NEW YORK - PNC The bank known for doing it the right way during the financial crisis and using the time to expand reported $451 million to common shareholders or net income of 85 cents a share down substantially from $834 million or $1.57 a share. Revenue was stronger than expected. Interest income increased linked quarter and interest expense declined. Non interest expense was higher by $579 million linked quarter. There was $240 million for foreclosure related costs and $198 million related to redemption of trust preferred securities, and special increase in stock option expenses. These expenses will decline next year before the RBC costs. PNC says 2011 expenses will be similar to Q3 expenses. Adjusted earnings were $873 million or $1.66 a share.
PNC saw its tier 1 ratio continue to lead the industry at 10.3% down from 10.5% due to more assets. PNC expects loan growth in 2012 to mid to high single digits. The company expects full year revenue growth of high single digits. The company expects non interest income to increase by mid single digits. The company expects increased by single digits but this includes RBC integration costs.
PNC stock is down 3.66% on the news as investors digest these extra expenses and wonder what do we do? How do I do addition and subtraction. Despite the unclean quarter PNC continues to lead U.S. Banks back.
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