PNC reports slump in second quarter profits

Decline driven by global uncertainty

PNC Bank's North Shore branch.

The PNC Financial Services Group Inc., which has a major PNC Bank branch presence in the Milwaukee market, today reported a slump in second quarter profits.

PNC Bank's North Shore branch.
PNC Bank’s North Shore branch.

The Pittsburgh-based company reported second quarter net income of $989 million, or $1.82 per diluted share, down from $1 billion, or $1.88 per share, in the second quarter of 2015.

Revenue was $3.8 billion, down 2 percent from $3.9 billion in the same period last year.

PNC’s leaders attributed the decline to global uncertainty and stubbornly low interest rates.

“We had a good second quarter against a backdrop of global uncertainty,” said William Demchak, chairman, president and chief executive officer. “We grew fee income, along with average loans and deposits, and we announced plans to return additional capital to our shareholders in the coming year. In the wake of the Brexit vote, as lower interest rates weigh on future performance, we remain focused on executing against our strategic priorities to create long-term shareholder value without compromising our risk profile or balance sheet.”

The bank had $361.3 billion in assets at the end of the second quarter, up from $353.9 billion at the same point last year. It increased loans from $205.2 billion to $209.1 billion year-over-year.

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Molly Dill, former BizTimes Milwaukee managing editor.

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