Shares of PNC Financial Services Group, Inc. (NYSE:PNC) rallied by 1.27% on Monday following the release of the bank's third-quarter earnings for 2023. PNC reported earnings per share of $3.60.
The bank's better-than-expected performance was largely attributed to lower non-interest expenses and provisions. Non-interest expenses fell by 1.1% year-over-year to $3.25 billion, reflecting the company's cost management strategy.
In October 2023, PNC implemented a headcount reduction as part of an enterprise-wide review. This move is projected to save the company approximately $325 million in personnel expenses in 2024. However, it will lead to a one-time charge of $150 million in the fourth quarter of 2023.
Despite these savings, PNC's bottom line experienced a year-over-year decline of 4.8%. The bank's quarterly revenues stood at $5.23 billion, marking a decrease of 5.7% year over year. The decline in revenue was primarily due to decreases in net interest income and fee income.
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