Marshall & Ilsley Profits Fall Prior to Metavante Spin-Off

MILWAUKEE – Regional banking holding company Marshall & Ilsley yesterday said net income for its third quarter declined 8%, to $219.9 million, or 83 cents a share, as it prepares to spin off its Metavante electronic funds transfer unit. The bank set aside $41.5 million for losses on loans and leases, quadruple the year-earlier amount, while net charge-offs more than tripled to $26 million. Revenues for Metavante, which includes the NYCE ATM network and Endpoint Exchange electronic check exchange, rose 9% for the period. Third quarter results include a $5.4 million charge related to the Metavante spin-off. The bank plans this quarter to spin off Metavante in the next few weeks with private equity firm Warburg Pincus taking a 25% stake in exchange for a $625 million investment, with the rest of the shares to be distributed to Marshall & Ilsley stockholders.