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PNC Financial Cost Control on Track, Revenue Woes Linger
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On Aug 12, 2016, we issued an updated research report on The PNC Financial Services Group, Inc. (PNC - Free Report) . Notably, shares of this Pennsylvania-based banking giant have gained more than 5% over the past six months.
PNC Financial continues to reflect strength in several areas. Amid a competitive business environment, the company remains focused on driving operational efficiency through its cost containment efforts. The company successfully realized its 2015 continuous improvement savings program goal of $500 million, and remains confident of achieving its full-year savings plan of $400 million for 2016 as well.
Further PNC Financial demonstrated its capital strength with the successful clearance of the Federal Reserve stress test. Also, the company remains committed to enhance shareholders’ value. Following the Federal Reserve's approval of its 2016 capital plan, the company announced an 8% hike in its quarterly dividend in Jul 2016. The plan also includes share buyback of up to $2 billion over the four-quarter period commencing in the third quarter of 2016.
Additionally, the company has been witnessing growth in loans and deposit balances. As of Jun 30, 2016, total loans increased 2% to $209.1 billion, and deposits climbed 4% year over year to $249.8 billion.
However, revenues have been under pressure amid a stricter regulatory landscape and a persistent low interest rate scenario. The December rate hike was not enough to result in a significant boost. Notably, during the first six months of 2016, net interest income improved slightly while net interest margin declined on a year-over-year basis. Also, fee income failed to exhibit growth during the same period.
Significant improvement in top-line growth is likely to remain elusive in the near term. Notably in the latest earnings conference call, management acknowledged that the Fed rate hike is not likely to occur before Dec 2016, given the global economic uncertainty. Hence, it now expects stable revenue for this year, down from the previous outlook of modest revenue growth.
Over the past 60 days Zacks Consensus Estimate for 2016 increased slightly to $7.11 per share while for 2017 it declined 1.8% to $7.48.
Some other stocks in the finance space include Credit Acceptance Corp. (CACC - Free Report) , Hancock Holding Company , and HomeStreet, Inc. (HMST - Free Report) .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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PNC Financial Cost Control on Track, Revenue Woes Linger
On Aug 12, 2016, we issued an updated research report on The PNC Financial Services Group, Inc. (PNC - Free Report) . Notably, shares of this Pennsylvania-based banking giant have gained more than 5% over the past six months.
PNC Financial continues to reflect strength in several areas. Amid a competitive business environment, the company remains focused on driving operational efficiency through its cost containment efforts. The company successfully realized its 2015 continuous improvement savings program goal of $500 million, and remains confident of achieving its full-year savings plan of $400 million for 2016 as well.
Further PNC Financial demonstrated its capital strength with the successful clearance of the Federal Reserve stress test. Also, the company remains committed to enhance shareholders’ value. Following the Federal Reserve's approval of its 2016 capital plan, the company announced an 8% hike in its quarterly dividend in Jul 2016. The plan also includes share buyback of up to $2 billion over the four-quarter period commencing in the third quarter of 2016.
Additionally, the company has been witnessing growth in loans and deposit balances. As of Jun 30, 2016, total loans increased 2% to $209.1 billion, and deposits climbed 4% year over year to $249.8 billion.
However, revenues have been under pressure amid a stricter regulatory landscape and a persistent low interest rate scenario. The December rate hike was not enough to result in a significant boost. Notably, during the first six months of 2016, net interest income improved slightly while net interest margin declined on a year-over-year basis. Also, fee income failed to exhibit growth during the same period.
Significant improvement in top-line growth is likely to remain elusive in the near term. Notably in the latest earnings conference call, management acknowledged that the Fed rate hike is not likely to occur before Dec 2016, given the global economic uncertainty. Hence, it now expects stable revenue for this year, down from the previous outlook of modest revenue growth.
Over the past 60 days Zacks Consensus Estimate for 2016 increased slightly to $7.11 per share while for 2017 it declined 1.8% to $7.48.
PNC FINL SVC CP Price
PNC FINL SVC CP Price | PNC FINL SVC CP Quote
Stocks to Consider
Some other stocks in the finance space include Credit Acceptance Corp. (CACC - Free Report) , Hancock Holding Company , and HomeStreet, Inc. (HMST - Free Report) .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>