Blackstone and U.S. Bancorp released their third quarter earnings reports before opening bell this morning. U.S. Bancorp posted earnings of 81 cents per share, which was in line with consensus, on $5.15 billion in revenue, which was slightly ahead of the $5.12 billion analysts had been looking for.
Blackstone posted economic net losses of 35 cents per share and -$32.2 million. Analysts had been expecting losses of 30 cents per share and -$253.7 million in revenue.
U.S. Bancorp sees loan growth
U.S. Bancorp reported a 1.44% return on average assets and an average common equity of 14.1%. The bank recorded a 3.8% increase in total loans, excluding student loans. Average commercial and commercial real estate revolving commitments grew 8.9% from last year, while average total commercial loans increased 9.5%. Total other retail loans increased 5.6% year over year. Average total deposits grew 6.9% year over year. Net interest income increased 2.7% compared to last year. Net charge-offs declined 13.1%.
U.S. Bancorp’s common equity tier 1 capital ratio under Basel III fully implemented standardized approach was 9.2% for the quarter. Under the advanced approach, the bank’s ratio was 9.2%.
As of this writing, shares of U.S. Bancorp were flat at $40.50 per share in premarket trading.
Blackstone swings to huge loss
Blackstone said its plunging economic income was the result of “declines in the unrealized value of public holdings, despite strong underlying portfolio fundamentals.” Year to date, the firm has earned $1.45 per unit on $3.7 billion in revenues. Distributable earnings were 58 cents per share on $470 million in realized performance fees. Fee related earnings increased 12% year over year to $266 million. GAAP net income was -$255 million.
Total assets under management set a new record of $333.9 billion after rising 17% during the quarter on the back of organic expansion and strong fundraising. Gross inflows amounted to $16.1 billion. Blackstone returned $59.7 billion in capital to investors over the last 12 months.
The firm recorded a 2.3% decline in carrying value in its private equity business, which saw revenue plunge to -$525 million. The Real Estate segment saw its carrying value fall 0.1% and recorded revenue of $188.4 million. The Hedge Funds Solutions business saw revenue of $98.2 million while the Credit segment brought $55 million in revenue. Blackstone’s Financial Advisory business saw revenues climb to $150.7 million.
As of this writing, shares of Blackstone were down 1.79% at $33 per share in premarket trading.