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NATIONSBANK ANNOUNCES 1992 NET INCOME OF $1.15 BILLION

 CHARLOTTE, N.C., Jan. 18 /PRNewswire/ -- NationsBank Corporation (NYSE: NB) today reported that net income for 1992 was $1.15 billion, more than five times greater than the $202 million earned in 1991. Earnings per common share in 1992 rose sharply to $4.60, compared to $.76 in 1991.
 Fourth quarter 1992 net income was $234 million, or $.92 per common share, and included a one-time, pre-tax $50-million reserve for facilities closures and consolidations. This compared to a fourth quarter 1991 net loss of $244 million, or ($1.08) per common share, which included a pretax $314 million merger restructuring charge.
 "Our first year as NationsBank was extraordinarily successful," said Hugh McColl, chairman and CEO. "We moved forward on many different fronts in 1992 and I believe our list of accomplishments was unprecedented in U.S. banking. Merger transition and the resolution of credit problems received great emphasis and tremendous progress was made in both areas. Approximately 300 of 400 merger consolidation projects were completed, putting us ahead of our original schedule, and we reduced our nonperforming assets by $807 million, or 29 percent. However, the attention given these issues did not prevent us from seizing new opportunities in the marketplace and achieving strong revenue growth. The net result of all of these efforts was more than $1 billion in earnings, even in the face of a very weak economic environment."
 "We also took several key strategic actions in 1992 that should add to our future earnings stream," continued McColl. "Our innovative investment and purchase option agreements with MNC Financial, our ground-breaking joint venture agreement with Dean Witter to form a new retail securities company, and our agreements to purchase most of the assets of Chrysler First, which include consumer and inventory finance receivables and 175 lending offices, were three unique responses to the growth challenges facing banks today. NationsBank is now even better positioned to participate in the economic recovery which appears to be finally underway."
 Total shareholders' equity climbed 20 percent in 1992 to $7.8 billion on December 31. This represented a healthy 6.62 percent of year-end assets, up from 5.91 percent at the end of 1991. Book value per common share rose 14 percent to $30.80 on December 31, 1992 and the quarterly dividend payout on common shares was raised 8 percent in the fourth quarter to an annual rate of $1.60 per common share. Return on common shareholders' equity for 1992 was 15.83 percent. Total market capitalization grew by 38 percent in 1992 to $13.0 billion, thereby creating an additional $3.6 billion of shareholder wealth.
 Tier 1 and total risk-based capital ratios of 7.54 percent and 11.52 percent, respectively, and a leverage ratio of 6.16 percent all compared favorably with regulatory guidelines at December 31, 1992.
 Net interest income on a tax-equivalent basis grew by 6 percent in 1992 to $4.19 billion, aided by expansion of the net interest margin to 4.10 percent from 3.82 percent. Average loans and leases declined modestly in 1992 to $68.2 billion, as levels fell in the second half of 1991 and the first half of 1992. However, in the second half of 1992, loan and lease balances expanded at a 13-percent annualized rate, which was particularly impressive given the weak economic recovery. In the fourth quarter alone, loans and leases grew by more than $2.6 billion to finish the year at $71.8 billion.
 Average deposits in 1992 were $82.7 billion versus $87.6 billion a year-ago. Core, customer-based deposits made up an impressive 93 percent of this year's total, standing at $77.3 billion compared to $79.3 billion in 1991.
 Noninterest income rose 10 percent to $1.91 billion in 1992, fueled by strong growth in deposit fees, bank card income and brokerage income. Pretax gains on the sales of securities were $249 million in 1992 versus $454 million in 1991.
 Noninterest expense of $3.97 billion in 1992 was up only 3 percent from $3.85 billion in 1991, exclusive of a large restructuring charge in 1991. Excluding spending on merger transition projects and the facilities reserve, core 1992 noninterest expense actually declined modestly on a year-over- year basis. Thus, merger cost savings more than offset the underlying growth in the core noninterest expense base. Key contributors to these savings were a more than 6,000-person reduction in headcount, the closing of more than 100 branches, and numerous systems consolidations.
 Asset quality indicators showed steady improvement throughout 1992 as aggressive actions were taken to reduce the level of problem credits and alleviate the heavy cost associated with them. Nonperforming loans declined $551 million during the year to $1.41 billion on December 31, 1992. With an additional $256 million drop in other real estate owned, total nonperforming assets stood at $2.0 billion on December 31, or 2.72 percent of net loans, leases and factored receivables, and other real estate owned. This compared to nonperforming assets of $2.80 billion on December 31, 1991, or 4.01 percent of net levels, and reflected a decline of $458 million, or 19 percent, from nonperforming asset levels at September 30, 1992.
