Three regional banks with a strong Milwaukee market presence have reported flat or slightly lower net income in their third quarter earnings reports.
Pittsburgh-based PNC Financial Services Group Inc., parent company of PNC Bank, reported third quarter net income of $1 billion, or $1.79 per share, compared to $1 billion, or $1.77 per share, in the third quarter of 2013.
“In the third quarter, PNC continued to deliver solid performance in a challenging revenue environment by executing on our strategic priorities,” said William Demchak, chairman, president and chief executive officer. “We added customers, grew deposits, and increased fee income and capital. We also effectively managed expenses even as we made targeted investments in our businesses and technology. Looking ahead, balance sheet discipline should continue to differentiate PNC and help to drive long-term shareholder value.”
Minneapolis-based U.S. Bancorp, parent company of U.S. Bank, reported third quarter net income of $1.5 billion, or 78 cents per share, compared to $1.5 billion, or 76 cents per share, in the same period last year.
“U.S. Bank delivered another solid performance in the third quarter with $1.5 billion of net income, or 78 cents per diluted common share,” said Richard Davis, chairman, president and chief executive officer. “Our ability to provide customers and clients with a diverse array of banking products and services while addressing their distinct financial objectives, in any economic environment, allows us to continue generating an industry-leading financial performance. Our return on average common equity, return on average assets, and efficiency ratio metrics remain among the strongest in the industry. Our consistently solid financial performance is a result of our adhering closely to the core fundamentals of controlling expenses, managing capital prudently, selectively investing in initiatives that generate steady long-term growth, and expanding existing customer relationships. That was certainly the case in the third quarter as our disciplined approach returned positive operating leverage and the diversification of our business profile allowed us to maintain our momentum as the economy slowly rebounds.”
And Chicago-based Northern Trust Corp. reported third quarter net income of $204.5 million, or 84 cents per share, down slightly from $206.5 million, or 84 cents per share, in the third quarter of 2013.
“Our financial performance in the third quarter of 2014 reflects continued growth in our business serving personal and institutional clients,” said Frederick Waddell, chairman and CEO. “Trust, investment and other servicing fees, which represent two-thirds of our revenue, increased 11 percent compared to last year. New business and higher equity markets contributed to strong growth in assets under custody and under management, which increased 13 percent and 9 percent, respectively. Our pre-tax profit margin improved to 28.2 percent in the quarter and our return on equity was 10.1 percent. This performance reflects ongoing efforts focused on growing our client franchise while achieving sustainable improvements in productivity.”