Because of a tax benefit accrued in 1993, National Westminster Bancorp reported that fourth-quarter earnings declined 13% to $83.5 million from the year-earlier period.
Meanwhile, State Street Boston Corp. said its earnings were right in line with Wall Street consensus estimates. The $22 billion-asset bank showed profits of $53.3 million for the period, or 69 cents per share, up 10.5% from the same quarter a year ago.
Natwest, a subsidiary of London-based National Westminster Bank PLC, reported full-year net income of $298.6 million, up slightly from the $298.1 million earned in 1993.s The Jersey City-based bank said earnings for the year would have been even higher had it not taken a $10 million restructuring charge in the first quarter to establish a servicing facility in Scranton, Pa. Earnings were also affected by expenses related to a $500 million acquisition of Citizens First Bancorp, Glen Rock, N.J.
Natwest's core earnings showed positive growth. Net interest income in the fourth quarter was $255.7 million, up 20% from the same period a year ago.
The bank also showed growth in its net interest margin, which was 4.12% for 1994, up from 3.83% in 1993.
Meanwhile, State Street's full-year earnings were $207.4 million in 1994, up 13.3%.
Analysts, however, pointed out that revenue growth is slowing. The bank reported total revenue in the fourth quarter of $354.9 million, a 12.2% jump from the same period in 1993 but substantially lower than the third quarter's 13% jump and the stellar 18% leap posted in the period ended June 30.
"Revenue growth has slowed a little bit because of slower growth in assets under custody. But they've also managed to keep down the expenses," said Sanford C. Bernstein & Co. analyst Ronald Mandle.
Part of the lag in revenue comes from the bank's investment in technology and new products. "Expenses increased 18%, supporting business growth and reflecting our higher-than-normal 1993-94 investment spending program," said Marshall N. Carter, State Street's chairman and chief executive.
"In 1994, we began to benefit from this investment spending, including lowering our unit costs in our custody operations for non-U.S. securities and introducing additional services," he added.
