(By Balaseshan) PNC Financial Services (NYSE:PNC) reported a 6.1 percent rise in quarterly earnings on customer growth, higher revenue, and credit and expense management.
The Pittsburgh, Pennsylvania-based financial services provider earned $876 million or $1.64 per share for the third quarter, up from $826 million or $1.55 per share in the comparable period of last year.
Revenue grew 15 percent to $4.09 billion, as net interest income increased 10 percent and noninterest income climbed 23 percent. The latest quarter revenue continued to reflect strong client fee income and included a gain on sale of a portion of PNC's investment in Visa shares.
Analysts, on average, polled by Thomson Reuters expected earnings of $1.60 per share on revenue growth of 13.50 percent to $4.02 billion for the third quarter.
In the second quarter, PNC posted earnings per share of $0.98 on revenue of $3.62 billion.
Net interest margin declined to 3.82 percent from 3.89 percent in the year-ago quarter and 4.08 percent in the prior quarter. The linked quarter decrease in the net interest margin was 26 basis points, with 16 basis points of the decline due to lower purchase accounting accretion.
As at September 30, 2012, total deposits decreased $0.6 billion compared with June 30, 2012 and increased $18.6 billion compared with September 30, 2011.
PNC is engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking.
The stock closed Monday's regular session up 0.32 percent at $62.93. The stock has been trading between $48.80 and $67.89 for the past 52 weeks.