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Biz Links Q3-02 Index Q2-02 Index Q1-02 Index Q4-01 Index Q3-01 Index Q2-01 Index Q1-01 Index |
NOTE: Although the tables below are checked and double-checked for accuracy, and may at times be 100% accurate - do NOT count on that. Please confirm through your own research any numbers on which you are to make a buy, sell or hold decision. The Price-to-Book calculations treats Preferred Stock as a debt and not an equity - thus those calculations will vary from most other published numbers. October marks the first month I have posted these numbers, and there may be bugs in the javascript that I currently am not aware. Bank of America Profit Jumps - Reuters 10/14/03 No. 3 U.S. bank earns $1.92 a share, above views of $1.69; sets aside $100M to pay for fund probes. BAC, the No. 3 U.S. bank, said Tuesday its third-quarter profit rose 31 percent, topping Wall Street forecasts, helped by a tripling of mortgage banking income and growing deposits. The bank also set aside $100 million to pay for regulatory probes into its Nations Funds mutual fund business. Charlotte, N.C.-based Bank of America said net income rose to $2.92 billion, or $1.92 per share, from $2.24 billion, or $1.45 per share, a year earlier. Revenue rose 14 percent, to $9.92 billion, it said. The average estimate from analysts polled by Reuters called for a profit of $1.69 per share. The company said consumer and commercial banking income rose 28 percent to $2.15 billion, as mortgage banking income rose 203 percent to $666 million and credit card income rose 16 percent to $794 million. Investment banking income rose 33 percent to $513 million, and asset management income rose 95 percent to $123 million, it said. Net interest, or lending, income was roughly unchanged from a year earlier at $5.48 billion, while non-interest income rose 38 percent to $4.44 billion. Loans rose 9 percent to $373 billion, deposits rose 8 percent to $409 billion, and assets rose 12 percent to $737 billion, the bank said. Bank of America set aside $651 million to cover bad loans, down 19 percent. while net charge-offs, or loans on which the bank does not expect to be paid back, fell 3 percent to $776 million. Non-performing assets, including bad loans, tumbled 29 percent to $3.66 billion. BK's 3Q Net Tripled - Yolanda McBride, Dow Jones Newswires 10/14/03 Bank of New York's (BK) net income more than tripled in the third quarter, as the acquisition of Pershing LLC boosted its securities- servicing fees to a record level.The banking concern Wednesday reported net income of $260 million, or 34 cents a share, compared with $79 million, or 11 cents a share, a year earlier. The latest quarter included a charge of two cents a share for costs related to the May acquisition of Pershing, and a charge of six cents a share for settlement claims related to the company's 1999 sale of BNY Financial Corp. to General Motors Acceptance Corp. Excluding these charges, the company said it earned $322 million, or 42 cents a share. The bank's loan loss provision shrank 82% to $40 million from $225 million a year earlier. As of Sept. 30, total assets stood at $95.18 billion. During the quarter, securities-servicing fees rose 37% to $657 million, primarily because of the full-quarter impact of the Pershing acquisition. Foreign-exchange and other trading activities increased 88% to $92 million; and private client services and asset management fees grew 14% to $97 million. FBF Earnings Release - Boston Business Journal 10/15/03 FleetBoston, the nation's seventh-largest bank [New England's biggest bank and the nation's ninth-largest card issuer], said third-quarter profits climbed 17 percent, to $675 million from $579 million a year earlier. The Boston-based banking company also said that earnings for the first nine months of 2003 were $1.9 billion, compared with $928 million for the same period last year. On its way to its fifth consecutive profitable quarter, Fleet experienced increased revenue and reduced expenses. Fee income was up 3 percent from the third quarter of 2002, driven largely by its investing business, banking fees and commissions. Interest income rose $21 million, year over year, but fell by $46 million from the second quarter due to a high level of mortgage refinancings, the bank said in a statement. The bank also touted a fifth straight period of declining problem loans, which were down by 38 percent over the past year. Net loan charge-offs were $321 million in the third quarter, down from $486 million a year earlier. If the bank's Argentine portfolio were excluded, net loan chargeoffs were $265 million for the third quarter and $352 million for the same time last year. Total assets at the end of the third quarter, meanwhile, were $196 billion, compared with $187 billion for the year-ago period. Higher levels of consumer loans and securities led to the rise, the bank said. Wells Fargo falls a Penny Short in Q3 - Michael Baron, CBS.MW 10/21/03 Wells Fargo (WFC) reported Q3 of $1.56 billion, or 92 cents per share, up from its year-ago profit of $1.44 billion, or 84 cents per share, but a penny short of the average estimate of 24 analysts polled by Thomson First Call. Revenue at the banking services firm jumped 19% in the latest three months to $7.2 billion from $6.1 billion in the same period a year earlier. The company said it took "a number of strategic actions" in the period - re-positioning its bond portfolio, retiring $1.8 billion in debt, and contributing roughly 40 percent of its public stock portfolio to the Wells Fargo Foundation - that reduced earnings by $171 million, or 10 cents per share, in the latest quarter. Bank One's Q3 EPS Tops Consensus by 4 Cents - Mike Maynard, CBS.MW 10/21/03 Bank One (ONE) posted a Q3 net profit of $883 million, or 79 cents a share, up from the $823 million, or 70 cents, earned in the same period last year. Total revenue for the Chicago-based institution increased 5 percent, topping $2.1 billion. Bank One's quarterly profit came in four cents ahead of the Wall Street consensus. Earnings per share grew faster partly as a result of the repurchase of more than 13 million common shares in the latest quarter. "We experienced momentum in many of our businesses," said Chairman and CEO Jamie Dimon. U.S. Bancorp Q3 Rises as Forecasted - Emily Church, CBS.MW 10/21/03 U.S. Bancorp (USB) said Q3 net income rose to $984.9 million vs. $860.3 million for Q3-02, or to 51 cents a share, up 13 cents. Earnings were in line with the consensus forecast from analysts for 51 cents a share, according to Reuters Research. The banking group said earnings improved largely due to growth in net interest income and fee based products and services, as well as controlled operating expense and lower credit costs. Citigroup Reports 90 Cents a Share - Riva Atlas, NY Times 10/21/03 Citigroup reported net income of $4.69 billion, or 90 cents a share, up from $3.92 billion, or 76 cents a share, in the period a year earlier. The results beat analysts' estimates by 5 cents a share, according to Thomson First Call. But analysts said much of the strength in the quarter came from the improved outlook for loans as well as $200 million from releasing reserves set aside to pay taxes related to Associates First Capital, which Citigroup acquired in 2000. Investment banking revenue was 8 percent lower than it was in the quarter a year earlier and down 30 percent from the second quarter. Fees for providing advice on mergers and acquisitions fell 30 percent. Profits at Citigroup's consumer banking division rose 26 percent but revenue fell from the second quarter as the bank made less on the difference between the interest it paid consumers and the rate it charged to lend that money. Earnings at Citigroup's investment-management division rose 17 percent on the strength of annuity sales and asset growth at the private bank, which caters to wealthy individuals. Profits rose 8 percent in its brokerage division, which benefited from a recovery in the stock market. The bank also showed a small profit of $96 million on investments of its own capital. J.P. Morgan Chase's Net Surged - WSJ 10/22/03 J.P. Morgan's net jumped to $1.63 billion, or 78 cents a share, in Q3, compared with net income of $40 million, or one penny a share. The year-earlier figures included a $431 million charge for merger and restructuring costs. Revenue rose 47% to $7.53 billion from $5.11 billion a year earlier, and return on average common equity for the quarter was 15%. The company said third-quarter commercial-credit costs fell to $223 million from about $1.85 billion last year. J.P. Morgan said its investment-banking operations swung to a profit of $922 million from a $255 million loss a year earlier, as revenue rose 29%. The unit's capital markets and lending revenue for the quarter rose 32%. The company's third-quarter trading revenue surged to $829 million from $26 million, while investment-banking fees rose 19% on higher equity-underwriting and advisory fees. Financial-services income fell 40% to $460 million as revenue fell 9% to $3.35 billion. A Review & Recommendation of WB - Allison Krampf, Barrons 10/22/03 Wachovia struggled for a while after its merger with First Union closed in September 2001, amid sluggish business spending and poor financial-market returns. But