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Thursday, January 20, 2011

PNC See's Loan Demand Increase (NYSE: PNC)

NEW YORK - PNC today reported a record profit for the year at $3.4 billion. PNC was helped by a pickup in loan demand across most of their businesses. Total loans outstanding increased by approximately $400 million in Q4 compared to Q3 though customer loan demand remained soft. Revenue as a whole increased by $305 million compared to Q3.

In the quarter PNC recorded $820 million of profit which was helped by the $160 million sale of approximately 4% of their stake in BlackRock. Retail Banking saw earnings improve by $50 million to $43 million profit from a $7 million loss in Q3 due to lower provisions. Corporate banking saw the biggest loan demand increase. As revenue soared by over 30% as midsized corporations increased spending, earnings also grew to $540 million from $427 in Q3. Residential Mortgages was a drag on earnings as revenue declined by $56 million and earnings dropped by $95 million to $3 million. The Asset Management group which provides services such as financial planning and private banking showed earnings of $29 million down from $43 million. As expected the biggest drag on earnings as expected was the Distressed Assets Portfolio which produced a loss of $72 million. BlackRock and other showed a profit of $277 million or $117 million without the gain from the sale on BlackRock.

Tier 1 common capital increased to 9.8% from 9.6% which is usually a measure of a banks financial strength. Book value increased to $56.29 a share. Nonperforming assets declined $368 million to $5.3 billion. Full year 2010 earnings per diluted common share of $5.74 or $5.29 without Tarp Repayments and BlackRock and PNC Global Investment gains.

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