Profits fall for Pittsburgh-based PNC

   April 18, 2012 10:20 am    0

 

Pittsburgh-based PNC Financial Services Group said net income for the January-March quarter declined 8 percent to $766 million, mainly from the cost of integrating its recent acquisition of Royal Bank of Canada’s U.S. retail banking business and mortgage-related and other legal expenses.
Revenue increased 2.8 percent to $3.73 billion from $3.63 billion a year ago.
“We’re off to a good start for the year,” Chief Executive O James Rohr told analysts on a conference call. He cited the increase in revenue, loans and checking accounts, as well as the successful conversion of RBC systems and customers, and the business opportunities they represent for PNC.
PNC earnings yesterday equaled $1.44 a share, compared with net income of $833 million, or $1.57 a share, a year earlier.
PNC completed the RBC deal on March 2, adding 424 branches in the Southeast. PNC booked $145 million in integration expenses in the quarter to fold RBC into PNC, plus an additional $40 million in operating expenses.
PNC also added $72 million to its reserves for future legal expenses last quarter, and incurred a $38 million expense related to home mortgage foreclosure-related matters connected to earlier government legal settlements.
— The Associated Press

 

Tags:

Posted in: