Q3 Earnings Highlights: PNC Financial Services Group (NYSE:PNC) Vs The Rest Of The Diversified Banks Stocks

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at diversified banks stocks, starting with PNC Financial Services Group (NYSE:PNC).

At their core, diversified banks take in deposits and engage in various forms of lending, which means revenue is generated through interest rate spreads (difference between loan and deposit rates) and fees. Other revenue comes from adjacent services such as wealth management, card and account fees, and products such as annuities. These institutions benefit from rising interest rates that improve NIMs (net interest margins), digital transformation reducing operational costs, and expanding wealth management services as populations age. However, they face headwinds including fintech competition disrupting traditional models (how disruptive is crypto?), stringent regulatory requirements increasing compliance costs, and cybersecurity threats requiring substantial technology investments. Economic downturns also pose risks through potential loan defaults and compressed margins during accommodative monetary policy periods.

The 7 diversified banks stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.3%.

Luckily, diversified banks stocks have performed well with share prices up 18% on average since the latest earnings results.

PNC Financial Services Group (NYSE:PNC)

Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE:PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network.

PNC Financial Services Group reported revenues of $5.95 billion, up 6.3% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ revenue estimates but a slight miss of analysts’ net interest income estimates.

Interestingly, the stock is up 15.8% since reporting and currently trades at $219.70.

Is now the time to buy PNC Financial Services Group? Access our full analysis of the earnings results here, it’s free.

Best Q3: Citigroup (NYSE:C)

With operations in nearly 160 countries and a history dating back to 1812, Citigroup (NYSE:C) is a global financial services company that provides banking, investment, wealth management, and payment solutions to consumers, corporations, and governments.

Citigroup reported revenues of $22.12 billion, up 9.3% year on year, outperforming analysts’ expectations by 4.7%. The business had an exceptional quarter with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Citigroup delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 25.6% since reporting. It currently trades at $120.71.

Is now the time to buy Citigroup? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: JPMorgan Chase (NYSE:JPM)

Tracing its roots back to 1799 when its earliest predecessor was founded by Aaron Burr, JPMorgan Chase (NYSE:JPM) is a leading financial services company offering investment banking, consumer banking, commercial banking, and asset management services globally.

JPMorgan Chase reported revenues of $47.12 billion, up 8.8% year on year, exceeding analysts’ expectations by 2.9%. Still, it was a mixed quarter as it posted a slight miss of analysts’ net interest income estimates.

Interestingly, the stock is up 7.2% since the results and currently trades at $330.27.

Read our full analysis of JPMorgan Chase’s results here.

Bank of America (NYSE:BAC)

Tracing its roots back to 1784 and now serving approximately 67 million consumer and small business clients, Bank of America (NYSE:BAC) is a global financial institution that provides banking, investing, asset management, and risk management products and services to individuals, businesses, and governments.

Bank of America reported revenues of $28.23 billion, up 10.5% year on year. This number beat analysts’ expectations by 2.3%. It was a strong quarter as it also recorded a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Bank of America pulled off the fastest revenue growth among its peers. The stock is up 12.3% since reporting and currently trades at $56.23.

Read our full, actionable report on Bank of America here, it’s free.

U.S. Bancorp (NYSE:USB)

With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE:USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses.

U.S. Bancorp reported revenues of $7.34 billion, up 5.1% year on year. This result topped analysts’ expectations by 2.2%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ net interest income estimates.

The stock is up 19.7% since reporting and currently trades at $55.60.

Read our full, actionable report on U.S. Bancorp here, it’s free.

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