COLUMBUS, Ohio, April 21 /PRNewswire/ -- BANC ONE CORPORATION (NYSE: ONE),
announced first quarter 1998 earnings of $517.6 million, or $.79 per share,
both up a significant 36 percent from $381.9 million and $.58 per share in the
first quarter of 1997. Exceptional growth in net income was fueled primarily
by positive revenue growth across all lines of business. In addition,
targeted loans grew a solid 12 percent on an annualized basis since the 1997
fourth quarter.
Return on average common equity increased to 20.8 percent from
18.9 percent in the fourth quarter 1997 with the return on average assets
increasing to 1.84 percent from 1.67 percent. Both return on average common
equity and return on average assets represented the highest levels in BANC
ONE's history. In addition, the managed net interest margin widened by
27 basis points to 6.54 percent.
John B. McCoy, Chairman and Chief Executive Officer of BANC ONE
CORPORATION, said, "We are extremely pleased with all aspects of our broad-
based earnings performance for the first quarter. Results provide us with a
solid start for the remainder of 1998. In addition, we expect to continue to
generate a 13-15 percent increase in annual net income together with First
Chicago NBD."
During the first quarter 1998, First USA continued its excellent
performance and opened approximately 2 million new accounts. At the end of
the first quarter, managed credit card assets totaled $39.6 billion and
cardmembers totaled 40.1 million.
In portfolios where loan growth is being emphasized, first quarter managed
credit card receivables climbed 15 percent, consumer loans were up 15 percent,
and commercial loans grew 9 percent over the year-ago quarter.
First quarter net interest income on a managed basis totaled
$2.144 billion, up 12 percent from the prior-year quarter. This again
reflected the positive impact of managed loan growth and the widened net
interest margin.
Managed non-interest income totaled $785 million, up a strong 32 percent
from the prior year quarter. Significant increases were posted in a number of
fee-based businesses including a 72 percent increase in loan servicing income,
a 45 percent increase in securities brokerage fees, a 16 percent increase in
investment management and advisory activities, and an 11 percent increase in
both service charges on deposit accounts and investment banking income.
Net charge-offs during the 1998 first quarter totaled $224 million and
represented 1.09 percent of average loans, down from $290 million and
1.38 percent in the 1997 fourth quarter. Reflecting typical first quarter
seasonality, net charge-offs on managed credit card loans increased to
5.98 percent during the 1998 first quarter from 5.37 percent in the 1997
fourth quarter.
BANC ONE has a pending affiliation with First Commerce Corporation,
headquartered in New Orleans, Louisiana, which is expected to be completed
during the second quarter of 1998.
BANC ONE's pending merger with First Chicago NBD, headquartered in
Chicago, Illinois, is expected to be completed during the fourth quarter of
1998.
BANC ONE CORPORATION had managed total assets of $146.7 billion, total
assets of $116.3 billion, and common equity of $10.4 billion at March 31,
1998. BANC ONE operates over 1,300 banking centers in 12 states. BANC ONE
also owns several additional corporations that engage in a full range of
financial services. Information about BANC ONE's financial results and its
products and services can be accessed on the Internet at:
http://www.bankone.com; through InvestQuest at:
http://www.investquest.com; or through Fax-on-demand at: 614-844-3860.
SOURCE Banc One Corporation
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Related links:
http://www.bankone.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 084675
CONTACT:
Jay S. Gould, 614-248-0189, or John A.
Russell, 614-248-5989, both of Banc One
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