PNC Bank's asset management and brokerage businesses turned in an overall strong first-quarter performance, according to the financial results released by the bank's parent on Wednesday.
PNC's asset management group, which provides personal wealth management for high-net-worth and ultra-high-net-worth clients (among other services), generated $376 million in revenue, up 3% year-over-year but flat from the prior quarter.
Profits, however, were tepid. The asset management group earned $37 million in first-quarter profits, unchanged from a year ago and down a notable 17% from $45 million in the fourth quarter of 2014.
At the end of the first quarter, the group had $136 billion in assets under management, up 4.6% from $130 billion in the first quarter of 2014. The increase was driven by stronger equity markets, the company said in the earnings release.
The brokerage business posted an especially strong quarter, with revenue from brokerage services surging 21.8% to $67 million from $55 million a year ago. Brokerage revenue increased by $3 million, or 4.6%, from the previous quarter.
Client assets in brokerage accounts totaled $44 billion at the end of the first quarter, up 7.3% year-over-year.
Overall, PNC's parent company earned $1.0 billion, or $1.75 per diluted common share, in the first quarter, compared with $1.1 billion, or $1.84 per diluted common share, in the same quarter of 2014.
"PNC delivered solid results in the first quarter, continuing the consistent performance that has been characteristic of our strategic execution," William Demchak, chairman, president and CEO of PNC Financial Services Group, said in the earnings release.
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