Wednesday July 21, 9:02 am Eastern Time
Chase Manhattan quarterly profits up 25 percent
NEW YORK, July 21 (Reuters) - The No. 2 U.S. bank, Chase Manhattan Corp.
(NYSE:CMB - news), said
on Wednesday its second-quarter profits excluding one-time items rose 25 percent to
$1.351 billion,
powered by strong trading results, (editor's note - shouldn't that be "strong bubbleboy bailout package"?) investment banking fees, consumer spending and
private equity
gains.
Chase earned $1.55 a share, up from $1.21 a share, or $1.079 billion, in last year's
second quarter and well
above the $1.37 a share Wall Street expected the bank to earn, according to First Call,
which tracks analysts forecasts. Including non-recurring
gains this year and a $5 million restructuring charge last year, Chase earned $1.393
billion, up from $1.074 billion.
''Each of our businesses - global banking, national consumer services and global
services - posted double-digit revenue growth and more than
20 percent growth in earnings,' William Harrison Jr., president and chief executive, said.
Robust markets lifted the bank's trading revenues 45 percent to $733 million, although
these results were 12 percent lower than first-quarter
levels. Investment banking fees rose 34 percent to a record $585 million as the bank
expanded its share of the merger and acquisition advisory,
corporate bond underwriting and loan syndication businesses.
Private equity gains jumped 39 percent in the quarter to $513 million, because of gains
on investment in several companies, including Internet
company StarMedia Network Inc. (Nasdaq:STRM - news), which successfully went
public.
Revenues at the bank's global services division, which includes custody and cash
management, rose 14 percent to $777 million after several
acquisitions last year and growth in structured finance activity. Consumer services
revenues rose 11 percent to $2.21 billion as increased credit
card usage boosted cardmember services revenues 5 percent to $1.0 billion. Home
finance revenues rose 19 percent to $291 million while
regional consumer banking revenues increased 9 percent to $593 million.
good investing--- fred |
