PNC Income Falls as Set Asides Rise

PNC Financial Services reported its first quarter net income fell to $377 million, down 18 percent, as it set aside $150 million to cover losses on loans. The Pittsburgh-based bank set aside only $8 million for loan losses in the first quarter of 2007. Net earnings per share were $1.09 versus $1.46 a year ago. The AP reported that analysts had expected $1.18 per share.

PNC charged off $98 million in loans, a rise of nearly 300 percent from a year ago when it charged off $36 million.

Total revenues were $1.8 billion compared with $1.6 billion a year ago, a rise of nearly 13 percent.

PNC recorded a gain $95 million from its sale of stock in payment network Visa as it went public in March. PNC also reported a $37 million gain from its sale of BlackRock Inc. and a gain of $114 million on its sale of broker Hilliard Lyons. PNC has assets of nearly $140 billion and loans of nearly $71 billion.