PNC, U.S. Bancorp and Schwab earn more on lending and client money

What happened

After six big banks reported on Tuesday 13 and Wednesday 14 October, PNC, U.S. Bancorp and Charles Schwab followed on Thursday 15 October, each earning more than a year earlier. ^{[7, 1, 2, 3]}

PNC earned $2.10 billion on revenue of $6.56 billion, against $1.82 billion on $5.92 billion a year earlier. U.S. Bancorp earned $2.20 billion on record net revenue of $7.97 billion, against $2.00 billion on $7.33 billion. Schwab earned $2.91 billion on record net revenues of $7.17 billion, against $2.36 billion on $6.14 billion. ^{[1, 2, 3]}

Why it matters

Interest income grew at all three, and by the desk's arithmetic it was the largest gain in revenue at PNC and Schwab; at U.S. Bancorp, fees grew more. PNC's net interest income, what it earns on loans and securities less what it pays for funds, was $4.21 billion, against $3.65 billion. Schwab's net interest revenue was $3.48 billion, 14 percent more, and U.S. Bancorp's was 5.6 percent higher on a tax-adjusted basis, at $4.49 billion. ^{[1, 2, 3]}

PNC and U.S. Bancorp

PNC put its gain in interest income down to commercial loan growth, the purchase of FirstBank and lower funding costs. Its average loans were $372.2 billion, against $325.9 billion, and it set aside $189 million for bad loans, against $167 million. Chief executive Bill Demchak said: 'Our strategy continues to drive growth across our businesses, as we deepen our presence in key markets and expand our reach nationally.' ^[1]

U.S. Bancorp's noninterest income, its fees, was 13.1 percent higher at $3.48 billion, on capital markets revenue including the purchase of BTIG. Its provision for credit losses grew 14.5 percent to $654 million, which the bank tied to a small business credit card portfolio it bought. Chief executive Gunjan Kedia said: 'Our exceptional business mix and increasingly strong operating discipline helped us deliver high returns, productivity, and prudent risk management while strengthening revenue growth.' ^[2]

Schwab

Schwab's clients brought in a record $190.4 billion of core net new assets, new money less withdrawals, 38 percent more than a year earlier. Asset management fees grew 14 percent to $1.9 billion and trading revenue 16 percent to $1.2 billion. Chief executive Rick Wurster said: 'We are delivering new capabilities and solutions, while our leading value proposition continues to resonate with investors and RIAs.' ^[3]

What settles it next

PNC's finance chief Robert Reilly said on its call that the bank expects net interest income for 2026 to be up 15.5 percent. U.S. Bancorp's finance chief John Stern said it now expects net revenue growth of 8 to 9 percent for the year, up from 5 to 7 percent. ^{[4, 5]}

Each company files its quarterly report on Form 10-Q next. SEC rules give large accelerated filers 40 days after a quarter ends: Monday 9 November, by the desk's count. ^[6]

Who it reaches

PNC (PNC), U.S. Bancorp (USB) and Charles Schwab (SCHW) are direct: the figures are each company's own, from its release filed with the SEC on Thursday 15 October. ^{[1, 2, 3]}