PNC profits down 40 percent in fourth quarter

PNC Financial Services Group, the regional bank that is acquiring Raleigh-based RBC Bank, saw profits decline 40 percent in the fourth-quarter, the company reported today.

The Pittsburgh-based bank, which ranks as the nation's sixth-largest bank based on assets, reported net income of $493 million, or 85 cents per share.

That was well below the $1.49 cents per share that was the average of 26 analysts that cover the company, according to Bloomberg News.

PNC reported net income of $820 million, or $1.50 per share, during the same period a year ago.

The company took a $240 million charge in the fourth quarter for foreclosure-related activities.

For the year, net income was $3.1 billion, or $5.64 per share.

CEO Jim Rohr said in a statement that the bank had a solid year given the challenging environment of low interest rates, increased regulation and overall sluggish economic growth.

On a conference call with analysts, Rohr said the company wasn't likely to pursue additional acquisitions anytime soon.

"We really don't have to do a lot of additional acquisitions to build out the RBC franchise in the Southeast," he said. "So I think you'll see us being very judicious in terms of considering acquisitions in the future."

PNC filed a notice earlier this month with N.C. Department of Commerce say that it could eliminate as many as 621 jobs in Raleigh and Rocky Mount as a result of the RBC acquisition.

The company has said the net job loss is likely to be "much smaller" than that because some employees could land other positions at the bank or leave on their own before PNC completes its acquisition in March.

PNC has said it expects to hire aggressively in the Southeast in certain business areas, such as corporate banking, but it hasn't formally disclosed its plans.