PNC's Profit Rises on Growth in Commercial Lending

By Allison Prang Features Dow Jones Newswires

PNC Financial Services Group Inc. delivered a stronger third-quarter profit, bolstered by growth in commercial lending.

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Net income was $1.11 billion, or $2.16 diluted earnings per share, compared with $988 million, or $1.84 a share, a year earlier. Analysts polled by FactSet were predicting the bank would earn $2.13 a share.

Commercial lending at the Pittsburgh-based company rose 7% to $148.5 billion, compared with $138.2 billion a year earlier.

The net interest margin expanded by 23 basis points to 2.91%. Net interest income at the company rose 12% to $2.3 billion.

PNC increased its credit-loss provision to $130 million from $87 million. A total of $10 million of the increase was because of the hurricanes that hit the southern U.S., the company said.

Chief Executive William Demchak said PNC benefited from higher short-term rates and acquired new clients. The company recently grew its presence by expanding into Minneapolis, Dallas and Kansas City. In July, it said it would also expand into Nashville, Houston and Denver in 2018.

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Income from the company's retail and corporate divisions grew but decreased in asset management.

Deposits stood at $260.7 billion, virtually unchanged from a year ago.

PNC shares were inactive in premarket trading.

(END) Dow Jones Newswires

October 13, 2017 07:50 ET (11:50 GMT)