PNC Financial reports lower quarterly net income
(Reuters) - PNC Financial Services Group Inc's (PNC.N: Quote) third-quarter profit beat analyst estimates, despite falling as the regional bank earned less loan interest income.
Pittsburgh-based PNC Financial posted net income of $834 million, or $1.55 per share, down from $1.1 billion, or $2.07 per share, a year earlier.
Last year's results included a $328 million after-tax gain from the sale of PNC Global Investment Servicing. Excluding the gain, the bank earned $772 million in third quarter 2010.
Analysts estimated the bank would earn $1.49 per share, according to Thomson Reuters I/B/E/S.
Total revenues declined 2.7 percent to $3.5 billion from $3.6 billion.
Net interest income -- or what the bank earns in loan interest against what it pays for deposits -- declined $40 million to $2.2 billion from a year ago.
The Midwestern regional bank has emerged as one of the strongest regional lenders in the wake of the 2008 financial crisis.
In June, the bank announced plans to buy the Royal Bank of Canada's (RY.TO: Quote) U.S. retail banking operations -- concentrated in the Southeast. The deal is expected to close next year.
Shares have declined 15.6 percent this year as part of a broader industry share price decline. Shares closed up 4.5 percent to $51.22 on Tuesday.
(Reporting by Joe Rauch; Editing by Lisa Von Ahn and Derek Caney)
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