Concord Holding Corp., a leading partner of banks that manage mutual funds, said it boosted earnings to $4.6 million in the fiscal year ended March 31, from $3.6 million a year earlier.
The New York company said the 28% increase in profits was the result of steady growth in its core business of distributing and administering bank-managed mutual funds.
Concord, which completed an initial public offering of stock in February, is one of a handful of companies that specialize in distributing bank-managed funds, a role that is off limits to banks under the Glass-Steagall Act.
The company counts as clients two of the top 10 bank mutual fund managers: BankAmerica Corp. and Chase Manhattan Corp. Altogether, Concord administers more than $30 billion of bank-managed funds. In the past year, Concord has signed up Boatmen's Bancshares, Keycorp, and First American Corp. as clients.
"These new clients will begin contributing to our revenues during Concord's first fiscal quarter," said Richard E. Stierwalt, Concord's chairman and chief executive.
Concord reported total revenues for fiscal 1994 of $29.7 million, up 33% from $22.3 million a year earlier. Expenses totaled $21.8 million, a 37% increase from $15.9 million in fiscal 1993.
In the quarter that ended March 31, Concord's net income totaled $1.18 million, nearly double the $603,000 in net income for the year-earlier period.