PNC Shares Fall After CEO Sheds Light on Net Interest Income Guidance

By Allison Prang

Shares of PNC Financial Services Group Inc. (PNC) dipped Wednesday after Chief Executive Bill Demchak said the outlook for net interest income today was slightly worse than it had been.

"So we talked about kind of down 1%, I think, on forwards," Mr. Demchak told analysts on the third-quarter earnings call Wednesday. "It's maybe a little bit worse than that today but not a whole lot."

Mr. Demchak followed up on those comments shortly after, saying guidance he would've given the week earlier would've been more positive.

"It's not a big move from where we are," he said. "We're not dependent on it. In a given day last week, I would have told you that it would have been down less than 1%."

At a conference in September, Mr. Demchak said that given the forwards at the time, net interest income would be flat the next year.

"There's 50 variables in there, but, all else equal, NII holds flat in the next year off of the forwards today," he said Sept. 11.

The company is guiding for its net interest income to fall by about 1% in the fourth quarter.

Shares of PNC were up 0.6% midday.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

October 16, 2019 12:07 ET (16:07 GMT)

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