ATLANTA, April 22 (Reuters) - Internet bank Net.B@nk
Inc.NTBK.O said on Thursday that it posted a $691,000 profit
ATLANTA, April 22 (Reuters) - Internet bank Net.B@nk
Inc.NTBK.O said on Thursday that it posted a $691,000 profit
in the first quarter, up from a loss of $151,000 in last year's
quarter, as it continues to add new accounts.
The bank, which operates online and has no physical
branches, earned 9 cents a share, topping the 2 cents a share
loss it posted in last year's first quarter and matching Wall
Street's expectations, tracking service First Call said.
The stock soared $18.50 to $166 in morning trading,
extending a rally the company has enjoyed over the last several
weeks as Internet investors hungrily snatch up the shares of
companies that conduct business online.
Another Internet bank stock, TeleBanc Financial Corp.
TBFC.O, added $5.50 to $101. Online brokers have also seen
their stocks surge as a growing number of customers trade
securities over the Internet.
"The first quarter financial results are in line with
earlier analysts' expectations despite increased marketing
expenses related to the introduction of a major marketing
campaign begun in the quarter to attract traditional checking
and money market customers," Chief Executive D.R. Grimes said.
Net.B@nk's accounts have increased more than 50 percent
since the start of this year and now total about 27,000, the
bank said. Net.B@nk can offer customers better deposit rates
since its costs are lower for not having to support branches.
It also said transactional deposit accounts now make up
more than two-thirds of its total account base.
"The numbers look good," Sean Ryan, an analyst at Bear
Stearns said. "The number was in line despite better-than-
expected growth in accounts, predominantly checking accounts.
These are profitable in the long run, but do entail more
upfront costs."
Noninterest expense rose to $2.15 million in the quarter
from $1.17 million in the year-ago quarter. The bank completed
an upgrade of its online technology platform in the first
quarter, it said.
REUTERS
Rtr 19:22 04-22-99 |
