PNC Financial reports drop in net income
Reuters
Published Jan 16, 2024 07:42AM ET
By Nupur Anand
NEW YORK (Reuters) - PNC Financial Services Group (NYSE:PNC)'s net interest income shrank as it took on increased charges to replenish a government deposit insurance fund as well as workforce reduction expenses.
The bank reported a 44% drop in net income to $0.9 billion.
The Pittsburgh-based lender saw its net interest income (NII) - the difference between what banks earn on loans and pay out on deposits - contract by 8% to $3.4 billion from $3.6 billion in the fourth quarter of last year.
PNC set aside $515 million to replenish the Federal Deposit Insurance Corporation's deposit insurance fund (DIF) and took a hit in its quarterly profit along with several other major banks.
Lenders are required to pay the bulk of the $16 billion needed to replenish the government's coffers which were drained after Silicon Valley Bank and Signature Bank (OTC:SBNY) failed last year.
The bank, which started layoffs in October, also reported $150 million in workforce reduction charges which impacted its bottom line.
It expects full-year net interest income (NII) of $13.91 billion in 2024, down by about 5% from last year.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.