Friday, April 16, 1999
Fees help push bank profits up
BY JEFF McKINNEY
The Cincinnati Enquirer
Robust growth in fee income and acquisitions helped Ohio's three largest banks — including Cincinnati's Fifth Third Bancorp — post double-digit gains in first-quarter profits, the banks reported Thursday.
Fifth Third, on an acquisition binge the past two years, had earnings of $150.4 million, or 55 cents share, up 21 percent from $124.2 million, or 46 cents a share, in 1998's first quarter.
Fifth Third, Ohio's second-largest bank based on deposits, attributed its record quarterly profits to revenue growth from all four of its major lines of business, solid loan growth, expansion into several major markets and improved credit quality.
Fifth Third said net interest income rose 12 percent to $284 million, while fee income rose to about $175 million, up 28 percent from a year earlier.
Fifth Third recorded the gains after completing four acquisitions in 1998, including CitFed Bancorp Inc. of Dayton and State Savings Co. and the Ohio Co., both of Columbus.
The bank's ability to boost revenues faster than operating expenses helped Fifth Third improve its efficiency ratio to 42 percent from 43.9 percent, among the industry's lowest.
Meanwhile, Cleveland-based National City Corp. said acquisitions helped it post first-quarter earnings before gains and charges of $347.9 million, or $1.07 a share, up
from $297.6 million, or 92 cents, a year earlier.
National City, Ohio's largest bank, said part of the gains came from revenue growth from its acquisition of Michigan's First of America Bank Corp. The bank also saw gains from its mortgage banking, commercial finance and loan syndication units.
And KeyCorp, fresh off its acquisition of Cleveland's McDonald & Co., said first-quarter profits reached $293 million, or 65 cents a share, up from $235 million, or 53 cents a share, a year ago.
Cleveland-based KeyCorp said fee income rose a strong 36 percent, as the bank recorded higher revenues from such businesses as asset management, brokerage and loan syndication.
In addition, National City and KeyCorp. reported small quarterly gains from the sale of their interests in Electronic Payment Systems Inc., the owner of the MAC automated-teller machine network that was sold last fall.
Gibson earnings lower than expected
Vanguard in for the long haul
P&G unloads Hawaiian Punch for $203M
British firm coming to N.Ky., sources say
Day-trade firm changing
Fees help push bank profits up
Post office at midnight: Time to party
Web ad sites go to top
TRISTATE MARKET SPOTLIGHT
INDUSTRY NOTES: MANUFACTURING
PEOPLE ON THE MOVE
TRISTATE BUSINESS SUMMARY
