Why PNC Financial Services Shares Are Falling Today

PNC Financial Services Group Inc PNC shares are trading lower after the company reported mixed Q3 FY23 earnings.

The bank reported a revenue decline of 1% Q/Q to $5.23 billion, missing the consensus of $5.32 billion. Revenue declined 6% Y/Y due to lower noninterest and net interest income.

Net interest income fell 3% Q/Q to $3.4 billion due to higher funding costs. Noninterest income was up 2% Q/Q to $1.8 billion on higher fee income.

Net interest margin came in at 2.71%, down 8 basis points Q/Q. Average loans decreased 2% Q/Q, and average deposits fell 1% Q/Q.

The company reported a provision for credit losses of $129 million in the quarter.

EPS of $3.60 came above the consensus of $3.10.

CET1 capital ratio stood at 9.8% vs 9.5% in Q2 FY23. 

Dividend: On October 2, PNC's board of directors declared a quarterly cash dividend per share of $1.55, with a payment date of November 5, 2023, and payable the next business day.

Earlier this month, PNC Bank disclosed buying a portfolio of select capital commitments facilities worth $16.6 billion from Signature Bridge Bank, N.A.

Also Read: Q3 Financials Sector Earnings Outlook: Tough Times Continue For Bank Stocks But Some Signs Of Life

Price Action: PNC shares are down 1.90% at $119.01 on the last check Friday.