Shares in PNC Financial (NYSE: PNC) were down 3.1% in premarket trade on Tuesday after the bank lowered its 2023 guidance and issued a third-quarter performance forecast that fell short of expectations. consensus expectations.
The bank revised its revenue forecast for 2023, now projecting an increase of between 2% and 2.5%, which is a reduction from its previous guidance of 4% to 5% growth. This results in a revenue estimate of between $21.54 billion and $21.65 billion, falling short of the average analyst estimate of $22.01 billion.
The forecast for net interest income for the year has been adjusted to a 5% to 6% increase, down from the previous estimate of 6% to 8% growth. Non-interest income is expected to decline 2% to 4% compared to the previous forecast of stability. On the other hand, non-interest expenses are expected to increase by around 2%, compared to the previous expectation of a 2% to 3% increase.
Third-quarter revenue is projected to increase approximately 1% from the $5.29 billion reported in the second quarter, which would result in revenue of approximately $5.35 billion, below the consensus of $5.49 billion.
Q2 EPS: $3.36 (beating consensus of $3.28), but down from Q1 ($3.98) and Q2 2022 ($3.39). Revenue: $5.29 billion (down from the consensus of $5.45 billion), down from the prior quarter ($5.60 billion) and up from the same period last year ($5.12 billion). Net interest income: $3.51 billion (down QoQ of $3.59 billion, but up QoQ of $3.05 billion). Non-interest income: $1.78 billion, down 12% QoQ and 14% YoY.
The credit loss reserve totaled $146 million, down from $235 million in Q1 2023 and up from $36 million in Q2 2022. Second Quarter Average Loans totaled $324.5 billion, compared to $325.5 billion in the first quarter. Meanwhile, average deposits of US$ 425.7 billion showed a decrease compared to US$ 436.2 billion in the previous quarter.