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NORWEST CORPORATION REPORTS RECORD QUARTERLY EARNINGS

 NORWEST CORPORATION REPORTS RECORD QUARTERLY EARNINGS
 MINNEAPOLIS, April 15 /PRNewswire/ -- Norwest Corporation


(NYSE: NOB) today reported record net income of $122.4 million for the quarter ended March 31, 1992, a 29.7 percent increase over the $94.3 million earned in the first quarter of 1991. Net income per common share was a record 82 cents, compared with 68 cents in the first quarter of 1991, an increase of 20.6 percent. Return on common equity was 18.3 percent and return on assets was a record 1.24 percent for the first quarter of 1992, compared with 18.0 percent and 1.02 percent, respectively, in the first quarter of 1991.
 Lloyd P. Johnson, Norwest's chairman and chief executive officer, said, "Norwest achieved record earnings and earnings per common share with all business units at or better than expectations. We are particularly pleased that both the Corporate Bank and Twin Cities Community Banking have their credit quality problems behind them and are performing well. United Banks of Colorado performance is exceeding our expectations both in profitability and improvement in credit quality. Businesses included in the United Bank acquisition contributed a return on assets of 1.24 percent, while their non-performing assets declined another $28.3 million in the quarter to $68.5 million. This represents a total reduction in non-performing assets in Colorado of $140.6 million since Dec. 31, 1990.
 "Norwest Mortgage continued its impressive growth with earnings of $15.3 million, an increase of 62.1 percent, from 1991's first quarter. Norwest Financial also posted strong results with earnings up 17.0 percent over 1991. Net income per common share was at a record level despite being reduced by 3 cents due to the impact of an 18 percent increase in FDIC insurance premiums and the issuance of approximately $415 million of preferred and common stock since March, 1991.
 "Consolidated non-performing assets declined for the fifth consecutive quarter to $318.6 million, or 1.61 percent of loans, leases and other real estate owned at March 31, 1992, a decrease of $182.8 million, or 36.5 percent from March 31, 1991 and $51.1 million from Dec. 31, 1991. At March 31, 1992, our allowance for credit losses as a percent of non-performing loans was 268.7 percent, compared with 227.3 percent at Dec. 31, 1991. This is the strongest ratio among the 25 largest regional bank holding companies.
 "As of March 31, 1992, our total risk-based capital ratio was 14.30 percent, compared with 12.74 percent a year ago. We believe this ratio is also the highest among the 25 largest regional bank holding companies."
 Norwest's net interest margin was a record 5.40 percent for the first quarter of 1992, compared with 4.83 percent in the first quarter of 1991, 5.08 percent for the year 1991 and 5.27 percent for the fourth quarter of 1991. The improvement is primarily due to a faster decline in short-term interest rates, as compared with longer term interest rates.
 Consolidated net interest income in the first quarter of 1992 was $472.8 million, compared with $396.7 million in the first quarter of 1991, an increase of 19.2 percent, and $453.3 million in the fourth quarter of 1991. The increase from the first quarter of 1991 is largely due to a 5.6 percent increase in average earning assets and a 57 basis point increase in net interest margin.
 Norwest provided $47.0 million for credit losses in the first quarter of 1992, or 0.95 percent of loans and leases. This compares with $93.4 million, or 1.79 percent in the same period a year ago and $65.6 million, or 1.30 percent, in the fourth quarter of 1991. Net credit losses totaled $42.3 million, compared with $62.8 million in the first quarter of 1991 and $65.4 million in the fourth quarter of 1991. As a percent of loans and leases, net credit losses were 0.86 percent in the first quarter of 1992, compared with 1.21 percent in the same period a year ago and 1.30 percent in the fourth quarter of 1991.
 Non-interest income continued to grow in the first quarter of 1992, up 4.8 percent over last year, primarily due to increased mortgage banking revenues and trust fees, partially offset by trading account losses. Non-interest expenses are up 23.2 percent over last year, primarily due to increased salaries and benefits at Norwest Mortgage reflective of the large volume increases in that business, prepayment of Norwest Financial debt, timing of charitable contributions and asset writedowns.
 The Banking Group reported record earnings of $82.5 million in the first quarter of 1992, 24.1 percent above the first quarter 1991 earnings of $66.5 million, and 14.3 percent above the fourth quarter of 1991. The 24.1 percent improvement in Banking Group earnings from first quarter of 1991 is due to a 8.5 percent growth in net interest income and a 38.0 percent decrease in the provision for credit losses, partially offset by a 6.5 percent increase in non-interest expenses, principally in salaries and benefits and asset writedowns. Venture capital realized $8.3 million of net gains in the quarter, which were partially offset by additions to reserves for losses on investments, and had net unrealized appreciation in its investment portfolio of $73.4 million at March 31, 1992.
