PNC Financial Services Group released its quarterly earnings, reporting a net income of $1.1 billion, or $1.82 per diluted common share. While net income was positive, it didn't reach as high as the fourth quarter of 2013, when net income was $1.1 billion or $1.87 per diluted common share.
The continued revenue growth was fueled by loan and deposit growth, well-controlled expenses, credit quality improvement, and seasonal trends, the group wrote in a financial release.
"PNC had a successful first quarter–our fourth straight quarter with net income of $1 billion or more," said William S. Demchak, president and CEO. "We grew loans and deposits, and we lowered expenses even as we continue to make investments across our businesses to enhance the customer experience and become more efficient. Based on the strength of our performance and balance sheet, we were pleased to announce plans to return more capital to our shareholders through a 9 percent increase in our quarterly dividend and reinstituted share repurchase programs."
Net interest income for PNC was a reported $2.2 billion for Q1 2014, which declined by $71 million or 3 percent, compared to the previous quarter.
Non-interest income decreased by $225 million to $1.6 billion, or 12 percent, compared to Q4 2013. The group found, "Lower benefit from release of reserves for residential mortgage repurchase obligations and first quarter seasonal declines impacted fee income."
Loans grew by 1 percent to $198 billion. Commercial lending, fueled primarily by real estate, corporate banking, and business credit, moved upward by 3 percent to $3.6 billion.
The group found that consumer lending decreased by $1 billion, from "lower home equity, residential mortgage and education loans as well as seasonal declines in credit card loans partially offset by growth in automobile loans." The group also reported that credit quality improved over the quarter. Residential mortgage non-interest income fell 41 percent, from 271 million to 161 million.