NYSE$PNC

PNC Financial Services Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

PNC delivered strong results, generating positive operating leverage through revenue growth and well controlled expenses while adding customers, and strengthening capital levels.

PNC reported strong second quarter results with a net income of $1.5 billion and diluted EPS of $3.39. The company generated positive operating leverage through revenue growth and well-controlled expenses, while also increasing net interest income and net interest margin. PNC also maintained a strong capital position, with a CET1 capital ratio of 10.2%.

  • Generated positive operating leverage; PPNR increased 13%.
  • Revenue increased 5%–NII and NIM increased.
  • Maintained strong capital position–CET1 capital ratio of 10.2%.
  • Increased quarterly common stock dividend 5 cents to $1.60 per share on July 2, 2024.

Headline financials

Total Revenue

$5.41B

Previous: $5.29B+2.2%
EPS

$3.39

Previous: $3.36+0.9%
Net Interest Margin

2.6%

Previous: 2.8%-6.8%
Efficiency Ratio

62.0%

No prior period
CET1 Capital Ratio

10.2%

No prior period
ROA

1.1%

Previous: 1.1%-2.8%
ROE

12.2%

No prior period
Net Charge-offs / Avg Loans

0.3%

No prior period
Free Cash Flow

$1.48B

Previous: $1.5B-1.5%
Net Income

$1.48B

Previous: $1.5B-1.5%
Operating Income

$1.74B

Previous: $2.19B-20.5%
Gross Profit

$5.41B

Previous: $5.1B+6.0%
Cash & Equivalents

$39.3B

Previous: $44.5B-11.6%
Total Assets

$557B

Previous: $558B-0.3%

Revenue & EPS history

PNC · Revenue · Quarterly

$5.41B

Q2 2024+2.2%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

PNC · $1.17B total across 2 segments · Q3 2023

  • Retail Banking
    $1.09B-60.1%
  • Asset Mgmt Group
    $73M-81.6%

Forward guidance

Job and income gains will continue to support consumer spending growth this year, but PNC’s baseline forecast is for slower economic growth in 2024 as higher interest rates remain a drag on the economy.

Tailwinds

  • Job and income gains will continue to support consumer spending growth this year
  • Real GDP growth this year will be close to trend at around 2%
  • The unemployment rate will increase modestly to somewhat above 4% by the end of 2024.
  • Inflation will continue to slow as wage pressures abate, gradually moving back to the Federal Reserve’s 2% long-term objective.
  • PNC expects multiple federal funds rate cuts in 2025 as inflation continues to ease.

Headwinds

  • PNC’s baseline forecast is for slower economic growth in 2024 as higher interest rates remain a drag on the economy.
  • With slowing inflation PNC expects two federal funds rate cuts of 25 basis points each at the Federal Open Market Committee’s September and December meetings, with the rate ending this year in a range between 4.75% and 5.00%.
  • Our businesses, financial results and balance sheet values are affected by business and economic conditions
  • Changes in interest rates and valuations in debt, equity and other financial markets
  • Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities.

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 Q2 2024

Historical avgQ2 2024

-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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