PNC profit rises despite growing loan losses

PNC Financial Services Group Inc. announced Thursday morning that it earned $1.01 billion in the fourth quarter, as the
company benefited from BlackRock Inc.’s acquisition of Barclays Global Investors.

PNC said it earned $2.17 per
share after losing $269 million in the same period a year earlier. The company said it would have earned 90 cents per share
excluding a $687 million gain related to the BlackRock acquisition of Barclays Global Investors. PNC is a part owner of the
money manager.

The profit and its $5.08 billion in revenue were better than analysts expected, according to Thomson
Reuters.

The Pittsburgh-based bank, which has major operations in Indianapolis, said it added more than $1 billion
to cover bad loans during the quarter, up 15 percent from the previous three months. But like other banks, it is reporting
early signs of improvement in its loan portfolio.

PNC made a major push into central Indiana when it acquired Cleveland-based
National City Corp. about a year ago. When the merger was announced, National City was the second largest bank in the Indianapolis
area, based on employment and fourth largest by number of branch locations. Seventy-seven of the 172 branches National City
operated in Indiana at the time were in the Indianapolis area.

PNC’s stock was up 71 cents, at $59.50 per share, 
in pre-opening trading.

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