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Jun 30, 2024
PNC Q2 2024 Earnings Report
PNC delivered strong results, generating positive operating leverage through revenue growth and well controlled expenses while adding customers, and strengthening capital levels.
Key Takeaways
PNC reported strong second quarter results with a net income of $1.5 billion and diluted EPS of $3.39. The company generated positive operating leverage through revenue growth and well-controlled expenses, while also increasing net interest income and net interest margin. PNC also maintained a strong capital position, with a CET1 capital ratio of 10.2%.
Generated positive operating leverage; PPNR increased 13%.
Revenue increased 5%–NII and NIM increased.
Maintained strong capital position–CET1 capital ratio of 10.2%.
Increased quarterly common stock dividend 5 cents to $1.60 per share on July 2, 2024.
PNC
PNC
PNC Revenue by Segment
PNC Revenue by Geographic Location
Revenue by Segment
Retail Banking Revenue
CapyFin.comCorporate & Institutional Revenue
CapyFin.comAsset Management Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Job and income gains will continue to support consumer spending growth this year, but PNC’s baseline forecast is for slower economic growth in 2024 as higher interest rates remain a drag on the economy.
Positive Outlook
- Job and income gains will continue to support consumer spending growth this year
- Real GDP growth this year will be close to trend at around 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, gradually moving back to the Federal Reserve’s 2% long-term objective.
- PNC expects multiple federal funds rate cuts in 2025 as inflation continues to ease.
Challenges Ahead
- PNC’s baseline forecast is for slower economic growth in 2024 as higher interest rates remain a drag on the economy.
- With slowing inflation PNC expects two federal funds rate cuts of 25 basis points each at the Federal Open Market Committee’s September and December meetings, with the rate ending this year in a range between 4.75% and 5.00%.
- Our businesses, financial results and balance sheet values are affected by business and economic conditions
- Changes in interest rates and valuations in debt, equity and other financial markets
- Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income