Shares of PNC Financial (NYSE:PNC) are trending lower today after the company’s fourth-quarter revenue of $5.36 billion came in nearly 7% lower over the prior year period. Still, the figure exceeded estimates by $60 million. Similarly, EPS of $3.16 outpaced expectations by $1.04.
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Sequentially, the company’s top line rose by 2% on the back of higher noninterest income. At the same time, core noninterest expense increased by 5% due to increased business activity. The provision for credit losses jumped to $232 million from $129 million in the third quarter. PNC’s fourth-quarter noninterest expense included charges of $150 million from workforce reductions and $515 million from the special FDIC assessment. This resulted in its net income declining to $883 million from $1,570 million in the third quarter.
While average loan balances modestly grew to $324.6 billion, average deposits remained essentially unchanged at $424 billion. In addition, due to the proposed rules to adjust the Basel III capital framework, PNC expects share repurchase activity to remain modest in the first quarter.
What is the Target Price for PNC Share?
Overall, the Street has a Moderate Buy consensus rating on PNC Financial. Following a nearly 17% jump in the company’s share price over the past six months, the average PNC price target of $159.24 implies a modest 6.9% potential upside in the stock.
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