PNC Financial Services Group Inc. on Wednesday reported annual earnings of $5.42 billion, or $11.39 per diluted common share, a 1% decrease from the $5.35 billion, or $10.71 a share, for 2018.
The Pittsburgh-based parent of PNC bank also reported fourth-quarter earnings of $1.38 billion, or $2.97 per diluted common share, a 2% increase from the $1.35 billion, or $2.75 a share, reported for the prior year's fourth quarter.
Bill Demchak, PNC's chairman, president and CEO, said the company generated record revenue last year.
“PNC delivered excellent results in 2019 against the backdrop of continued change across our industry,” he said in a statement. “We increased loans and deposits and leveraged our strong product set to grow clients in existing and new markets.”
Wholesale prices tick up in December
U.S. wholesale prices rose a slight 0.1% in December as a jump in the cost of energy was offset by falling food prices.
The Labor Department said Wednesday the December increase in its producer price index, which measures inflation pressures before they reach the consumer, followed no change in November.
Energy prices were up 1.5% with gasoline costs up 3.7% and heating oil up 7.7%, the biggest monthly gain in two years.
Food costs were down 0.2%, the first drop since August, with the biggest drop in beef prices in more than two years offsetting a jump in the price of chicken.
For the year, wholesale prices are up a modest 1.3%, down from a 2.6% gain in 2018.
Goldman Sachs sees 24% dip in profits
Goldman Sachs said its fourth-quarter profits dropped by 24% from a year earlier, as the bank had to set aside money to cover its looming settlement with U.S. authorities over its role in a Malaysian sovereign wealth fund scandal.
The investment bank said Wednesday that it earned a profit of $1.72 billion in the quarter, or $4.69 a share, down from a profit of $2.32 billion, or $6.11 per share, a year earlier. The results missed analysts' expectations for earnings of $5.47 a share.
Rate drops hurt Bank of America
Consumer banking giant Bank of America said Wednesday that its fourth-quarter profits fell 4% from a year ago, as the bank was impacted by the rapid decline of interest rates in late 2019.
The Charlotte, North Carolina-based bank said Wednesday that it earned a profit of $6.99 billion, or 74 cents a share, down from a profit of $7.29 billion, or 70 cents per share a year ago. BofA bought back roughly 900 million shares between 2018 and 2019, which is why the per-share earnings rose while the bank's overall profit fell.