Many of the major banks are following basically the same trajectory in their recovery, and PNC Financial (NYSE:PNC) is no exception. Similar to U.S. Bancorp (NYSE:USB) and Wells Fargo (NYSE:WFC), PNC is seeing ongoing credit improvement and some stabilization in the loan portfolio, while not seeing too much momentum yet in net interest income. And like other large banks, PNC Financial shares still seem to value the company too cheaply based on reasonable recovery prospects.
A Noisy Quarter That Nets Out OK
Where to start with the PNC first quarter report? Like every large bank's earnings these days, PNC's report is a mess of charges, gains, "core," "non-core" and so on. But here are some of the numbers to really follow.
First, operating revenue was down about 3% on a sequential basis. Net interest income was also down about 1% from the fourth quarter, though "core" net interest income was positive. Net interest margin was basically flat. Loan balances were stable, while commercial loans showed some growth. Fee income was weak on a sequential basis, but expenses were down from an elevated level in the fourth quarter.
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