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PNC Financial profit tops estimates on higher loan growth

PNC Financial posted better-than-expected third quarter results on Wednesday. The company said net interest income rose 1.5% to $2.50 billion, as higher loans and borrowing costs offset lower interest rates. Read more...

An ATM is shown at company headquarters for the PNC Financial Services at One PNC Plaza in Pittsburgh, Pennsylvania.

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PNC Financial Services posted a better-than-expected third-quarter profit on Wednesday, boosted by higher loan growth.

The U.S. regional bank’s loan portfolio grew 6.5% to $237.4 billion, with commercial lending accounting for about 67% of total loans.

PNC Financial, one of the largest local U.S. lenders by assets, said net interest income rose 1.5% to $2.50 billion, as higher loans and lower borrowing costs offset lower interest rates. U.S. Federal Reserve has cut interest rates twice this year, pressuring banks’ profits.

The Pittsburgh, Pennsylvania-based bank’s net income attributable to common shareholders fell to $1.32 billion in the third quarter ended Sept. 30, from $1.33 billion, a year earlier.

On a per-share basis, quarterly earnings rose to $2.94 from $2.82 a year earlier.

Analysts on average expected the bank to earn $2.80 per share. Total revenue rose 3% to $4.49 billion.

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