PNC Financial Services Group Inc(NYSE: PNC) reported total revenues of $3.9 billion for the Q4FY16 as compared with $3.85 billion in corresponding quarter.   Net interest income increased $35 million to $2.1 billion driven by higher securities and loan balances and higher loan yields. Noninterest income of $1.7 billion increased $10 million as lower fee income was offset by higher other income Non interest expense increased $47 million to $2.4 billion and includes a $55 million contribution to the PNC Foundation.

The company has made provision for credit losses of $67 million, reporting a decline of $20 million as company’s overall credit quality remained stable.  Riding on high revenues, PNC Financial Services reported positive earning surprise of 5.9% in Q4FY16. EPS was at $1.97 ahead of Zacks Consensus estimates of $1.86. Bottom-line increased 5.3% YoY.  For full year PNC Financial Services EPS was at $7.30 against Zacks estimates of $7.39 per share. PNC Financial Services Revenues for the full year was at $15.2 billion

Segment wise, the quarterly net income in Retail Banking, Corporate & Institutional Banking, and Asset Management improved 7.5%, 7.1%, and 7.8% respectively. Residential Mortgage Banking recorded a net income as against net loss in the prior-year quarter.

PNC Financial Services Loans grew to $210.8 billion at December 2016, registering an average growth in loans of $2 billion in the fourth quarter over third quarter. Company’s average consumer lending balances increased $0.3 billion due to growth in auto, residential mortgage, and credit card loans. The increase, however, was partially offset by lower home equity and education loans reflecting runoff portfolios.

PNC Financial Services overall credit quality remained stable with nonperforming assets was at 2.4 billion at both December and September quarter. Net charge-off declined to $106 million for the fourth quarter compared with $154 million for the third quarter.

Higher commercial deposits and growth in saving products resulted into average deposit increase of $4.5 billion in fourth quarter Vs third quarter. Deposits at the end of December 2016 were at $257.2 billion, a decline of $2.7 billion from the third quarter. Investment securities were at $75.9 billion at December 2016, down 3% from September 2016 balance.

The liquidity coverage ratio at December 2016 for both PNC and PNC Bank, N.A continued to exceed the fully phased-in requirement of 100%, which became effective on January 1, 2017.

PNC Financial Services repurchased 4.9 million common shares for $0.5 billion and has declared dividend of $0.3 billion, returning $0.8 billion to shareholders.

Company’s total consolidated assets were $366.4 billion at December 2016 compared with $369.3 billion as on September 2016. Assets declined due to lower investment securities balances.

Meanwhile, PNC agreed to pay $16 million to settle claims by mortgage loan officers that they were denied overtime pay and a proper commission.

Going forward, PNC Financial Services is well positioned to grow given its diverse revenue mix, strong balance sheet position. The company has also reported a rise in lending which augurs well for the company. The rise in interest rate, however, leaves concerns on its financial margin.