PNC upped its 2023 improvement plan savings outlook by $50 million in the second quarter, increasing its cost-reduction efforts to $450 million, up from the previously announced $400 million.
“We remain diligent in our expense management efforts, particularly when considering our current revenue environment,” Chief Financial Officer Rob Reilly said during the $556 billion bank’s earnings call today.
WHY IT MATTERS: As PNC moves toward cost reduction, its noninterest expenses increased 4% year over year to $3.4 billion, according to the bank’s earnings supplement.
The Q2 increase was attributed to marketing costs and reflects annual employee merit increases, Reilly said, noting that “every other expense category remained stable or declined compared to the first quarter of 2023.”
BY THE NUMBERS: PNC reported in Q2:
- Revenue increased 3% YoY to $5.3 billion, but fell 6% sequentially;
- Net income remained relatively flat YoY at $1.5 billion; and
- Equipment spend fell 1% YoY to $349 million.
FLASHBACK: Earlier this month, PNC Treasury Management integrated with API and cash management platform Trovata to allow corporate clients to send payments and transfer money through real-time payments networks.
The tech platform’s APIs and PNC’s PINACLE Connect APIs are combined to offer money movement capabilities, Trovata founder and Chief Executive Brett Turner previously told Bank Automation News.
FORWARD LOOK: “We’ll continue to look for additional efficiencies during the remainder of 2023 and importantly, as we begin to plan for 2024,” Reilly said.
[stock_market_widget type=”inline” template=”generic” assets=”PNC” markup=”{name} ({symbol}) is trading at {price} ({change_pct}) as of {last_update}” display_currency_symbol=”true” api=”yf”]
