PNC FINANCIAL <PNCF.O> RAISES LOSS RESERVE
PNC Financial Corp said it will raise
its loan loss reserve by 110 mln dlrs to about 386 mln dlrs,
reducing second quarter results by 66 mln dlrs or 92 cts per
share on a fully diluted basis.
    The company said that after the charge it still expects to
report a second quarter profit and expects a first half profit
of about 100 mln dlrs.
    It added that it expects normal operating earnings in the
second half.
    The company earned 68.5 mln dlrs in the 1986 second quarter
and 121.6 mln dlrs in the prior first half.
    It said the increase in loss reserves was due to its
appraisal of the worldwide economy, particularly in less
developed countries that are experiencing payment problems.
    The company said the part of its loss reserve allocated to
such countries is about 35 pct of its loans to those countries.
It said the move would not result in any change to its current
dividend policy.
 Reuter
