PNC Financial Reports Strong Q1 Results Thanks to Higher Interest Rates

Lede

PNC Financial Services Group saw an 18.5% rise in Q1 profit due to an increase in net interest income, driven by the Federal Reserve's rate hikes.

PNC Financial Services Group reported an 18.5% rise in first-quarter profit, with a profit of $3.98 per share.
The rise in profit was due to the Federal Reserve's rate hikes that caused a surge in PNC's net interest income (NII).
PNC's NII, which measures the difference between earnings on loans and deposit payouts, jumped about 28% to $3.6 billion from a year earlier.
Deposits for the first quarter ended March rose marginally to $436.8 billion from $436.3 billion in the previous quarter.
PNC CEO William Demchak noted that despite a quarter of heightened market volatility, the bank was able to grow deposits and increase its capital position.
PNC may adjust share repurchase activity based on market and economic conditions as well as other factors.
The bank's positive Q1 results are a welcome change after a difficult Q4 2022 that saw a significant drop in share price due to liquidity concerns and bank failures in the industry.