Oct 15 (Reuters) - PNC Financial reported a more
than 21% rise in third-quarter profit on Wednesday, driven by
higher interest income and across-the-board jump in fees.
The results underscored borrower resilience across the U.S.
and a rebound in dealmaking from April's tariff-driven slump,
mirroring trends observed across the biggest U.S. banks this
week.
JPMorgan Chase ( JPM ) raised its full-year forecast for net
interest income on Tuesday, while Wells Fargo ( WFC ) and
Citigroup ( C/PN ) also reported higher income from interest
payments.
NII - the difference between what a bank earns as interest
on loans and pays out on deposits - jumped to $3.65 billion in
the quarter for PNC, compared with $3.41 billion a year earlier,
reflecting lower funding costs and loan growth.
Provisions for credit losses fell to $167 million in the
period, compared with $243 million a year earlier.
"Credit performed well and we continued to build on our
strong capital levels," said CEO Bill Demchak.
PNC agreed to buy privately held FirstBank Holding in a $4.1
billion cash-and-stock deal last month, providing momentum to a
long-predicted wave of regional banking consolidation.
Analysts say the deal provides the bank access to low-cost
deposits and cross-selling opportunities. They continue to view
the bank as a potential buyer as banking M&A picks up pace under
lighter regulation.
Total non-interest income for Pittsburgh, Pennsylvania-based
PNC rose 12% to $2.23 billion, led by a 16% jump in capital
markets and advisory fees.
The lender's profit rose to $1.82 billion, or $4.35 per
share, from $1.51 billion, or $3.49 per share, a year earlier.
(Reporting by Ateev Bhandari in Bengaluru; Editing by Sriraj
Kalluvila)