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Lower Interest Income to Mar PNC Financial (PNC) Q3 Earnings

Lower Interest Income to Mar PNC Financial (PNC) Q3 Earnings

PNC Financial PNC is scheduled to report third-quarter 2020 earnings, before the opening bell, on Oct 14. The company’s revenues and earnings are likely to have witnessed a year-over-year decline.

In the last reported quarter, the company reported loss on higher provisions due to the coronavirus pandemic’s crippling impact on the economy. Lower revenues on decline in fee income and decrease in loans were undermining factors.

The company’s activities in the to-be-reported quarter were adequate to win analysts’ confidence. As a result, its Zacks Consensus Estimate for earnings of $1.99 has moved up 11.8% in the past seven days. Nevertheless, the figure indicates a 32.3% decline from the year-ago reported figure. The consensus estimate for sales is pegged at $3.96 billion, suggesting a decline of 11.8% year over year.

The PNC Financial Services Group, Inc Price and EPS Surprise

The PNC Financial Services Group, Inc Price and EPS Surprise

The PNC Financial Services Group, Inc price-eps-surprise | The PNC Financial Services Group, Inc Quote

Now let’s discuss the factors that are likely to have impacted the company’s third-quarter results:

Lower Net Interest Income (NII): The Fed continued to keep interest rates at near zero in order to shield the U.S. economy from the coronavirus outbreak-related mayhem. This is likely to have substantially hurt net interest margin and NII.

Also, per the Fed’s latest data, the loan balance is likely to have been affected by a fall in commercial & industrial and consumer loans on a sequential basis.

The Zacks Consensus Estimate for average interest earning assets of $397.3 billion for the quarter indicates 1.2% sequential fall. The consensus estimate for net interest income is $2.47 billion, suggesting 2.1% fall sequentially.

Notably, management expects average loans to decline in the low-single-digit range on a sequential basis in the third quarter and NII to be down 1%.

Muted Non-Interest Revenues: The quarter

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5 ways freelancers can increase cash flow while their income is down

5 ways freelancers can increase cash flow while their income is down

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

  • Many freelancers have taken a financial hit since the start of the pandemic, and most government relief has run out.
  • If you need to increase your cash flow to save or pay bills, financial planner Ben Henry-Moreland recommends looking first at your spending to see where you can cut back.
  • Then, look into any government programs that are still available, such as the EIDL, and consider reducing your health insurance costs if you’re able.
  • You can also reach out to your network to get more work, and reduce your quarterly tax payments to the IRS if your income has gone down.
  • Get Personal Finance Insider’s free guide to financial planners »

If you’re a freelancer like I am, you know just how hard it can be to manage your money. For one thing, budgeting on an inconsistent income is like taming a beast in the wild. And  trying to save? That can feel like a lofty aspiration to spot Big Foot. Take into account the financial curveball that the pandemic has thrown at us, and it makes saving that much more challenging.

Now that some of the government-funded programs made available to self-employed folks because of COVID-19, namely the Paycheck Protection Program and expanded unemployment benefits, have lapsed, freelancers might feel even more squeezed financially. So how can you save — or even just meet your basic financial needs — despite all these hurdles?

Ben Henry-Moreland, a financial planner and founder of Freelance Financial Planning, has some advice.

Focus on your spending 

The only way to manage inconsistent income is

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