Two of the nation's largest financial institutions said they will report lower-than-expected earnings for the first quarter.
Bank One Corp., the nation's fourth-largest bank holding company, predicts its quarterly earnings per share will be 60 cents. Analysts had been expecting earnings of about 65 cents. The Chicago-based bank warned in a January meeting with analysts that its earnings for 2000 could fall by as much as 19%.
Bank One shares have lost about half their value in the wake of credit-card related profit troubles in its First USA Inc. unit. Its stock was trading off about a dollar at $25.1875 at midday Friday.
First Security Corp., the nation's 38th-largest bank holding company, said its first quarter earnings would be as much as 27% lower than the previous quarter. It pointed to a drop in loan income as the main reason for the shortfall. First Security is in the process of merging with Zions Bancorp, the nation's 40th-largest bank. Both institutions are based in Salt Lake City.
First Security's stock had dropped over $8 at midday Friday to $14.50.
Check American Banker Online later today for expanded coverage of these earnings warnings.
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