Strong consumer spending and revenues from investment banking bolstered
Citigroup Inc., the largest U.S. banking company by assets, said profits
Merger charges damaged results at Bank of America Corp., the No. 2 U.S.
Analysts were pleased that the $614 billion-asset company not only
At Wells Fargo & Co., the seventh-largest U.S. banking company, net
"Consumers spent a ton of dough and borrowed a lot to do that during the
Citigroup, with $690 billion of assets, said it is benefiting from the
Sanford I. Weill and John S. Reed, the company's co-chief executive
"We are very optimistic that the real promise of the merger is in front
Profits from corporate and investment banking-activities that have
Citigroup raised its expectations for merger-related cost savings.
Analysts said the company exhibited strong growth in revenues in several
The performance was "phenomenal," said Lawrence Cohn, an analyst at
Analysts said the bank is awash in capital it can put to use to invest
Mr. Reed said during the press conference that Latin America,
Profits from the company's branch banking activities in North America
Profits from credit card operations rose 96%, to $267 million, and
At Salomon Smith Barney, profits soared 75%, to $610 million, and
Meanwhile, trading revenues fell 17%, to $600 million. Analysts said the
In asset management, profits jumped 22%, to $84 million. Assets under
Shares in Citigroup closed Monday at $49.1875, up 18.75 cents.
Bank of America Corp.
Accounting for a $145 million merger-related charge, net income at Bank
Bank of America was formed Sept. 30 from the merger of the old
"We're pleased with how the merger is progressing," said Melba Bartels,
Noninterest expense dropped 7% in the second quarter, to $4.46 billion.
"We're on track if not a little ahead of our annual goal for expense
Bank of America's employee numbers dropped 9.4%, to 161,919 in the
The company's efficiency ratio improved to 54.4%, from 57.4%, and the
While average managed loans rose 11%, net interest income was little
Given that rising rate environment, the strategy "should help going
Investment banking income, at $555 million, was down 16%, but rose 43%
Investment banking was strong across the board, analysts said.
And the future may be bright. "Given the pipeline activity and deal
Nonperforming assets rose to $3.07 billion, or 0.5% of total assets,
"Credit quality is still in a good range," said Michael Mayo, a bank
He and analysts said the bank is likely to maintain its earnings
Bank of America shares closed Monday at $74, down $1.50.
J.P. Morgan & Co.
The company said profits rose 4.7%, to $504 million or $2.52 cents per
Last year's second quarter included a one-time gain of $70 million from
Morgan, like the more traditional Wall Street investment banks after
"Growth and increased profitability in our client businesses, combined
Still, Morgan's executives said much work remains to be done. "This is
The $176 billion-asset banking company said it should be able to reduce
Morgan reported growth in its client-related businesses, though it
"They have really achieved a breakthrough," said Carla D'Arista, an
Global finance revenues rose 20% from last year's second quarter, to
Morgan attributed the strong showing in its client businesses to a red-
Asset management and private-client revenues rose 4%, to $410 million,
Revenues from proprietary investments dropped 72%, to $57 million.
Morgan, which has been substantially cutting back its loan portfolio and
Shares of J.P. Morgan rose 62.5 cents Monday, to $138.
Wells Fargo & Co.
The $205.4 billion-asset banking company, the product of last November's
Earnings per share of 55 cents topped the consensus by a penny.
Service charges on deposit accounts grew 11%, to $367 million. Trust and
Wells posted strong growth in many of its business lines, including a
Net income from the company's mortgage operations increased 30%, to $70
There were also gains at Norwest Financial, the company's consumer and
But Wells Fargo's wholesale banking unit is still lagging. The business
The company is generally unwilling to reduce underwriting standards to
"They are choosing to remain conservative," Mr. Morford said.
Separately on Monday, Wells Fargo announced the formation of an Internet
Shares of Wells Fargo closed Monday at $42.6875, down 43.75 cents.
Bank of New York Co.
