PNC Financial Q4 Earnings Beat Estimates, NII & Fee Income Rise Y/Y

The PNC Financial Services Group, Inc.’s PNC fourth-quarter 2024 adjusted earnings per share of $3.77 surpassed the Zacks Consensus Estimate of $3.3. In the prior-year quarter, the company reported earnings per share of $1.85.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.For 2024, adjusted earnings per share was $13.74, which beat the Zacks Consensus Estimate of $13.47. This compares favorably with $12.79 reported in the year-ago quarter.Results were aided by a rise in fee income, NII and higher deposit balance. A decline in expenses and provision for credit losses were other positives. However, a lower loan balance was a headwind. Net income (GAAP basis) was $1.6 billion, which jumped 84.3% from the prior-year quarter.For 2024, the company reported net income (GAAP basis) of $5.95 billion, which increased 5.4% year over year.PNC’s Revenues Rise and Expenses FallTotal quarterly revenues were $5.57 billion, up 3.8% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $5.47 billion.Full-year revenues aggregated to $21.6 billion, up marginally year over year. The top line surpassed the Zacks Consensus Estimate of $21.4 billion. Quarterly NII was $3.5 billion, which rose 4% from the year-ago quarter. Net interest margin (NIM) increased 9 basis points to 2.75%. Our estimate for NII and NIM was $3.44 billion and 2.69%, respectively.Non-interest income increased 4.4% year over year to $2 billion. The improvement was driven by a rise in all the components of fee income except for residential and commercial mortgage income. Our estimate was $1.99 billion.Non-interest expenses totaled $3.5 billion, which declined 14% from the year-ago figure. The fall was due to a decrease in personnel, occupancy and other expenses. Our estimate was $3.43 billion.The efficiency ratio was 61% compared with 62% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.PNC’s Loan Balance Declines, Deposits RiseAs of Dec. 31, 2024, total loans were $316.5 billion, which decreased 1.5% on a sequential basis. Our estimate for total loans was $318.8 billion. Nonetheless, total deposits increased nearly 1% from the end of the previous quarter to $426.7 billion. Our estimate for total deposits was $423.8 billion.PNC’s Credit Quality: Mixed BagNon-performing loans increased 6.7% year over year to $2.3 billion. Further, net loan charge-offs were $250 million, which increased 25% year over year. Nonetheless, the company reported a provision for credit losses of $156 million in the fourth quarter, which declined 32.8% from the year-earlier quarter. Our estimate for Provision for Credit Losses was $279.1 million.The allowance for credit losses decreased 4.6% to $5.2 billion.PNC’s Capital Position & Profitability Ratios ImproveAs of Dec. 31, 2024, the Basel III common equity tier 1 capital ratio was 10.5% compared with 9.9% as of Dec. 31, 2023.Return on average assets and average common shareholders’ equity were 1.14% and 12.38%, respectively, compared with 0.62% and 6.93% witnessed in the prior-year quarter.PNC’s Capital Distribution ActivityIn the third quarter of 2024, PNC Financial returned $0.9 billion of capital to shareholders. This included more than $0.6 billion in common stock dividends and more than $0.2 billion in common share repurchases.Our View on PNCPNC Financial’s fee income and NII growth will support its top-line growth. Strong capital position aids steady capital distribution activities. However, declining loan balance remains a near-term concern.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 QuoteCurrently, 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 BanksCitizens Financial Group, Inc. CFG is slated to report fourth-quarter 2024 results on Jan. 17. It has a Zacks Rank #3 at present.Over the past seven days, the Zacks Consensus Estimate for CFG’s quarterly earnings per share has remained unchanged at 83 cents.Fifth Third Bancorp FITB is scheduled to release fourth-quarter 2024 earnings on Jan. 21. The company carries a Zacks Rank #3 at present.The consensus estimate for FITB’s quarterly earnings has remained unchanged at 87 cents per share over the past seven days.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks