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.

About the Author

Most Popular Articles

Traders now see Fed cut next week as a near-certainty

Futures traders now see a rate-cut as the near-certain outcome of next week’s Federal Reserve meeting as a stagnant manufacturing sector weighs on the economy. “The U.S. economy confronts some evident risks in this the 11th year of economic expansion,” Fed Vice Chairman Richard Clarida said in a speech on Friday.

Oct 21, 2019 By

Latest Articles

Need a go-to lender, who’s always on? Choose a mortgage broker

In the mortgage loan process, there are a number of touchpoints where progress can be derailed by everything from a missed signature to a homeowner making a big unexpected purchase. As a real estate professional trying to get buyers into their dream homes, you need an always-on mortgage partner to help you get to the finish line no matter what pops up.

Oct 23, 2019 By