Personal wealth management helped drive fee income growth at Pittsburgh-based PNC Bank.
The asset management group, which includes personal wealth management for high-net-worth and ultra-high-net-worth clients, generated $411 million in third-quarter revenue, outpacing all other contributors of fee income to the bank, PNC's parent announced Wednesday.
That revenue mark was up $81 million, or 25%, from $330 million in the same quarter last year, an increase that was "due to increases in equity markets and sales production," the bank's CFO Robert Q. Reilly said during the earnings call.
Compared to the previous quarter, revenue from asset management services was up $49 million, or 14%.
Reilly said that asset management fees included both income generated by the asset management business as well as earnings from the bank's interest in BlackRock.
The group's profitability, however, faltered, earning $46 million, down 2% year-over-year and down 13% from the previous quarter, according to the earnings release.
At the end of September, the group had $132 billion in assets under management, up by $10 billion from a year ago, PNC said.
Brokerage services also turned in a strong third-quarter performance, generating $60 million in revenue, a 5% increase from the $57 million it generated in the same quarter a year ago. At the end of September, brokerage services had $43 billion in client assets, up 7.5% year-over-year.
"We continue to win new customers across our lines of business in the quarter and increasingly we're focusing on deepening relationships with existing customers through cross-sell," William S. Demchak, the bank's CEO said during the call.
Overall, PNC's parent company earned $1 billion, or $1.79 per diluted common share, in the third quarter, virtually unchanged from $1.77 per diluted common share, in the third quarter last year.
"PNC posted a successful third quarter largely consistent with our expectations," Reilly said.
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