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NORWEST CORPORATION REPORTS RECORD QUARTERLY EARNINGS

    QUARTERLY HIGHLIGHTS:(A)
    -- Record quarterly earnings, up 31.3 percent from prior year
    -- Record quarterly earnings per share, up 32.4 percent from
        prior year
    -- Record return on assets of 1.35 percent
    -- Record return on common equity of 20.4 percent
    -- Net interest margin of 5.77 percent, up 48 basis points from
        prior year
                  (In millions, except per share amounts)
                                         First Quarter
                                                    1992
                                        1993    Percent Change (A)
    Net Income                         $150.2       31.3
    Net Income Per Common Share          0.98       32.4
    Return on Common Equity (percent)    20.4       22.4
    Return on Assets (percent)           1.35       23.9
    Net Interest Margin (percent)        5.77        9.1
    Non-Performing Assets              $320.1      (23.6)
    (A) Comparisons are before the reduction of first quarter 1992 net income for the cumulative effect of a 1992 change in accounting for postretirement medical benefits.
    MINNEAPOLIS, April 15 /PRNewswire/ -- Norwest Corporation (NYSE: NOB) today reported record net income of $150.2 million for the quarter ended March 31, 1993, a 31.3 percent increase over the $114.4 million earned in the first quarter of 1992.  Net income per common share was a record 98 cents, compared with 74 cents in the first quarter of 1992, an increase of 32.4 percent.  Return on common equity was a record 20.4 percent and return on assets was a record 1.35 percent for the first quarter of 1993, compared with 16.7 percent and 1.09 percent, respectively, in the first quarter of 1992.
    The first quarter 1992 results discussed above, for comparative purposes, do not include a one-time special charge in 1992 of $76.0 million, 52 cents per common share, related to Norwest's early adoption of Statement of Financial Accounting Standards No. 106, Employer's Accounting for Postretirement Benefits Other Than Pensions (FAS-106).  The first quarter 1992 results have also been restated to include Lincoln Financial Corporation, acquired on Feb. 9, 1993.
    "All business units continued to perform extremely well in the first quarter of 1993, keeping Norwest 'on course' towards continued record earnings and earnings per common share," said Richard M. Kovacevich, Norwest's president and chief executive officer.  "Norwest Financial achieved exceptionally strong results with earnings up 31.9 percent over the first quarter of 1992.  The Banking Group also posted strong results with earnings up 45.5 percent over 1992's first quarter, as Iowa, Nebraska, Greater Minnesota/La Crosse, South Dakota, and Montana/Wyoming realized return on assets in excess of 1.30 percent.  Although our aggregate loan balances increased 20.0 percent over the first quarter of 1992, we have only recently begun to see growth in commercial loan balances.
    "Mortgage banking earnings of $10.5 million were adversely affected due to lower volume early in the year and the fact that all servicing originated was retained.  Volume increased significantly in the latter half of the quarter which should result in higher mortgage banking profits for the remainder of the year.  Mortgage originations were $5.1 billion in the quarter, up from $4.1 billion in the first quarter of 1992.  During the first quarter of 1993 Norwest's servicing portfolio increased $4.2 billion to $25.8 billion.  Also, at March 31, 1993 the pipeline of in-process mortgages was $6.1 billion, a 91.9 percent increase over Dec. 31, 1992.
    "We continued to strengthen our financial position through the issuance of $650 million of long-term debt, $200 million of which qualifies as Tier II risk-based capital.  We also elected to recognize $31.7 million of charges during the quarter, including $14.2 million for excess facilities and an increase of approximately $11.6 million for pension and postretirement medical expenses resulting from a reduction in the plans' long-term earnings rate and discount rate assumptions.
    "For the ninth consecutive quarter, non-performing assets decreased.  They amounted to $320.1 million at March 31, 1993, or 1.32 percent of loans, leases and other real estate owned, a $5.0 million decrease from year-end and a $98.9 million decrease from the first quarter of 1992.  The allowance for credit losses increased to $744.3 million, which was 310.1 percent of non-performing loans at March 31, 1993."
    Norwest's net interest margin was 5.77 percent for the first quarter of 1993, compared with 5.29 percent in the first quarter of 1992 and 5.70 percent in the fourth quarter of 1992.  Average loans, leases, student and mortgage loans held for sale increased 18.8 percent over the first quarter of 1992 primarily due to higher mortgage origination volume and the purchase of $2.8 billion of RTC residential real estate loan participations.
