Stocks of local interest 11/1/2009
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share thisConservative underwriting and talk of early prepayment of government aid helped boost shares at PNC Financial Services Group Inc. early in the week, but the shares gave back those gains by Friday, ending the week down 6 percent to a Friday close of $48.94.
PNC led midsize banks in profitability in the third quarter, posting gains and touting its conservative underwriting in boom times that may have slowed growth, but kept the portfolio of loans stable.
The bank avoided subprime lending and had little exposure to construction loans.
PNC officials said they expect to be able to repay the $7.8 billion in government aid from the Troubled Assets Relief Program within 15 months without raising capital from the market or shareholders.
Similar-size banks that are heavy into construction loans reported losses last week.
PNC shares surged early in the week, but as the market wavered, financial stocks were particularly hard hit in the broad market decline.
Tumbling banking stocks helped fuel a 270-point drop on Friday in the Dow Jones industrial average, which was on track for its worst day since late April.
The Pittsburgh-based PNC is the dominant bank in Northeastern Pennsylvania.
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