IBOS member PNC reports its third quarter 2020 financial results, including a net income of $1.5 billion.
PNC has continued to generate positive operating leverage, strong capital and liquidity throughout the uncertain economy, as a result of the COVID-19 pandemic.
Delivering solid Q3 2020 results, noninterest income increased, expenses were well managed and PNC continued to generate positive operating leverage. The Bank continues to execute strategies that include ongoing investments in its national expansion and digital offerings, as online banking has grown popular.
PNC’s total revenue for Q3 2020 increased $205 million, compared with Q2 2020, and $39 million compared with Q3 2019. This was driven by higher noninterest income.
The Bank’s marketing expense increased $20 million and included the launch of a new digital checking product.
Below highlights PNC’s Q3 2020 compared with Q2 2020 financial report:
- Net income from continuing operations was $1.5 billion, an increase of $2.3 billion driven by a lower provision for credit losses and higher noninterest income.
- Total revenue of $4.3 billion increased $205 million, or 5%.
- Noninterest income of $1.8 billion increased $248 million, or 16%.
- Fee income of $1.3 billion increased $62 million, or 5%, as a result of increases in consumer service fees, service charges on deposits and asset management revenue partially offset by lower corporate service fees and residential mortgage revenue.
- Other noninterest income of $457 million increased $186 million and included positive valuation adjustments of private equity investments partially offset by lower capital markets-related revenue.
- Noninterest expense of $2.5 billion increased $16 million, or 1%.
- Provision for credit losses was $52 million, a decrease of $2.4 billion.
- Provision for commercial loans was $219 million largely related to borrowers in industries adversely impacted by the pandemic, primarily within the commercial real estate portfolio.
- The consumer loan portfolio had a provision recapture of $215 million primarily due to improvement in macroeconomic factors.
- The effective tax rate declined to 9.8% for Q3 2020 compared with 17.5% for Q2 2020 primarily due to tax credit benefits and the favourable resolution of certain tax matters.
Read the full Q3 2020 financial report via PNC here.