PNC Financial Services Group Inc (NYSE: PNC) stock rose over 0.6% on July 13th, 2018 (as of 2:24 PM GMT-4; Source: Google finance).
The group’s Investment securities average balances rose $2.8 billion for the second quarter of 2018 while period end balances rose $5.6 billion against first quarter on the back of the net purchase activity, especially in agency residential mortgage-backed and US Treasury securities, in excess of paydowns
As of June 30, 2018, Client assets under administration included discretionary client assets under management of $149 billion and nondiscretionary client assets under administration of $130 billion. Discretionary client assets under management rose $1 billion against March 31, 2018 on the back of the rise in equity markets at June 30, 2018 and net business activities, and rose $8 billion against pcp driven by equity markets
Nonperforming assets as at June 30, 2018 fell $150 million compared against March 31, 2018 on the back of declines in nonperforming commercial and commercial real estate loans. Nonperforming assets to total assets were .49 percent as at June 30, 2018, .53 percent at March 31, 2018 and .58 percent at June 30, 2017.
Noninterest income rose in both comparisons especially on the back of the higher capital markets-related revenue, including merger and acquisition advisory fees, and growth in treasury management product revenue. Higher revenue from commercial mortgage banking activities also contributed to the rise over the first quarter.
Average loans rose 1% against the first quarter and rose 4% from pcp on the back of thecommercial loan growth in PNC’s corporate banking, business credit and equipment finance businesses. Average deposits fell 2% against the first quarter hurt by seasonal declines, and rose 3 percent against with the second quarter of 2017 on the back of the growth in interest-bearing deposits partially offset by a fall in noninterest-bearing demand deposits.
Retail Banking Noninterest income comprised positive derivative fair value adjustments of $27 million related to Visa Class B common shares on the back of the developments relevant to the litigation. Higher noninterest income was driven by consumer services fees, including seasonally higher debit card, merchant services and credit card fees against first quarter, and a rising brokerage, debit and credit card fees as compared to pcp.