PNC Financial Services Group saw an 18.5% rise in Q1 profit due to an increase in net interest income, driven by the Federal Reserve's rate hikes.
- PNC Financial Services Group reported an 18.5% rise in first-quarter profit, with a profit of $3.98 per share.
- The rise in profit was due to the Federal Reserve's rate hikes that caused a surge in PNC's net interest income (NII).
- PNC's NII, which measures the difference between earnings on loans and deposit payouts, jumped about 28% to $3.6 billion from a year earlier.
- Deposits for the first quarter ended March rose marginally to $436.8 billion from $436.3 billion in the previous quarter.
- PNC CEO William Demchak noted that despite a quarter of heightened market volatility, the bank was able to grow deposits and increase its capital position.
- PNC may adjust share repurchase activity based on market and economic conditions as well as other factors.
- The bank's positive Q1 results are a welcome change after a difficult Q4 2022 that saw a significant drop in share price due to liquidity concerns and bank failures in the industry.