PNC expects to continue to increase its common equity as a proportion of total capital through growth in retained earnings and will consider other capital opportunities as appropriate. However, the company has no plans to convert preferred shares issued under the US Treasury Department’s Capital Purchase Program. Further, PNC plans to redeem Treasury’s $7.6 billion investment in preferred shares as soon as appropriate, that is subject to approval by its primary banking regulators.
James E. Rohr, Chairman and CEO of PNC, said: “Given the ongoing uncertainty in the market, capital strength and liquidity are key drivers of success. I am pleased that we were able to raise the required $600 million of common equity at market prices and in a relatively short time frame.”
