COLUMBUS, Ohio, Jan. 20 /PRNewswire/ -- BANC ONE CORPORATION (NYSE: ONE),
reported record 1997 fourth quarter earnings of $474.8 million, or $0.79 per
share, and full-year 1997 earnings of $1.306 billion or $2.19 per share.
Excluding second quarter First USA acquisition and strategic initiative
charges, and related quarterly securitization gain accounting adjustments,
fourth quarter earnings were $503.8 million, or $0.84 per share, both up
14 percent over the year-ago quarter, with record full-year results of
$1.811 billion or $3.04 per share, up 8 percent and 10 percent, respectively,
over 1996.
During 1997, First USA opened a record 8.1 million new accounts including
a new record of 2.4 million accounts in the fourth quarter. At year-end 1997,
managed credit card assets totaled $40.8 billion, up $6.0 billion or
17 percent from the end of 1996. Cardmembers totaled 40.5 million at year-
end, up 12 percent from the end of 1996.
John B. McCoy, Chairman and Chief Executive Officer of BANC ONE
CORPORATION, said, "We are extremely pleased with our earnings performance for
the fourth quarter and the year. Our credit card operations posted their
third consecutive quarter of record new accounts while the managed credit card
net charge off ratio declined and other credit quality measures remained
steady. We essentially completed our Project One reengineering efforts and we
are starting to realize the rewards of that effort now. In addition, with
fourth quarter earnings up significantly from third quarter levels, we expect
that our earnings momentum will continue to build through 1998."
In portfolios where loan growth is being emphasized, credit card
receivables were up 20 percent, consumer loans up 16 percent, and commercial
loans up 7 percent during 1997. Fourth quarter net interest income on a
managed basis totaled $2.057 billion, up 11 percent from the prior-year
quarter. This reflected the positive impact of a managed average net interest
margin of 6.27 percent, up 16 basis points from the 1996 fourth quarter.
Fourth quarter 1997 return on average common equity was 18.93 percent.
Net charge-offs during the 1997 fourth quarter totaled $290.3 million and
represented 1.38 percent of average loans, little changed from $289.4 million
and 1.34 percent in the 1997 third quarter. Net charge-offs on managed credit
card loans declined to 5.37 percent during the 1997 fourth quarter from
5.61 percent in the year-ago quarter and from 5.78 percent in the 1997 third
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 CORPORATION had managed total assets of $147.0 billion, total
assets of $115.9 billion, and common equity of $10.2 billion at December 31,
1997. BANC ONE operates over 1,200 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
CONTACT:
Jay S. Gould, 614-248-0189, or John A.
Russell, 614-248-5989, both of BANC ONE
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
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