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Return on Investment TTM. Return on Equity TTM. Latest News Latest News. BBVA, Sabadell boards to decide on merger deal in December The boards of Spanish banks BBVA and Sabadell will decide next month on whether to proceed with a potential merger deal the lenders said they were discussing, a source familiar with the matter said on Monday.
PNC Financial quarterly net profit falls marginally U. PNC Financial quarterly profit rises 1. PNC Financial sees higher second-quarter net interest income PNC Financial Services on Friday said it expects second-quarter net interest income and fee revenue to be higher than first quarter, sending its shares up 2. PNC Financial quarterly profit rises 2. PNC Financial profit misses as it sets aside more to cover bad loans U. PNC Financial quarterly profit falls PNC could grow, and the new affiliates could take advantage of the extended services offered by the group.
PNC became known for its friendly takeovers of already successful banks. In , the Hershey Bank joined the group. While acquisitions normally diluted the value of a corporation's stock for some time, PNC's careful planning allowed it to quickly make up for the dilution. By the late s, Wall Street analysts were so confident in PNC's management that acquisition announcements did not seriously reduce the stock's price.
The relaxation of interstate banking regulations in the United States during this time created a new kind of bank: the superregional. Superregionals operated in a number of states, and began in the late s to compete with the money center banks for a greater share of large corporate business. As mid-sized companies needed more services in the international trade arena, the superregionals became more and more involved there as well.
With its network spread throughout Pennsylvania, Kentucky, Ohio, and Delaware, PNC was the premier superregional in the United States by and had become the nation's 12th-largest banking group. Its assets had more than doubled since , and its earnings were among the highest in the industry. Like many banks throughout the world, PNC was forced to set aside huge sums as a provision against bad debt in Third World countries in While two-thirds of U.
The banking group was very conservative in its lending throughout the s. It set limits for the number of loans allowed to any particular industry and enforced stringent credit criteria. At the same time, PNC was energetic in its marketing. The corporation went after trust and money management business as well as corporate lending. PNC affiliates also showed higher than average earnings from fee income. PNC suffered a slight setback in and when it was caught with millions in nonperforming commercial real estate loans--part of them inherited through its late s acquisitions--resulting in reduced earnings.
The company responded by tightening its loan policies and beginning an effort to reduce its dependence on riskier commercial loans in favor of the more dependable consumer sector.
A restructuring in further reflected PNC's desire to diversify its holdings by focusing company's operations on four core businesses: corporate banking, retail banking, investment and trust management, and investment banking. PNC's desire to diversify was evident in its nonbank acquisitions of the early s.
The move immediately quadrupled PNC's mortgage business, pushing it into the top ten nationwide. In a third major nonbank acquisition bolstered the bank's asset management area. These acquisitions, however, would pale in comparison to those overseen by chairman and CEO O'Brien in the mids. In keeping with his strategy of expanding only within or adjacent to PNC's existing retail banking territory, O'Brien then shifted his attention to the Philadelphia area and New Jersey, long a target for PNC growth.
Then in July of that year, the bank announced it would acquire Midlantic Corp. More importantly, PNC had purchased the third largest bank in New Jersey and had achieved a significant presence there. It was considered one of the top superregionals in the country with more than branches in the contiguous area of Indiana, Kentucky, New Jersey, Pennsylvania, and Ohio.
At the same time, it was building a national and in some cases international presence in the areas of asset management services and investment banking. Its strong regional retail banking operations coupled with its diversified financial services businesses were designed to help it weather banking downturns that have inevitably beset PNC's and other banks' earnings in the past.
As barriers to interstate banking continued to fall, however, industry analysts were predicting further bank consolidation, even suggesting that only about five large banks would be left by the end of the s.
Whether PNC would be among them remained to be seen. Toggle navigation. User Contributions:. Comment about this article, ask questions, or add new information about this topic: Name:.
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