PNC Financial Services Group Inc (NYSE:PNC) stock rose 3.38% (As on October 15, 11:18:32 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 24. Net interest income of $3.4 billion increased $108 million, or 3%, driven by higher yields on interest-earning assets. Net interest margin of 2.64% increased 4 basis points. Fee income of $2.0 billion increased $176 million, or 10%, primarily due to higher capital markets and advisory activity and increased residential mortgage servicing rights valuation, net of economic hedge. Other noninterest income of $69 million decreased $263 million, reflecting negative Visa derivative fair value adjustments of $128 million primarily related to litigation escrow funding, while the prior quarter included the benefit of $141 million of significant items.

PNC in the third quarter of FY 24 has reported the adjusted earnings per share of $3.49, beating the analysts’ estimates for the adjusted earnings per share of $3.29, according to the Zacks Consensus Estimate. The company had reported increase of $199 million of the adjusted revenue to $5.43 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue by 1.25%.

Moreover, the company reported average loans of $319.6 billion were stable, including average commercial loans of $219.0 billion and average consumer loans of $100.6 billion. Average total assets of $569.5 billion increased $6.5 billion compared to the second quarter of 2024 and $14.6 billion compared to the third quarter of 2023. Average investment securities of $142.3 billion increased $1.0 billion, or 1%, primarily driven by net purchase activity of U.S. Treasury securities. Average deposits of $422.1 billion increased $4.9 billion, or 1%, due to growth in interest-bearing commercial deposits, partially offset by a decline in consumer deposits. Noninterest-bearing deposits as a percentage of total average deposits remained stable at 23%. Average borrowed funds of $76.1 billion decreased $1.4 billion, or 2%, reflecting lower Federal Home Loan Bank borrowings, partially offset by parent company senior debt issuances.

Additionally, the company declared a quarterly cash dividend on common stock of $1.60 per share to be paid on November 5, 2024 to shareholders of record at the close of business October 16, 2024. The Basel III common equity Tier 1 capital ratio was an estimated 10.3% at September 30, 2024 and was 10.2% at June 30, 2024. PNC’s average LCR for the three months ended September 30, 2024 was 109%, exceeding the regulatory minimum requirement throughout the quarter.