The nation's 17th-largest banking company reported a 10% gain in
The $67.8 billion-asset company has been steadily building up its fee-
Bank of New York, meanwhile, continued to improve its operating
"They continue to execute their strategy well and shift the mix toward
Fee revenues rose 16% in the second quarter, driven by a 22.7% rise in
The company attributed the gains to new business and strong worldwide
Assets under administration grew 20%, to $5.3 trillion.
Expenses rose 9%, to $472 million, reflecting acquisitions, the company
Analysts said the results should be even better in the third quarter,
Shares of Bank of New York closed Monday at $38, up 43.75 cents.
Wells Fargo & Co.
San Francisco
Dollar amounts in millions (except per share)
Net income $931.0 $719.0
Per share 0.55 0.43
ROA 1.86% 1.55%
ROE 17.50% 14.72%
Net interest margin 5.68% 5.88%
Net interest income 2,328.0 2,247.0
Noninterest income 1,814.0 1,715.0
Noninterest expense 2,364.0 2,452.0
Loss provision 260.0 309.0
Net chargeoffs 261.0 303.0
Year to Date 1999 1998
Net income $1,815.0 $1,403.0
Per share 1.08 0.85
ROA 1.83% 1.53%
ROE 17.42% 14.46%
Net interest margin 5.64% 5.89%
Net interest income 4,608.0 4,456.0
Noninterest income 3,541.0 3,249.0
Noninterest expense 4,706.0 4,749.0
Loss provision 530.0 614.0
Net chargeoffs 534.0 613.0
Balance Sheet 6/30/99 6/30/98
Assets $205,421.0 $186,084.0
Deposits 132,542.0 127,245.0
Loans 108,481.0 103,203.0
Reserve/nonp. loans 460.03% 422.65%
Nonperf. loans/loans 0.60% 0.70%
Nonperf. assets/assets 0.43% 0.49%
Nonperf. assets/loans + OREO 0.80% 0.86%
Leverage cap. ratio 7.05% 6.89%
Tier 1 cap. ratio 8.40% 8.34%
Tier 1+2 cap. ratio 11.00% 11.26%
J.P. Morgan & Co.
New York
Dollar amounts in millions (except per share)
Net income $504.0 $481.0
Per share 2.52 2.36
ROA 0.76% 0.68%
ROE 18.00% 17.30%
Net interest margin 0.93% 0.59%
Net interest income 425.0 290.0
Noninterest income 1,661.0 1,863.0
Noninterest expense 1,417.0 1,416.0
Loss provision (105.0) -
Net chargeoffs (7.0) (60.0)
Year to Date 1999 1998
Net income $1,104.0 $718.0
Per share 5.53 3.51
ROA 0.83% 0.52%
ROE 20.10% 13.00%
Net interest margin 0.89% 0.63%
Net interest income 814.0 626.0
Noninterest income 3,763.0 3,524.0
Noninterest expense 2,984.0 3,048.0
Loss provision (105.0) -
Net chargeoffs (30.0) (104.0)
Balance Sheet 6/30/99 6/30/98
Assets $269,394.0 $280,777.0
Deposits 55,335.0 57,026.0
Loans 28,753.0 31,029.0
Reserve/nonp. loans 500.00% 712.70%
Nonperf. loans/loans 0.23% 0.18%
Nonperf. assets/assets 0.03% 0.02%
Nonperf. assets/loans + OREO NA NA
Leverage cap. ratio 4.50% 4.10%
Tier 1 cap. ratio 8.40% 7.70%
Tier 1+2 cap. ratio 12.50% 11.30%
Citigroup
New York
Dollar amounts in millions (except per share)
Net income $2,448.0 $2,240.0
Per share 0.70 0.63
ROA NA NA
ROCE 22.80% 21.80%
Net interest margin 4.54% 4.37%
Net interest income 5,007.0 4,639.0
Noninterest income 9,373.0 8,326.0
Noninterest expense 7,524.0 6,680.0
Loss provision 2,941.0 2,703.0
Net chargeoffs NA NA
Year to Date 1999 1998
Net income $4,810.0 $4,401.0
Per share 1.38 1.23
ROA NA NA
ROCE 22.90% 21.90%
Net interest margin 4.56% 4.37%
Net interest income 9,858.0 9,129.0
Noninterest income 18,592.0 16,632.0
Noninterest expense 14,845.0 13,419.0
Loss provision 5,718.0 5,292.0
Net chargeoffs NA NA
Balance Sheet 6/30/99 6/30/98
Assets $690,000.0 $750,800.0
Deposits NA NA
Loans NA NA
Reserve/nonp. loans 177% 196%
Nonperf. loans/loans NA NA
Nonperf. assets/assets 0.70% 0.60%
Nonperf. assets/loans + OREO NA NA
Leverage cap. ratio 6.40% 5.65%
Tier 1 cap. ratio 9.20% 8.46%
Tier 1+2 cap. ratio 12.00% 11.00%
Bank of New York Co.
