Q2 2024 PNC Financial Services Group Inc Earnings Call Transcript
Key Points
- PNC Financial Services Group Inc (PNC) reported a strong second quarter with $1.5 billion in net income and $3.39 diluted earnings per share.
- Net interest income (NII) and net interest margin (NIM) both grew in the quarter, with expectations for record NII in 2025.
- The company saw accelerated growth in demand deposit accounts (DDA) and added new corporate and commercial banking clients above historical rates.
- PNC Financial Services Group Inc (PNC) launched a new credit card, PNC Cash Unlimited, and plans to introduce several more in the coming months.
- The company maintained strong expense control, generating positive operating leverage and increasing its continuous improvement program target for 2024.
- Average deposit balances declined by $3 billion or less than 1% due to a seasonal decline in corporate balances.
- The credit environment showed an increase in charge-offs within the commercial real estate (CRE) office portfolio.
- Nonperforming loans increased by $123 million or 5% linked quarter, driven by an individual secured loan within the asset-based lending business.
- Average consumer loans declined by approximately $600 million or less than 1%, driven by lower residential real estate and home equity loan balances.
- The company recorded a $497 million loss on the sale of securities as part of a repositioning strategy, which was offset by a $754 million pretax gain from the Visa exchange program.
Greetings and welcome to the PNC Financial Services Group second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Bryan Gill. Thank you, Bryan. You may begin.
Well, good morning and welcome to today's conference call for the PNC Financial Services Group. I am Bryan Gill, the Director of Investor Relations for PNC, and participating on this call are PNC's Chairman and CEO, Bill Demchak; and Rob Reilly, Executive Vice President and CFO.
Today's presentation contains forward-looking information. Cautionary statements about this information as well as reconciliations with non-GAAP measures are included in today's earnings release materials as well as our SEC filings and other investor materials. These are all available on our corporate website, pnc.com, under Investor Relations. These statements
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