Bank One Earnings Up 11 Percent
CHICAGO (AP) - Bank One Corp., the nation's fifth-largest bank, reported an 11 percent increase in its second-quarter profits.
The Chicago-based company said Tuesday earnings were $992 million, or 83 cents a share, for the second quarter ended June 30, compared with $895 million, or 75 cents a share, for last year's second quarter.
This year's second-quarter results included a one-time charge of $179 million, or 10 cents a share, to cover the cost of the merger between Banc One and First Chicago NBD. Excluding the charge, the results for the quarter ended June 30 matched Wall Street's forecast of 93 cents a share, according to a survey of analysts by First Call Corp.
John McCoy, the company's president and CEO, attributed the solid quarter to ``strong revenue generation and disciplined expense management.'
He cited the launch of the company's Internet-only bank, WingspanBank, as one of the highlights of the quarter.
Investors, however, sent Bank One's stock down 87 1/2 cents to $59.65 1/4 a share in midafternoon trading on the New York Stock Exchange. All of the major stock indexes were off Tuesday as Microsoft's forecast of slower revenue growth in the coming year depressed technology shares.
Bank One's revenue from credit cards jumped 33 percent, from $630 million to $920 million, partly due to more transactions, the company said.
The company posted revenues of $4.56 billion, up slightly from $4.47 billion in the year-ago period.
For the first half of the year, Bank One earned $2.14 billion, or $1.79 a share, up from $1.83 billion, or $1.53 a share.
Revenues were $9.46 billion vs. $8.70 billion. |
