Despite an 11% jump in second-quarter earnings, to $992 million,
Mellon Bank Corp. reported a 10.7% gain, meeting analysts' expectations.
Chicago-based Bank One, which was created last year by the merger of the
Executives said they expect still more declines throughout the year.
Shares in Bank One ended Tuesday's trading down $1.1875, at $59.25.
Bank One is suffering as rivalry for borrowers increases and credit card
Outside of the margin difficulties, Bank One's "numbers were good," said
After adjusting for a credit card securitization, managed net interest
Bank One's loan portfolio grew 9%, credit card loans 18%, commercial
Noninterest income was up 6%, to $1.688 billion, thanks to a 13% surge
Noninterest expenses were up 4%, at $2.627 billion, but declined by $110
"Bank One has reduced noninterest expense for two consecutive quarters
The second-quarter report was a relatively uncomplicated one for the
"This is the third quarter in a row where they've had relatively clean
Mellon Bank Corp. of Pittsburgh posted second-quarter results Tuesday
Earnings per share of 45 cents met analysts' expectations.
"The fee income side was driving earnings and revenue," said Joseph
Profits from fees jumped 14.2%, to $787 million. Most of the gains came
"We are already benefiting from the sharpening of our strategic focus on
Net interest revenue grew by $4 million, to $363 million, and has jumped
Credit quality looked solid, with the company's provision for credit
But at least one analyst was left unimpressed. "Mellon had a boring
Mellon shares ended Tuesday's trading down $1.625, at $35.
Mellon Bank Corp.
Pittsburgh
Dollar amounts in millions (except per share)
Net income $238.0 $215.0
Per share 0.45 0.40
ROA 1.92% 1.79%
ROE 21.60% 20.80%
Net interest margin 3.74% 3.97%
Net interest income 363.0 374.0
Noninterest income 846.0 713.0
Noninterest expense 823.0 738.0
Loss provision 10.0 15.0
Net chargeoffs 11.0 13.0
Year to Date 1999 1998
Net income $492.0 $421.0
Per share 0.93 0.79
ROA 1.97% 1.84%
ROE 22.30% 21.20%
Net interest margin 3.76% 4.02%
Net interest income 734.0 741.0
Noninterest income 1,718.0 1,411.0
Noninterest expense 1,603.0 1,454.0
Loss provision 25.0 30.0
Net chargeoffs 28.0 31.0
Balance Sheet 6/30/99 6/30/98
Assets $49,088.0 $47,448.0
Deposits 32,975.0 33,197.0
Loans 30,544.0 30,654.0
Reserve/nonp. loans 338% 465%
Nonperf. loans/loans 0.40% 0.35%
Nonperf. assets/assets 0.29% 0.36%
Nonperf. assets/loans + OREO 0.46% 0.55%
Leverage cap. ratio 6.70%* 6.65%
Tier 1 cap. ratio 6.90%* 6.51%
Tier 1+2 cap. ratio 11.20%* 10.83%
* Estimated
Bank One Corp.
Chicago
Dollar amounts in millions (except per share)
Net income $992.0 $895.0
Per share 0.83 0.75
ROA 1.57% 1.49%
ROCE 19.10% 18.60%
Net interest margin 4.26% 4.53%
Net interest income 2,341.0 2,379.0
Noninterest income 2,222.0 2,088.0
Noninterest expense 2,627.0 2,537.0
Loss provision 275.0 400.0
Net chargeoffs 275.0 442.0
Year to Date 1999 1998
Net income $2,143.0 $1,828.0
Per share 1.79 1.53
ROA 1.71% 1.54%
ROCE 21.00% 19.40%
Net interest margin 4.28% 4.54%
Net interest income 4,650.0 4,699.0
Noninterest income 4,812.0 4,004.0
Noninterest expense 5,364.0 4,968.0
Loss provision 556.0 791.0
Net chargeoffs 556.0 856.0
Balance Sheet 6/30/99 6/30/98
Assets $256,033.0 $244,178.0
Deposits 156,454.0 154,507.0
Loans 157,464.0 160,023.0
Reserve/nonp. loans 218% 430%
Nonperf. loans/loans 0.66% 0.40%
Nonperf. assets/assets 0.72% 0.44%
Nonperf. assets/loans + OREO 0.72% 0.44%
Leverage cap. ratio 8.10% 8.00%
Tier 1 cap. ratio 8.10% 8.30%
Tier 1+2 cap. ratio 11.40% 12.30%