Wednesday, April 18, 2012

PNC beats Wall Street estimates with $766 million in profit

Welcome to the morning roundup. Here's a look at what's news in banking and finance.

PNC earnings. PNC Financial Services Group, which entered the N.C. market with the acquisition of RBC Bank last month, posted net income to shareholders of $766 million in the first quarter, less than the same time period the year before, the company announced this morning. Still, the company beat Wall Street estimates, and its numbers were weighed down by conversion costs. Revenue was up 3 percent.

More BofA sales. Bank of America is exploring the sale of its foreign wealth management unit because it is not profitable enough, The New York Times says. Though the Charlotte bank's total wealth management business manages about $2 trillion, only about $90 billion is overseas -- which means it is unable to generate significant returns for the bank.

Krawcheck joins gold board. Sallie Krawcheck, the former Bank of America executive who left the bank in a management shakeup last fall, has joined the board of Gold Bullion International, the company announced this morning. "I saw the value of the GBI model and philosophy as soon as I was introduced to the company and its management," Krawcheck said in a press release. "Creating a seamless platform and democratizing the ownership of physical gold and precious metals is much overdue and another important tool for investors."

Bad loans. Bank of America, which reports its earnings tomorrow morning, is expected to re-classify about $2 billion in home-equity loans as nonperforming, even if some of them are still accruing, Bloomberg reports. The Charlotte bank would be joining its peers after new guidance from regulators.

Predatory loans. An advocacy group is claiming that certain short-term, high interest and fee loans offered by Wells Fargo and U.S. Bank are predatory, Minnesota Public Radio reports. The loans are structured like payday loans. Bank of America told MPR that it doesn't offer this type of loan.