PNC Financial Services reported Q3 earnings yesterday at 11:00 am. For the quarter ended September 30th, PNC reported revenues of $3.78 billion and net income of $1.07 billion, translating to a Diluted EPS figure of $1.90 per share. This number is greater than the $1.88 of earnings per diluted share reported in Q2 of 2015 as well as the $1.79 per share reported in Q3 of 2014. However the quarterly revenue figure contracted on a Y/Y basis by ~2%, mainly caused by lower net interest income and lower non-interest income. The stock reacted unfavorably after earnings and traded down ~2% to $86.20 per share.
To provide more color to quarterly performance, net income in the Retail Banking and Other (including BlackRock) segments increased 45% and 20% respectively Y/Y. This was partially offset by decreases in net income in each of the Corporate & Institutional Banking, Asset Management, and Non-Strategic Assets Portfolio segments (8%, 4%, 17%). The Residential Mortgage Banking segment reported a net loss of $4 million which compares to net income of $12 in the prior quarter. Non-interest expenses remained stable at $2.35 billion from Q3 of the prior year, mainly driven by savings being reinvested in firm technology and infrastructure. Net interest income and net interest margin declined 2% and 31 bps to 2.67%, respectively, on a year over year basis.
Turning to the balance sheet, total loans increased ~3% Y/Y driven mainly by growth in commercial loans and large corporate/real estate lending. Investment securities were also up $2.6 billion (4% Q/Q) resulting largely from an 8% Y/Y increase in deposits. Provisions for loan losses increased 47% Y/Y and net charge-offs climbed 17% Y/Y.