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PAINEWEBBER GROUP REPORTS FIRST QUARTER RESULTS; EARNINGS INCREASE 135 PERCENT; FIFTH CONSECUTIVE QUARTERLY INCREASE IN PROFITS

PAINEWEBBER GROUP REPORTS FIRST QUARTER RESULTS; EARNINGS INCREASE
 135 PERCENT; FIFTH CONSECUTIVE QUARTERLY INCREASE IN PROFITS
 NEW YORK, April 14 /PRNewswire/ -- PaineWebber Group, Inc. (NYSE: PWJ) today reported record results for 1992 first quarter -- posting a 135 percent gain over the year ago period. It was the fifth consecutive quarter in which PaineWebber's results exceeded those of the previous quarter. This quarter is the best single quarter in PaineWebber's 113-year history and the first in which pretax income exceeded $100 million.
 For the quarter ended March 31, 1992, PaineWebber reported that:
 -- Net earnings were $74,325,000 or $1.53 per share ($1.20 fully diluted), compared to net earnings of $31,606,000 or 68 cents per share (55 cents fully diluted) for the quarter ended March 31, 1991.
 -- Revenues, including net interest, increased 39 percent to a record $658,729,000, compared to revenues of $474,816,000 for the first quarter of last year.
 -- Revenues, including net interest, increased 39 percent to a record $658,729,000, compared to revenues of $474,816,000 for the first quarter of last year.
 -- Compared to 1991's first quarter, revenues from
 - commissions increased 28 percent
 - principal transactions increased 34 percent.
 - investment banking increased 117 percent
 - asset management increased 30 percent
 Donald B. Marron, PaineWebber's chairman and chief executive officer, said, "The momentum of the past year has continued into 1992 with significant improvements across all business areas in a favorable market. During the first quarter of 1992, the firm was able to leverage its infrastructure and control its costs which resulted in an increase in return on common equity from 18.2 percent from 1991's first quarter to 36.5 percent.
 Marron noted that in the 1992 first quarter:
 -- Each of PaineWebber's core businesses -- Retail Sales and Marketing, Capital Markets, Asset Management and Investment Banking -- posted significant improvements over the prior year period.
 -- PaineWebber's Retail Sales & Marketing business once again posted record results. By continuing to add seasoned investment executives and invest in its broker training programs, the retail investment executive salesforce reached 4,870, an increase of 350 over the comparable 1991 period. Assets under control in retail customer accounts grew 19 percent to $95.1 billion in 1992 from $80.2 billion in the comparable quarter of 1991.
 -- Capital Markets posted a record quarter as it continued its focus on client service and risk management. The results were led by fixed income, which benefited from strong mortgage and corporate debt issuance, and institutional equity, which benefited from the active equity markets.
 -- PaineWebber's long term mutual fund assets reached $7.1 billion at March 31, 1992, up 25 percent over 1991's first quarter, and total assets under management were $34.7 billion.
 -- Our Investment Banking businesses managed or co-managed 19 equity offerings raising $1.6 billion for corporate clients and 175 municipal offerings raising $12.0 billion for municipalities, state and institutional clients.
 PaineWebber continued to improve its already strong capital position with total equity capital of approximately $1.04 billion at the end of the quarter. At March 31, 1992, book value per share was approximately $19.29.
 During the first quarter of 12?, the firm repurchased 3.9 million shares of common stock from Yasuda Life Insurance Company and authorized an increase in its common stock repurchase program, At March 31, 1992, approximately 5.0 million shares are available for repurchase under this program.
 "The firm's greatest strength is its national distribution capability and every effort is being made to strengthen that franchise by providing to our clients -- individual and institutional -- an array of quality products in the market," said Marron. "That's our strategy, and it's working."
 PaineWebber Group Inc., with its subsidiaries PaineWebber Incorporated and PaineWebber International, serves the investment and capital need of a worldwide client base. The firm employs approximately 13,150 people in 270 offices worldwide.
 PAINE WEBBER GROUP INC.
 Summary of Operations and Earnings Per Share
 (Unaudited, in thousands except share and per share amounts)
 Quarter ended March 31: 1992 1991(A)
 Revenues:
 Commissions $231,441 $181,081
 Interest 265,079 296,457
 Principal transactions 199,520 149,173
 Investment banking 97,982 45,170
 Asset management 62,847 48,168
 Other 17,452 14,280
 Total revenues 874,321 734,329
 Interest expense 215,592 259,513
 Net revenues 658,729 474,816
 Expenses (excluding interest):
 Employee comp. & related exp. 371,737 276,378
 Office & equipment 47,512 46,224
 Communications 28,193 28,934
 Business development 16,152 13,014
 Professional services 13,841 12,717
 Brokerage, clearing, & exchange fees 18,829 15,756
 Other 47,301 33,169
 Total expenses (excluding interest) 543,565 426,192
 Earnings before taxes 115,164 48,624
 Tax provision 40,839 17,018
 Net earnings $74,325 $31,606
 Preferred stock dividend requirements $5,404 $5,783
 Earnings applicable to common shares $68,921 $25,823
 Earnings per share
 Primary $1.53 $0.68
 Fully diluted $1.20 $0.55
 Weighted average common shares
 Primary 45,001,000 37,719,000
 Fully diluted 63,133,000 59,795,000
 (A) -- Previously reported amounts have been restated to conform to 1992 presentation.
 -0- 4/14/92
 /CONTACT: Beverly T. Spano of PaineWebber, 201-902-6775, or Jeffrey Z. Taufield of Kekst and Company, 212-593-2655, for PaineWebber/
 (PWJ) CO: PaineWebber Group Inc. ST: New York IN: FIN SU: ERN


AH-TS -- NY039 -- 8241 04/14/92 11:44 EDT
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Date:Apr 14, 1992
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