The PNC Financial Services Group (PNC) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Viewpoint - Analysts forecast that The PNC Financial Services Group, Inc (PNC) will report quarterly earnings of $3.56 per share, reflecting a year-over-year increase of 7.9%, with revenues expected to reach $5.62 billion, an increase of 3.8% compared to the previous year [1]. Earnings Estimates - Over the last 30 days, there has been a downward revision of 0.8% in the consensus EPS estimate for the quarter, indicating a collective reconsideration by analysts [2]. - Changes in earnings estimates are crucial for predicting potential investor reactions, as empirical studies show a strong relationship between earnings estimate revisions and short-term stock price performance [3]. Key Metrics Projections - Analysts estimate the 'Efficiency ratio' will reach 60.3%, down from 62.0% a year ago [5]. - The 'Total interest-earning assets - Average balance' is projected to be $507.90 billion, compared to $511.62 billion in the same quarter last year [5]. - The consensus for 'Book value per common share' is $129.24, up from $116.70 in the same quarter of the previous year [5]. Asset Quality and Capital Ratios - 'Total nonperforming assets' are expected to be $2.38 billion, down from $2.54 billion a year ago [6]. - 'Total nonperforming loans' are projected at $2.33 billion, compared to $2.50 billion in the same quarter last year [6]. - The 'Leverage Ratio' is estimated at 9.2%, up from 8.9% a year ago [6]. - The 'Tier 1 risk-based ratio' is expected to be 11.9%, compared to 11.6% in the same quarter last year [7]. - 'Total capital risk-based' is projected at 13.9%, up from 13.5% a year ago [7]. Income Projections - Analysts predict 'Net interest income (Fully Taxable-Equivalent - FTE) (non-GAAP)' will be $3.58 billion, compared to $3.34 billion in the same quarter last year [8]. - 'Total Noninterest Income' is expected to be $2.04 billion, down from $2.11 billion in the same quarter last year [8]. - 'Asset management and brokerage' is projected at $387.57 million, up from $364.00 million a year ago [9]. - 'Lending and deposit services' is expected to reach $315.13 million, compared to $304.00 million in the same quarter last year [9]. Stock Performance - Shares of The PNC Financial Services Group have increased by 11.4% in the past month, outperforming the Zacks S&P 500 composite, which moved up by 4.1% [10].