    Consolidated tax-equivalent net interest income in the first quarter of 1993 was $587.6 million, compared with $501.0 million in the first quarter of 1992, an increase of 17.3 percent, and 2.1 percent above the $575.4 million earned in the fourth quarter of 1992.  The increase from the first quarter of 1992 is largely due to a 7.9 percent increase in average earning assets and a 48 basis point increase in net interest margin.
    Norwest provided $37.2 million for credit losses in the first quarter of 1993, or 0.63 percent of average loans and leases.  This compares with $63.6 million, or 1.20 percent, in the same period a year ago and $112.2 million, or 1.95 percent, in the fourth quarter of 1992. Net credit losses totaled $37.4 million, compared with $49.7 million in the first quarter of 1992 and $64.2 million in the fourth quarter of 1992.  As a percent of average loans and leases, net credit losses were 0.63 percent in the first quarter of 1993, compared with 0.94 percent in the same period a year ago and 1.12 percent in the fourth quarter of 1992.
    Non-interest income increased 22.2 percent over the first quarter of 1992, primarily due to increased mortgage banking revenues, trust fees, gains on investment securities available for sale and trading account gains.  Excluding 1992 gains on sale of investment securities and 1993 gains on sale of investment securities available for sale, non-interest income increased 16.3 percent.  Non-interest expenses are up 17.6 percent over last year, primarily due to increased salaries and benefits, at both Norwest Mortgage to support the large origination and servicing increases, and at Norwest Financial due to its fourth quarter 1992 acquisition of Trans-Canada Credit Corporation, LTD (Trans-Canada), and due to the $31.7 million of charges recognized in the quarter, as discussed previously.
    The Banking Group reported record earnings of $96.3 million in the first quarter of 1993, 45.5 percent above the first quarter 1992 earnings of $66.2 million.  The increase in Banking Group earnings from first quarter of 1992 is due to an 11.0 percent growth in net interest income and a 70.6 percent decrease in the provision for credit losses, partially offset by an 11.3 percent increase in non-interest expenses. Norwest Venture Capital had a net unrealized appreciation in its investment portfolio of $105.9 million at March 31, 1993.
    Mortgage banking operations earned $10.5 million in the quarter, compared with $15.3 million in the first quarter of 1992 and $9.4 million in the fourth quarter of 1992.  Servicing increased to $25.8 billion at the end of the quarter, an increase of $4.0 billion in the quarter and $15.1 billion from last year.  Originations amounted to $5.1 billion during the quarter, a 23.8 percent increase over last year.
    "Norwest Financial reported strong earnings growth in the first quarter of 1993," said Richard Brinkman, chairman and chief executive officer of Norwest Financial.  "Earnings increased 31.9 percent in first quarter 1993 to $43.4 million, net interest income increased 27.0 percent and average finance receivables grew 17.5 percent.  Net interest margin grew 111 basis points, reflecting lower short-term rates and the benefits from refinancing long-term debt at lower interest rates.  We are especially encouraged that our provision for credit losses was essentially flat and was 2.62 percent of average loans and leases, down from 3.00 percent in the first quarter of 1992.  During the quarter we continued to expand our franchise with the opening of four new stores which is on target for our objective of opening 55 stores for 1993.  In addition, the transition of our Trans-Canada acquisition continues to be ahead of schedule."
    Norwest Corporation is a $45.5 billion company providing banking, insurance, investments and other financial services through 2,065 offices in all 50 states, all 10 Canadian provinces and internationally.
                  NORWEST CORPORATION AND SUBSIDIARIES
                     SUMMARY FINANCIAL INFORMATION
                (In millions, except per share amounts)
                                                 Quarter Ended March 31
    Income Summary                                   1993       1992
    Net interest income                            $580.1     $490.9
    Provision for credit losses                      37.2       63.6
    Non-interest income                             338.0      276.7
    Non-interest expenses                           653.7      555.8
    Income before income taxes                      227.2      148.2
    Income tax expense                               77.0       33.8
    Net income (a)                                 $150.2     $114.4
    Net income per common share: (a)
      Primary                                       $0.98      $0.74
      Fully diluted                                  0.96       0.72
    Performance (in percents): (a)
      Return on assets                               1.35       1.09
      Return on common equity                        20.4       16.7
      Net interest margin                            5.77       5.29
    Organizational Earnings
    Banking                                         $96.3      $66.2
    Mortgage banking                                 10.5       15.3
    Norwest Financial Services, Inc.
