PNC Posts 5% QoQ Increase in Q2 Net Income

The PNC Financial Services Group, Inc. has announced its results for the second quarter (Q2) ended 31 June 2022.

Income Statement Highlights in Q2 2022 compared with Q1 2022

• Net income of $1.5 billion increased $67 million, or 5%, driven by growth in pretax, pre-provision earnings of 23%.

• Total revenue of $5.1 billion increased $424 million, or 9%, due to higher net interest income and noninterest income.

• Net interest income of $3.1 billion increased $247 million, or 9%, driven by higher yields on interest earning assets and increased loan balances, partially offset by higher funding costs.

• Net interest margin of 2.50% increased 22 basis points due to higher yields on interest earning assets.

• Noninterest income of $2.1 billion increased $177 million, or 9%.

• Fee income of $1.9 billion increased $211 million, or 13%, reflecting higher capital markets related revenue, increased card and cash management fees and higher lending and deposit services revenue.

• Other noninterest income of $177 million decreased $34 million, or 16%, and included negative Visa Class B fair value adjustments of $16 million related to litigation escrow funding and derivative valuation changes.

• Noninterest expense of $3.2 billion increased $72 million, or 2%, driven by increased business activity, annual employee merit increases and higher marketing spend.

• Provision for credit losses was $36 million in the second quarter. The first quarter of 2022 included a provision recapture of $208 million. 

• The effective tax rate was 18.5% for the second quarter and 17.3% for the first quarter.

Bill Demchak, PNC Chairman, President and Chief Executive Officer commented: "PNC had a very strong second quarter. Loan growth exceeded our expectations, both net interest income and net interest margin increased meaningfully, fees rebounded and expenses remained well controlled. We're gaining traction across our expanded footprint and are confident that our capital levels and strong credit quality position us for continued success."

In June, PNC announced new regional structure and hires Jennifer Lee​ to lead U.S. markets, as Fazzaco reported previously.