Stress test passed, PNC raises dividend by 10 percent
As telegraphed by PNC Financial Services Group in mid-March, the bank's board of directors increased its quarterly common stock dividend on Thursday — a result of the bank passing government stress tests.
PNC is raising the dividend to 44 cents a share, up 4 cents per share, or 10 percent, from 40 cents. The new dividend will be paid on May 6 to shareholders as of April 16.
The bank said three weeks ago it might raise its dividend rate when PNC received approval from the Federal Reserve to return more capital to shareholders.
The central bank put PNC and 17 other major U.S. banks through stress tests — the second round since the financial crisis of 2008-09 — to determine how well the biggest banks would survive another deep recession. The scenario included such economic stresses as a 12.1 percent unemployment rate and a 50 percent drop in stock prices.
PNC was paying a 66-cent-a-share quarterly dividend before the crisis, but slashed the rate to 10 cents in April 2009 in order to conserve capital. It remained there until April 2011, when it was bumped back up to 35 cents.
“Today's board actions significantly increase our shareholder return,” said CEO James Rohr. “Our strong capital levels and our financial performance demonstrate PNC's ability to support our clients, invest in our businesses and deliver long-term shareholder value.”
Bank of New York Mellon Corp., which also passed the Fed's stress test, likewise said weeks ago its board might raise the bank's quarterly dividend rate, which stands at 13 cents a share. Meanwhile, the bank will start buying back up to $1.35 billion of common stock by first-quarter 2014.
Thomas Olson is a staff writer for Trib Total Media; 412-320-7854 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Retailers that won’t open on Thanksgiving hope move pays off
- Lower gasoline prices fail to spur consumer spending
- Federal agency checking whether Highmark has enough doctors in Medicare plan
- Oil prices continue descent, dragging market indexes lower
- Household debt on the rise after 5-year decline
- Google applies tech to medical device
- Thanksgiving deals called the best
- Butler County firm Deep Well Services tackles tough gas wells
- Housing prices nudge upward as more homes on market
- Westinghouse to construct colossal nuke plant in Turkey
- Axed contracts push doctors from network, UPMC says