US regional lender PNC’s profit jumps on higher interest income, fees

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(Reuters) -PNC Financial reported a more than 21% rise in third-quarter profit on Wednesday, driven by higher interest income and across-the-board jump in fees.

The results underscored borrower resilience across the U.S. and a rebound in dealmaking from April’s tariff-driven slump, mirroring trends observed across the biggest U.S. banks this week.

JPMorgan Chase raised its full-year forecast for net interest income on Tuesday, while Wells Fargo and Citigroup also reported higher income from interest payments.

NII – the difference between what a bank earns as interest on loans and pays out on deposits – jumped to $3.65 billion in the quarter for PNC, compared with $3.41 billion a year earlier, reflecting lower funding costs and loan growth.

Provisions for credit losses fell to $167 million in the period, compared with $243 million a year earlier.

“Credit performed well and we continued to build on our strong capital levels,” said CEO Bill Demchak.

PNC agreed to buy privately held FirstBank Holding in a $4.1 billion cash-and-stock deal last month, providing momentum to a long-predicted wave of regional banking consolidation.

Analysts say the deal provides the bank access to low-cost deposits and cross-selling opportunities. They continue to view the bank as a potential buyer as banking M&A picks up pace under lighter regulation.

Total non-interest income for Pittsburgh, Pennsylvania-based PNC rose 12% to $2.23 billion, led by a 16% jump in capital markets and advisory fees.

The lender’s profit rose to $1.82 billion, or $4.35 per share, from $1.51 billion, or $3.49 per share, a year earlier.

(Reporting by Ateev Bhandari in Bengaluru; Editing by Sriraj Kalluvila)