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NORWEST CORPORATION REPORTS RECORD ANNUAL AND QUARTERLY EARNINGS

 NORWEST CORPORATION REPORTS RECORD ANNUAL AND QUARTERLY EARNINGS
 MINNEAPOLIS, Jan. 21 /PRNewswire/ -- Norwest Corporation (NYSE: NOB) today reported record net income of $398.5 million for 1991, compared with net income of $110.6 million earned in 1990, an increase of 260.5 percent. Net income per common share was $2.95 for 1991, compared with 89 cents in 1990, an increase of 231.5 percent. Return on common equity was 18.5 percent and return on assets was a record 1.10 percent for 1991, compared with 6.0 percent and 0.34 percent, respectively, in 1990.
 For the fourth quarter of 1991, net income was a record $108.9 million and net income per common share was a record 78 cents. Return on common equity was 18.3 percent and return on assets was a record 1.16 percent for the fourth quarter of 1991.
 Results for prior periods have been restated to include United Banks of Colorado which was acquired on April 19, 1991. Norwest 1991 results were 42.0 percent over the originally reported 1990 net income of $280.6 million, 8.1 percent over the originally reported 1990 per common share of $2.73, 54.0 percent over the originally reported fourth quarter, 1990 net income of $70.7 million, and 11.4 percent over the originally reported fourth quarter, 1990 per common share of 70 cents.
 Lloyd P. Johnson, Norwest's chairman and chief executive officer, said, "1991 is the fourth consecutive year that we have achieved record earnings, excluding prior period restatements for pooling accounting requirements. Essentially all business units have continued to deliver strong financial results. Norwest Financial and Norwest Mortgage were especially strong and recorded 1991 earnings increases of 16.2 percent and 84.3 percent, respectively. According to the American Banker, a trade publication, Norwest Mortgage, with originations of $13.2 billion, was the largest originator of single family home mortgage loans in the United States in 1991, up from the 5th largest in 1990. United Banks of Colorado performed slightly better than our expectations, with special success achieved in reducing non-performing assets. Net income per common share for 1991 was at a record level despite being reduced by 24 cents for increases in FDIC premium rates and for the issuance of $530 million of preferred and common stock since December of 1990.
 "There were major reductions in non-performing assets during 1991, with a decline of $148.2 million for the year, of which $49.7 million was achieved in the fourth quarter. Benefiting from the reductions in non-performing assets, our allowance for credit losses at Dec. 31, 1991, was 163.6 percent of non-performing assets and 225.6 percent of non- performing loans. This continues to be one of the best ratios in the industry.
 "As of Dec. 31, 1991, our total risk-based capital ratio was 13.80 percent, compared with 11.41 percent a year ago. This is one of the highest ratios among the 25 largest regional bank holding companies.
 "Our merger with Davenport Bank and Trust Company closed on Jan. 19, 1992. The merger will add approximately $1.8 billion of assets to our balance sheet along with five banking locations in Iowa. It will also increase our equity to assets ratio, which was 6.73 percent at Dec. 31, 1991, by approximately 31 basis points to 7.04 percent and will add to Norwest's very strong financial position. Our combined net unrealized investment portfolio gains were in excess of $500 million at year-end."
 Norwest's net interest margin was 5.11 percent during 1991, up 31 basis points from 1990. This increase is primarily due to the issuance of $530 million of preferred and common stock since December of 1990 and lower short-term borrowing costs. Net interest margin continued to improve in the fourth quarter of 1991 and was 5.29 percent, compared with 5.18 percent in the third quarter of 1991. Average loans, leases and mortgages held for sale in 1991 were up 5.4 percent due to higher mortgage origination volume and the acquisitions of First Minnesota Savings Bank in December of 1990 and Wyoming National Bancorporation, Chalfen Bancshares, Inc. and Blackhawk Bancorporation in the first quarter of 1991.
 Consolidated tax-equivalent net interest income for the year and fourth quarter of 1991 was $1,665.1 million and $443.2 million, respectively, compared with $1,413.8 million and $359.2 million in 1990, an increase of 17.8 percent and 23.4 percent, respectively. The full year increase from 1990 is due to a 10.6 percent increase in earning assets and a 31 basis point increase in net interest margin.
