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Big Bank Earnings Roundup: BAC, WFC, PNC

On Thursday, three prominent banks reported their first quarter fiscal 2016 earnings results before the bell: Bank of American Corporation BAC, Wells Fargo & Company WFC, and The PNC Financial Services Group Inc PNC.

Charlotte, North Carolina-based Bank of America reported weaker than expected earnings and revenue for Q1. The bank posted earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.22 per share. Revenues of $19.5 billion for the quarter lagged behind the Zacks Consensus Estimate of $20.5 billion. Bank of America’s credit quality was mixed for the quarter, but its provision for credit losses surged 30% on a year-over-year basis to $997 million.

Unlike Bank of America, Wells Fargo posted positive Q1 results thanks to strong top-line growth. The bank reported earnings of $0.99 per share, beating the Zacks Consensus Estimate by a penny and reflecting a surprise of 1%. Total revenue came in at $22.2 billion, topping the Zacks Consensus Estimate of $21.6 billion. However, Wells Fargo reported mixed credit quality metrics as well, with allowance for credit losses totaling $12.7 billion as of March 31, 2016, down from $13.0 billion in the year-ago period.

PNC Financial missed estimates for its first quarter, failing to keep its earnings winning streak alive. The bank reported earnings of $1.68 per share, missing the Zacks Consensus Estimate by a penny. Total revenues were $3.67 billion for Q1, reflecting a 2% decrease on a year-over-year basis and lagging behind the Zacks Consensus Estimate of $3.77 billion. PNC Financial’s credit quality was mixed, similar to Bank of American and Wells Fargo; its provision for credit losses was $152 million, up from $54 million in the prior year.

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PNC FINL SVC CP (PNC): Free Stock Analysis Report
 
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
 
BANK OF AMER CP (BAC): Free Stock Analysis Report
 
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