Here's How Much a $1000 Investment in The PNC Financial Services Group, Inc Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in The PNC Financial Services Group, Inc (PNC) ten years ago? It may not have been easy to hold on to PNC for all that time, but if you did, how much would your investment be worth today?
The PNC Financial Services Group, Inc's Business In-Depth
With that in mind, let's take a look at The PNC Financial Services Group, Inc's main business drivers.
Headquartered in Pittsburgh and incepted in 1983, The PNC Financial Services Group, Inc. provides consumer and business banking services. The company's principal subsidiary is PNC Bank.
PNC Financial reports mainly through three business segments. Retail Banking provides deposit, lending, brokerage, insurance services, investment management, and cash management products and services to consumer and small business customers through a coast-to-coast branch network, automated telling machines (ATMs), call centers, and online & mobile banking channels.
Corporate and Institutional Banking segment provides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, government and not-for-profit entities.
Asset Management Group provides a wide range of wealth management products and services to individuals and their families, multi-generational family planning services to ultra-high net worth clients through the PNC Private Bank. Institutional asset management operating unit serves as an investment manager and trustee for companies, non-profit organizations and retirement plans across the country.
In September 2022, the company closed the buyout of Linga, a point of sale (POS) and payment solutions firm in a bid to expand corporate payments capabilities in the hospitality and restaurant industry space.
On Oct 12, 2021, PNC Financial completed the conversion of consumers, employees and branches across seven states from BBVA USA to PNC Bank. The acquisition of BBVA USA Bancshares Inc. and its U.S. banking subsidiary, BBVA USA was closed in June 2021. The company shelled out $11.5 billion in cash for the acquisition, and added $82.2 billion of deposits and $60.5 billion of loans to its balance sheet.
In April 2017, PNC Financial acquired U.S.-based commercial and vendor finance business of ECN Capital Corp in an all-cash transaction valued at $1.1 billion.
As of Sep 30, 2022, PNC Financial reported $559.5 billion in assets, $315.4 billion in loans, $438.2 billion in deposits and $46.7 billion in shareholders' equity.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in The PNC Financial Services Group, Inc ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in January 2013 would be worth $2,669.79, or a 166.98% gain, as of January 4, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 162.04% and the price of gold went up 6.62% over the same time frame.
Going forward, analysts are expecting more upside for PNC.
Shares of PNC Financial have outperformed the industry in the past year. The company's earnings have surpassed the Zacks Consensus Estimate in the trailing four quarters. Higher net interest income (NII) and loan growth, and declining expenses, aided its third-quarter results. Higher loan and deposit balance, along with decent pipelines, are expected to support balance-sheet strength. PNC Financial’s NII and margins are well-poised to benefit from rising interest rates. Inorganic expansion strategies have diversified the business mix. Sound capital deployment activities, backed by decent liquidity, are other positives. However, mounting expenses due to accelerated investment spend and integration costs will likely keep denting the bottom line in the near term. Significant exposure to commercial loans can be risky in competitive markets.
The stock has jumped 5.04% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022; the consensus estimate has moved up as well.
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The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
