July 15, 2020 / 11:49 AM / 20 days ago

PNC Financial profit more than doubles on BlackRock stake sale gain

FILE PHOTO: A PNC Bank branch is shown in Charlotte, North Carolina April 18, 2012. REUTERS/Chris Keane

(Reuters) - U.S. regional bank PNC Financial Services Group Inc (PNC.N) said on Wednesday second-quarter profit more than doubled as it recorded a gain of $4.3 billion from the sale of its position in asset manager BlackRock Inc (BLK.N).

The lender sold its stake in BlackRock in May that put an end to longstanding questions about when it would sell the lucrative position.

Like big U.S. banks that have reported results so far, PNC set aside $2.46 billion as loan loss provisions in the quarter, up from $180 million a year earlier.

Banks have been building up their reserves to cover defaults from consumers and companies as the COVID-19 pandemic ravaged the U.S. economy.

PNC, one of the largest local U.S. lenders by assets, said net loss from continuing operations, which excludes the one-time gain, was $744 million.

The bank’s net income from discontinued operations, which includes gains from the sale, was $4.4 billion.

Net income attributable to common shareholders jumped to $3.59 billion, or $8.40 per share, in the three months ended June 30, from $1.31 billion, or $2.88 per share, a year earlier, the bank said on Wednesday. (reut.rs/3jcwi91)

Reporting by Bharath Manjesh in Bengaluru; Editing by Sriraj Kalluvila

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