- PNC reported $1.31 billion in profit over the fourth quarter Tuesday, a 10% decline from the $1.46 billion it saw during the same period in 2020.
- The bank's total revenue for the quarter increased 22%, deposits jumped 25% and loans climbed 19% year over year. The increases came, in large part, from PNC’s acquisition of the U.S. arm of Spanish lender BBVA, a deal that closed in June.
- PNC reported net income from continuing operations of $5.73 billion for all of 2021, a substantial increase from the $3 billion the bank reported for 2020.
"2021 was a pivotal year for PNC,” said Bill Demchak, the Pittsburgh-based bank's CEO. “We delivered solid financial results, closed and converted BBVA USA in less than a year, launched our overdraft solution Low Cash Mode and announced an $88 billion plan to expand economic opportunities for minorities and low- and moderate-income individuals and communities.”
Total revenue for Q4 2021 was $5.13 billion, up 22% from the $4.21 billion PNC reported during the same time frame in 2020.
“While the acquisition of BBVA USA significantly increased our loan and deposit balances, we also organically grew revenue, and maintained solid credit quality metrics and a strong capital position,” Demchak said.
Revenue decreased 1% in the fourth quarter, due in part to integration costs incurred from the acquisition of BBVA.
PNC’s revenue for all of 2021 was $19.21 billion, up from $16.9 billion in 2020.
During the three-month period ending Dec. 31, 2021, PNC recaptured $327 million in loan-loss reserves.
The bank reported an efficiency ratio of 74% for Q4 2021, up from 69% in the previous quarter and 64% in Q4 2020.
PNC estimated that “low cash mode,” a service that gives bank customers a 24-hour window to address an overdrawn account before incurring an overdraft fee, would save its customers between $125 million to $150 million in fees each year.
Beginning in November, PNC bumped the companywide minimum hourly pay from $15 to $18, in a bid to help the firm “attract and retain the best talent."