PNC said higher returns on interest-earnings assets weren’t enough to make up for increased funding costs.
Photograph by Gabriela Bhaskar/Bloomberg
PNC Financial Services Group posted mixed third-quarter earnings as profit surpassed forecasts but net interest income declined.
PNC (ticker: PNC) reported earnings of $3.60 a share, ahead of the $3.10 per share consensus call among analysts surveyed by FactSet. Revenue for the quarter ended in September came in at $5.23 billion, while analysts had been looking for $5.32 billion.
Net interest income—a closely watched measure of profit among banks—was $3.42 billion, a 2.8% drop from the second quarter. Higher returns on interest- earning assets didn’t make up for increased funding costs the bank had to bear, the firm said.
Analysts had expected $3.41 billion in net interest income.
The stock was wavering between gains and losses in premarket trading Friday.
Write to Karishma Vanjani at [email protected].
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