Financial sector layoffs du jour, another credit card purveyor:
MBNA's Q4 net income rises 9%
Company to trim staff, increase quarterly dividend
By Steve Gelsi, CBS.MarketWatch.com
NEW YORK (CBS.MW) -- MBNA Corp. reported a 9 percent rise in net income on Thursday, as the credit-card giant geared up to trim an estimated 1,000 jobs in a voluntary early retirement and severance program.
The company (KRB: news, chart, profile) also said its board approved a $2 billion, two-year stock buyback plan and boosted its quarterly dividend by 17 percent, to 14 cents per common share.
MBNA said fourth-quarter net income was $768.9 million, or 59 cents per share, up from $703.5 million, or 54 cents per share, in the year-ago period.
The Wilmington, Del.-based credit-card company had been expected to earn 58 cents per share, according to a survey of analysts by Thomson First Call.
MBNA's results stood in contrast to rival Capital One Financial (COF: news, chart, profile) , which after Wednesday's close reported a drop of 25 percent in its fourth-quarter profit. See full story.
MBNA also said it remains staffed "at a level higher than anticipated business needs," particularly in management positions.
The company said it believes voluntary early retirement and severance programs will help it achieve staffing levels that "meet expected future business needs and make MBNA more efficient."
The new 14-cent quarterly dividend will take effect with the payout scheduled for April 1 to shareholders of record on March 15.
About 1,000 of the company's 25,400 employees are expected to take part in the staff reduction program.Shares of MBNA rose 24 cents to $27.44 on Thursday.
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