The PNC Financial Services Group, Inc. reported 2011 net income of $3.1 billion, compared with 2010 net income of $3.4 billion. Fourth quarter 2011 net income was $493 million, , compared with third quarter 2011 net income of $834 million, and fourth quarter 2010 net income of $820 million.
 
"PNC had a solid year of accomplishments in a challenging regulatory and economic environment. We increased market share across our businesses by continuing to grow the number of customers we serve," said James E. Rohr, chairman and chief executive officer. "We are leveraging our capital strength to expand into the southeast with a strategic acquisition and we remain focused on strong risk and expense management. In 2012, we are committed to building on our achievements so that we can deliver greater value to our shareholders, customers, communities and employees."

Income Statement Highlights

•PNC's 2011 results were driven by good performance in a challenging environment of low interest rates, slow economic growth and new regulations. Fourth quarter earnings reflected strong revenue and improved credit costs offset by higher expenses.
 
•Net interest income of $2.2 billion for the fourth quarter increased $24 million compared with the third quarter due to strong growth in core net interest income.
 
•Noninterest income of $1.4 billion for the fourth quarter decreased $19 million from the third quarter and included the regulatory impact of lower interchange fees of $75 million on debit card transactions offset by higher corporate
service revenue.
 
•Provision for credit losses declined to $190 million for the fourth quarter compared with $261 million in the third quarter as overall credit quality continued to improve.
 
Balance Sheet Highlights

 •PNC successfully grew customers and deepened relationships throughout 2011.
 
 •Loans grew $8.4 billion, or 6%, during 2011, to $159 billion at December 31, 2011.
 
•Fourth quarter loan growth of $4.5 billion, or 3%, was strong with $3.5 billion in commercial lending and $1.0 billion in consumer lending.

Credit Quality Highlights

 •Overall credit quality improved during 2011 and in the fourth quarter.
 
•Nonperforming assets of $4.2 billion at December 31, 2011 declined $1.0 billion, or 19%, compared with year end 2010 and $142 million, or 3%, compared with the third quarter.
 
•Accruing loans past due were $4.5 billion at December 31, 2011 and $4.3 billion at September 30, 2011. The increase was primarily due to purchased government insured loans.
 
•Net charge-offs declined to $327 million in the fourth quarter compared with $365 million in the third quarter.

•The allowance for loan and lease losses was 122% of nonperforming loans at both December 31, 2011 and September 30, 2011.