Friday, May 11, 2012

PNC Financial Services Reports Mixed Quarterly Results

PNC Financial Services reported Q1 2012 financial results on Wednesday, April 18, 2012.

PNC Financial Services Summary Q1 2012 PNC Financial Services quarterly performance rebounded from the weak prior Q4 2011. However, results were mixed with YoY decreases in net income, earnings per share, operating margin, and net margin. Financial position continues very strong. Financial performance overall is adequate and should improve in the next quarters. CEO James Rohr said, "With the completion of our acquisition of RBC Bank (USA), we plan to leverage our brand and innovative product set to grow market share in the southeast."

PNC Financial Services Income Statement Q1 2012 Net revenues were $3.73 billion, net income $811 million, and earnings per share $1.44. From the prior quarter Q4 2011, these were +5%, +65%, and +69%, respectively. From the prior year Q1 2011, these were +3%, -3%, and -8%, respectively. Both the operating margin and net margin increased QoQ but decreased YoY. The operating expense ratio of 60.80% decreased QoQ but was up YoY.

PNC Financial Services Balance Sheet Q1 2012 Total assets increased to a record high of $295.88 billion, attributable mostly to the acquisition of RBC Bank (USA). The capital ratio dipped QoQ to 12.92%, but continues very strong. Return on assets decreased QoQ to a still strong +1.12%. Net Loans increased to 58% of the asset mix, which is adequate.

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