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.

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