Have you been eager to see how The PNC Financial Services Group, Inc. (PNC – Analyst Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Pennsylvania-based money center bank’s earnings release this morning:

An Earnings Beat

PNC Financial came out with earnings per share of $1.87, beating the Zacks Consensus Estimate of $1.80. Results were aided by reduced expenses, partly offset by a fall in revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for PNC Financial remained stable prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days.

Also, PNC Financial has a decent earnings surprise history. Before posting an earnings beat in Q4, the company delivered positive surprises in the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 5.3% in the trailing four quarters.

Revenue Exceeded Expectations

PNC Financial posted revenues of $3,853 million, which surpassed the Zacks Consensus Estimate of $3,793 million. However, it compared unfavorably with the year-ago number of $3,947 million.

Key Stats for Q4:

  • Net interest income and fee income improve quarter over quarter
     
  • Profits down 3.3% to $1.02 billion; Retail Banking segment earnings jump 24% year over year.
     
  • Provision for credit losses of $72 million increased 42% year over year.
     
  • Retail Banking segment profits jump 24%
     
  • Deposits rise 7%; loan growth remains tepid
     
  • Book value per common share at the end of Q4 was $ 81.84, up 5.5% year over year.
  • According to William S. Demchak, chairman, president and chief executive officer of PNC Financial, “”We increased fee income, reduced expenses and managed a strong balance sheet that will benefit from rising interest rates heading into 2016.”

    What Zacks Rank Says

    The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for PNC Financial. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

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