.S. banks to cut losses on low-yielding investment securities and redeploy funds into higher-yielding assets to improve returns and liquidity. KeyCorp used half of Scotiabank's capital injection last year to sell about $10 billion of its low-yield investments. The banks' investment banking and debt placement fees jumped over 41% to $178 million. "With 189 U.S. IPOs already priced this year, nearly double last year's pace, fee income is shifting from rounding error to rescue rope for balance sheets," said Michael Ashley Schulman, partner at Running Point Capital Advisors. "Capital-markets activity is no longer the lonely ATM in the lobby; KeyCorp and the regionals are hearing the ka-ching again," Schulman added. KeyCorp was a joint book runner on Hinge Health's IPO in May 2025. The Cleveland-based lender reported income from continuing operations of 35 cents per share, up from 25 cents per share, reported a year ago. Shares of the bank were up marginally in premarket trading.
Globe and Mail
17-07-2025
- Business
- Globe and Mail
PNC Financial Reports Strong Q2 2025 Results
Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. PNC Financial ( (PNC)) has issued an announcement. On July 16, 2025, PNC Financial Services Group reported strong financial results for the second quarter of 2025, with a net income of $1.6 billion and a 4% revenue growth. The company experienced its strongest loan growth since the fourth quarter of 2022, maintained stable noninterest expenses, and announced a dividend increase, reflecting its continued financial strength. PNC's strategic priorities include expanding its client base and leveraging technology for superior client service, which contributed to record treasury management revenue and increased brokerage assets. The company also reported improved credit quality and maintained its stress capital buffer at the regulatory minimum. The most recent analyst rating on (PNC) stock is a Buy with a $212.00 price target. To see the full list of analyst forecasts on PNC Financial stock, see the PNC Stock Forecast page. Spark's Take on PNC Stock According to Spark, TipRanks' AI Analyst, PNC is a Outperform. PNC Financial's strong financial performance and strategic focus on capital return are the most significant factors driving the score. The technical analysis suggests caution due to overbought signals, while the valuation remains fair with an attractive dividend yield. The earnings call reinforces confidence in PNC's resilience despite potential market challenges. To see Spark's full report on PNC stock, click here. More about PNC Financial PNC Financial Services Group, Inc. operates in the financial services industry, offering a wide range of financial products and services on a national basis. The company focuses on corporate banking, business credit, treasury management, retail banking, and asset management, leveraging technology to enhance client service and ensure safety and soundness. Average Trading Volume: 2,267,611 Technical Sentiment Signal: Strong Buy Current Market Cap: $78.08B For detailed information about PNC stock, go to TipRanks' Stock Analysis page.
Business Insider
17-07-2025
- Business
- Business Insider
PNC Financial price target raised to $186 from $179 at Morgan Stanley
Morgan Stanley raised the firm's price target on PNC Financial (PNC) to $186 from $179 and keeps an Underweight rating on the shares. The company delivered an 8% EPS beat on stronger revenues and lower loan loss provisions, with focus being strong loan growth in Corporate & Institutional Banking division, but while the stock continues to stand out as one of the more compelling net interest income growth stories in the sector, it also trades at a one-turn premium to its peers, the analyst tells investors in a research note. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Yahoo
16-07-2025
- Business
- Yahoo
PNC Financial Q2 Earnings Beat Estimates on NII & Loan Growth
The PNC Financial Services Group, Inc.'s PNC second-quarter 2025 adjusted earnings per share (EPS) of $3.85 surpassed the Zacks Consensus Estimate of $3.56. In the prior-year quarter, the company reported EPS of $3.39. Results were aided by a rise in NII and the loan balance. However, a decline in fee income and an increase in expenses, along with a rise in provision for credit losses, acted as spoilsports. Net income (GAAP basis) was $1.64 billion, which jumped 11.2% from the prior-year quarter. PNC Financial's Revenues & Expenses Rise Y/Y Total quarterly revenues were $5.66 billion, up 4.6% year over year. The top line surpassed the Zacks Consensus Estimate by 0.7%. NII was $3.55 billion, which rose 7.7% from the year-ago quarter. The net interest margin (NIM) increased 20 basis points to 2.80%. Our estimate for NII and NIM was $3.56 billion and 2.92%, respectively. Non-interest income slightly decreased year over year to $2.1 billion. The decrease was driven by lower residential and commercial mortgage income, along with a decline in other non-interest income. Our estimate was $2.04 billion. Non-interest expenses totaled $3.38 billion, which rose marginally from the year-ago figure. Our estimate was $3.43 billion. The efficiency ratio was 60% compared with 62% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability. PNC's Loan and Deposit Balance Rises As of June 30, 2025, total loans were $326.3 billion, which increased 2.3% on a sequential basis. Our estimate for total loans was $323.1 billion. Further, total deposits increased by nearly 1% from the end of the previous quarter to $426.7 billion. Our estimate for total deposits was $422.5 billion. PNC Financial's Credit Quality: Mixed Bag Non-performing loans fell 15.8% year over year to $2.1 billion. Further, net loan charge-offs were $198 million, which declined 24.4% year over year. Our estimate for non-performing loans was 2.2 billion. The company reported a provision for credit losses of $254 million in the second quarter, which surged 8.1% from the year-earlier quarter. Our estimate for the metric was $252 million. The allowance for credit losses decreased 1.3% to $5.3 billion. Our estimate for the metric was $5.4 billion. PNC's Capital Position & Profitability Ratios Improves As of June 30, 2025, the Basel III common equity tier 1 capital ratio was 10.5% compared with 10.2% as of June 30, 2024. Return on average assets and average common shareholders' equity were 1.17% and 12.20%, respectively, compared with 1.05% and 12.16% witnessed in the prior-year quarter. PNC Financial's Capital Distribution Activity In the second quarter of 2025, PNC returned $1 billion of capital to shareholders. This included $0.6 billion in common stock dividends and more than $0.3 billion in common share repurchases. Our View on PNC PNC Financial's NII growth, along with rising loan and deposit balances, will support its top-line growth. Its strong capital position aids steady capital distribution activities. However, a decline in fee income and a rise in provisions are near-term concerns. The PNC Financial Services Group, Inc Price, Consensus and EPS Surprise The PNC Financial Services Group, Inc price-consensus-eps-surprise-chart | The PNC Financial Services Group, Inc Quote Currently, PNC carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Earnings Dates & Expectations of Banks Citizens Financial Group, Inc. CFG is slated to report second-quarter 2025 results on July 17. Over the past seven days, the Zacks Consensus Estimate for CFG's quarterly earnings per share has remained unchanged at $0.88. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.) Fifth Third Bancorp FITB is scheduled to release second-quarter 2025 earnings on July 17. The consensus estimate for FITB's quarterly earnings has been unchanged at 87 cents per share over the past seven days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Reuters
16-07-2025
- Business
- Reuters
PNC Financial's quarterly profit rises on higher interest income, fees
July 16 (Reuters) - U.S. bank PNC Financial (PNC.N), opens new tab reported an 11.2% rise in second-quarter profit on Wednesday, aided by higher interest and fee income. A robust labor market and spending trends boosted major stock indices to record highs through the end of June, after a few turbulent months following the Trump administration's U.S. tariff announcements. M&A activity also picked up in the quarter, anchored by some big-ticket initial public offerings and buyouts. PNC's strong results are in line with those of major U.S. lenders such as JPMorgan Chase (JPM.N), opens new tab and Citigroup (C.N), opens new tab, both of which posted higher quarterly profits on Tuesday. Net interest income (NII) - the difference between what a bank earns as interest on loans and pays out on deposits - jumped to $3.56 billion in the second quarter for PNC, compared with $3.30 billion a year earlier, benefiting from loan growth and continued repricing of certain fixed-rate assets. PNC's provisions for credit losses rose to $254 million in the second quarter, compared with $235 million a year earlier. "The strength of our franchise resulted in strong loan and revenue growth even through an uncertain macro environment, while expenses remained well controlled," said PNC chairman and CEO Bill Demchak. U.S. banks are pursuing growth in fee-based segments as these are less exposed to the pricing pressure from higher interest rates and stagnant loan growth. Adjusting for one-time items, total fee income for the Pittsburgh, Pennsylvania-based PNC came in at $1.89 billion, up from $1.78 billion in the year-ago period. The increase reflected an 18% jump in capital markets and advisory revenue. Asset management and brokerage revenue rose 7% to $391 million from the year-ago period. The lender's net income rose to $1.64 billion, or $3.85 per share, from $1.48 billion, or $3.39 per share, a year earlier.
