PNC Financial Services Group Inc. (PNC) is one of the largest diversified financial services companies in the U.S. The company provides retail banking, including residential mortgage, corporate and institutional banking, and asset management services. As of December 31, 2020, the company’s consolidated total assets, total deposits, and total shareholders’ equity were $466.7 billion, $365.3 billion, and $54 billion.
The company generated 56% of its revenue from net interest income and 44% from non-interest income during the first quarter of 2021. The company’s non-interest income came from corporate services (30%), consumer services (21%), asset management (12%), service charges (6%), residential mortgage (6%), and other sources.
BBVA Acquisition Drives Revenue
PNC Financial recently acquired BBVA USA Bancshares Inc., making it the fifth-largest U.S. commercial banking organization (in terms of assets) with a coast-to-coast national franchise serving retail and business clients in 29 of the top 30 largest markets in the United States.
Wolfe upgraded the stock to Outperform following the acquisition, predicting that the purchase would bring above-average revenue growth. In addition, the analyst believes that PNC will have a competitive edge in new product development and innovation over the coming years.
In the meantime, the company raised its quarterly dividend by 8.7% to $1.25 per share, representing a 2.68% forward yield. The dividend is payable on August 5, 2021, to shareholders on record as of July 16, 2021.
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