U.S. banks with more than $100 billion in assets saw a mixed picture in the third quarter, with eight reporting increases in EPS from a year ago and seven recording declines.
Among the Big Four U.S. banks, JPMorgan Chase & Co. saw its EPS rise 14.5% compared to last year, and Citigroup Inc. saw a 19.7% increase. Wells Fargo & Co.'s EPS slumped 18.6% year over year, while Bank of America Corp.'s declined 15.2%.
U.S. Bancorp and PNC Financial Services Group Inc., which are set to see some easing in their regulatory framework, saw 8.5% and 4.3% increases in their EPS from a year ago, respectively. Other regional banks also saw upticks: First Republic Bank, Citizens Financial Group Inc., Fifth Third Bancorp and Huntington Bancshares Inc.
But KeyCorp, M&T Bank Corp. and Regions Financial Corp. all saw their EPS decline, as did BB&T Corp. and SunTrust Banks Inc., which are merging under a deal the companies expect will close in the fourth quarter.
Regional banks' margins have come under pressure partly because their deposit costs have continued to rise despite the Federal Reserve cutting interest rates twice this year.