PNC Financial Services slides after revenue miss, guidance cut

PNC Financial Services (NYSE:) shares are down more than 3% premarket Tuesday after it missed revenue expectations and cut its forecast for net interest income. However, it topped second-quarter earnings expectations.

The bank reported Q2 of $3.36, $0.07 better than the analyst estimate of $3.29, while revenue for the quarter came in at $5.29 billion versus the consensus estimate of $5.45 billion.

Net income in the second quarter declined 11% YoY to $1.5B, while net interest income of $3.5B decreased $75M, or 2%, as higher yields on interest-earning assets were offset by increased funding costs and lower loan and securities balances.

Looking ahead, PNC expects net interest income for the year to rise from 5% to 6%, lower than the previous view of 6% to 8% growth.

“For the second quarter, PNC delivered solid financial results and maintained strong credit quality metrics, reflecting the power of our national franchise and the competitive positioning of our balance sheet in the current environment,” said Bill Demchak, PNC chairman, president and CEO. “The Federal Reserve’s annual stress test recently demonstrated PNC’s through-the-cycle financial strength and stability, and starting in the fourth quarter, our stress capital buffer requirement will improve to the regulatory minimum of 2.5%.”