PNC Bank's asset management and brokerage businesses posted a strong second quarter, according to the bank's latest financial results released on Wednesday.
PNC's asset management group, which provides personal wealth management for high-net-worth and ultrahigh-net-worth clients generated $416 million in revenue, up 15% year-over-year and up 11% from the first quarter of 2015.
The increase was largely due to a trust settlement that resulted in fees of approximately $30 million in the second quarter, as well as stronger equity markets and new sales production, PNC's chief financial officer Robert Reilly explained during the earnings call.
Second-quarter profits for the group were also strong, climbing 16.98% to $62 million from $53 million a year ago.
For the first six months of the year, the asset management group earned $99 million on $792 million in revenue. Profits and revenue for the six-month period were up 10% and 9.1%, respectively, year-over-year.
At the end of the second quarter, the group had $134 billion in assets under management, a modest 2.29% increase from the same quarter a year ago.
PNC's brokerage business also posted a solid quarter, with revenue jumping 16.39% to $71 million from $61 million a year ago. Brokerage revenue increased by $4 million, or $5.97%, from the previous quarter.
Client assets in brokerage accounts totaled $44 billion at the end of the second quarter, up 2.32% from $43 million a year ago.
Overall, PNC's parent company earned $1.0 billion, or $1.88 per share, in the second quarter, compared with $1.0 billion, or $1.75 per share, in the same quarter of 2014.
"PNC had a successful second quarter," William S. Demchak, PNC's chairman, president and CEO, said in a statement. "We grew fee income on higher client activity, made positive progress on our strategic priorities and managed our expenses well despite low interest rates that continue to pressure net interest income industrywide."
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