The PNC Financial Services Group Inc. and JPMorgan Chase & Co., both of which have a major bank branch presence in the Milwaukee market, reported earnings today that were better than analyst expectations.
[caption id="attachment_143888" align="alignright" width="363"] The Chase Tower in downtown Milwaukee.[/caption]
Pittsburgh-based PNC Financial, which operates PNC Bank, recorded third quarter net income of $1 billion, or $1.84 per diluted share, down from $1.1 billion, or $1.90 per diluted share, in the third quarter of 2015. But it was still higher than the $1.78 per share analysts predicted for the quarter, and PNC’s stock rose in early trading.
Revenue was $3.8 billion in the third quarter, flat from the same period last year. Both net interest income and noninterest income were flat year-over-year.
“PNC delivered another good quarter,” said William Demchak, chairman, president and chief executive officer. “We grew revenue and managed expenses, loans and deposits increased, and capital levels were strong. Looking ahead, we continue to lay the groundwork for greater efficiencies and revenue growth to deliver positive operating leverage and create long-term shareholder value.”
PNC had $369.3 billion in assets at the end of the third quarter, up from $362.1 million at the end of 2015’s third quarter. Deposits totaled $259.9 billion, up from $245 billion in the same period a year ago. Loans totaled $210.4 billion in the quarter, up from $205 billion in the third quarter of 2015.
Chase reported net income of $6.3 billion, or $1.58 per share, in the third quarter, down from $6.8 billion, or $1.68 per share, in the third quarter of 2015. But it was higher than the $1.39 per share analysts expected for the banking company this quarter.
Revenue was $24.7 billion in the third quarter, up from $22.8 billion in the same period last year.
The company attributed the net income decrease to higher income tax expense in the most recent quarter.
“We delivered strong results this quarter with each of our businesses performing well,” said Jamie Dimon, chairman and chief executive officer of Chase. “We had record net income in Commercial Banking and record loan balances in Asset Management. The Corporate & Investment Bank reported its best third quarter revenue. In the Consumer businesses, we grew both loans and deposits double-digits, and our new card product, Sapphire Reserve, has gotten a great response – underscoring our unwavering commitment to enhancing customer engagement.”