Several of the nation's largest banks reported solid earnings gains
Growth in fee income particularly helped KeyCorp, which scored a 12%
The Cleveland banking company has been struggling to overhaul its retail
KeyCorp said Thursday that while it has fallen $3 million short of its
"This is evidence of improvement, but there has to be further evidence
Separately, National City Corp., also of Cleveland, reported a 7%
Asset management, capital markets and brokerage businesses fueled the
KeyCorp
The $80.8 billion-asset banking company posted earnings of 62 cents per
Fee income, which totaled $536 million, was up 38% primarily because of
"McDonald had a very strong quarter," said Mr. Duwan. "All of these
Income from investment banking and capital markets doubled to $100
KeyCorp's earnings were helped by $38 million in securities gains and by
"They're still stealing some of their earnings from other areas," said
By yearend, KeyCorp expects its retail operations to contribute $83
Analysts said Key's fee-driven earnings this quarter show the company
"They had a very good quarter, but they will continue to be under
KeyCorp's shares closed at $32.875, up 31.25 cents.
National City Corp.
National City released "noisy" second quarter results that were clouded
"When you get through all of the nonrecurring items, they posted a very
National City earned $1.12 per share, beating analysts' consensus
The one-time events, which canceled each other out financially, included
National City also took an unexpected $37.8 million charge reflecting
"We believe these actions will enhance shareholder returns over the
Expenses were down 4% to $719.5 million as the $84 billion-asset company
Net interest income was up 2.5% to $758.2 million since the second
The net interest margin improved since the first quarter to 4.04% from
Asset quality also strengthened since March 30, with nonperforming
Shares in National City, the country's 11th-largest banking company,
BankBoston Corp.
At BankBoston, the nation's 14th-largest bank, net income of 83 cents
"It looked like a real solid quarter" for the $78 billion-asset company,
Noninterest income surged 50%, to $687 million. Underwriting,
"Robertson Stephens knocked the cover off the ball," said Ronald Mandle,
Particularly impressive was Robertson Stephens' success in merger and
Underwriting and advisory fees rose $100 million in the quarter, Mr.
The gains at Robertson Stephens, which BankBoston bought last year, did
"It's easy come, easy go," Mr. Bicher said of the income and expense
BankBoston's large presence in Brazil and Argentina also boosted
BankBoston is slated to be acquired by Fleet Financial Group in the
BankBoston's stock closed at $50.8125, up $1.8125.
PNC Bank Corp.
At PNC, the country's 15th-largest bank, earnings per share of 98 cents
This year's second quarter included a $16 million, or 5-cent-per-share,
But analysts were still pleased with the $76 billion-asset company's
"They had very strong asset management, mutual fund services was a good
Noninterest income jumped 17% in the second quarter, to $664 million.
PNC did suffer a 4% decrease in net interest income, to $612 million.
PNC had a "good quarter with respect to credit quality," Mr. Najarian
PNC shares rose 50 cents to $55.0625.
Comerica Inc.
Comerica reported earnings per share of $1.03, beating analysts
The $37 billion-asset banking company boosted commercial loans and fee
"Comerica comes out the winner with top-line revenue growth and
"We are very pleased with the underlying trends," said Roney & Co.'s Mr.
Net interest income was up 5% to $380.9 million driven by a 15.1% growth
Noninterest income was up 30.8% to $194 million due to a 25.4% gain in
Nonperforming assets as a percentage of all loans declined since March
Ms. Yates said Comerica's strong commercial loan portfolio bodes well
"If there were any credit quality issues out there, you would think
Expenses at the 25th-largest U.S. banking company crept up during the
Shares in Comerica closed Thursday's trading at $59, up $1.
PNC Bank Corp.
Pittsburgh
Dollar amounts in millions (except per share)
Net income $315.0 $280.0
Per share 1.03 0.90
ROA 1.68% 1.53%
ROE 22.38% 21.42%
Net interest margin 3.64% 3.81%
Net interest income 612.0 637.0
Noninterest income 664.0 569.0
Noninterest expense 767.0 739.0
Loss provision 25.0 35.0
Net chargeoffs 24.0 89.0
Year to Date 1999 1998
Net income $640.0 $550.0
Per share 2.08 1.77
ROA 1.70% 1.52%
ROE 22.66% 21.26%
Net interest margin 3.75% 3.88%
Net interest income 1,276.0 1,281.0
Noninterest income 1,395.0 1,075.0
Noninterest expense 1,590.0 1,447.0
Loss provision 103.0 65.0
Net chargeoffs 102.0 179.0
Balance Sheet 6/30/99 6/30/98
Assets $75,558.0 $75,873.0
Deposits 47,685.0 47,096.0
Loans 52,075.0 56,237.0
Reserve/nonp. loans 224.33% 315.81%
Nonperf. loans/loans 0.58% 0.48%
Nonperf. assets/assets 0.44% 0.43%
Nonperf. assets/loans + OREO 0.59% 0.55%
Leverage cap. ratio 7.49%* 7.18%
Tier 1 cap. ratio 8.10%* 7.24%
Tier 1+2 cap. ratio 11.60%* 10.79%
* Estimated
National City Corp.
