Strong capital position
PNC Financial’s (PNC) transitional and pro forma fully-phased Basel III common equity Tier 1 capital ratios were an estimated 10.4% and 9.9%, respectively, as of March 31, 2015. The strong Tier 1 capital ratio was supported by modest improvement in the credit quality. PNC Financial’s non-performing assets declined 4% to $2.8 billion and net charge-offs decreased to $103 million—compared to $118 million in the previous quarter. The strong capital, liquidity, and asset quality helped the total assets grow to $351 billion as of March 31, 2015.
PNC Finacial has comparable dividend payouts and a Tier 1 capital ratio with the likes of JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), Bank of Montreal (BMO), BB&T Corporation (BBT), US Bancorp (USB), and Wells Fargo (WFC). They form 31.92% of the Financial Select Sector SPDR (XLF).
Returning of capital
PNC Financial continued its stock repurchase program in order to share the capital with the shareholders. In 1Q15, the bank bought back 4.4 million common shares worth $0.4 billion. The purchase was part of its four-quarter repurchase program that started in April 2014. The bank bought a total of 17.3 million common shares for $1.5 billion. PNC Financial announced another five-quarter repurchase program of up to $2.875 billion beginning in 2Q15. PNC Financial also raised its quarterly dividend by $0.03 per share—effective with the May dividend.