PNC Financial Services Group Inc (NYSE:PNC) stock rose 1.97% (As on January 17, 11:21:49 AM UTC-4, Source: Google Finance) after the company reported fourth quarter earnings that beat analyst expectations. Net interest income of $3.5 billion increased $113 million, or 3%, driven by lower funding costs and the continued repricing of fixed rate assets. Net interest margin of 2.75% increased 11 basis points. Fee income of $1.9 billion decreased $84 million, or 4%, due to elevated third quarter residential mortgage and capital markets activity. Other noninterest income of $175 million increased $106 million reflecting lower negative Visa derivative adjustments. Noninterest expense of $3.5 billion increased $179 million, or 5%, and included $97 million of asset impairments primarily related to technology investments, and the benefit of an $18 million FDIC special assessment reduction. Net income of $1.6 billion increased $122 million, or 8%. The Basel III common equity Tier 1 capital ratio was an estimated 10.5% at December 31, 2024 and was 10.3% at September 30, 2024. PNC’s average LCR for the three months ended December 31, 2024 was 107%, exceeding the regulatory minimum requirement throughout the quarter.

Moreover, the average loans of $319.1 billion were stable, including average commercial loans of $218.6 billion and average consumer loans of $100.4 billion. Total nonperforming loans of $2.3 billion decreased $0.3 billion, or 10%, driven by lower commercial and industrial nonperforming loans. Net loan charge-offs of $250 million decreased $36 million primarily due to lower commercial net loan charge-offs, including lower commercial real estate net loan charge-offs. The allowance for credit losses of $5.2 billion decreased $0.1 billion. The allowance for credit losses to total loans was 1.64% at December 31, 2024 and 1.65% at September 30, 2024. Average investment securities of $143.9 billion were stable. Average deposits of $425.3 billion increased $3.1 billion due to growth in interest-bearing commercial deposits, partially offset by a decline in consumer deposits, reflecting lower brokered time deposits.

PNC in the fourth quarter of FY 24 has reported the adjusted earnings per share of $3.77, beating the analysts’ estimates for the adjusted earnings per share of $3.30. The company had reported the adjusted revenue of $5.57 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $5.48 billion.

Additionally, the bank expects to continue share repurchases in the first quarter of 2025 at levels similar to recent quarters. PNC’s board also declared a quarterly cash dividend of $1.60 per share.