(Adds analyst comments, details)
April 13 (Reuters) - U.S. regional lender PNC Financial Services Group Inc on Friday reported an in-line quarterly profit as a rise in provision for credit losses and expenses offset gains from a jump in net interest income due to higher rates.
The company’s shares, up more than 31 percent in the past year, were down more than 1.48 percent at $149.50 in premarket trading.
PNC Financial said its expenses grew 5 percent to $2.53 billion in the first quarter ended March 31, while its provision for credit losses rose 4.5 percent to $92 million.
“Expenses were higher than expected in 1Q18 and based on 2Q18 guidance (up low single-digits) will likely be raised relative to consensus,” Stephens analyst Terry McEvoy said in a note.
The Pittsburgh-based bank, among the United States’ largest local lenders by assets, had beaten analysts’ profit estimates for seven quarters before the first quarter.
Net income attributable to common shares rose to $1.16 billion, from $963 million a year earlier.
The company reported earnings per share of $2.43, in line with analysts’ average estimate, according to Thomson Reuters I/B/E/S.
PNC Financial, which owns a minority stake in BlackRock Inc , said its loan portfolio grew 4 percent in the first quarter, with commercial lending expanding 6 percent.
Net interest income rose 9 percent to $2.37 billion. (Reporting by Parikshit Mishra in Bengaluru; Editing by Sriraj Kalluvila)