since then, its stock has bested both its banking peers and the Standard & Poor's 500, and its shares may yet trade higher, especially as the economy recovers. Last week, Wachovia reported third-quarter earnings of 83 cents per share, breezing past the Reuters Research consensus estimate as earnings soared almost 26%. That was the eighth consecutive quarter in which Wachovia either met or beat earnings expectations. And the best may still be ahead. Improving credit quality, better trends in commercial business lines - including commercial lending and investment banking - and an attractive valuation all make Wachovia's shares look enticing. "The fundamental trends are extremely strong, it has top-notch credit quality and it will be one of the top two or three revenue growers among the large-cap banking group," asserts Mike Holton, portfolio manager with the T. Rowe Price Financial Services Fund, which counts Wachovia as one of its top ten holdings. Among the good news: Credit quality is markedly better, helped by a recovering economy that should continue to improve. Net charge-offs were only 0.33% of the $165-billion total loan portfolio. All in all, charge-offs are expected to total 0.4% of total loan portfolio this year, down from about 0.7% last year and below the expected peer average of 0.55%, says Jason Goldberg, analyst with Lehman Brothers. "Wachovia could grow faster than the peer average," with loan growth in the mid-single digits, Goldberg says. Wachovia, through investment banking and commercial lending, is highly leveraged to a rebounding economy because 25% of its earnings stem from capital markets, more than double the percentage of its regional bank peers, Goldberg estimates. Even though it's trading above its expected earnings growth rate, Wachovia's stock sells at a 15% discount to the Lehman Brothers Bank Composite index, which tracks the top 50 domestic banks. There's at least one wild card, though: New York State Attorney General Eliot Spitzer and the Securities and Exchange Commission are investigating possible untoward practices at mutual funds run by Wachovia's joint venture with Prudential Financial. (In July, Wachovia acquired 62% of Prudential Financial's brokerage firm. Prudential retained a 38% stake.) AMTD Reports Earnings - Munk and Cowan, WSJ 10/21/03 Ameritrade (AMTD) reported record net income of $55.1 million, or 13 cents a share, for its fiscal fourth quarter. Ameritrade saw its net revenue rise to $196.6 million, up 70% from a year ago. Total expenses were $104.5 million, down 36% from a year ago. Average client trades per day rose to 158,016, up 2.4% from the fiscal third quarter and 81% from the fourth quarter of 2002. The company added 41,000 net new accounts during the quarter. It had 3.01 million core brokerage accounts in the fourth quarter, up 1.3% from the third quarter, and up 6% from a year ago. The company, which has been on an acquisition spree, indicated its willingness to do more and its chief executive said he feels good about the state of the economy and Ameritrade's prospects. "I really believe that the retail investor is a lagging indicator of what is going on in the marketplace or economy," Joe Moglia said on a conference call with analysts. "And I think the reason we had a reasonably good summer and spring is because I do think this is the beginning of a recovery...I feel good about what is going on in the economy." SCH Reports Earnings - Munk and Cowan, WSJ 10/21/03 Charles Schwab Corp. (SCH) bounced back from a year-earlier net loss to earn $127 million, or 9 cents a diluted share, in the third quarter. Schwab saw net revenue, or total revenue minus interest expense, rise 3% to $1.05 billion from a year earlier, as commission revenue rose 4.9% to $320 million. Schwab's revenue-producing trades rose to an average of 145,100 a day from an average of 141,000 a day in the second quarter and 129,100 a day in the year-ago third quarter. Expenses, meanwhile, fell 16.4% to $854 million from a year earlier. Clients opened 123,900 accounts during the third quarter, which was disappointing to Schwab, pulling in $10.6 billion in new assets to the firm. Schwab ended the quarter with total client assets of $876.7 billion, up 20.6% from a year earlier. Schwab's latest quarterly results included $23 million in after-tax charges related to previously announced restructuring efforts and a $3 million after-tax benefit related to discontinued European operations. On an operating basis, the company earned $147 million, or 11 cents a diluted share, beating by 1 cent estimates of analysts polled by Thomson First Call.
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