PNC Financial Still Offers A Lot To Like As It Shifts To Recovery And Growth

 

PNC Financial (PNC) stands out as one of the very few banks I follow that doesn’t generate many complaints – the worst that’s usually ever said about PNC is that management takes a conservative approach and the business isn’t especially flashy. That’s fine with me, though, and few banks have generated better long-term returns than PNC.

With the purchase of BBVA’s (BBVA) U.S. banking assets complete, PNC has a coast-to-coast footprint and a presence in 29 of the 30 largest MSAs. Moreover, it’s a footprint skewed to some attractive growth markets, including the Southeast U.S., and a greater-than-average exposure to corporate lending.

I was bullish on PNC with my last update and the shares have continued to modestly outperform. While today’s price doesn’t offer an eye-popping total annualized return, I still believe PNC will continue to generate above-average returns, and I believe PNC will be a long-term winner in the ongoing consolidation of the U.S. banking sector. At a minimum, I think it’s a good candidate as a core long-term holding.

 

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PNC Financial Still Offers A Lot To Like As It Shifts To Recovery And Growth