PNC posts higher Q1 profits on loans, higher interest rates

PNC Financial Services Group reported that profits for the first quarter jumped 13 percent on higher revenue, aided by more loans and rising interest rates.

Net income attributable to common shareholders was $973 million, up from $859 million in the same quarter last year. Per-share earnings increased 17 percent to $1.96 from $1.68, beating analysts’ average estimate of $1.83.

Revenue rose 6 percent to $3.88 billion, up from $3.67 billion.

“PNC had a good start to the year,” CEO William Demchak said in a statement Thursday.

Pittsburgh’s biggest bank is benefiting from recent increases in the Federal Reserve’s benchmark interest rate. The Fed raised the federal funds rate a quarter point in December and again in March — to a target range of 0.75 percent to 1 percent — after determining that the U.S. economy was on solid footing.

“We were pleased and frankly a little bit surprised to see another interest rate hike by the Fed in March,” Mr. Demchak told analysts in a conference call Thursday.

PNC economists are expecting two more quarter-point increases this year: one in June and one in December. The bank also is forecasting continued steady growth in the economy.

With assets of $370.9 billion, PNC is among the top 10 financial institutions in the country.

PNC said customers’ growing preference for electronic banking continued in the first quarter with some 61 percent of consumers using non-teller methods for the majority of their transactions, up from 56 percent a year earlier.

Shares lost 20 cents Thursday, or 0.17 percent, to close at $115.80.