Printer Friendly

PNC FINANCIAL, MERCANTILE BANKSHARES LEAD FITCH CAPITAL RANKING -- FITCH FINANCIAL WIRE --

 NEW YORK, April 2 /PRNewswire/ -- Pittsburgh-based PNC Bank Corp. had the strongest residual tangible equity ratio among the 50 largest U.S. banking companies as of Sept. 30, 1992, according to a Fitch report being published Monday. Baltimore's Mercantile Bankshares Corp. posted the highest ratio for the next 50 largest banking companies.
 Fitch's report, "U.S. Banks Boost Capital and Reserves," compares various measures of loan loss reserves and analyzes the equity impact of sustained chargeoffs similar to those of the past two years to arrive at the "residual tangible equity ratio." PNC's ratio was 7.78 percent. Other leaders in the measure among large banking companies were First Bank System, Inc., Wachovia Corp., National City Corp., and Banc One Corp. Leaders among the next 50 largest included Marshall & Ilsley Corp., Fifth Third Bancorp, Dauphin Deposit Corp., and Fourth Financial Corp.
 According to Fitch's model, the average residual tangible equity ratio for the 100 largest U.S. commercial banking companies rose 91 basis points to 6.01 percent during the 12 months ended Sept. 30, 1992. This increase resulted from an overall improvement in the U.S. economy and stronger bank earnings due to favorable interest rates and reduced nonperforming assets (NPAs), as well as bankers' efforts to boost capital and reserve levels.
 Reserve adequacy among U.S. banks also improved during the period, thanks to larger-than-normal loan loss provisions, which banks could afford to take due to stronger margins. Many companies' capital ratios rose to all-time highs, pushed by a renewed regulatory emphasis on strong capital as a prerequisite for participation in the ongoing industry consolidation which fostered higher earnings retention and a myriad of equity offerings.
 Although PNC and Mercantile topped the Fitch study, various companies ranked first in measures of reserve and capital adequacy, indicating higher degrees of risk aversion, lower historical chargeoffs, or lower absolute levels of NPAs. Companies that scored consistently well by all measures tended to be among the nation's highly rated banks.
 Fitch's assessment of a bank's overall asset quality takes into consideration not only the stability and magnitude of the bank's performance ratios but also credit-specific data not available to the general public, as well as qualitative assessments of a bank's underwriting standards and the capabilities of its loan officers and senior management.
 -0- 4/2/93
 /CONTACT: Christopher M. Siedman, 212-908-0524, of Fitch/
 (PNC MRBK)


CO: PNC Bank Corp.; Mercantile Bankshares Corp. ST: Pennsylvania, Maryland IN: FIN SU: ECO

LR -- NY061 -- 2592 04/02/93 14:49 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 2, 1993
Words:417
Previous Article:CARROLL PUBLISHING RELEASES FIRST-EVER GUIDE TO RUSSIAN LEADERSHIP
Next Article:PENN TRAFFIC ANNOUNCES INCREASE IN SIZE OF PUBLIC OFFERING OF SENIOR SUBORDINATED NOTES DUE 2005
Topics:


Related Articles
REINSURERS TOP $100 BILLION AS DEMAND CONTINUES TO GROW, FITCH SAYS -- FITCH FINANCIAL WIRE --
FITCH CHANGES PNC FINANCIAL, LEAD BANKS CREDIT TRENDS TO STABLE -- FITCH FINANCIAL WIRE --
FIRST BANK SYSTEM 'A' SENIOR DEBT AFFIRMED AFTER MERGER ANNOUNCEMENT -- FITCH FINANCIAL WIRE --
DOMINION BANKSHARES SENIOR DEBT RATING RAISED BY FITCH, TO BE WITHDRAWN -- FITCH FINANCIAL WIRE --
MERCANTILE, NORDSTROM, SEARS LEAD IN FINANCIAL STRENGTH, FITCH SAYS -- FITCH FINANCIAL WIRE --
Firstar, Mercantile Bancorp Affirmed After Proposed Acquisition - Fitch IBCA -.
The PNC Financial Services Group to Acquire Mercantile.
Mercantile Bankshares Corporation Cancels 3rd Quarter 2006 Earnings Conference Call.
Summary: Merger Approved by Mercantile Bankshares Corporation Shareholders.
The PNC Financial Services Group Completes Acquisition of Mercantile Bankshares Corporation.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters