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PNC Financial Services Group (NYSE:PNC) Stock I got 3% In afternoon trading Monday, Chairman and Chief Executive William S. Demchak projected the bank would generate net interest income in the third quarter at the high end of the 1% to 2% growth target it announced in July.
“We will be in” “This is primarily due to Harris Williams’ higher performance in the capital markets than we had expected,” Demchak said at the Barclays Global Financial Services Conference in New York City.
Asked how the Fed’s impending easing cycle would affect PNC’s net interest income outlook, Demchak said, “We don’t particularly care what the Fed does initially,” and “we’re largely indifferent to it,” since almost all of its wholesale debt is variable-rate debt.
The lender’s second-quarter results were impacted by several significant items. PNC (NYSE: PNC) converted half of its Visa Class B-1 shares into cash, resulting in a gain of $754 million. It also adjusted the fair value of its Visa Class B-2 shares to $116 million and took a $120 million charge to contribute to the PNC Foundation. The company also reclassified its available-for-sale securities portfolio, resulting in a loss of $497 million.
“Visa’s restructuring was just a small part of the actual increase (in net interest income) in the last quarter,” Demchak noted in the fireside chat.
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