PNC reported 2015 net income of $4.1 billion
The PNC Financial Services Group Inc. on Friday reported 2015 net income of $4.1 billion, or $7.39 per diluted common share, compared with 2014 net income of $4.2 billion, or $7.30 per diluted common share.
Fourth-quarter 2015 net income was $1 billion, or $1.87 per diluted common share, compared with $1.1 billion, or $1.90 per diluted common share, for the third quarter of 2015 and $1.1 billion, or $1.84 per diluted common share, for the fourth quarter of 2014.
“PNC delivered consistent, quality results and advanced our strategic priorities in 2015,” said William S. Demchak, chairman, president and chief executive officer for PNC. “We increased fee income, reduced expenses and managed a strong balance sheet that will benefit from rising interest rates heading into 2016. Our strong capital position enabled us to increase the amount of capital returned to shareholders in 2015. We’re positioned to continue to drive long-term value through our execution in 2016 and beyond.”
Fourth-quarter results reflected revenue growth over the third quarter in both net interest income and fee income, a continued focus on disciplined expense management, and higher loans and deposits.
Net interest income of $2.1 billion for the fourth quarter grew $30 million, or 1 percent, compared with the third quarter, driven by higher core net interest income.
Noninterest income of $1.8 billion for the fourth quarter increased $48 million, or 3 percent, compared with the third quarter, primarily due to strong fee income growth.
Noninterest expense of $2.4 billion increased $44 million, or 2 percent, compared with the third quarter, reflecting higher variable compensation costs associated with business activity.
Loans grew $1.7 billion to $206.7 billion at Dec. 31, 2015, compared with Sept. 30, 2015.
Total commercial lending grew $2.4 billion, or 2 percent, primarily in PNC’s real- estate business, including an increase in multifamily agency warehouse lending.
Total consumer lending decreased $.7 billion, reflecting declines in the nonstrategic consumer loan portfolio.
Deposits grew $4 billion, or 2 percent, to $249 billion at Dec. 31, 2015, compared with Sept. 30, 2015.
Total revenue for the fourth quarter increased $78 million compared with the third quarter, driven by growth in both net interest income and noninterest income, which reflected strong fee income. Total revenue declined $94 million, compared with the fourth quarter of 2014, primarily attributable to higher fourth- quarter 2014 gains on asset dispositions.