Big Bank Earnings Beats: BofA, Bank of America, BNY Mellon, USB Bancorp and PNC Financial


    The banks’ results have been going on for 48 hours at a rapid pace. After JP Morgan Chase, Citigroup, Wells Fargo and Goldman Sachs on Tuesday, Bank of America, Bank of New York Mellon, US Bancorp and PNC Financial released their results on Wednesday.

    Despite a decline in earnings compared to the third quarter of 2018, the four financial institutions posted profits above analysts’ expectations.

    Bank of America posted a net profit of $5.8 billion in the 3rd quarter (56 cents per share), down 19.4% from $7.2 billion (66 cents per share) in the same period of 2018. Revenues totaled $22.8 billion, against $22.7 billion (+ 0.4%) a year earlier. The consensus of place, however, was $22.6 billion. Profits also exceeded market expectations.

    Brian Moynihan, the head of the financial institution, says client activity, expanding the customer base, as well as the group’s ability to gain market share over the quarter, “reflect growth responsible”. One of the good surprises of the quarter concerning the investment bank, whose revenues beat the consensus. Trading activities delivered a robust quarter (+ 13% on trading equity), while the consumer bank grew 3% to $9.7 billion.

    Bank of New York Mellon’s net income applicable to common shareholders fell to $1 billion from $1.08 billion a year earlier (-7.4%). For the quarter ended September 2019, the total revenues of the firm fell by 5% year-on-year to $3.86 billion. Quarterly net earnings per share increased as a result of share repurchases, at $1.07 compared to $1.06 a year ago and approximately $1 in market consensus. The group took the opportunity to declare a quarterly dividend of $0.31 per security payable on November 8.

    US Bancorp announced for its third fiscal quarter profits above market expectations. Revenues of the US banking institution also exceeded the consensus. Earnings per share were $1.15 for $5.9 billion, compared with $1.11 and $5.8 billion in consensus. A year earlier, at the same time, EPS amounted to $1.06 for total revenues of $5.7 billion.

    PNC Financial also broke the consensus on the third quarter. The US regional bank in Pittsburgh, Pennsylvania, posted net income attributable to shareholders of $1.32 billion or $2.94 per share for the quarter ended September 2019, compared with $1.33 billion and 2.82 billion $per share a year ago. The consensus of place was $2.80 per title. The firm’s quarterly revenues rose 3 percent year-over-year to nearly $4.5 billion.

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    I handle much of news coverage for tech stocks, and occasionally cover companies in different sectors. In the past, I've written for other financial sites and published independent investment research, primarily on tech companies. I have a B.A. in Economics from Columbia University. I'm based out of San Diego, but grew up in Southern New Jersey. I play basketball and tennis in my spare time, am a long-time (and long-suffering) fan of Philadelphia's sports teams, and alternate daily between using an iPad Air, a Galaxy Note 3, and one or two Windows PCs.