 Norwest provided $322.2 million and $60.9 million for credit losses for the year and quarter ended Dec. 31, 1991, compared with $422.2 million and $146.3 million, respectively, in the same periods a year ago. The 1990 annual and fourth quarter amounts include $138 million and $70 million, respectively, of special provisions at United Banks of Colorado. Net credit losses totaled $278.8 million and $64.9 million, compared with $310.4 million and $97.6 million, respectively, for the year and fourth quarter of 1990.
 Non-interest income increased 18.5 percent from 1990, primarily due to increased mortgage banking and credit card revenues. Non-interest income was 37.7 percent of revenues for 1991.
 The Banking Group reported record earnings of $288.1 million in 1991, 693.7 percent above 1990 earnings of $36.3 million. For the fourth quarter of 1991, the Banking Group had net income of $74.9 million, compared with a net loss of $50.4 million in 1990. Included in the full year and fourth quarter of 1990 results are $196 million and $101 million, respectively, of United special provision for credit losses, other real estate owned writedowns, and restructuring expenses. Mortgage banking operations, included in the Banking Group, earned $31.4 million in 1991, compared with $17.0 million in 1990, an increase of 84.3 percent. Mortgage banking increased its loan servicing portfolio by $4.3 billion during 1991, bringing total mortgage loans serviced to $8.6 billion at Dec. 31, 1991. Venture Capital's net unrealized appreciation in its investment port-folio increased $41.1 million during 1991 and was $70.9 million at Dec. 31, 1991. The improved Banking Group earnings over 1990 include a 15.0 percent increase in net interest income that is primarily attributable to increases in earning assets and net interest margin and a 20.4 percent increase in non-interest income.
 Norwest Financial reported record operating earnings for the 17th consecutive year with net income of $123.5 million in 1991, compared with $106.3 million in 1990, an increase of 16.2 percent. Fourth quarter net income of $34.0 million was a 6.3 percent increase over the same 1990 period. Norwest Financial's net interest income has increased 21.2 percent in 1991. This is due to increases in average finance and lease receivables of 13.1 percent to $3.4 billion and a 78 basis point increase in the net interest margin. The improved margin is primarily due to substantially lower short-term borrowing costs.
 Norwest Corporation is a $38.5 billion company providing banking, insurance, investments and other financial services through 1,660 offices in 49 states and internationally.
 NORWEST CORPORATION AND SUBSIDIARIES
 SUMMARY FINANCIAL INFORMATION
 (In millions, except per share amounts)
 Quarter Ended 12 Months Ended
 Dec. 31, Dec. 31,
 Income Summary 1991 1990 1991 1990
 Net interest income $435.4 $349.1 $1,631.5 $1,370.9
 Provision for credit losses 60.9 146.3 322.2 422.2
 Non-interest income 251.0 227.9 988.6 834.7
 Non-interest expenses 498.5 438.0 1,822.8 1,577.9
 Income (loss) before
 income taxes 127.0 (7.3) 475.1 205.5
 Income tax expense 18.1 20.5 76.6 94.9
 Net income (loss) $108.9 $(27.8) $398.5 $110.6
 Net income (loss) per
 common share:
 Primary $0.78 $(0.24) $2.95 $0.89
 Fully diluted $0.77 $(0.24) $2.92 $0.89
 Performance:
 Return on assets (percents) 1.16 NM 1.10 0.34
 Return on common
 equity (percents) 18.30 NM 18.50 6.00
 Net interest margin (percents) 5.29 4.77 5.11 4.80
 Organizational Earnings
 Banking $74.90 $(50.40) $288.10 36.30
 Norwest Financial Services,
 Inc. and subsidiaries 34.00 32.00 123.50 106.30
 Other (consolidating
 adjustments, parent and
 service companies) -- (9.4) (13.1) (32.0)
