Schwab reports record revenue and client inflows as PNC, U.S. Bancorp and BNY post higher third-quarter profits

Analysis

The four reports share a direction but not a cause. Schwab's results rest on client money coming in, BNY's on fees from custody and asset servicing, and PNC's and U.S. Bancorp's on lending income. Credit costs stayed modest at the three lenders, though PNC's charge-offs rose from a year earlier and included a $35 million item tied to moving a student-loan portfolio to held for sale.

What the four companies reported

PNC, U.S. Bancorp, Charles Schwab and BNY each released results for the quarter ended September 30, 2026, on October 15. The figures below are as reported by the companies, and year-over-year changes are the ones the companies state or show in their own tables. Company-adjusted measures are labeled as such and are not GAAP (generally accepted accounting principles) results.

PNC reported net income of $2.10 billion, or $4.97 a share, on total revenue of $6.56 billion, compared with $1.82 billion, $4.35 and $5.92 billion a year earlier [1]. U.S. Bancorp reported net income of $2.20 billion, or $1.34 a share, on total net revenue of $7.97 billion, compared with $2.00 billion, $1.22 and $7.33 billion [2]. Schwab reported net income of $2.91 billion, or $1.62 a share, on net revenues of $7.17 billion, compared with $2.36 billion, $1.26 and $6.14 billion [3]. BNY reported net income of $1.69 billion, or $2.34 a share, on total revenue of $5.68 billion, compared with $1.46 billion, $1.88 and $5.08 billion [4].

Largest and most consequential result: Charles Schwab

Schwab, the brokerage and wealth manager, reported its highest-ever quarterly revenue. Net revenues rose 17% to $7.17 billion from $6.14 billion a year earlier, and GAAP net income rose 23% to $2.91 billion. Earnings per share rose 29% to $1.62 from $1.26 [3].

The most notable number was client money. Core net new assets, the cash and securities clients added to their accounts, were $190.4 billion in the quarter, up 38% from the third quarter of 2025 and equal to a 5.8% annualized growth rate. Total client assets reached $13.33 trillion, up 15% from a year earlier. The company's pre-tax profit margin was 52.7%, compared with 49.2% a year earlier [3].

Schwab also reports adjusted results, a non-GAAP measure. They exclude $141 million of amortization of acquired intangible assets and $10 million of acquisition and integration-related costs, net of a $36 million tax effect. On that basis net income was $3.02 billion, or $1.69 a share, compared with $2.46 billion, or $1.31, a year earlier. The release contains no numerical financial guidance [3].

PNC

PNC reported net income of $2.10 billion, or $4.97 a share, up from $2.06 billion and $4.81 in the second quarter and from $1.82 billion and $4.35 a year earlier. Excluding integration costs and other significant items, which the company reports as a non-GAAP measure, earnings were $5.09 a share, compared with $4.85 in the second quarter. Integration costs were $36 million in the quarter [1].

Total revenue of $6.56 billion was up 11% from a year earlier and down 5% from the second quarter. Net interest income, the difference between what the bank earns on loans and pays on deposits, rose 15% from a year earlier to $4.21 billion, and noninterest income rose 4% to $2.36 billion. The net interest margin was 2.94% [1].

Net loan charge-offs, loans written off as uncollectible, were $257 million, compared with $226 million in the second quarter and $179 million a year earlier. The total includes $35 million related to the transfer of a $1.4 billion student-loan portfolio to held for sale. The provision for credit losses was $189 million. PNC's estimated common equity Tier 1 (CET1) capital ratio, a measure of the highest-quality capital a bank holds against its risks, was 9.8%, compared with 9.9% at June 30 and 10.7% a year earlier [1].

PNC said fourth-quarter share repurchases are expected to be about the level of the third quarter, subject to market and economic conditions, and that its stress capital buffer will stay at the regulatory minimum of 2.5% through December 31, 2027. Its board declared a quarterly dividend of $2.00 a share [1].

U.S. Bancorp

U.S. Bancorp reported net income attributable to the company of $2.20 billion, up 10% from $2.00 billion a year earlier, and diluted earnings of $1.34 a share, up from $1.22 and from $1.35 in the second quarter. Chief executive Gunjan Kedia described net revenue of about $8.0 billion as a record [2].

Total net revenue was $7.97 billion, compared with $7.33 billion a year earlier [2].

The provision for credit losses was $654 million, compared with $571 million a year earlier and $538 million in the second quarter. It includes a $135 million initial provision for loans acquired in a small business credit card portfolio purchase. Net charge-offs were $523 million, a ratio of 0.51% of average loans, compared with 0.56% a year earlier and 0.53% in the second quarter. The CET1 ratio was 10.8%, unchanged from June 30 and down from 10.9% a year earlier [2]. The release gives no numerical guidance [2].

BNY

BNY, a large custody and asset-servicing bank, reported net income of $1.69 billion, up 16% from $1.46 billion, and net income applicable to common shareholders of $1.61 billion, up 20%. Diluted earnings were $2.34 a share, up 24% from $1.88. Excluding notable items, which the company reports as a non-GAAP measure, earnings were $2.37 a share; the notable items were $23 million of severance expense and a $1 million litigation-reserve benefit [4].

Total revenue of $5.68 billion was up 12%, with fee revenue of $4.08 billion, up 12%, and net interest income of $1.42 billion, up 15% from a year earlier and down 2% from the second quarter. Noninterest expense rose 8% to $3.49 billion. The pre-tax operating margin was 38.5%, compared with 36.4% [4].

Assets under custody and administration were a preliminary $63.4 trillion, compared with $57.8 trillion a year earlier, and assets under management were $2.2 trillion, compared with $2.1 trillion. The provision for credit losses was $1 million, compared with a $7 million release a year earlier. The preliminary CET1 ratio was 10.9%, compared with 11.7%. BNY repurchased $937 million of shares and paid $436 million in dividends. Its release gives no quantitative guidance [4].

What the reports do not show

These are preliminary results from earnings releases, and the companies describe some figures, such as capital ratios, as estimates that may change. The four firms are different kinds of businesses, with different revenue definitions, so profit and revenue comparisons across them are not like for like. Bank earnings releases are not a full picture of each firm's loan quality or risks, which the companies' quarterly filings describe in more detail.

What remains uncertain

Figures come from each company's earnings release and may change when the companies file their quarterly reports. Company-adjusted measures (PNC excluding integration costs and significant items, Schwab excluding acquisition-related items, BNY excluding notable items) are labeled as such and are not GAAP results. Revenue definitions differ by company, and none of the releases gives numerical earnings guidance; PNC gave only a qualitative buyback and capital statement. Schwab's release date is taken from its Business Wire release, which is dated October 15.

Sources

• PNC · Third quarter 2026 results (PR Newswire, October 15, 2026) ↗Source
• U.S. Bancorp · 3Q26 earnings release (company investor relations, PDF) ↗Source · PDF
• Charles Schwab · Record net new assets and earnings, third quarter 2026 (Business Wire) ↗Source
• BNY · Third quarter 2026 earnings press release (company investor relations, PDF) ↗Source · PDF