Tuesday, October 23, 2012

PNC Financial Services Earnings Review: Performance Strengthens

PNC Financial Services reported QE September 2012 financial results on October 16

CEO James Rohr delivered a solid quarter with improved financial performance, rebounding from the prior quarter earnings disappointment. Financial position is solid with very strong capital. Risk management appears very good.

Various non-operating and non-recurring items offset each other this quarter, "Third quarter 2012 net income included an after tax gain on the sale of 5 million Visa Class B common shares of $89 million, or $.17 per diluted common share, noncash charges for unamortized discounts related to redemption of trust preferred securities of $61 million after tax, or $.12 per diluted common share, and (RBC) integration costs of $23 million after tax, or $.04 per diluted common share."

At QE 9-30-12, I have rated PNC Financial Services a "B+" on a scale of A+ to G-. This is no change in the rating from the prior QE 6-30-12. The median rating is "D" and the average rating at QE 6-30-12 was "C". Financial position is weighted more than financial performance. The QE 6-30-12 bank ratings review is here.

“PNC’s results for the second quarter reflected strong operating performance in a challenging environment,” said James E. Rohr, chairman and chief executive officer. “While we experienced a few items that reduced our earnings in the short term, we were very pleased with our success in continuing to grow customer relationships and loans resulting in strong revenue. We are excited about the opportunities we see in our newly acquired southeastern markets and across our entire franchise to drive long-term value.”


Seeking Alpha