Upcoming AWS Coverage on TCF Financial Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 18, 2017 / Active Wall St. announces its post-earnings coverage on PNC Financial Services Group, Inc. (NYSE: PNC). The Company released its fourth quarter and fiscal 2016 results on January 13, 2017. The regional bank operator surpassed market expectations on both revenue and earnings. Register with us now for your free membership at:

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One of PNC Financial Services Group's competitors within the Money Center Banks space, TCF Financial Corp. (NYSE: TCB), announced on January 06, 2017, that it will release its Q4 2016 earnings results before the market opens on Friday, January 27, 2017. Craig R. Dahl, President and Chief Executive Officer, will host a conference call to discuss the results at 9:00 a.m. CT and will be joined by other TCF's executive. AWS will be initiating a research report on TCF Financial in the coming days following its earnings release.

Today, AWS is promoting its earnings coverage on PNC; touching on TCB. Get our free coverage by signing up to

http://www.activewallst.com/registration-3/?symbol=PNC

http://www.activewallst.com/registration-3/?symbol=TCB

Earnings Reviewed

For the three months ended December 31, 2016, PNC Financial total revenue grew $21 million to $3.87 billion compared to Q4 2015 total revenue of $3.85 billion. The reported number surpassed analysts' projections of $3.86 billion.

For Q4 2016, PNC Financial's net interest income increased $38 million to $2.1 billion, compared to Q4 2015 primarily due to higher core net interest income. The net interest margin was 2.69% for Q4 2016 compared to 2.70% for Q4 2015. The reported quarter margin reflected higher loan yields, lower securities yields, and higher borrowing costs. The Company's non-interest income for Q4 2016 declined $17 million to $1.74 billion compared to Q4 2015 as growth in fee income was more than offset by lower other income.

The Pittsburgh-based bank posted earnings of $1.03 billion for Q4 2016 compared to earnings of $1.01 billion in Q4 2015. On a per-share basis, PNC Financial's earnings improved to $1.97 from $1.87, from a lower share count. Wall Street was projecting earnings of $1.84 per share. For FY16, the Company reported profit of $3.99 billion, or $7.30 per share. Revenue was recorded as $15.16 billion.

Segment Results

PNC Financial's Retail Banking earnings for Q4 2016 earnings increased to $229 million compared to earnings of $213 million in Q4 2015. Non-interest income declined to $514 million compared to Q4 2015 non-interest income of $571 million due to the impact of Q4 2015 sales of Visa's shares. Deposit transactions via ATM and mobile channels increased to 51% of total deposit transactions in Q4 2016 compared to 46% in Q4 2015. The Company had a network of 2,520 branches and 9,024 ATMs at December 31, 2016. Approximately 21% of the branch network operates under the universal model.

For PNC Financial's Corporate & Institutional Banking division earnings for Q4 2016 increased to $577 million compared to earnings of $539 million in Q4 2015. Non-interest income decreased to $522 million as a result of lower merger and acquisition advisory fees and was partially offset by a higher benefit from commercial mortgage servicing rights valuation.

The bank's Asset Management Group earnings for Q4 2016 increased to $55 million compared to Q4 2015 earnings of $51 million. Non-interest income totaled $215 million in the reported quarter against $211 million in Q4 2015.

Balance Sheet

PNC Financial's total assets were $366.4 billion at December 31, 2016, compared to $358.5 billion at December 31, 2015. The Company's assets grew 2% over year end 2015 as a result of higher investment securities and loans partially offset by lower deposits maintained with the Federal Reserve Bank.

PNC Financial's total loans grew $0.4 billion as of December 31, 2016, compared to September 30, 2016. Average commercial lending balances increased $1.7 billion primarily in PNC's corporate banking and real estate businesses. Average consumer lending balances increased $0.3 billion due to growth in auto, residential mortgage and credit card loans and was partially offset by lower home equity and education loans driven by runoff portfolios.

Investment securities balance at December 31, 2016 decreased $2.6 billion compared to September 30, 2016. The net unrealized pretax gain declined to $0.2 billion at December 31, 2016 compared to $1.3 billion at September 30, 2016. Q4 2016 period end and average investment securities increased $5.4 billion and $8.2 billion, respectively, compared to Q4 2015.

Strong Capital Position

Transitional Basel III common equity Tier 1 capital ratio was an estimated 10.6% at both December 31, 2016 and September 30, 2016, calculated using the regulatory capital methodologies applicable to PNC during 2016. Pro-forma fully phased-in Basel III common equity Tier 1 capital ratio was an estimated 10.0% at December 31, 2016, and 10.2% at September 30, 2016, based on the standardized approach rules.

PNC Financial's Common shareholders' equity at December 31, 2016, decreased $0.5 billion compared to September 30, 2016, due to growth in retained earnings which was more than offset by lower accumulated other comprehensive income primarily related to net unrealized securities gains and by share repurchases.

PNC returned $0.8 billion of capital to shareholders in Q4 2016 through repurchases of 4.9 million common shares for $0.5 billion and dividends on common shares of $0.3 billion. For FY16, PNC returned $3.1 billion of capital to shareholders.

On January 05, 2017, PNC's board of directors declared a quarterly cash dividend on common stock of $0.55 per share with a payment date of February 05, 2017.

Credit Quality

PNC Financials' nonperforming assets were $2.4 billion at both December 31, 2016, and September 30, 2016. Net charge-offs declined to $106 million for Q4 2016 compared to $154 million for Q3 2016. Deposits were $257.2 billion at December 31, 2016, a decrease of $2.7 billion from September 30, 2016. Average deposits increased $4.5 billion, or 2% in Q4 2016 on a sequential basis, reflecting higher commercial deposits and growth in savings products. Investment securities of $75.9 billion at December 31, 2016, decreased $2.6 billion, or 3%, compared to September 30, 2016. Provision for credit losses was $67 million in Q4 2016, a decrease of $20 million as overall credit quality remained stable.

Stock Performance

On Tuesday, January 17, 2017, the stock closed the trading session at $113.93, declining 4.09% from its previous closing price of $118.79. A total volume of 4.30 million shares have exchanged hands, which was higher than the 3-month average volume of 3.27 million shares. PNC Financial Services' stock price surged 30.01% in the last three months, 40.27% in the past six months, and 35.11% in the previous twelve months. The Company's shares are trading at a PE ratio of 15.71 and have a dividend yield of 1.93%.

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SOURCE: Active Wall Street