3 Financial Stocks Declining After Earnings Announcements

PNC Financial Services Group (NYSE:PNC) reported its results for the fourth quarter. Net income for PNC Financial Services GroupThe fell to $493 million (85 cents per share) vs. $820 million ($1.50 per share) a year earlier. This is a decline of 39.9% from the year earlier quarter. Revenue was $3.55 billion last quarter. PNC fell short of the mean analyst estimate of $1.41 per share. Analysts were expecting revenue of $3.54 billion.

“PNC had a solid year of accomplishments in a challenging regulatory and economic environment. We increased market share across our businesses by continuing to grow the number of customers we serve,” said James E. Rohr, chairman and chief executive officer. “We are leveraging our capital strength to expand into the southeast with a strategic acquisition and we remain focused on strong risk and expense management. In 2012, we are committed to building on our achievements so that we can deliver greater value to our shareholders, customers, communities and employees.”

Competitors to Watch: Wells Fargo & Company (NYSE:WFC), Bank of America Corp. (NYSE:BAC), SunTrust Banks, Inc. (NYSE:STI), JPMorgan Chase & Co. (NYSE:JPM), KeyCorp (NYSE:KEY), Citigroup Inc. (NYSE:C), Regions Financial Corp. (NYSE:RF), BB&T Corporation (NYSE:BBT), First Horizon National Corp. (NYSE:FHN), and University Bancorp, Inc. (UNIB).

Northern Trust Corporation (NASDAQ:NTRS) reported its results for the fourth quarter. Net income for the Midwest regional bank fell to $130.2 million (53 cents per share) vs. $157.1 million (64 cents per share) a year earlier. This is a decline of 17.1% from the year earlier quarter. Revenue was $955.6 million last quarter. NTRS reported adjusted net income of 50 cents per share. By that measure, the company fell short of mean estimate of 68 cents per share. Analysts were expecting revenue of $972.4 million.

Frederick H. Waddell, Chairman and Chief Executive Officer, commented, “Our results for the fourth quarter and the full year reflect strong new business but were impacted by the difficult conditions in which we currently operate. We have been actively analyzing various aspects of our businesses and technology to identify opportunities to deliver more value to our clients and shareholders. Through these efforts we have developed and begun to implement initiatives that we expect will sustainably improve productivity and profitability. These profit improvement initiatives are expected to benefit annual pre-tax income by approximately $250 million by the end of 2013. ”

Competitors to Watch: State Street Corporation (NYSE:STT), The Bank of New York Mellon Corp. (NYSE:BK), SEI Investments Company (NASDAQ:SEIC), Washington Federal Inc. (NASDAQ:WFSL), Capital One Financial Corp. (NYSE:COF), Marshall & Ilsley Corp. (NYSE:MI), Bank Mutual Corporation (NASDAQ:BKMU), New York Community Bancorp, Inc. (NYSE:NYB), Flagstar Bancorp, Inc. (NYSE:FBC), and People’s United Financial, Inc. (NASDAQ:PBCT).

State Street Corporation (NYSE:STT) reported its results for the fourth quarter. Net income for State Street Corporation rose to $381 million (76 cents per share) vs. $83 million (16 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter. Revenue was $2.31 billion last quarter. STT reported adjusted net income of 93 cents per share. By that measure, the company fell short of mean estimate of 94 cents per share. It fell short of the average revenue estimate of $2.4 billion.

Joseph L. Hooley, State Street’s chairman, president and chief executive officer, said, “Overall, 2011 was a very successful year amid extremely challenging market conditions. Revenue in the year was characterized by a strong first half followed by a weaker second half, the result of volatile markets and risk-averse investor behavior. Despite these conditions, comparing 2011 with 2010, we were able to achieve strong growth in both revenue and earnings per share.”

Competitors to Watch: The Bank of New York Mellon Corp. (NYSE:BK), Northern Trust Corporation (NASDAQ:NTRS), Citigroup Inc. (NYSE:C), SEI Investments Company (NASDAQ:SEIC), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Goldman Sachs Group, Inc. (NYSE:GS), Barclays PLC (NYSE:BCS), FXCM Inc (NYSE:FXCM), and Morgan Stanley (NYSE:MS).