Despite Improving Market Conditions, PNC's CEO Has Not Changed His Approach to M&A
Since the coronavirus pandemic first sent markets plunging, the $462 billion asset PNC Financial Services Group (NYSE: PNC) based in Pittsburgh has been looking to make a game-changing acquisition. The bank sold its $14 billion stake in the asset management firm BlackRock (NYSE: BLK) in May, and PNC's CEO Bill Demchak said publicly the main purpose of the sale was to build capital that could eventually be used for an opportunistic move in the harsh environment for banks.
But six months later, credit has held up better than expected, largely due to stimulus. Bank valuations have improved, and many bankers are now ruling out worst-case economic scenarios. While the banking environment has improved, Demchak does not appear to have changed his patient approach when it comes to looking at potential mergers and acquisitions (M&A).
Image source: PNC.
Source Fool.com
