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The Pittsburgh, Pennsylvania-based bank said on Friday that net
income attributable to diluted common shares rose to $2.01
billion in the fourth quarter ended Dec. 31, from $973 million a
year earlier. (http://reut.rs/2ASj9uc)
Earnings per share rose to $4.18 from $1.97.
Excluding items, the bank earned $2.29 per share, beating
analysts' average estimate of $2.20 per share, according to
Thomson Reuters I/B/E/S.
The bank's alternative GAAP measure of profit for the quarter
also included a one-time benefit of $911 million due to cuts in
corporate tax rates.
While bigger banks such as Morgan Stanley and Goldman Sachs
Group Inc are expected to take a hit in Q4 from the new tax law,
PNC gained from the Tax Cuts and Jobs Act.
Net interest income at the bank rose 10 percent to $2.35
billion.
Commercial lending balances rose 7 percent over last year to
$147.4 billion, as market activity heightened in anticipation of
the tax bill. 2017 saw an industry-wide softness in commercial
and industrial (C&I) loans, but in 2018, but analysts say C&I
lending could rise this year, in part due to the tax changes.
Shares of PNC rose 1.7 percent in premarket trading.
(Reporting By Pallavi Dewan and Aparajita Saxena in Bengaluru;
editing by Patrick Graham)
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