PNC's profits more than doubled during the second quarter -- but the super-regional bank's numbers look weaker under the hood.
PNC (PNC) reported a net income of $3.7 billion, up from just $1.4 billion a year ago. Yet that profit surge was driven by the sale of a 22% stake in asset management behemoth BlackRock (BLK) -- a lucrative deal that created an after-tax gain of $4.3 billion.
If that BlackRock windfall is excluded, PNC actually lost money because of the health crisis. The bank posted a loss of $744 million from continuing operations, compared with a profit of $1.2 billion a year ago.
PNC blamed "uncertainty in the economy related to the pandemic" that caused a $2.5 billion surge in provisions for bad loans, up from $914 million during the first quarter.
Revenue dropped 6% to $4.1 billion, narrowly missing estimates.
PNC's shares climbed 2% Wednesday, trimming its 2020 loss to 35%.