      and subsidiaries                               43.4       32.9
    Consolidated net income (a)                    $150.2     $114.4
    Credit Quality
    Provision for credit losses                     $37.2      $63.6
     Percent of avg. loans & leases (b)              0.63       1.20
    Net credit losses                               $37.4      $49.7
     Percent of avg. loans & leases (b)              0.63       0.94
    Non-accrual and restructured loans             $240.1     $319.1
    Other real estate owned (OREO)                   80.0       99.9
    Total non-performing assets                    $320.1     $419.0
     Percent of loans & leases & OREO                1.32       1.97
    Loans past-due 90 days or more (c)              $50.3      $77.2
    Allowance for credit losses                     744.3      682.2
     Percent of loans & leases                       3.08       3.22
     Percent of non-performing loans               310.06     213.76
                                                Average Balances for the
                                  At March 31     Quarter Ended March 31
    Balance Sheet Data          1993       1992       1993        1992
    Loans, leases, student
     loans and mortgages
     held for sale (d)       $29,310.6  $24,424.1    $28,784      24,232
    Investment securities        925.2   13,859.8        943      12,924
    Investment securities
     available for sale       10,850.3          -     10,601           -
    Earning assets            41,762.3   39,384.2     40,908      37,903
    Assets                    45,517.4   43,623.5     44,979      42,079
    Deposits                  27,392.6   28,088.7     27,895      27,721
    Stockholders' equity       3,257.2    2,974.1      3,194       2,939
    Leverage ratio (in percents)  6.87       6.63          -           -
    Tier 1 capital (in percents) 10.48      10.11          -           -
    Tier 1 and Tier 2
     capital (in percents)       13.86      13.65          -           -
    Stockholders' equity per
     common share               $20.05     $18.25          -           -
    (a)  1992 presented before cumulative effect for years ended prior to Dec. 31, 1992 of a change in accounting for postretirement medical benefits.
    (b)  Based on annualized amounts
    (c)  Excluding non-accruals and restructured loans
    (d)  Net of unearned discount
                  NORWEST CORPORATION AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF INCOME
                (In millions, except per share amounts)
                                              Quarter Ended March 31
                                            1993                   1992
    INTEREST INCOME
    Loans and leases                      $611.5                 $584.2
    Investment securities                   17.6                  257.2
    Investment securities
     available for sale                    193.0                      -
    Student loans available for sale        20.6                      -
    Mortgages held for sale                 67.4                   59.9
    Money market investments                 2.8                    5.3
    Trading account securities               3.0                    5.5
       Total interest income               915.9                  912.1
    INTEREST EXPENSE
    Deposits                               190.7                  268.3
    Short-term borrowings                   64.7                   76.0
    Long-term debt                          80.4                   76.9
       Total interest expense              335.8                  421.2
       Net interest income                 580.1                  490.9
    Provision for credit losses             37.2                   63.6
       Net interest income after
        provision for credit losses        542.9                  427.3
    NON-INTEREST INCOME
    Trust                                   46.2                   41.8
    Service charges on deposit accounts     45.7                   41.4
    Mortgage banking                        77.8                   68.2
    Data processing                         15.9                   16.6
    Credit card                             28.5                   37.2
    Insurance                               39.3                   38.6
    Other fees and service charges          37.0                   37.2
    Net investment securities gains            -                    5.7
    Net venture capital gains                5.7                    5.1
    Net investment securities
      available for sale gains              22.8                      -
    Other                                   19.1                  (15.1)
       Total non-interest income           338.0                  276.7
    NON-INTEREST EXPENSES
    Salaries and benefits                  319.6                  269.3
    Net occupancy                           42.5                   39.1
    Equipment rentals, depreciation
     and maintenance                        42.3                   37.1
    Business development                    29.8                   22.8
    Communication                           35.3                   32.7
    Data Processing                         25.4                   22.5
    FDIC assessment and regulatory
     examination fees                       17.7                   17.4
    Intangible asset amortization           11.9                   16.2
    Other                                  129.2                   98.7
       Total non-interest expenses         653.7                  555.8
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Date:Apr 15, 1993
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