COLUMBUS, Ohio, July 21 /PRNewswire/ -- BANC ONE CORPORATION (NYSE: ONE),
Columbus, Ohio, announced second quarter 1998 earnings of $614.6 million and
earnings per share of $0.86, up 63% and 62%, respectively over second quarter
1997, excluding acquisition and strategic initiative-related charges in the
current and prior-year quarters. On this same basis, first half-year net
income was $1,163.0 million and earnings per share were $1.63, up 48% and 46%,
respectively from the same year-ago period.
Return on average common equity increased to 21.8% from 14.1% a year-
ago with the return on average assets increasing to 1.99% from 1.25% on
this same basis. Both ratios represented the highest levels in BANC ONE's
history. In addition, the 1998 second quarter managed net interest margin
widened by 22 basis points to 6.33%.
Reported net income in the 1998 second quarter was $487.3 million
($0.68 per share) compared with prior-year quarter results of $48.7 million
($0.06 per share). For the first six months of 1998, reported earnings were
$1,035.7 million ($1.45 per share), up from $459.6 million ($0.65 per share)
for the same year-ago period.
Growth in net income was fueled primarily by positive revenue growth
across all lines of business. In addition, current quarter average managed
targeted loans were up 12% from the year-ago quarter.
John B. McCoy, Chairman and Chief Executive Officer of BANC ONE
CORPORATION, said, "Return on assets and equity reached record levels during
the quarter which is a positive indication of the strength of our core
businesses. Underlying revenue growth was strong reflecting very good growth
in targeted loans, a higher net interest margin and strong fee income
increases. In addition, we made great progress in planning a smooth
transition with the pending merger between BANC ONE and First Chicago NBD
Corporation, as well as in combining First Commerce Corporation into BANC
ONE."
On June 12, 1998, BANC ONE completed it acquisition of First Commerce
Corporation. As a result, prior period results have been restated as this
transaction was accounted for on a pooling of interests basis. This
acquisition makes BANC ONE the largest banking company in Louisiana.
During the 1998 second quarter, First USA continued its strong performance
and again opened over two million new accounts, the fifth consecutive quarter.
At the end of the quarter, managed credit card assets totaled $41.6 billion
and cardmembers totaled 43.0 million.
In portfolios where loan growth is being emphasized, managed credit
card receivables climbed 14% with consumer loans increasing 13% and
commercial loans up 8% from the year-ago quarter.
Second quarter net interest income on a managed basis totaled
$2.2 billion, up 9% 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 $965.7 million in the 1998, up
$334.5 million or 53% from the year-ago period. The current quarter
included positive results from the retail delivery initiative announced
last year as well as a gain from the sale of mortgage servicing rights.
Excluding these items, managed non-interest income was up $148.9 million or
24% from the 1997 second quarter with significant increases posted in a number
of fee-based business including a 14% increase in loan servicing income, a 27%
increase in securities brokerage fees, a 16% increase in investment management
and advisory activities, and a 31% increase in investment banking fees.
Credit quality remained strong with improvements in credit card. Net
charge-offs during the 1998 second quarter totaled $236 million and
represented 1.07% of average loans, essentially flat with 1998 first quarter
levels. Net charge-offs on managed credit card loans decreased to 5.84% in
the current quarter from 5.96% in the 1998 first quarter.
BANC ONE's pending merger with First Chicago NBD, headquartered in
Chicago, is expected to be completed later this year.
BANC ONE CORPORATION had managed total assets of $159.0 billion, total
assets of $124.0 billion, and common equity of $11.6 billion at June 30, 1998.
BANC ONE operates over 1,500 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
 back to top
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, Holly Hobson,
614-248-1280, or John A. Russell, 614-248-5989, all of Banc One
|
