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Dec 31, 2019
PNC Q4 2019 Earnings Report
PNC reported net income of $1.4 billion and diluted EPS of $2.97 for the fourth quarter of 2019.
Key Takeaways
PNC Financial Services Group reported a strong fourth quarter in 2019, with net income reaching $1.4 billion and diluted earnings per share at $2.97. The bank's total revenue grew by 3% driven by higher noninterest income.
Net income was $1.4 billion, a decrease of 1 percent compared to the previous quarter.
Total revenue grew by 3 percent to $4.6 billion.
Average loans increased by $1.2 billion, reaching $238.9 billion.
PNC returned $1.5 billion of capital to shareholders through share repurchases and dividends.
Revenue by Segment
Forward Guidance
PNC expects U.S. economic growth to slow further in 2020. Slower global economic growth, trade tensions, reduced fiscal stimulus, and aerospace production cuts are the primary drivers of softer U.S. growth.
Positive Outlook
- Job growth will continue in 2020, but at a slower pace from 2019 due to both difficulty in finding workers and slower economic growth.
- The unemployment rate is expected to increase slightly in the near term, but the labor market will remain tight, pushing wages higher and supporting continued gains in consumer spending.
- Inflation slowed in 2019, to below the Federal Open Market Committee’s (FOMC’s) 2 percent objective, but is expected to gradually increase over the next two years.
- We do not expect further federal funds rate cuts in 2020.
- The federal funds rate is modestly positive for near-term economic growth in its current range of 1.50 to 1.75 percent.
Challenges Ahead
- Near-term risks are generally to the downside, including a further softening in the global economy, a further escalation in trade tensions, and geopolitical concerns.
- Slower global economic growth
Historical Earnings Impact
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Avg. Return Before/After Earnings
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