Cleveland
Dollar amounts in millions (except per share)
Net income $354.5 $331.2
Per share 1.12 0.99
ROA 1.71% 1.66%
ROE 22.96% 19.47%
Net interest margin 4.04% 4.15%
Net interest income 758.2 739.9
Noninterest income 600.9 573.8
Noninterest expense 757.3 749.2
Loss provision 59.6 43.0
Net chargeoffs 60.0 43.0
Year to Date 1999 1998
Net income $705.5 $435.0
Per share 2.20 1.32
ROA 1.68% 1.13%
ROE 22.01% 13.18%
Net interest margin 4.03% 4.16%
Net interest income 1,522.9 1,448.2
Noninterest income 1,215.4 1,068.7
Noninterest expense 1,496.4 1,723.2
Loss provision 127.6 99.3
Net chargeoffs 128.0 95.4
Balance Sheet 6/30/99 6/30/98
Assets $84,022.0 $81,258.0
Deposits 52,091.0 54,832.0
Loans 57,317.0 54,918.0
Reserve/nonp. loans 435.47% 433.99%
Nonperf. loans/loans 0.39% 0.41%
Nonperf. assets/assets 0.30% 0.32%
Nonperf. assets/loans + OREO 0.44% 0.47%
Leverage cap. ratio 6.12% 7.09%
Tier 1 cap. ratio 7.19% 8.41%
Tier 1+2 cap. ratio 12.67% 12.36%
KeyCorp
Cleveland
Dollar amounts in millions (except per share)
Net income $280.0 $249.0
Per share 0.62 0.56
ROA 1.40% 1.35%
ROE 18.16% 18.47%
Net interest margin 3.97% 4.10%
Net interest income 704.0 675.0
Noninterest income 526.0 380.0
Noninterest expense 717.0 602.0
Loss provision 76.0 72.0
Net chargeoffs 76.0 72.0
Year to Date 1999 1998
Net income $573.0 $484.0
Per share 1.27 1.09
ROA 1.45% 1.34%
ROE 18.81% 18.36%
Net interest margin 3.96% 4.12%
Net interest income 1,397.0 1,334.0
Noninterest income 1,135.0 736.0
Noninterest expense 1,465.0 1,188.0
Loss provision 187.0 149.0
Net chargeoffs 157.0 149.0
Balance Sheet 6/30/99 6/30/98
Assets $80,889.0 $75,778.0
Deposits 43,016.0 41,794.0
Loans 61,041.0 56,869.0
Reserve/nonp. loans 247.34% 240.64%
Nonperf. loans/loans 0.61% 0.65%
Nonperf. assets/assets 0.51% 0.55%
Nonperf. assets/loans + OREO 0.66% 0.72%
Leverage cap. ratio 7.41%* 7.04%
Tier 1 cap. ratio 7.39%* 7.15%
Tier 1+2 cap. ratio 11.60%* 11.86%
* Estimated
Comerica Inc.
Detroit, Mich.
Dollar amounts in millions (except per share)
Net income $167.0 $150.0
Per share 1.03 0.92
ROA 1.83% 1.74%
ROE 22.08% 22.57%
Net interest margin 4.53% 4.62%
Net interest income 381.0 366.0
Noninterest income 195.0 149.0
Noninterest expense 289.0 253.0
Loss provision 28.0 28.0
Net chargeoffs 21.0 19.0
Year to Date 1999 1998
Net income $326.0 $295.0
Per share 2.01 1.80
ROA 1.80% 1.67%
ROE 21.99% 22.33%
Net interest margin 4.52% 4.56%
Net interest income 751.0 734.0
Noninterest income 352.0 284.0
Noninterest expense 552.0 503.0
Loss provision 48.0 56.0
Net chargeoffs 40.0 41.0
Balance Sheet 6/30/99 6/30/98
Assets $36,950.0 $35,050.0
Deposits 22,354.0 22,619.0
Loans 31,106.0 27,564.0
Reserve/nonp. loans 330.41% 491.60%
Nonperf. loans/loans 0.44% 0.32%
Nonperf. assets/assets 0.39% 0.27%
Nonperf. assets/loans + OREO 0.46% 0.34%
Leverage cap. ratio 8.08% 7.52%
Tier 1 cap. ratio 6.74% 6.47%
Tier 1+2 cap. ratio 10.75% 10.09%
BankBoston Corp.
Boston
Dollar amounts in millions (except per share)
Net income $250.0 $242.0
Per share 0.83 0.80
ROA 1.25% 1.36%
ROE 19.92% 20.70%
Net interest margin 4.03% 4.17%
Net interest income 684.0 645.0
Noninterest income 712.0 457.0
Noninterest expense 899.0 647.0
Loss provision 95.0 60.0
Net chargeoffs 61.0 51.0
Year to Date 1999 1998
Net income $473.0 $480.0
Per share 1.58 1.58
ROA 1.22% 1.37%
ROE 19.25% 21.01%
Net interest margin 4.03% 4.12%
Net interest income 1,324.0 1,252.0
Noninterest income 1,307.0 1,047.0
Noninterest expense 1,705.0 1,309.0
Loss provision 165.0 200.0
Net chargeoffs 127.0 192.0
Balance Sheet 6/30/99 6/30/98
Assets $77,564.0 $70,499.0
Deposits 49,036.0 45,196.0
Loans 41,789.0 43,254.0
Reserve/nonp. loans 218% 207%
Nonperf. loans/loans 0.90% 0.80%
Nonperf. assets/assets 0.50% 0.50%
Nonperf. assets/loans + OREO 0.90% 0.90%
Leverage cap. ratio 6.80% 7.80%
Tier 1 cap. ratio 7.50% 8.40%
Tier 1+2 cap. ratio 11.90% 13.00%