2023-07-18 07:57:51 ET
PNC Financial ( NYSE: PNC ) stock dropped 3.1% in Tuesday premarket trading after the bank trimmed its 2023 guidance again and issued Q3 guidance that's softer than consensus.
The bank now expects 2023 revenue to rise 2%-2.5%, down from its previous guidance of 4%-5% growth. That implies revenue of $21.54B to $21.65B, lower than the average analyst estimate of $22.01B.
Net interest income for the year is projected to rise 5%-6%, down from its prior view of 6%-8% growth. Noninterest income is expected to decline 2%-4% vs. its prior guidance of stable. Noninterest expense, though, is expected to rise about 2%, compared with the prior expected increase of 2%-3%.
Q3 revenue is expected to rise about 1% from Q2's $5.29B, implying revenue of ~$5.35B, lower than the $5.49B consensus.
Q2 EPS of $3.36, topping the $3.28 consensus, dropped from $3.98 in Q1 and from $3.39 in Q2 2022. Revenue of $5.29B, trailing the $5.45B consensus, fell from $5.60B in the previous quarter and increased from $5.12B a year ago.
Net interest income of $3.51B slipped from $3.59B in the prior quarter and climbed from $3.05B in the year-ago quarter.
Noninterest income of $1.78B dropped 12% Q/Q and 14% Y/Y.
Provision for credit losses of $146M fell from $235M in Q1 2023 and increased from $36M in Q2 2022.
Q2 average loans were $324.5B in Q1 compared with $325.5B in Q2. Average deposits of $425.7B slipped from $436.2B in the prior quarter.
Allowance for credit losses-to-total loans ticked up to 1.68% from 1.66% in Q1 and 1.65% in Q2 2022.
Conference call at 11:00 AM.
Earlier PNC Financial ( PNC ) GAAP EPS of $3.36 beats by $0.08, revenue of $5.29 misses by $160M .
More on PNC:
- PNC Finanicial: Buy This 5% Yielding Blue-Chip Bargain Before Everyone Else Does
- PNC's stress capital buffer falls to 2.5% after Fed stress test
- PNC Financial Services raises dividend by 3.3%
- Archive of PNC's income statements
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PNC Financial lowers guidance for 2023 after Q3 revenue falls short