PNC Financial Services Group Inc. (NYSE:PNC) early Thursday posted much better than expected first quarter earnings results, as it cut costs and weathered the potential storm of weakening loan growth amid higher interest rates.

Written by StockNews.com

The Pittsburgh-based banking giant reported:

• Q1 earnings per share (EPS) of $1.96, which was $0.13 better than the Wall Street consensus estimate of $1.83.
• Revenues rose 6.0% from last year to $3.88 billion, compared with analysts’ view for $3.79 billion.
• Net interest income rose 1% to $2.2 billion, helped by higher interest rates.
• Noninterest income declined 1% to $1.7 billion. However, Noninterest expenses fell 2% as the company was able to effectively manage costs and thus increase profitability in that unit.
• Overall credit quality in its loan portfolio remained stable in the first quarter. Its provision for credit losses gained $21 million to $88 million, but that level is still historically low.
• ...loan growth momentum appeared to wane in the first quarter. Loans grew 1% to $2.0 billion in the latest period to $212.8 billion on a sequential basis, compared with the fourth quarter of 2016. This is likely due to rising interest rates and hawkish commentary from the Federal Reserve.

William S. Demchak, chairman, president and chief executive officer, commented on its latest results via press release:

“PNC had a good start to the year. We grew loans and revenue, and we managed expenses well while continuing to invest in our businesses and to enhance innovation.

As we progress through 2017, we are well positioned to benefit should environmental factors, including interest rates, turn more favorable.”

PNC Financial Services Group Inc. shares rose $0.60 (+0.52%) in premarket trading Thursday. Year-to-date, PNC has gained 0.10%, versus a 5.15% rise in the benchmark S&P 500 index during the same period.

PNC currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #8 of 11 stocks in the Money Center Banks category.