PNC Posts 9% QoQ Increase in Q1 Net Income

The PNC Financial Services Group, Inc. has today announced its results for the first quarter ended 31 March 2022.

First quarter 2022 compared with fourth quarter 2021

• ​Net income of $1.4 billion increased $123 million, or 9%, driven by lower integration costs and well-controlled expenses.

• ​Total revenue of $4.7 billion decreased $435 million, or 8%, primarily due to lower noninterest income.

• ​Net interest income of $2.8 billion decreased $58 million as increased average securities balances, loans outstanding and securities yields were more than offset by a decline in Paycheck Protection Program (PPP) loan interest income and two fewer days in the first quarter.

• ​Noninterest income of $1.9 billion, which included $16 million of integration costs, decreased $377 million, or 17%.

• ​Noninterest expense of $3.2 billion decreased $619 million, or 16%. Excluding the impact of integration expenses, noninterest expense decreased 7% primarily driven by lower personnel costs.

• ​The first quarter included a provision recapture of $208 million, primarily reflecting the impact of improved COVID-19 related economic conditions. The fourth quarter included a provision recapture of $327 million.

• ​The effective tax rate was 17.3% for the first quarter and 21.5% for the fourth quarter.

Bill Demchak, PNC Chairman, President and Chief Executive Officer, said:"In the first quarter, PNC grew loans, deployed liquidity through securities purchases, controlled expenses and maintained strong credit quality. In addition to normal seasonality, fee income was adversely impacted by a general slowdown in capital markets activity; nevertheless, our financial results were solid. Based on this performance, our strong capital levels and the board's confidence in PNC's execution of its strategic priorities, we increased the quarterly common stock dividend by 20% in April."