Sanchez Computer Associates Inc. of Malvern, Pa., has requested the withdrawal of an initial public stock offering for its e-Profile subsidiary.

“Market conditions are not receptive to the value we believe e-Profile deserves in the equities marketplace,” Michael A. Sanchez, the chief executive officer of e-Profile and chairman of Sanchez, said in a press statement.

The withdrawal request, filed Thursday with the Securities and Exchange Commission, follows a Sept. 21 hold that Sanchez put on e-Profile’s IPO, which had been filed on Aug. 7. E-Profile provides core systems outsourcing for Internet-only banks and the Internet units of traditional banks.

An analyst speaking on condition of anonymity said the performance of Internet-only banks may have figured in Sanchez’s decision not to spin off e-Profile. Web banking is a “niche strategy that to date has seen disappointing account growth,” the analyst said.

WingspanBank.com, an e-Profile client, is a good example of the type of customer that may be contributing to the lowered expectations, the analyst said.

Bank One Corp. had conceived Wingspan as a separate and parallel operation and invested heavily in a national advertising campaign to promote the brand. But lackluster account growth prompted Bank One executives to integrate the Internet bank back into the company’s brick-and-mortar operations.

Matthew Fassnacht, a senior equity research analyst with J.P. Morgan Securities, said e-Profile would have no problem being a stand-alone public company. “The trajectory of consumer online banking will be strong, and it will be a big deal,” he said.

Still, Mr. Fassnacht called Sanchez’s decision to pull the IPO a good move. “The whole finance space is undervalued,” he said. “I would not be selling stock in this market.”

Greg Ryan, director of corporate communications at Sanchez, said: “The upside for e-Profile is all in front of us. Internet adoption is slower than what everyone predicted 18 months ago. But to think that the Internet as a viable delivery channel for financial services is going to go away, that’s just ridiculous.”

Mr. Ryan pointed to the growth of e-Profile’s customer base as evidence of its viability. In the third quarter the company’s client base nearly doubled from the previous quarter, to seven, and it processed 616,000 accounts, up about 6%.

However, “several hundred thousand” of the third-quarter accounts were from the Internet bank X.com, which announced in October that it would cease banking operations, he said.

E-Profile should not have a hard time finding clients, Mr. Ryan said.

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