PNC Financial profit more than doubles on BlackRock stake sale gain
- The lender sold its stake in BlackRock in May that put an end to longstanding questions about when it would sell the lucrative position.
- Banks have been building up their reserves to cover defaults from consumers and companies as the COVID-19 pandemic ravaged the US economy.
US regional bank PNC Financial Services Group Inc said on Wednesday second-quarter profit more than doubled as it recorded a gain of $4.3 billion from the sale of its position in asset manager BlackRock Inc .
The lender sold its stake in BlackRock in May that put an end to longstanding questions about when it would sell the lucrative position.
Like big US banks that have reported results so far, PNC set aside $2.46 billion as loan loss provisions in the quarter, up from $180 million a year earlier.
Banks have been building up their reserves to cover defaults from consumers and companies as the COVID-19 pandemic ravaged the US economy.
PNC, one of the largest local US lenders by assets, said net loss from continuing operations, which excludes the one-time gain, was $744 million.
The bank's net income from discontinued operations, which includes gains from the sale, was $4.4 billion.
Net income attributable to common shareholders jumped to $3.59 billion, or $8.40 per share, in the three months ended June 30, from $1.31 billion, or $2.88 per share, a year earlier, the bank said on Wednesday.
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