IBOS member PNC has reported a net income of USD$1.8 billion during the first quarter of 2021.
According to PNC’s Chairman, President and Chief Executive Officer, the Bank has “had a solid start to 2021”, with significant growth in revenue, managed expenses and positive operating leverage.
PNC recently launched an innovative digital offering, ‘Low Cash Mode’, which helps ‘Virtual Wallet’ customers avoid overdraft fees and over time is expected to drive an increase in new and existing customer relationships. This is important as the economy begins to recover from the COVID-19 crisis. The pandemic has also demonstrated the importance of making the transition to digital banking and developing further initiatives in relation to innovation.
Below is a summary of Q1 2021 compared with Q4 2020:
- Net income of $1.8 billion increased $370 million, or 25%, reflecting the impact of a substantial provision recapture.
- Total revenue of $4.2 billion increased $12 million.
- Net interest income of $2.3 billion decreased $76 million, or 3%, resulting from a decrease in loans outstanding, two fewer days in the first quarter and lower securities yields.
- Noninterest income of $1.9 billion increased $88 million, or 5%.
- The effective tax rate was 16.9% for the first quarter and 17.0% for the fourth quarter.
Additionally, Corporate & Institutional Banking earnings for Q1 2021 increased compared to both Q4 2020 and Q1 2020.
Noninterest income increased compared to Q1 2020, driven by broad-based growth in capital markets-related revenue, treasury management product revenue and revenue from commercial mortgage banking activities. Provision recapture in Q1 2021 reflected improvements in macroeconomic factors and lower loans outstanding.
Read the full financial report via PNC here.