NYSE$PNC

PNC Financial Services Group Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

PNC reported net income of $1.4 billion and diluted EPS of $2.97 for the fourth quarter of 2019.

PNC Financial Services Group reported a strong fourth quarter in 2019, with net income reaching $1.4 billion and diluted earnings per share at $2.97. The bank's total revenue grew by 3% driven by higher noninterest income.

  • Net income was $1.4 billion, a decrease of 1 percent compared to the previous quarter.
  • Total revenue grew by 3 percent to $4.6 billion.
  • Average loans increased by $1.2 billion, reaching $238.9 billion.
  • PNC returned $1.5 billion of capital to shareholders through share repurchases and dividends.

Headline financials

Total Revenue

$4.61B

Previous: $4.34B+6.2%
EPS (adj)

$2.97

Previous: $2.75+8.0%
Net Interest Margin

2.8%

No prior period
Efficiency Ratio

60.0%

No prior period
CET1 Capital Ratio

9.5%

No prior period
ROA

1.3%

No prior period
ROE

11.5%

No prior period
Net Charge-offs / Avg Loans

0.3%

No prior period
Net Income

$1.38B

Previous: $1.34B+3.3%
Operating Income

$1.63B

No prior period
Gross Profit

$4.61B

Previous: $4.34B+6.2%

Revenue & EPS history

PNC · Revenue · Quarterly

$4.61B

Q4 2019+6.2%vs Q4 2018
Beat estimate in 14 of 16 quarters(88%)
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

PNC expects U.S. economic growth to slow further in 2020. Slower global economic growth, trade tensions, reduced fiscal stimulus, and aerospace production cuts are the primary drivers of softer U.S. growth.

Tailwinds

  • Job growth will continue in 2020, but at a slower pace from 2019 due to both difficulty in finding workers and slower economic growth.
  • The unemployment rate is expected to increase slightly in the near term, but the labor market will remain tight, pushing wages higher and supporting continued gains in consumer spending.
  • Inflation slowed in 2019, to below the Federal Open Market Committee’s (FOMC’s) 2 percent objective, but is expected to gradually increase over the next two years.
  • We do not expect further federal funds rate cuts in 2020.
  • The federal funds rate is modestly positive for near-term economic growth in its current range of 1.50 to 1.75 percent.

Headwinds

  • Near-term risks are generally to the downside, including a further softening in the global economy, a further escalation in trade tensions, and geopolitical concerns.
  • Slower global economic growth
  • Trade tensions
  • Reduced fiscal stimulus
  • Aerospace production cuts

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 Q4 2019

Historical avgQ4 2019

-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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