Overview

• U.S. bank's Q2 revenue rose 21% yr/yr, beating analyst expectations

• Adjusted EPS was $4.85

• Company raised quarterly dividend 18% and completed FirstBank integration

Outlook

• PNC expects third-quarter share repurchase activity to match second-quarter levels

• PNC says strong capital position and FirstBank integration support future performance

Result Drivers

• COMMERCIAL LOAN GROWTH - Net interest income rose 4% from Q1, driven by commercial loan growth and higher noninterest-bearing deposit balances

• CAPITAL MARKETS ACTIVITY - Fee income rose 10% from Q1, led by record capital markets and advisory revenue

• VISA EXCHANGE GAIN - Noninterest income included a $448 mln gain from participation in the Visa exchange program, partly offset by securities losses and derivative adjustments

Company press release: ID:nPn2vx91Ra

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$6.88 bln	$6.50 bln (17 Analysts)
Q2 EPS		$4.81
Q2 Net Income		$2.06 bln
Q2 Net Interest Income	Meet	$4.11 bln	$4.11 bln (10 Analysts)
Q2 Adjusted Net Interest Margin		2.96%
Q2 CET1 Capital Ratio		9.90%
Q2 Provision for Credit losses		$191 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for PNC Financial Services Group Inc is $266.00, about 5.6% above its July 14 closing price of $251.88

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

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