PNC Financial Services - PNC

PNC Financial Services Group, Inc., stock ticker PNC, is a diversified financial services company in the United States. PNC is engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing many of its products and services nationally. Their primary geographic markets included Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Indiana, Kentucky, Florida, Virginia, Maryland, Missouri, Delaware, Washington, D.C., and Wisconsin. PNC also provides certain products and services internationally.

Most recently, PNC was given a buy rating by Morgan Stanley (MS). MS believes that due to PNC's ability to offset lower yields and if they are able to close the RBS Bank USA deal earnings per share can rise. PNC has a much lower risk loan portfolio than their competitors. Additionally, PNC pays a 35 cent quarterly dividend, which is a healthy 2.43% dividend yield. Back in 2005 their share price the exact value as it is today, however they paid a 50 cent dividend and before the Great Recession PNC was paying a 66 cent dividend. Now if that doesn't tell you that there will be more dividend increases over the next few years then I'm not sure what else to tell you. PNC's dividend increases make them a great value play.

PNC makes good solid positions and have gone after the Generation X market in a big way, rather than just going after them for credit cards. Their relationship and products with colleges students, for example, the Virtual Wallet, will bring them more customers. PNC is a conservatively managed bank and are expanding in an efficient, smart way. They have a stable deposit base, recent acquisitions were at reasonable prices, and the best part about PNC is that their exposure to troubled loans is considerably less than many banks (ahem Citigroup, ahh-chew Bank of America).

What I have noticed about PNC is that they are able to hold onto their customers. Their customer retention levels are much higher than their competitors. PNC is, like Destiny's Child says, a "survivor". They will not give up, they will work harder for their customers. When PNC acquired National City Bank they had a few bad quarters. They suffered due to a weakening of their credit portfolio, due largely to the residual issues from National City's acquired portfolio. As these bad loans were gradually erased from their books, they found, and continue to find, themselves with their traditionally strong franchise, yet now with an expanded footprint obtained on the cheap per the National City Bank acquisition.

In closing, please do your due diligence on this one. Banks are a tad risky right now, but for the long term you need to have at least one bank held within your Roth IRA stock portfolio. Similar to Wells Fargo, PNC was once a regional bank, but they are ready to play with the big boys who have fallen (C, BAC) and are ready to fly high! Please visit their website, here, and watch the videos below to learn more about this solid bank. Thank you for your time.