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PNC Q1 Net Easily Beats Analyst View, Helped by National City (PNC)

Posted on: Thu, 23 Apr 2009 12:17:00 EDT

Symbols: NCC, PNC, ZZHTK

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Apr 23, 2009 (BAYSTREET NEWSWIRE via COMTEX) --
PNC | Quote | Chart | News | PowerRating -- Major banker PNC Financial Services (PNC) reported first quarter earnings that easily beat Wall Street's view, aided by its January acquisition of National City Bank.

The Pittsburgh-based bank reported fiscal first quarter net income of $460 million, or $1.03 per share, up 22% from $377 million, or $1.09 per share, in the year-ago period. The latest quarter's EPS numbers fell from last year because PNC now has several more shares outstanding, a result of its January 2009 acquisition of National City for $3.9 billion.

Revenue for the quarter more than doubled to $3.87 billion. On average, Wall Street analysts expected net income of 42 cents per share on revenue of $3.5 billion.

Earnings Highlights

profit from corporate and institutional banking rose nearly 15-fold to $374 million profit from retail banking fell 59% to $56 million profit from asset management rose 3% to $38 million PNC lost $197 million resulting from its 1/3 stake in BlackRock (BLK) nonperforming assets rose 60% to $3.47 billion realized $400 million in cost savings due to National City merger

The company also said it plans to cut 5,800 jobs as part of further cost-cutting plans. PNC shares rose $1.44, or +3.7%, in morning trading Thursday.

The Bottom Line

We had removed shares of PNC from our "Recommended" list back on Oct.9, when the stock traded at $67.75. The company will now have a 1.05% dividend yield, based on the lower dividend payout and Friday's closing stock price of $38.06. The stock has technical support in the $28-32 price range. If the shares can continue to rebound, we see overhead resistance in the $44-48 price area. We would remain on the sidelines for now.

PNC Financial Services (PNC) is not recommended at this time, holding a Dividend.com DARS Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

For full details on (NCC) NCC. (NCC) has Short Term PowerRatings at TradingMarkets. Details on (NCC) Short Term PowerRatings is available at This Link.

For full details on Pnc Financial Svcs Grp (PNC) PNC. Pnc Financial Svcs Grp (PNC) has Short Term PowerRatings at TradingMarkets. Details on Pnc Financial Svcs Grp (PNC) Short Term PowerRatings is available at This Link.

For full details on (ZZHTK) ZZHTK. (ZZHTK) has Short Term PowerRatings at TradingMarkets. Details on (ZZHTK) Short Term PowerRatings is available at This Link.

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