PNC Financial Average Deposits Fall 3% In Q4, Guides For Weaker FY24
Portfolio Pulse from Lekha Gupta
PNC Financial Services Group Inc (NYSE:PNC) reported a 7% Y/Y revenue decline in Q4 FY23 to $5.36 billion, slightly beating consensus estimates. Net interest income dropped 8% Y/Y, and noninterest income fell 6% Y/Y, primarily due to lower trading revenue. Average loans increased 1% Y/Y, while average deposits decreased 3% Y/Y. The company's provision for credit losses was $232 million, down from $408 million a year ago. Adjusted EPS was $3.16, above the consensus of $2.94. PNC declared a quarterly dividend of $1.55 per share and returned $0.7 billion to shareholders through dividends and share repurchases. For FY24, PNC expects revenue to be stable to 2%, with net interest income declining 4%-5% Y/Y. PNC shares fell 2.32% in premarket trading.
January 16, 2024 | 2:58 pm
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PNC Financial reported lower Q4 revenues and net interest income, with a decline in average deposits. Adjusted EPS exceeded expectations, and a dividend was declared. Shares dropped premarket, and FY24 guidance indicates potential revenue stability with a decrease in net interest income.
The premarket drop in PNC shares indicates a negative short-term impact due to the reported decline in revenues and net interest income, despite beating EPS estimates. The guidance for FY24 suggests further challenges, which could continue to pressure the stock in the short term.
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IMPORTANCE 85
RELEVANCE 100