(Updates with company forecast starting in first paragraph.)
July 16 (Bloomberg) -- PNC Financial Services Group Inc., the second-largest U.S. regional bank, fell the most in 20 months after forecasting expenses may rise in the third quarter while revenue declines.
PNC slid 3.5 percent to $85.18 at 10:30 a.m. in New York, the most since November 2012 and the biggest decline on the KBW Bank Index. The shares were the best performer on the 24-company index this year through yesterday.
Net interest income should decline “modestly” in the third quarter while noninterest expenses rise by low single digits, the Pittsburgh-based lender said today in a presentation on its website. Fee revenue should be stable with “modest” loan growth, the bank said.
Net income in the second quarter dropped to $1.05 billion, or $1.85 a share, from $1.12 billion, or $1.98, a year earlier, PNC said today in a statement. The average estimate of 28 analysts surveyed by Bloomberg was for adjusted profit of $1.78 a share. Operating expenses and net interest margin for the quarter missed analysts’ estimates, while PNC said it set aside $85 million less for bad loans than a year earlier.
--With assistance from Elizabeth Dexheimer in New York.