 Net charge-offs declined to $866 million, or 1.25 percent of average net loans, leases and factored receivables, in 1992, from $1.31 billion, or 1.86 percent of average levels in 1991. The allowance for credit losses totaled $1.45 billion at year-end 1992 and equaled 2 percent of net loans, leases and factored receivables. The allowance represented 103 percent of nonperforming loans at December 31, 1992, up from 82 percent at year-end 1991.
 As a result of these improving credit quality trends, provision expense in 1992 declined to $715 million, well below 1991's $1.58 billion. Other real estate owned expense was $183 million in 1992, versus $127 million in 1991, with the increase due to aggressive asset disposition programs.
 NationsBank Corporation is the fourth largest banking company in the U.S. with total assets of $118 billion and more than 1,700 banking centers in nine states and the District of Columbia.
 NationsBank Corporation Financial Highlights
 Three Months For the Year
 Ended December 31 Ended December 31
 1992 1991 1992 1991
 Financial Summary
 (In millions except per-share data)
 Net income $234 ($244) $1145 $202
 Earnings per
 common share .92 (1.08) 4.60 .76
 Fully diluted earnings
 per common share .91 (1.08) 4.52 .75
 Average common
 shares outstanding 252.013 232.075 243.748 226.305
 Avg. fully diluted
 shares outstanding 256.457 233.986 248.519 228.365
 Price per share of common
 stock at period end $51 3/8 $40 5/8 $51 3/8 $40 5/8
 Common dividends paid 101 85 371 368
 Common dividends paid
 per share (A) .40 .37 1.51 1.48
 Preferred dividends paid 2 7 24 31
 Earnings Summary (Taxable-equivalent in millions)
 Net interest income $1098 $980 $4190 $3940
 Provision for credit
 losses (150) (525) (715) (1582)
 Securities transactions (8) 223 249 454
 Noninterest income 461 438 1913 1742
 Other real estate owned
 expense (27) (66) (183) (127)
 Restructuring expense --- (314) --- (330)
 Other noninterest expense (1067) (1031) (3966) (3847)
 Income befor (48)
 Net income $234 ($244) $1145 202
 (B) FTE adjustment $22 $31 $92 $141
 Average Balance Sheet Summary (In billions)
 Loans and leases, net $70.404 $68.835 $68.187 $69.367
 Investment securities 23.899 24.891 22.541 25.412
 Securities held for sale 1.051 --- 1.785 ---
 Earning assets 103.428 103.738 102.220 103.090
 Total assets 117.359 118.376 115.047 118.637
 Total assets (C) 117.359 116.787 115.047 115.792
 Noninterest-bearing
 deposits 16.548 15.007 15.411 14.372
 Interest-bearing deposits 64.728 72.781 67.261 73.198
 Total deposits 81.276 87.788 82.672 87.570
 Shareholders' equity 7.720 6.826 7.286 6.605
 Common shareholders'
 equity 7.700 6.564 7.081 6.329
 Other Financial Data
 Net interest yield(percent) 4.23 3.77 4.10 3.82
 Return on average
 assets(percent) (C) .79 N/M 1.00 .17
 Return on avg. common
 equity(percent) 12.00 N/M 15.83 2.70
 Gross charge-offs
 (millions) $402 $580 $1026 $1417
 Net charge-offs(millions) 370 546 866 1308
 as percent of average
 loans, leases and factored
 accounts receivable, net 2.06 3.10 1.25 1.86
 December 31:
 1992 1991
 Balance Sheet Summary (In billions)
 Loans, leases and factored
 accounts receivable, net $72.714 $69.108
 Investment securities 23.355 16.275
 Securities held for sale 1.374 8.904
 Earning assets 103.872 96.491
 Total intangibles .900 1.085
 Total assets 118.059 110.319
 Noninterest-bearing deposits 17.701 16.270
 Interest-bearing deposits 65.026 71.805
 Total deposits 82.727 88.075
 Shareholders' equity 7.814 6.518
 Common shareholders' equity 7.793 6.252
 Per common share (not in billions) 30.80 27.03
 Risk-based capital - Final guidelines:
 Tier 1 capital $7.114 $5.840
 Tier 1 capital ratio(percent) 7.54 6.38
 Total capital $10.871 $9.433
 Total capital ratio(percent) 11.52 10.30
 Leverage ratio(percent) 6.16 5.07
 Common shares outstanding
 (in millions) 252.990 231.246
 Allowance for credit losses $1.454 $1.605
 Allowance as percent of net loans,
 leases, and factored accounts
 receivable 2.00 2.32
 Allowance for credit losses
 as percent of nonperforming 103.11 81.82
 loans
 Nonperforming loans $1.410 $1.961
 Nonperforming assets $1.997 $2.804
 Nonperforming assets as percent of:
 Total assets 1.69 2.54
 Net loans, leases, factored
 accounts receivable and other
 real estate owned 2.72 4.01
 Other
 Full-time equivalent headcount 50,828 57,177
 Banking centers 1,737 1,865
 (A) 1991 dividend per common share based on NationsBank
 historical amount
 (C) Excludes Special Asset Division assets
 N/M - Not Meaningful
 -0- 1/18/93
 /CONTACT: (Media) Rusty Page, 704-386-5667, or (Analysts) Susan Carr, 704-386-8059, or Mark McCall, 704-386-8465, all of NationsBank Corporation/
 (NB)


CO: NationsBank Corporation ST: North Carolina IN: FIN SU: ERN

CM -- CH001 -- 5716 01/18/93 08:09 EST
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