BankBoston CEO Says Brazil-Argentine Ops 'Better Than Ever'
Dow Jones Newswires -- August 27, 1998
By ROSS KERBER
Dow Jones Newswires
BOSTON -- BankBoston Corp. (BKB) Chief Executive Chad Gifford
told investors that despite emerging-markets concerns that have sent the
bank's shares reeling, the bank's Brazilian and Argentine units are "doing
better than ever."
Speaking on a conference call last week organized by Credit Suisse First
Boston Corp. analyst Michael Mayo, Gifford told investors: "I feel as
good about the franchise as I have at any time despite the turmoil over the
last six weeks," according to the firm's transcript of his remarks.
"It appears that the market is focusing on the effect these emerging
markets might have on our business in Latin America. In a sentence, [the]
Latin America franchise is doing better than ever," Gifford said.
Gifford's bullish views come amid a steep decline in BankBoston's share
price, which has fallen more than most bank stocks this summer.
According to Mayo, a main concern of investors is that BankBoston's
operations in Brazil, Argentina and other South American countries could
leave it vulnerable to devaluations or to other emerging-market events.
BankBoston's shares closed at $41 3/8 in New York stock exchange
trading Wednesday, down 30% from $59 1/16 on July 8, adjusted to
reflect a 2-for-1 stock split in June.
In contrast, an index of major bank stocks kept by SNL Securities LC,
Charlottesville, Va., showed a decline of 16.7 % over the same period.
Asked about the decline, Gifford said that: "I think it's really quite
remarkable what's happened to our stock in the last month notwithstanding
that we were riding pretty high," according to the transcript. The bank's
operations in Brazil and Argentina are "ahead of budget," he said, while its
previously announced branch-expansion program has continued apace.
Briefing Book for: BKB
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