 Mortgage banking operations earned $15.3 million in the quarter, compared with $9.4 million in the first quarter of 1991, an increase of 62.1 percent. Servicing increased to $10.7 billion at the end of the quarter, an increase of $2.1 billion in the quarter, and up $6.3 billion from last year. Originations amounted to $4.1 billion during the quarter, a 70.8 percent increase over last year.
 Norwest Financial reported earnings of $33.3 million in the first quarter of 1992, compared with earnings of $28.4 million and $34.0 million in the first and fourth quarters of 1991, respectively. Norwest Financial's net interest income increased 22.9 percent over the first quarter of 1991 due to a 9.4 percent growth in average finance receivables and a 119 basis point improvement in net interest margin largely reflecting lower short-term rates and the benefits from refinancing prepaid long-term debt at lower interest rates. Non- interest income increased 7.6 percent over the first quarter of 1991. Non-interest expenses increased 21.1 percent, primarily due to the increased levels of operation resulting from including in 1992 the 1991 acquisitions of Termplan, Inc. and Coast Program, Inc.
 Norwest Corporation is a $41.2 billion company providing banking insurance, investments and other financial services through a total of 1,688 offices in 49 states and internationally.
 NORWEST CORPORATION AND SUBSIDIARIES
 SUMMARY FINANCIAL INFORMATION
 In millions, except per share amounts
 Quarter Ended March 31
 Income Summary 1992 1991
 Net interest income $472.8 $396.7
 Provision for credit losses 47.0 93.4
 Non-interest income 270.1 257.7
 Non-interest expenses 534.8 434.2
 Income before income taxes 161.1 126.8
 Income tax expense 38.7 32.5
 Net income $122.4 $94.3
 Net income per common share:
 Primary $0.82 $0.68
 Fully diluted 0.81 0.68
 Performance (percent):
 Return on assets 1.24 1.02
 Return on common equity 18.3 18.0
 Net interest margin 5.40 4.83
 Organizational Earnings
 Banking $82.5 $66.5
 Mortgage banking 15.3 9.4
 Norwest Financial Services, Inc.
 and subsidiaries 33.3 28.4
 Other (consolidating adjustments,
 parent and service companies) (8.7) (10.0)
 Consolidated net income $122.4 $94.3
 Credit Quality
 Provision for credit losses $47.0 $93.4
 Percent of avg. loans & leases(a) 1.0 1.8
 Net Credit Losses $42.3 $62.8
 Percent of avg. loans & leases(a) 0.9 1.2
 Non-accrual and restructured loans $228.1 $353.9
 Other real estate owned (OREO) 90.5 147.5
 Total non-performing assets $318.6 $501.4
 Percent of loans & leases & OREO 1.61 2.34
 Loans past-due 90 days or more(b) $70.7 $85.6
 Allowance for credit losses 613.0 593.2
 Percent of loans & leases 3.1 2.8
 Percent of non-performing loans 268.7 167.6
 Average Balances
 for the Quarter
 At March 31 Ended March 31
 Balance Sheet Data 1992 1991 1992 1991
 Loans, leases, and mortgages
 held for sale(c) $22,912.5 22,777.6 $22,691 $22,637
 Investment securities 13,338.3 10,268.4 12,355 9,687
 Earning assets 37,279.6 34,493.7 35,736 33,855
 Total assets 41,217.1 37,935.0 39,664 37,471
 Deposits 26,129.8 25,688.1 25,742 25,601
 Stockholders' equity 2,908.3 2,381.9 2,877 2,191
 Tier 1 capital (pct.) 10.61 8.22 -- --
 Tier 1 and Tier 2
 capital (pct.) 14.30 12.74 -- --
 Stockholders' equity per
 common share $18.34 $16.24 -- --
 (a) Based on annualized net credit losses
 (b) Excluding non-accrual and restructured loans
 (c) Net of unearned discount
 NORWEST CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 In millions, except per share amounts
 Quarter Ended March 31
 1992 1991
 INTEREST INCOME
 Loans and leases $550.6 619.1
 Investment securities 246.2 219.7
 Mortgages held for sale 59.9 37.1
 Money market investments 4.8 26.2
 Trading account securities 5.5 2.2
 Total interest income 867.0 904.3
 INTEREST EXPENSE
 Deposits 243.3 338.6
 Short-term borrowings 74.7 95.6
 Long-term debt 76.2 73.4
 Total interest expense 394.2 507.6
 Net interest income 472.8 396.7
 Provision for credit losses 47.0 93.4
 Net interest income after provision
 for credit losses 425.8 303.3
 NON-INTEREST INCOME
 Trust 38.0 32.6
 Service charges on deposit accounts 39.2 36.0
 Mortgage banking 67.7 43.9
 Data processing 16.6 16.3
 Credit card 37.2 39.3
 Insurance 38.0 35.2
 Other fees and service charges 38.5 30.0
 Net investment securities gains 5.0 6.8
 Net venture capital gains 5.1 0.9
 Other (15.2) 16.7
 Total non-interest income 270.1 257.7
 NON-INTEREST EXPENSES
 Salaries and benefits 258.6 215.6
 Net occupancy 37.5 36.2
 Equipment rentals, depreciation and
 maintenance 36.3 33.7
 Business development 22.4 19.4
 Communication 31.5 27.7
 Data Processing 21.5 24.0
 FDIC assessment and regulatory
 examination fees 15.8 13.5
 Intangible asset amortization 15.8 14.5
 Other 95.4 49.6
 Total non-interest expenses 534.8 434.2
 INCOME BEFORE INCOME TAXES 161.1 126.8
 Income Tax Expense 38.7 32.5
 NET INCOME $122.4 $94.3
 Average common and common equivalent shares 141.1 133.1
 NET INCOME PER COMMON SHARE
 Primary $0.82 $0.68
 Fully diluted 0.81 0.68
 Dividends declared 0.250 0.230
 -0- 4/15/92
 /CONTACT: (Media) Larry Haeg, 612-667-7043, or (Investor) Robert S. Strickland, 612-667-7919, both of Norwest/
 (NOB) CO: Norwest Corporation ST: Minnesota IN: FIN SU: ERN


AL -- MN001 -- 8484 04/15/92 08:07 EDT
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