 Consolidated net income (loss) 108.9 (27.8) 398.5 110.6
 Credit Quality
 Provision for credit losses 60.9 146.3 322.2 422.2
 Percent of avg. loans &
 leases(a) 1.2 3.0 1.6 2.1
 Net Credit Losses 64.9 97.6 278.8 310.4
 Percent of avg. loans &
 leases(a) 1.3 2.0 1.4 1.6
 Non-accrual & restructured
 loans 266.6 371.4
 Other real estate owned (OREO) 101.0 144.4
 Total non-performing assets 367.6 515.8
 Percent of loans & leases
 & OREO 1.84 2.47
 Loans past-due 90 days or
 more(b) 68.0 71.8
 Allowance for credit losses 601.5 539.3
 Percent of loans & leases 3.0 2.6
 Percent of non-performing
 loans 225.6 145.2
 AVERAGE BALANCES
 Quarter Ended Dec. 31
 Balance Sheet Data 1991 1990 1991 1990
 Total loans, leases, and
 mortgages held for sale(c) $22,842.3 $22,625.6 $22,226 $21,143
 Total investment securities 11,225.4 7,912.7 10,711 7,289
 Total earning assets 34,496.1 32,316.2 33,483 30,077
 Total assets $38,501.6 $36,878.2 $37,161 $33,455
 Total deposits 25,438.9 25,335.0 24,472 22,428
 Total stockholders' equity 2,591.2 1,895.7 2,548 1,842
 Tier 1 capital (percents)(d) 9.60 6.43
 Tier 1 and Tier 2
 capital (percents)(d) 13.80 11.41
 Stockholders' equity per
 common share 17.26 14.61
 NM - Not Meaningful
 (a) Based on annualized amounts
 (b) Excluding non-accrual and restructured loans
 (c) Net of unearned discount
 (d) Based on 1992 rules
 NORWEST CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 In millions Except per share amounts
 Quarter Ended 12 Months Ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Interest Income
 Loans and leases $568.6 $591.4 $2,355.0 $2,427.6
 Investment securities 224.7 165.2 821.7 628.4
 Mortgages held for sale 56.2 45.3 192.1 137.8
 Money market investments 5.4 31.9 52.2 110.1
 Trading account securities 3.4 2.9 10.7 9.6
 Total interest income 858.3 836.7 3,431.7 3,313.5
 Interest Expense
 Deposits 268.7 313.0 1,185.8 1,227.7
 Short-term borrowings 73.8 108.4 309.1 453.8
 Long-term debt 80.4 66.2 305.3 261.1
 Total interest expense 422.9 487.6 1,800.2 1,942.6
 Net interest income 435.4 349.1 1,631.5 1,370.9
 Provision for credit losses 60.9 146.3 322.2 422.2
 Net interest income after
 provision for credit losses 374.5 202.8 1,309.3 948.7
 Non-Interest Income
 Trust 32.5 30.0 127.6 117.6
 Service charges on deposit
 accounts 36.9 34.4 145.9 129.4
 Mortgage banking 46.6 33.4 185.2 130.7
 Data processing 15.0 17.6 61.1 62.3
 Credit card 37.2 30.8 147.8 94.6
 Insurance 31.2 34.0 138.3 131.4
 Other fees and service charges 33.0 28.9 128.4 104.8
 Net investment securities
 gains (losses) 8.0 (1.7) 16.6 1.7
 Net venture capital gains
 (losses) (1.4) 5.8 (4.6) 10.3
 Other 12.0 14.7 42.3 51.9
 Total non-interest income 251.0 227.9 988.6 834.7
 Non-Interest Expenses
 Salaries and benefits 234.2 192.9 891.9 755.1
 Net occupancy 40.2 34.1 147.0 130.1
 Equipment rentals, depreciation
 and maintenance 35.7 34.3 134.5 124.1
 Business development 25.9 20.3 86.5 72.9
 Communication 31.6 26.0 116.1 95.6
 Data Processing 15.0 19.7 79.1 77.5
 FDIC assessment and regulatory
 examination fees 15.1 7.4 55.8 29.4
 Intangible asset amortization 15.5 8.7 60.5 30.5
 Other 85.3 94.6 251.4 262.7
 Total non-interest expenses 498.5 438.0 1,822.8 1,577.9
 Income (loss) before income taxes 127.0 (7.3) 475.1 205.5
 Income tax expense 18.1 20.5 76.6 94.9
 Net income (loss) $108.9 $(27.8) $398.5 $110.6
 Average common and common
 equivalent shares 130.9 119.8 128.8 121.5
 Net income (loss) per common share
 Primary $0.78 $(0.24) $2.95 $0.89
 Fully diluted $0.77 $(0.24) $2.92 $0.89
 Dividends declared $0.250 $0.230 $0.940 $0.845
 -0- 1/21/92
 /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 -- 1630 01/21/92 08:12 EST
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