When PNC Financial Services Group Inc. (NYSE: PNC) reported its fourth-quarter financial results before the markets opened on Friday, the company said that it had $2.29 in earnings per share (EPS) and $4.3 billion in revenue. That compares with consensus estimates from Thomson Reuters that called for EPS of $2.20 and $4.18 billion in revenue. In the same period of last year, the bank said it had $1.97 in EPS and revenue of $3.87 billion.
Overall, PNC’s credit quality remained stable and the company maintained strong capital and liquidity positions. The company reported a book value per share of $91.94 and a tangible book value per share of $72.28.
Average loans grew $1.9 billion, or 1%, to $221.1 billion in the fourth quarter compared with the third quarter. Total loans at the end of the fourth quarter declined $600 million compared with the third quarter, reflecting lower commercial lending balances of $1.1 billion and higher consumer lending balances of $.5 billion.
Average deposits increased $2.1 billion, or 1%, to $261.5 billion compared with the third quarter due to seasonal growth in commercial deposits. Total deposits increased to $4.3 billion compared with the prior quarter reflecting higher commercial and consumer deposit balances.
Also, the company expects to see a $911 million positive impact from the recent tax legislation.
William S. Demchak, PNC board chair, president and chief executive, commented:
We grew loans and deposits and added customers across our businesses, continued to focus on expense management, and generated record fee income for the year, as well as in the fourth quarter. The year ended with a benefit from the new tax legislation, giving us increased flexibility as we continue to invest in our businesses, communities and our employees, which helps drive our Main Street banking model. We executed on our strategic priorities throughout the year, including our technology initiatives and the expansion of our middle market franchise into new markets. As we enter the new year, we believe we are firmly positioned to create long-term value for our shareholders.
Shares of PNC were last seen down fractionally to $151.13, with a consensus analyst price target of $153.32 and a 52-week range of $113.66 to $152.67.