A Sluggish Quarter at PNC: Fool by Numbers

On July 19, Pittsburgh-based PNC Financial Services (NYSE: PNC) released earnings for the second quarter ended June 30.

• Weakening returns from private equity and trading revenue drove down non-interest income.
• While the company's acquisition of Mercantile contributed significant growth in net interest income, it was partially offset by the impact of a cross-border lease item that lowered interest income on loans.
• The provision for credit losses increased 23%, mainly from growth in total credit exposure.
• Nonperforming assets increased because of higher commercial real estate nonaccrual loans, primarily from Mercantile.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q2 2007	Q2 2006	Change
Total Revenue	$1,721	$1,792	(3.9%)
Net Interest Income	$738	$552	33.7%
Net Profit	$423	$381	11.0%
EPS	$1.22	$1.28	(4.7%)

Get back to basics with a look at the income statement.

	Q2 2007	Q2 2006	Change*
Net Interest Margin	3.03%	2.90%	0.13
Efficiency Ratio	61.00%	64.00%	(3.00)
Nonperforming Assets / Assets	0.20%	0.24%	(0.05)
Return on Average Assets	1.38%	1.64%	(0.26)
Return on Average Equity	11.61%	17.49%	(5.88)

*Expressed in percentage points on a non-adjusted basis.

Find out more about bank performance ratios.

Balance Sheet Highlights

Assets	Q2 2007	Q2 2006	Change
Investments	$31,394	$24,404	28.6%
Loans	$67,276	$52,713	27.6%

Liabilities	Q2 2007	Q2 2006	Change
Deposits	$77,221	$63,493	21.6%
Total Liabilities	$109,777	$85,455	28.5%

The balance sheet reflects the company's health.

Related Foolishness:

• Zions Slows to a Crawl
• What's the Deal With Bank Reserves?
• Small Bank, Big Potential

Want some new stock ideas? Learn more about what Motley Fool CAPS players -- now 60,000 strong -- think of the company you're interested in.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.