Today, PNC (NYSE:PNC) reported its earnings per share fell to $1.85 in the second quarter, down 6.6% from the $1.98 seen in the second quarter of last year.


Total net income stood at $1.1 billion in the second quarter, which represented a decline of 5.7% relative to the second quarter of last year. This was driven largely by a 23% drop in its Corporate and Institutional Banking business, which saw its net income fall by $142 million, or 23%, to stand at $470 million. The reason behind this stemmed from a reduction in its net interest income -- what it earns on loans -- and also a $143 million increase in its provision for credit losses -- what it expects to lose on loans that it issues.

Somewhat offsetting this decline was increased improvement in its Retail Banking business, which saw its earnings rise by 67%, or $67 million. This was entirely the result of a significant decline in its provision for credit losses, which fell from $148 million in the second quarter of last year to just $4 million in the most-recent quarter.

"We delivered solid earnings in the second quarter of 2014," said PNC's chairman, president and CEO, William Demchak, even with the reduction in its second-quarter earnings. "We grew loans, our fee businesses performed well, expenses were well managed, credit quality continued to improve and capital levels strengthened," Demchak was quoted as saying in the bank's earnings release.

PNC did see gains in its segments of noninterest income, including asset management, which rose 6% to stand at $362 million, and residential mortgage fees, which increased 9%, to $182 million. However these gains were more than offset by a $123 million drop in its other income, thanks to fewer gains seen from the sale of its stake in Visa, as well as less revenue from valuation adjustments and the sale of assets. As a result, in total, its noninterest income fell by 7% year over year, to $1.7 billion.

"While our near-term outlook is for a continuation of the low interest rate environment, we are making important progress on our strategic priorities, which we expect will benefit our long-term performance," added Demchak, to conclude his remarks.

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Patrick Morris owns shares of Apple. The Motley Fool recommends Apple and Visa. The Motley Fool owns shares of Apple, PNC Financial Services, and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.