NYSE$PNC

PNC Financial Services Group Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

PNC reported solid financial results with loan growth, expense control, and strong credit quality.

PNC Financial Services Group reported a first quarter 2022 net income of $1.4 billion, or $3.23 per diluted share. Adjusted diluted earnings per share was $3.29, excluding $31 million of pre-tax integration costs related to BBVA USA. The company grew loans, controlled expenses, and maintained strong credit quality. The quarterly common stock dividend was raised by 20% to $1.50 per share.

  • Diluted EPS as adjusted was $3.29, excluding $31 million of pre-tax integration costs related to BBVA USA
  • Revenue decreased 8% linked quarter, primarily driven by lower noninterest income reflecting lower capital markets related revenue and lower business activity
  • Expenses decreased 16% linked quarter, and 7% excluding integration expenses, reflecting lower personnel costs
  • Provision recapture of $208 million

Headline financials

Total Revenue

$4.69B

Previous: $4.22B+11.2%
EPS (adj)

$3.29

Previous: $4.10-19.8%
Net Interest Margin

2.3%

No prior period
Efficiency Ratio

68.0%

Previous: 61.0%+11.5%
Free Cash Flow

$1.43B

Previous: $1.83B-21.7%
Net Income

$1.43B

Previous: $1.83B-21.7%
Operating Income

$3.71B

Previous: $2.95B+25.7%
Gross Profit

$4.52B

Previous: $3.72B+21.6%
Cash & Equivalents

$48.8B

Previous: $7.46B+554.3%
Total Assets

$541B

Previous: $474B+14.1%

Revenue & EPS history

PNC · Revenue · Quarterly

$4.69B

Q1 2022+11.2%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

PNC · $2.66B total across 2 segments · Q1 2022

  • Retail Banking
    $2.28B+12.9%
  • Asset Mgmt Group
    $386M+19.9%

Forward guidance

The U.S. economy continues to recover from the pandemic-caused recession in the first half of 2020. Growth is likely to remain above the economy’s long-run average throughout this year. Consumer spending growth will remain solid in 2022 due to good underlying fundamentals.

Tailwinds

  • The U.S. economy continues to recover from the pandemic-caused recession in the first half of 2020.
  • Growth is likely to remain above the economy’s long-run average throughout this year.
  • Consumer spending growth will remain solid in 2022 due to good underlying fundamentals.
  • Supply-chain difficulties will gradually ease over the course of 2022.
  • Labor shortages will remain a constraint this year, although strong wage growth will support consumer spending.

Headwinds

  • Uncertainty about the outlook has increased with the Russian invasion of Ukraine.
  • It has created upside risk to inflation this year, which could lead the FOMC to tighten more aggressively than currently anticipated.
  • Risks to growth are to the downside.
  • The likelihood of a recession in late 2022 or 2023 has increased.
  • Inflation will end 2022 above the Federal Reserve’s long-run objective of 2%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.6%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+2.3%

Avg return

30 days after

51%

37 / 73 earnings

Positive

+6.3%

Q2 2024

Best reaction

-9.0%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+4.2%+2.6%-3.7%
Q1 2026+2.5%+2.6%-3.7%
Q3 2025-4.0%-4.0%-3.0%
Q2 2025+0.6%-0.2%+4.4%
Q1 2025+0.0%-1.9%+15.5%
Q4 2024-0.9%-0.9%-3.3%
Q3 2024+0.7%+0.5%+10.3%
Q2 2024+6.3%+3.8%+1.7%
Q1 2024-1.5%+1.8%+7.6%
Q4 2023-0.1%+2.2%+9.8%
Q3 2023-2.6%-4.6%-0.7%
Q2 2023+4.1%+5.6%-2.9%
Q1 2023+3.0%+5.7%-8.1%
Q4 2022-8.5%-1.6%-2.0%
Q3 2022+1.9%-0.8%+8.4%
Q2 2022+2.5%+6.1%+15.7%
Q1 2022-1.5%-0.2%-11.8%
Q4 2021-6.2%-9.6%-9.4%
Q3 2021-0.8%+5.1%+0.5%
Q2 2021+0.1%-6.1%+0.6%
Q1 2021+1.7%+0.2%+14.1%
Q4 2020-3.4%-3.2%+0.5%
Q3 2020-2.6%-2.2%+9.1%
Q2 2020+3.7%+1.7%+10.4%
Q1 2020-9.0%+3.1%-2.2%
Q4 2019-4.5%-4.1%-3.6%
Q3 2019+0.6%+2.6%+6.3%
Q2 2019+0.1%+0.6%-8.5%
Q1 2019+1.8%+4.0%+2.9%
Q4 2018+0.6%+3.4%+2.5%
Q3 2018-4.6%-3.3%+2.0%
Q2 2018+2.1%+3.2%+4.0%
Q1 2018-5.7%-7.1%-1.0%
Q4 2017+0.5%+1.8%+0.1%
Q3 2017-0.2%-0.4%-2.1%
Q2 2017+0.0%-0.7%+0.6%
Q1 2017+2.1%+0.4%+4.1%
Q4 2016-3.4%-1.4%+4.4%
Q3 2016+0.3%+4.2%+20.5%
Q2 2016-0.9%-0.3%+2.6%
Q1 2016-1.2%
Q4 2015-1.8%
Q3 2015-1.6%
Q2 2015+1.8%
Q1 2015-2.0%
Q4 2014+2.7%
Q3 2014-3.3%
Q2 2014-5.6%
Q1 2014+2.0%
Q4 2013+4.3%
Q3 2013+3.0%
Q2 2013+1.9%
Q1 2013+0.7%
Q4 2012+3.4%
Q4 2011-0.6%
Q3 2012-5.0%
Q2 2012-0.4%
Q1 2012+0.7%
Q3 2011-3.6%
Q2 2011-3.6%
Q1 2011+1.3%
Q4 2007-2.8%
Q4 2010-2.8%
Q3 2010-0.6%
Q2 2010-0.2%
Q1 2009+5.3%
Q1 2010+2.6%
Q4 2009+0.8%
Q3 2008+3.0%
Q3 2009+3.0%
Q2 2008-7.8%
Q4 2008-7.8%
Q2 2009-7.8%

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