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Mar 31, 2022
PNC Q1 2022 Earnings Report
PNC reported solid financial results with loan growth, expense control, and strong credit quality.
Key Takeaways
PNC Financial Services Group reported a first quarter 2022 net income of $1.4 billion, or $3.23 per diluted share. Adjusted diluted earnings per share was $3.29, excluding $31 million of pre-tax integration costs related to BBVA USA. The company grew loans, controlled expenses, and maintained strong credit quality. The quarterly common stock dividend was raised by 20% to $1.50 per share.
Diluted EPS as adjusted was $3.29, excluding $31 million of pre-tax integration costs related to BBVA USA
Revenue decreased 8% linked quarter, primarily driven by lower noninterest income reflecting lower capital markets related revenue and lower business activity
Expenses decreased 16% linked quarter, and 7% excluding integration expenses, reflecting lower personnel costs
Provision recapture of $208 million
PNC
PNC
PNC Revenue by Segment
Revenue by Segment
Retail Banking Revenue
CapyFin.comAsset Management Revenue
CapyFin.com Forward Guidance
The U.S. economy continues to recover from the pandemic-caused recession in the first half of 2020. Growth is likely to remain above the economy’s long-run average throughout this year. Consumer spending growth will remain solid in 2022 due to good underlying fundamentals.
Positive Outlook
- The U.S. economy continues to recover from the pandemic-caused recession in the first half of 2020.
- Growth is likely to remain above the economy’s long-run average throughout this year.
- Consumer spending growth will remain solid in 2022 due to good underlying fundamentals.
- Supply-chain difficulties will gradually ease over the course of 2022.
- Labor shortages will remain a constraint this year, although strong wage growth will support consumer spending.
Challenges Ahead
- Uncertainty about the outlook has increased with the Russian invasion of Ukraine.
- It has created upside risk to inflation this year, which could lead the FOMC to tighten more aggressively than currently anticipated.
- Risks to growth are to the downside.
- The likelihood of a recession in late 2022 or 2023 has increased.
- Inflation will end 2022 above the Federal Reserve’s long-run objective of 2%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income