PNC Financial Benefiting From A Hot Main Street And Valuation Is Better

I was lukewarm on PNC Financial (NYSE:PNC) back in February, as although I really liked (and still like) management and how they have positioned this bank for durable commercial lending-driven growth, I thought the valuation more or less reflected those qualities. The shares have since modestly underperformed their peers, falling about 25% in a weak market for bank stocks.

Not much surprised me in this quarter, including considerably above-average commercial lending growth and managements relatively more conservative view on the larger economy. With the company still poised to reap long-term benefits from the BBVA deal, as well as this strong lending environment, I think solid mid-single-digit core earnings growth is still in the cards, and with the shares now cheaper, it’s a name worth reconsidering.

 

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PNC Financial Benefiting From A Hot Main Street And Valuation Is Better