Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Interest Rate Hikes Help Drive PNC Profits

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Interest Rate Hikes Help Drive PNC Profits

Article excerpt

PNC Financial Services Group, Pittsburgh's biggest bank, on Friday reported second-quarter profits climbed 12 percent on higher revenue.

Net income attributable to common shareholders was $1.03 billion, up from $914 million in the same quarter a year ago. Per-share earnings rose 15 percent to $2.10 from $1.82.

Revenue hit $4.06 billion, up 7 percent from $3.79 billion, as both net interest income and non-interest income rose.

"This is a pretty good quarter for us. I'm particularly pleased with our loan growth this quarter," Chairman and CEO William Demchak told analysts in a conference call.

Loans grew $5.2 billion, or 2 percent, to $218 billion at the end of June from the end of March. The commercial sector accounted for $5.1 billion of the increase.

PNC's bottom line is benefiting from increases in short-term interest rates by the Federal Reserve, which raised its benchmark federal funds rate three times in the last six months, most recently in mid-June to a still-low range of 1 percent to 1. …

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