- PNC's first full quarter to include BBVA USA's assets helped buoy the Pittsburgh-based lender's revenue by 11%, its deposits by 13% and its loans by 14%, compared with the previous quarter, the bank reported Friday.
- The bank's profit fell 3% to $1.49 billion, compared with $1.53 billion in last year's third quarter. But that figure surpassed the $1.10 billion the bank saw in the second quarter.
- PNC reclaimed $203 million in loan-loss reserves, which the bank cached when defaults seemed likely earlier in the pandemic.
While PNC saw an 11% bump quarter over quarter in revenue, that jump expands to 21% when compared with last year's third quarter, the bank reported.
The bank's earnings report comes roughly a week after it converted BBVA USA’s systems and branches in seven states to the PNC brand and platform, the bank announced. PNC's $11.6 billion acquisition of the Spanish bank's U.S. arm, announced in November, closed June 1.
"With the significant expansion of our footprint and the continued execution of our strategic priorities, we see substantial opportunities to leverage our best-in-class products and services, and deliver enhanced shareholder value for years to come," Bill Demchak, PNC's CEO, said in a statement.
Pretax costs from the merger and integration ran PNC about $243 million over the third quarter, a span in which the bank saw a 18% increase in expenses.
PNC’s commercial loans also saw a dip — 2%, to $195.2 billion — which Demchak attributed to the bank's dealings with the Small Business Administration's Paycheck Protection Program (PPP).
However, the bank reported $2.86 billion in net interest income in the third quarter — a 15% boost over last year's comparable span — and $2.34 billion in noninterest income, a 30% jump.
PNC joined a slew of banks that cashed in loan-loss reserves over the past quarter — although at a slighter clip than the $302 million recapture it saw in the second quarter. By comparison, JPMorgan cashed in $2.1 billion in loan-loss reserves during the third quarter; Wells Fargo, $1.7 billion; Citi, $1.6 billion; and Bank of America, $1.1 billion.