Will The Sale Of BLK Impact EPS For PNC?

Deutsche Bank has published a research report on PNC Financial Services (NYSE: PNC) in anticipation of estimating the impact on EPS from the sale of BlackRock, Inc. (NYSE: BLK).

In the report, Deutsche Bank writes "We estimate PNC will record a gain of about $200m pre-tax or $0.25 per share after-tax on the sale in 4Q10. Going forward, we estimate about a $0.10 reduction to annual EPS from its reduction of ownership in BLK (before potential offsets from deploying freed up capital). Recall PNC's stake in BLK earnings are taxed twice—first at BLK's rate and then at an additional 24%. Under Basel 3, we estimate year end 2010 Tier 1 common would rise by 60bps from this transaction (50bps from deducting less equity investments and 10bps from the gain generated on selling BLK)."

PNC Financial Services closed yesterday at $54.06.