PNC Financial (NYSE:PNC) reported its shares fell hard, after its fourth-quarter results missed Wall Street estimates.
Net income of $1.5 billion decreased $92 million, or 6%, and included a higher provision for credit losses. Total revenue of $5.8 billion increased $214 million , or 4%, primarily due to higher net interest income. Net interest income of $3.7 billion increased $209 million , or 6%, driven by higher interest-earning asset yields and balances, partially offset by higher funding costs.
Net interest income of $3.7 billion for the fourth quarter of 2022 increased $209 million and $822 million compared to the third quarter of 2022 and fourth quarter of 2021, respectively. In both comparisons, the increase was driven by higher interest-earning asset yields and balances, partially offset by higher funding costs.
Said CEO Bill Demchak, “By focusing on serving customers and communities, PNC delivered strong results in 2022. Capitalizing on opportunities across our coast to coast franchise, we grew loans and generated record revenue during a rapidly rising rate environment. At the same time, we controlled expenses and delivered substantial positive operating leverage. Our credit quality metrics remained strong and our solid capital position allowed us to return $6 billion of capital to shareholders throughout the year. As we enter 2023, we are well positioned to continue generating value for our stakeholders.”
PNC shares blundered $8.88, or 5.5%, to $152.97
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