Net interest margin expanded by 15 basis points to 3.75%, supported by higher investment securities yields, higher loan yields, and lower funding costs.
Noninterest income was $64.5 million, with operating noninterest income up 14% quarter-over-quarter due to strong core fee income growth.
Operating EPS was $0.76, excluding merger and restructuring expenses, with an operating return on average tangible equity of 16.85%.
Operating PPNR increased 14% from the first quarter to $242 million, reflecting rising earning asset yields and lower cost of interest-bearing liabilities.
Provision for credit loss was $29 million, with allowance for credit losses robust at 1.17% of total loans.
Second quarter operating results were up 14% from the year ago quarter, driven by profitability focus, balance sheet optimization, and operational efficiency initiatives.
Total GAAP expenses were $278 million, with operating expenses flat at $269 million compared to Q1, reflecting offsetting changes in compensation, services, marketing, and amortization.
Alternative investment income was $60 million below expectations due to lower private equity and real estate returns and a $50 million unfavorable impact from the annual assumption update process.
Capital position remains strong with cash and liquid assets at $3.9 billion, above the $3 billion minimum liquidity target.
Group insurance had one of its best earnings quarters recently with strong underwriting results and a benefit ratio improved to 80.9%.
Individual Life sales grew 10% year-over-year with improved earnings results.
Institutional Retirement delivered $9 billion in sales, including robust Longevity Risk Transfer transactions.
International businesses sales were up 4%, driven by retirement and savings products in Japan despite surrender headwinds.
PGIM's assets under management increased by 8% to $1.4 trillion, with total net flows of $400 million including $2.6 billion institutional inflows and $2.8 billion retail outflows.
Pretax adjusted operating income was $1.7 billion or $3.58 per share, up 9% from the prior year quarter.
Dafinchi