PNC Financial (NYSE:PNC) shares are ticking marginally higher today after the company posted better-than-expected second-quarter results. With a year-over-year increase of 2.2%, revenue of $5.41 billion landed ahead of consensus by a thin margin of $10 million. Furthermore, its EPS of $3.39 outpaced estimates by $0.40.
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PNC’s Q2 Numbers
Sequentially, the company’s top line rose by 5% on the back of higher noninterest income. Its net interest income, in comparison, grew modestly to $3.3 billion. This increase was driven by higher yields on interest-earning assets. The company’s net interest margin improved by 3 basis points to 2.6%. The company’s provision for credit losses jumped to $235 million from $155 million in the first quarter. Its noninterest expense increased by 1% to $3.36 billion.
While PNC’s average loan balances remained largely flat at $319.9 billion, average deposits contracted by roughly $3 billion to $417.2 billion. Notably, the company recorded a gain of $754 million from the monetization and conversion of its Visa Class B-1 shares. However, these gains were partially offset by a loss of $497 million from the sale of some of PNC’s portfolio holdings.
PNC’s share price has rallied by nearly 39% over the past year and the company anticipates a record net interest income in 2025. Moreover, its $1 billion investment into branch expansion makes this stock a key name to keep an eye on.
What Is the Price Target for PNC Stock?
Overall, the Street has a Moderate Buy consensus rating on PNC Financial, alongside an average PNC price target of $172.80. However, analysts’ views on the company could see a revision following today’s earnings report.
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