Non-interest expenses fell 4.4% to $2.26 billion as provisions for credit losses fell 60% to $94 million, according to the statement. Revenue decreased 4.5% to $3.78 billion, including a 31% drop in the residential- mortgage business.
PNC joins banks such as Wells Fargo & Co. and JPMorgan Chase & Co. that have struggled to increase revenue with interest rates near historic lows and demand for U.S. home loans declining. Lending has fallen since mid-2013 and a surge in all- cash purchases may push the market down again this year, according to the Mortgage Bankers Association.
PNC shares climbed about 12% in the first three months of 2014, outpacing the KBW Bank Index’s 4.4% gain. The stock trades at 1.61 times tangible book value, compared with 3.17 times for larger rival U.S. Bancorp, according to data compiled by Bloomberg.
Among PNC’s business units, asset-management revenue increased 18% to $364 million and corporate services rose 9% to $301 million from a year earlier. Consumer-services revenue fell 2% to $290 million. more »