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NATIONSBANK CORPORATION ANNOUNCES SECOND QUARTER EARNINGS

 CHARLOTTE, N.C., July 20 /PRNewswire/ -- NationsBank Corporation (NYSE: NB) today reported second quarter 1993 net income of $306 million, or $1.20 per common share, up 22 percent from $251 million, or $1.00 per common share, in the second quarter of 1992. For the first six months of 1993, net income was $787 million, or $3.09 per common share, which included a first quarter tax benefit of $200 million related to adoption of a new accounting standard. This compared to net income of $561 million, or $2.28 per common share, in the first half of 1992. Pretax operating income before securities gains for the first half of 1993 rose 80 percent to $856 million from $475 million in the first half of last year.
 "We were pleased that, despite a still less than robust economic recovery, our company experienced further improvement in operating performance in the second quarter, which was reflected in our strong financial results," said Hugh McColl, chairman and chief executive officer. "This positive operating momentum was aided during the quarter by accelerating loan growth and strengthening credit quality. In particular, period-end loan balances grew at an annualized double-digit rate, while nonperforming assets declined by more than $200 million."
 Total shareholders' equity grew 15 percent from prior-year levels to $8.5 billion at June 30, 1993, and stood at 6.83 percent of total assets. Book value per common share rose 14 percent over the preceding twelve months to $33.14 at June 30, 1993. Tier 1 and total risk-based capital ratios of 7.63 percent and 11.75 percent, respectively, and a leverage ratio of 6.34 percent all compared favorably with regulatory guidelines at June 30, 1993. Return on common shareholders' equity was 14.65 percent in the second quarter. Excluding the $200-million tax benefit in the first quarter of this year, return on common shareholders' equity was 14.48 percent for the first half of 1993.
 Taxable-equivalent net interest income in the second quarter rose 11 percent, to $1.13 billion, compared to the same quarter in 1992. Contributing to this growth were a wider net interest margin, 4.17 percent versus 4.11 percent, and a 9-percent increase in average earning assets to $108.9 billion.
 Quarterly average loans and leases grew to $75.3 billion, up 13 percent from second quarter 1992 levels. Loan growth was exceptionally strong during the second quarter itself, as balances expanded by $2.8 billion, or at a 16-percent annualized rate, between March e? 30, 1993.
 Noninterest income of $481 million in the second quarter of 1993 was 3-percent higher than in the year-ago quarter. After adjusting for acquisitions and divestitures, noninterest income rose approximately 8 percent on a year-over-year basis. Trust and investment banking fees were key contributors to this growth.
 Noninterest expense of $1.02 billion in this year's second quarter was up 5 percent compared to the second quarter of 1992. Excluding the purchased Chrysler First operations, noninterest expense rose less than 2 percent on a year-over-year basis despite continued spending on systems consolidation projects aimed at improving operating efficiency and customer service.
 Credit quality continued to strengthen in the second quarter, as evidenced by several different indicators. Total nonperforming assets stood at $1.68 billion at June 30, 1993, or 2.14 percent of net loans, leases, and factored receivables, and other real estate owned. This represented an $841 million, or 33 percent, decline from year-earlier levels and included a $242 million, or 13 percent, drop since March 31, 1993.
 Net charge-offs in the second quarter of $93 million, or .49 percent of average loans, leases and factored receivables, represented a significant drop from $141 million, or .84 percent of average levels, in the year-ago quarter. The allowance for credit losses was $1.58 billion at June 30, 1993, or 2.02 percent of net loans, leases and factored receivables. The allowance represented 139 percent of nonperforming loans at June 30, 1993, up from 117 percent at March 31, 1993, and 95 percent at June 30, 1992.
 Reflective of positive credit quality trends, the provision for credit losses declined to $110 million in the second quarter of 1993 from $150 million in the second quarter of 1992. Other real estate owned expense also fell, from $50 million in last year's second quarter to $21 million in the most recent quarter.
 NationsBank Corporation is the fifth largest banking company in the U.S. with total assets of $124 billion and 1,722 banking centers in nine states and the District of Columbia.
 NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS
 THREE MONTHS SIX MONTHS
 ENDED JUNE 30 ENDED JUNE 30
 1993 1992 1993 1992
 FINANCIAL SUMMARY
 (In millions except per-share data)
 Income before effect of change in
 method of accounting for
 income taxes $306 $251 $587 $561
 Net income 306 251 787 561
 Earnings per common share before
 effect of change in method of
 accounting for income taxes 1.20 1.00 2.30 2.28
 Earnings per common share 1.20 1.00 3.09 2.28
 Fully diluted earnings per common
 share before effect of change in
 method of accounting for
 income taxes 1.19 .98 2.28 2.22
 Fully diluted earnings
 per common share 1.19 .98 3.05 2.22
 Average common shares issued 254.002 242.788 253.673 239.330
 Average fully diluted common
 shares issued 257.807 254.355 257.831 250.951
 Price per share of common
 stock at period end $49 5/8 $47 5/8 $49 5/8 $47 5/8
 Common dividends paid 102 90 203 179
 Common dividends paid per share .40 .37 .80 .74
 Preferred dividends paid 2 7 4 15
 EARNINGS SUMMARY (Taxable-equivalent in millions)
 Net interest income $1131 $1021 $2229 $2033
 Provision for credit losses (110) (150) (230) (415)
 Gains on sales of securities 22 12 34 216
 Noninterest income 481 467 962 938
 Other real estate owned expense (21) (50) (45) (111)
 Noninterest expense (1019) (968) (2017) (1922)
 Income before income taxes and
 effect of change in method
 of accounting for income taxes 484 332 933 739
 Income taxes - including
 FTE adjustment(A) (178) (81) (346) (178)
 Income before effect of change in
 method of accounting for
 income taxes 306 251 587 561
 Effect of change in method of
 accounting for income taxes --- --- 200 ---
 Net income $306 $251 $787 $561
 (A) FTE adjustment $20 $23 $43 $48
 AVERAGE BALANCE SHEET SUMMARY (In billions)
 Loans and leases, net $75.321 $66.803 $74.418 $67.319
 Securities held for investment 24.848 19.261 24.420 21.807
 Securities held for sale .052 2.344 .263 1.172
 Total securities 24.900 21.605 24.683 22.979
 Earning assets 108.881 99.533 107.780 101.953
 Total assets 122.810 111.416 121.599 114.252
 Noninterest-bearing deposits 16.352 14.638 16.285 14.746
 Interest-bearing deposits 64.912 67.888 65.256 69.214
 Total deposits 81.264 82.526 81.541 83.960
 Shareholders' equity 8.344 7.170 8.138 6.984
 Common shareholders' equity 8.324 6.905 8.118 6.719
 OTHER FINANCIAL DATA
 Net interest yield 4.17pct. 4.11pct. 4.16pct. 4.00pct.
 Return on average assets before
 effect of change in method of
 accounting for income taxes 1.00 .91 .97 .99
 Return on avg. assets 1.00 .91 1.31 .99
 Return on average common
 shareholders' equity before effect
 of change in method of accounting
 for income taxes 14.65 14.21 14.48 16.34
 Return on average common
 shareholders' equity 14.65 14.21 19.45 16.34
 Gross charge-offs (in millions) $135 $183 $268 $442
 Net charge-offs (in millions) 93 141 177 355
 Pct. of average loans, leases and
 factored accounts receivable, net .49pct. .84pct. .47pct. 1.05pct.
 JUNE 30
 1993 1992
 BALANCE SHEET SUMMARY (In billions)
 Loans, leases and factored
 accounts receivable, net $78.187 $68.412
 Securities held for investment 22.659 21.300
 Securities held for sale 1.703 2.924
 Total securities 24.362 24.224
 Earning assets 110.724 98.336
 Total intangibles .975 1.027
 Total assets 123.784 110.678
 Noninterest-bearing deposits 16.598 16.166
 Interest-bearing deposits 63.430 66.352
 Total deposits 80.028 82.518
 Shareholders' equity 8.459 7.339
 Common shareholders' equity 8.435 7.070
 Per common share (not in billions) 33.14 28.97
 RISK-BASED CAPITAL
 Tier 1 capital $7.638 $6.669
 Tier 1 capital ratio 7.63pct. 7.46pct.
 Total capital $11.755 $10.223
 Total capital ratio 11.75pct. 11.43pct.
 Leverage ratio 6.34pct. 6.08pct.
 Common shares issued(in millions) 254.516 244.004
 Allowance for credit losses $1.583 $1.665
 Allowance as pct. of net loans, leases,
 and factored accounts receivable 2.02pct. 2.43pct.
 Allowance for credit losses
 as pct. of nonperforming loans 139.18pct. 94.76pct.
 Nonperforming loans $1.138 $1.757
 Nonperforming assets $1.682 $2.523
 Nonperforming assets as pct. of:
 Total assets 1.36pct. 2.28pct.
 Net loans, leases, factored accounts
 receivable and other real estate owned 2.14pct. 3.65pct.
 Full-time equivalent headcount 51,149 55,342
 Banking centers 1,722 1,826
 -0- 7/20/93
 /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 -- 6545 07/20/93 08:19 EDT
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Date:Jul 20, 1993
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