The PNC Financial Services Group (PNC) reported a Q209 profit of $207m, or $0.14 per share. PNC continued to unwind its mortgage-related assets in Q209. Asset sales primarily related to agency residential mortgage-backed securities (RMBS) drove a gain of $182m, up from $56m in the previous quarter and from $8m in the year-ago quarter. The bank increased its loan loss reserve $207m during the quarter and reported a Tier 1 capital ratio of 10.5%, up 50 bps from Q109. “Despite the current recession, sales were above expectations and we added clients and deepened customer relationships,” PNC chairman and CEO James Rohr said in a release. “Total revenue increased this quarter while we continued to effectively manage expenses and improve our liquidity and capital positions.” Total loan originations were $29bn in Q209, including $6.4bn for first mortgage originations. Total revenue for the quarter was $4bn, but PNC made a Federal Deposit Insurance Corporation special assessment payment of $0.19 per share to resupply the FDIC’s insurance reserve and had costs of $0.20 per share associated with its acquisition of National City Bank. PNC has not repaid the federal government’s Troubled Asset Relief Program investment, but said in the report it will do so in a “shareholder-friendly” manner when approved by federal regulators. Write to Austin Kilgore.
PNC Gains $182m on Securities Sales
Most Popular Articles
Latest Articles
Selling your home to a family member in 5 easy steps
Selling your home to a family member can be beneficial but requires careful planning and transparent communication. Follow these five steps to ensure a smooth transaction, from agreeing on logistics and assembling a professional team to determining your home’s value and understanding tax implications.
-
FOA reverse stock split goes into effect, appears to have intended impact
-
Senate Aging Committee leaders introduce bill on aging in place
-
HousingWire Pulse: Respondents show cautious optimism about the Q3 housing market
-
US Senate committee approves full funding for Ginnie Mae
-
Connecticut Senator asks HUD for answers on backlog of discrimination complaints