PNC Financial Services Group Inc.'s (PNC) first-quarter profit fell 3.8% as the lender saw higher noninterest expense, masking a sharp decline in credit-loss provisions.
Like its fellow lenders, PNC has been able to steadily reduce its funds set aside to cover risky loans as credit conditions in the U.S. continue to strengthen.
For the first quarter, PNC reported its credit-loss provisions totaled $185 million, down from $421 million a year ago and $190 million in the fourth quarter.
PNC, one of the largest lenders in commercial real estate, reported a profit of $805 million, compared with a year-earlier profit of $837 million. Per-share earnings, which reflect the payment of preferred dividends, fell to $1.44 cents from $1.57 a year earlier. The latest results included integration costs of $145 million, additions to legal reserves of $72 million and operating expense of $40 million tied to its RBC Bank (USA) acquisition.
Total revenue rose 2.8% to $3.73 billion. Analysts polled by Thomson Reuters were looking for per-share earnings of $1.43 on $3.59 billion in total revenue.
Non-interest expense climbed 19% to $2.46 billion.
Net charge-offs, or loans lenders don't expect to collect, came in at 0.81%, compared with 1.44% last year and 0.83% in the prior quarter.
