Pittsburgh-based The PNC Financial Services Group Inc., which has a major PNC Bank branch presence in the Milwaukee market, today reported lower earnings in the first quarter, driven by the weakened oil and gas market.
First quarter net income was $943 million, or $1.68 per diluted share, down from $1 billion, or $1.75 per share, in the first quarter of 2015.
The bank holding company’s provision for credit losses increased from $54 million to $152 million year-over-year, which it said was mostly due to energy-related loans. JPMorgan Chase & Co. yesterday also attributed its lower net income to bad loans to struggling oil and gas companies.
PNC’s revenue was $3.7 million, flat from the same period last year. PNC Bank’s parent had $361 billion in assets in the first quarter, up from $351 billion in the first quarter of 2015.
“PNC had solid first quarter earnings that were impacted by weaker equity markets and related fees, and continued deterioration in energy related credits,” said William Demchak, chairman, president and chief executive officer. “We lowered expenses, maintained a strong balance sheet and continued to return capital to shareholders. We also saw good underlying trends in our businesses to start the year, and we expect that momentum to continue in 2016.”
