NEW YORK -- Fueled by stellar gains on its trading desk, Bankers Trust New York Corp. reported a $310 million profit in the third quarter, up 87% from a year ago.
The results, which translated to $3.71 per share, easily exceeded analysts expectations of $2.65, according to Zacks Investment Research in Chicago. In the third quarter of 1992, Bankers Trust reported net income of 166 million.
On word of the strong earnings, the bank's stock rose 37.5 cents Thursday to close at $78.25.
The upbeat report was broad-based, with fiduciary and funds management, corporate finance, and transaction processing all contributing. But the standout performer was the trading desk, which booked revenues of $431 million -- $26 million more than it reaped in the second quarter.
"It's an all-time record for them in a quarter where there weren't a lot of record performances around," Raphael Soifer, an analyst at Brown Brothers Harriman & Co. in New York, said of the trading result. While virtually all money-center banks reported fat trading profits in the third quarter, only Bankers Trust was able to surpass its stellar second quarter in that area.
In another demonstration of its trading prowess, Bankers Trust registered net interest income of $364 million, up 17% from one year ago. Unlike other banks, at which it is a reflection of corporate and retail lending, net interest income at Bankers Trust is derived largely from the company's diverse trading activities.
Corporate finance was also a bright spot for the nation's seventh largest banking company, as fees grew $21 million over last year to $119 million -- their highest level in four years. Bankers Trust attributed the gain to higher revenues from securities underwriting and loan and lease syndication activities.
Fiduciary and funds management revenues, meanwhile, grew 24%, to $183 million.
Several other banks around the country reported strong results on Thursday.
WEST ONE BANCORP.
Boise, Idaho-based West One Bancorp. said third quarter earnings totaled $21.8 million, up 32% from the year before. The $7.4 billion bank credited strong loan growth and a higher net interest margin.
A special gain and firming credit quality helped Michigan National Corp. report earnings of $29.2 million in the third quarter, up 152.4% from a year ago.
The $10.4 billion-assets banking company, based in Farmington Hills, reported a $10.1 million pretax gain on the sale of $300 million of residential mortgages.
Harris Bankcorp Inc., the Chicago-based subsidiary of Bank of Montreal said its earnings declined 11.52% to $29 million.
The $13.3 billion-asset bank said its net interest margin fell 18 basis points from a year ago, to 4.06%.
Firstar Corp., Milwaukee, reported a 19% earnings increase to $51.4 million, citing fee and loan revenue growth and firming credit quality.
Baybanks Inc., Boston, reported net income of $18 million for the third quarter, up 72% from the $10.4 million earned in the period last year.
Credit costs at the $9.5 billion company remained stable at $16.8 billion in the period, compared to $16.9 billion in the second quarter.Bankers Trust New YorkNew YorkDollar amounts in millions (except per share)Third Quarter 3Q93 3Q92Net income #310.0 $166.0Per share 3.71 1.90ROA 1.38% 0.84%ROE 30.00% 17.00%Net interest margin 1.80% 1.75%Net interest income 364.0 312.0Noninterest income 929.0 590.0Noninterest expense 789.0 600.0Loss provision 17.0 45.0Net chargeoffs 33.0 48.0Year to Date 1993 1992Net income $791.0 $506.0Per share 9.37 5.83ROA 1.24% 0.91%ROE 27.00% 21.00%Net interest margin 1.73% 1.59%Net interest income 998.0 787.0Noninterest income 2,495.0 1,867.0Noninterest expense 2,219.0 1,724.0Loss provision 70.0 175.0Net chargeoffs 205.0 212.0Balance Sheet 9/30/93 9/30/92Assets $84,600.0 $73,900.0Deposits 22,400 20,500.0Loans 15,200.0 17,700.0Reserve/nonp. loans 132.00% 110.00%Nonperf. loans/loans 7.00% 8.00%Nonperf. asset/asset 2.00% 3.00%Leverage cap. ratio 6.05% 5.99%Tier 1 cap. ratio 8.15% 7.01%Tier 1+2 cap. ratio 14.10% 12.64%