Bank of America, PNC, BK and USB Report Q2 Earnings

Bank of America, PNC, BK and USB Report Q2 Earnings

Bank of America Corp (NYSE:BAC), the largest American bank by assets, just announced second quarter earnings. A quick roundup of the report is:

  • BofA gained a total profit of 19 cents per share which beats analyst estimates of 14 cents but does not even come close to the earnings of the loss-ridden JPMorgan (NYSE:JPM) and the up and coming banking leader Wells Fargo & Company (NYSE:WFC). JPM posted a profit of 121 cents per share while WFC made 82 cents  per share. Goldman Sachs (NYSE:GS) earnings beat analyst expectations but the profits reduced 11% to 178 cents per share in this quarter.
  • The net income of the bank amounted  $2.5 billion for this quarter, which is a breath of fresh air, as only losses were reported in the corresponding quarter of 2011 that equaled $8.83 billion, or 90 cents a share.
  • Revenues rose to $22.20 billion, from $13.48 billion a year ago. The estimates of revenues paralleled analysts expectations of  $22.87 billion. When compared with other banks, Goldman Sachs revenue was $6.63 billion, down 9% from a year ago.
  • BofA decreased its expenses by 26% to $17 billion from $22.9 billion.The bank got a big boost from lending, which increased for the sixth straight quarter.
  • The total loans of BofA in this quarter fell 5.2% from the previous year and 1% from the first quarter of 2012. While JPM showed a 5% and 1% growth when compared to the previous year and the previous quarter respectively. Citigroup and Wells Fargo also reported increase in their loan portfolio.

Shares of Bank of America gained nearly 2% in premarket trading. CEO Brian Moynihan referred to the bank’s plan to cut expenses and emerge as a leaner operation, which he called “new BAC.” The bank is getting a boost from lending, which has risen consistently for the sixth quarter, and is gradually shaking off the after-effects of the Countrywide acquisition. WFC and JPM clearly overshadow BofA earnings, but it is also unfair to make a comparison with the leaders, when BofA has seen a rough couple of years now.

Other banks that reported earnings today were:

  • PNC Financial Services Group Inc.  (NYSE:PNC), the seventh largest bank by assets, reported a 40% decline in profits that amounts to 98 cents a share and equals to $546 million, as opposed to $912 million, or $1.67, a year earlier. Revenue for this quarter increased by 1 percent to $3.62 billion. The decline in profits is attributed to mortgage-putback demands.
  • The Bank of New York Mellon Corp. (NYSE:BK) also reported their quarterly earnings with a decline of 37 percent in income, from $735 million to $466 million, or 39 cents a share this quarter, from 59 cents a share last year. Total revenue was $3.62 billion, which is a 6% fall from the same quarter last year. Total assets rose 2% to $1.3 trillion.
  • US Bancorp (NYSE:USB) beat earning estimates by reporting a net income of $1.42 billion, or 71 cents per share, which is an 18% increase from last year’s profit of 60 cents per share. Revenues grew 8 percent, to $5.07 billion. The second quarter earnings synchronize with the analysts’ estimates of 70 cents a share profit, and revenue of $4.98 billion.

Stay tuned to get latest updates on quarterly earnings of Morgan Stanley (NYSE:MS) releasing tomorrow, Thursday July 19th.