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Mar 31, 2024
PNC Q1 2024 Earnings Report
PNC reported solid first quarter results with stable credit quality, expense reduction and growth in liquidity and capital.
Key Takeaways
PNC reported a first quarter net income of $1.3 billion, or $3.10 per diluted share. Excluding a $130 million FDIC special assessment, adjusted diluted earnings per share was $3.36. The company focused on growing customers, reducing expenses, and increasing spot deposits while maintaining a strong balance sheet.
Revenue decreased 4% due to lower net interest income and noninterest income.
Core noninterest expenses declined 6% reflecting a focus on expense management.
Net loan charge-offs were $243 million, or 0.30% annualized to average loans.
CET1 capital ratio of 10.1% and repurchased $0.1 billion of common shares.
PNC
PNC
PNC Revenue by Segment
Revenue by Segment
Retail Banking Revenue
CapyFin.comCorporate & Institutional Revenue
CapyFin.comAsset Management Revenue
CapyFin.com Forward Guidance
PNC's baseline forecast is for slower economic growth in 2024 as consumer spending growth slows and higher interest rates remain a drag on the economy. The ongoing strength of the labor market will continue to support consumer spending. The Federal Open Market Committee is indicating that it will start to cut the federal funds rate later this year, with rate cuts supporting economic growth toward the end of 2024.
Positive Outlook
- GDP growth this year will be close to trend at below 2%
- The unemployment rate will increase modestly to somewhat above 4% by the end of 2024.
- Inflation will continue to slow as wage pressures abate
- Inflation will move back to the Federal Reserve’s 2% long-term objective by the first half of 2025.
- PNC expects the federal funds rate to remain unchanged in the first part of 2024, between 5.25% and 5.50%
Challenges Ahead
- Slower economic growth in 2024 as consumer spending growth slows
- Higher interest rates remain a drag on the economy.
- Two federal funds rate cuts in 2024, with the rate ending this year in a range between 4.75% and 5.00%.
- Economic and financial market conditions will be substantially different than those we are currently expecting
- Potential legal and regulatory contingencies
Revenue & Expenses
Visualization of income flow from segment revenue to net income