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Regional banks’ preliminary Q3 earnings reports show mixed results

The varied returns come a week after several big U.S. banks recorded rising profits but a cautious consumer outlook.

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Several regional banks reported mixed profits but more stable deposits in third-quarter earnings reports released Wednesday and Thursday, according to the Wall Street Journal.

U.S. Bancorp and Citizens Financial reported sliding profits from a year ago, 16% to $1.5 billion and 32% to $430 million, respectively. M&T Bank’s profits rose nearly 7% to $690 million for the third quarter, the Wall Street Journal reported.

Deposits were more stable after larger outflows earlier this year, according to the newspaper, but there was still strain from higher interest payouts and other expenses.

On Thursday, KeyCorp, the parent company of Cleveland-based KeyBank, reported that profit dropped around 44% from a year earlier. Revenue slid 17% to $1.6 billion, according to a Wall Street Journal report.

Truist’s profits were also down 33% for the third quarter and revenue fell 3% to $5.7 billion, topping analyst expectations, the news report says.

Fifth Third Bank’s profit was up 1% from a year earlier, beating analyst forecasts of 82 cents a share. Revenue was roughly flat at $2.2 billion, the Wall Street Journal says.

Last week, larger banks including Wells Fargo, Citibank and JPMorgan Chase reported rising profits but possible economic headwinds in future quarters. The Wall Street Journal reported Wednesday that Bank of America beat forecasts, earning $7.8 billion in the third quarter, up 10% from $7.1 billion a year earlier.

The mid-to-small-sized banks are combating interest rate hikes from the Federal Reserve as well as recent midsize bank failures that, according to the Wall Street Journal, are prompting customers to pull their money out of no-interest checking accounts. Banks are paying much higher rates on the deposits they are retaining, which is eclipsing the benefit of charging more on loans, the report says.