PNC earnings up 13% as nonperforming assets decline
PNC Financial Services Group (PNC) earned $912 million, or $1.67 per share, in the second quarter, up 13% from one year ago. Revenue fell to $2.1 billion for the quarter from $2.4 billion last year. PNC reported $4.5 billion in nonperforming assets, which is down 9% from the first quarter and 22% lower than a year earlier. More than half of these loans were delinquent 90 days or longer. PNC expenses increased 28% from one year ago, which the bank linked to an increase in foreclosure-related expenses. Mortgage originations totaled $2.6 billion for the second quarter, down 18% from the previous three months. PNC said the drop came from a reduction in refinance volumes, offset somewhat by a slight increase in purchase loans offset. Overall, mortgage applications at the bank rose 23% for the three months ended June 30. The loans that made it through origination were primarily backed by the government-sponsored enterprises or the Federal Housing Administration. "Our earnings in a soft economy benefited from improving credit quality and exceptional customer revenue growth," said PNC CEO James Rohr. "We are confident in our ability to execute our business model and growth strategies which are designed to drive shareholder value." Write to Jon Prior. Follow him on Twitter @JonAPrior.