New York
Dollar amounts in millions (except per share)
Net income $323.0 $295.0
Per share 0.42 0.38
ROA 1.95% 1.90%
ROE 24.82% 24.03%
Net interest margin 3.07% 3.28%
Net interest income 427.0 424.0
Noninterest income 651.0 561.0
Noninterest expense 513.0 472.0
Loss provision 15.0 5.0
Net chargeoffs 15.0 4.0
Year to Date 1999 1998
Net income $639.0 $578.0
Per share 0.82 0.74
ROA 1.94% 1.91%
ROE 24.65% 24.49%
Net interest margin 3.13% 3.30%
Net interest income 863.0 828.0
Noninterest income 1,276.0 1,113.0
Noninterest expense 1,022.0 939.0
Loss provision 30.0 10.0
Net chargeoffs 34.0 9.0
Balance Sheet 6/30/99 6/30/98
Assets $67,771.0 $63,003.0
Deposits 47,478.0 43,407.0
Loans 38,387.0 39,049.0
Reserve/nonp. loans 290.20% 356.10%
Nonperf. loans/loans 0.50% 0.50%
Nonperf. assets/assets 0.30% 0.30%
Nonperf. assets/loans + OREO 0.60% 0.50%
Leverage cap. ratio 7.65% 7.17%
Tier 1 cap. ratio 7.61% 7.25%
Tier 1+2 cap. ratio 11.49% 11.24%
Bank of America Corp.
Charlotte, N.C.
Dollar amounts in millions (except per share)
Net income $1,915.0 $2,298.0
Per share 1.07 1.28
ROA 1.25% 1.61%
ROE 16.40% 20.76%
Net interest margin 3.53% 3.80%
Net interest income 4,663.0 4,668.0
Noninterest income 3,522.0 3,636.0
Noninterest expense 4,457.0 4,767.0
Loss provision 510.0 495.0
Net chargeoffs 520.0 505.0
Year to Date 1999 1998
Net income $3,829.0 $3,629.0
Per share 2.15 2.03
ROA 1.26% 1.27%
ROE 16.59% 16.69%
Net interest margin 3.55% 3.81%
Net interest income 9,308.0 9,327.0
Noninterest income 6,745.0 7,129.0
Noninterest expense 8,910.0 9,471.0
Loss provision 1,020.0 1,005.0
Net chargeoffs 1,039.0 1,021.0
Balance Sheet 6/30/99 6/30/98
Assets $614,102.0 $571,890.0
Deposits 339,045.0 347,877.0
Loans 363,581.0 344,358.0
Reserve/nonp. loans 252.38% 299.98%
Nonperf. loans/loans 0.77% 0.65%
Nonperf. assets/assets 0.50% 0.44%
Nonperf. assets/loans + OREO 0.84% 0.73%
Leverage cap. ratio 6.34% 6.21%
Tier 1 cap. ratio 7.38% 7.32%
Tier 1+2 cap. ratio 11.09% 11.77%