Fleet Financial Group Inc. said it expects to report second-quarter earnings of $70 million, or 44 cents a share.
The results, which are above analysts' average 38-cent estimate for the quarter, compare with $50 million in profits reported for the first quarter and $27.9 million in profits earned in the second quarter 1991.
The Providence, R.I.-based company, which was $45.2 billion in assets, said it was particularly encouraged because results at all its subsidiary banks showed improvement.
It also said that it wuld post the first sizable decline in non-performing assets.
Although the company said earnings would include a $50 million gain from the sale of securities, up from the $17 million one-time gain it took in the first quarter, it said it would partially offset that with a $30 million addition to its loss reserve above the planned $100 million in chargeoffs.
"The bulk of [the $70 million in second-quarter earnings] are core earnings, reflecting a strengthening of the bank's net interest margin," Fleet chairman and chief executive Terrence R. Murray told the Dow Jones news wire on Tuesday.
Specifically, Mr. Murray said margins rose 0.1% to 4.7% in the second quarter.
He also said that nonperforming assets would decline $50 million to $70 million in the quarter, or 3% to 4%. They were $1.6 billion at the end of the first quarter, after a decline of $8 million.
Mr. Murray said Fleet is still thinking about selling a portion of its mortgage subsidiary through an initial public offering. However, he said it would not be more than 19.9%.