CLEVELAND, Ohio — PNC Bank generated net income of $5.7 billion in 2021 and expects to have a strong year in 2022 now that it operates coast-to-coast. the company said on Tuesday.
In the company’s fourth quarter and annual earnings, it posted revenue of $19.2 billion, up from $16.9 billion in 2020. Net profit was up from $3 billion. profits that PNC reported in 2020.
The Pittsburgh-based bank has a strong presence in Cleveland, largely since its 2008 acquisition of National City Bank. It acquired BBVA Bank in 2021 and is now present in the 30 major US markets.
PNC posted net income of $1.3 billion in the last quarter of the year, or about $2.86 per share. Adjusted earnings per share, which includes spending on the BBVA purchase, was $3.68, slightly above analysts’ forecast of $3.59 per share, according to stock market analyst website Seeking Alpha. .
CEO Bill Demchak said on an investor call Tuesday that he expects the company to do well in 2022, both because of its larger presence and because lending is expected to increase in 2022.
PNC expects loans to increase by around 10% in 2022. The company’s forecast also calls for an 8% revenue increase.% at 10%, with charges up by 4% at 6%.
The company has seen more demand for commercial loans in late 2021 and expects that to continue, chief financial officer Rob Reilly said on the investor call.
Consumers have more savings than usual, so they shouldn’t have lower loan demand, Reilly said.
The PNC economist also expects the Federal Reserve Bank to raise interest rates four times in 2022 to combat rising inflation.
Part of the revenue increase is due to revenue from BBVA, which was acquired by PNC on June 1. PNC has spent about $925 million on the merger, or 95% of what it plans to spend in total.
Demchak said revenue grew even without including BBVA revenue.
But he said to keep talent, the company paid employees more money, Demchak said. PNC spent 34% more on staff in the fourth quarter of 2021 than in 2021, according to company results.