Republic New York Corp. said Wednesday that its first-quarter profits
The $104 million pretax hit was part of a previously announced
Still, the bank's performance was better than expected. Earnings per
Republic is on the rebound from a difficult second half, when it was
"Six months ago they were a broken-down vehicle," said Gerard Cassidy,
The second quarter ushers in new management at the $50.4 billion-asset
"We've made progress in the implementation of the business strategy
Cost savings totaled $2 million in the quarter. Republic said it
The charge covered a 10% work force reduction in which 433 positions
Total expenses in the first quarter, including the charge, rose 40%, to
Fee income rose 26%, to $154.5 million, driven by a 36% surge in trading
Income from consumer financial services and private banking rose 5%, to
Republic has been slashing its exposure to overseas markets since last
Shares in Republic ended Wednesday's trading down 69 cents, to $52.69.
Washington Mutual Inc.
Reporting late Tuesday, Seattle-based Washington Mutual Inc. said strong
Earnings per share of 79 cents beat analysts' consensus estimates by two
The company added more than 93,000 new checking accounts during the
However, analysts were disappointed with the net interest margin, which
"The very thin spread on mortgage-backed securities dilutes the
The thinner margin, coupled with higher-than-expected quarterly
"The bears are focusing on the first quarter, rather than the fact that
Washington Mutual continued to replace its time deposits with lower-cost
Strong regional economies, low interest rates, and the company's growing
Single-family mortgages were up 12%, to $9.7 billion. But origination of
Revenue growth and cost savings from the integration of recent
"We anticipate additional improvement in our efficiency ratio as 1999
Washington Mutual announced a plan to buy back up to 20 million shares
Washington Mutual Inc.
Seattle
Dollar amounts in millions (except per share)
First Quarter 1Q99 1Q98
Net income $444.1 $370.8
Per share 0.76 0.64
ROA 1.08% 0.99%
ROE 18.72% 18.01%
Net interest margin 2.79% 2.91%
Net interest income 1,127.2 1,060.3
Noninterest income 352.1 264.4
Noninterest expense 729.9 674.7
Loss provision 41.7 50.0
Net chargeoffs 45.0 51.7
Balance Sheet 3/31/99 3/31/98
Assets $174,295.1 $157,458.1
Deposits 84,179.6 89,726.3
Loans 108,044.2 146,750.8
Reserve/nonp. loans 119% 103%
Nonperf. loans/loans 1.10% 1.41%
Nonperf. assets/assets 0.68% 0.94%
Nonperf. assets/loans + OREO NA NA
Leverage cap. ratio NA NA
Tier 1 cap. ratio NA NA
Tier 1+2 cap. ratio NA NA
Republic New York Corp.
New York
Dollar amounts in millions (except per share)
First Quarter 1Q99 1Q98
Net income $46.5 $117.5
Per share 0.38 1.03
ROA 0.34% 0.82%
ROE 6.32% 15.16%
Net interest margin 2.52% 2.37%
Net interest income 263.6 268.2
Noninterest income 154.5 122.6
Noninterest expense 352.8 251.7
Loss provision 4.0 4.0
Net chargeoffs 4.1 5.4
Balance Sheet 3/31/99 3/31/98
Assets $50,453.0 $54,771.9
Deposits 32,731.7 33,496.4
Loans 13,966.5 13,204.2
Reserve/nonp. loans 337.37% 386.59%
Nonperf. loans/loans 0.62% 0.64%
Nonperf. assets/assets 0.19% 0.18%
Nonperf. assets/loans + OREO 0.67% 0.75%
Leverage cap. ratio 6.53%* 5.72%
Tier 1 cap. ratio 13.70%* 12.32%
Tier 1+2 cap. ratio 22.55%* 20.54%
* Estimated