NC,
SVRN - may not be that bad a play... good ST/IT... can even be a good earning's play...haven't missed on last 7 earnings. Report Date: Apr22
Three year chart w/ earnings: bigcharts.com
No insider selling since 12/96; 20 buys same period
Inst Own...42.67%
Company snapshot towards end of post
Sovereign Introduces Internet Bank Initiatives
BusinessWire, Tuesday, April 13, 1999 at 18:11
PHILADELPHIA--(BUSINESS WIRE)--April 13, 1999--Sovereign Bancorp
Inc. ("Sovereign") (NASDAQ/NMS:SVRN) parent company of Sovereign Bank
announced today that its executive management team met with sell side
investment analysts in New York City, to discuss results by each line
of business and Sovereign's technology initiatives that included plans
for forming a separate Internet Bank.
The presentation summarized Sovereign's virtual bank business
model, which has been in development over the last six months. The
company discussed a strategic alliance with FISERV, one of the
nation's leading technology companies; its strategy to serve the
expanding number of web users; creative marketing alliance strategy;
and critical components the company believes are necessary for the
success of this venture.
Sovereign's President and Chief Executive Officer, Jay S. Sidhu,
commented, "We believe that e-commerce is very critical to the
long-term success of Sovereign and the banking industry. Companies
that do not embrace and invest in this paradigm shift will find
themselves at a competitive disadvantage or possibly even become
extinct in just a few years.
"This web-enabled, low-cost delivery channel will enable
Sovereign to gain experience in this field and possibly become one of
the leaders in e-commerce or in banking," Sidhu commented. "We also
have offered web banking to existing Sovereign customers for some
months now and are opening about 700 new on-line accounts each week.
This Internet bank initiative will seek new customers outside of
Sovereign's existing geographic market," Sidhu continued.
Strategic objectives of the Internet bank include the eventual
generation of bottom line value for Sovereign through increased sales
revenue. "We would not be undertaking this investment if we did not
feel very strongly that this will create sustainable, long-term value
for our shareholders," stated Dennis S. Marlo, Sovereign's Chief
Financial Officer.
"This Internet bank will continue to be operated under the same
four critical success factors that have guided Sovereign over the
years superior asset quality, low interest rate risk, high
productivity and emphasis on sales and service quality and the growth
of team members." continued Marlo.
Also, by adding this method of banking, Sovereign can gain a
valuable e-commerce advantage. Sovereign plans to align this Internet
bank with customer affinity groups such as universities, employers and
retail outlets. "Based upon recent demographic data obtained on
Internet users, we believe that excellent opportunities exist to
market banking services on the web," stated Sidhu.
"The typical Internet user profile is very similar with
Sovereign's existing customer base. We also see a very high potential
to create affinity banking relationships for this Internet bank, to
some degree similar to what the national credit card companies have
successfully developed over the past few years," continued Sidhu.
The critical components of the Internet bank include an
entrepreneurial, incentive-driven team, real time, low cost digital
service to targeted customer groups, and a low cost, simple to
operate, menu of a few banking and investment products, such as
transaction accounts, bill paying services, investment accounts and
brokerage services.
"We believe it is important to offer a streamline package of
products that are reliable and easy to use," stated Sidhu. "Many other
companies are limited from utilizing state of the art technology
because their products are still serviced through legacy systems. By
aligning ourselves with FISERV, we are able to take advantage of the
latest technology and FISERV's relationships with Security First
Technology and Checkthree to give us a head start into banking
e-commerce," Sidhu continued.
Sovereign plans to roll out the Internet bank during the third or
fourth quarter of 1999. Coupled with Sovereign's recent announcement
of a stock repurchase program, Sovereign believes the Internet Bank
initiative will not result in any material earnings per share dilution
for 1999.
Sovereign is a pro forma $23.4 billion bank holding company with
over 300 Community Banking Offices operating in eastern Pennsylvania,
northern Delaware and New Jersey. The third largest bank headquartered
in Pennsylvania, Sovereign's closing stock price, Tuesday, April 13,
1999, was $17.5000 per share.
Note:
This presentation contains estimates of future operating results
for 1999 and beyond for Sovereign Bancorp Inc. as well as estimates
of financial condition, operating efficiencies and revenue creation.
These estimates constitute forward-looking statements (within the
meaning of the Private Securities Litigation Reform Act of 1995),
which involve significant risks and uncertainties.
Actual results may differ materially from the results discussed
in these forward-looking statements. Factors that might cause such a
difference include, but are not limited to, general economic
conditions, changes in interest rates, deposit flows, loan demand,
real estate values and competition; changes in accounting principles,
policies, or guidelines; changes in legislation or regulation; and
other economic, competitive, governmental, regulatory, and
technological factors affecting the Company's operations, pricing,
products and services.
CONTACT: Sovereign Bancorp Inc.
Dennis S. Marlo, 610/320-8437
Dmarlo@Sovereignbank.com
or
Mark R. McCollom, 610/208-6426
Mmccollo@Sovereignbank.com
or
Linda A. Hagginbothom, 610/320-8498
Linda@Sovereignbank.com
or
Sovereign Website
Sovereignbank.com
KEYWORD: PENNSYLVANIA
INDUSTRY KEYWORD: BANKING COMPUTERS/ELECTRONICS COMED
INTERACTIVE/MULTIMEDIA/INTERNET
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
Copyright 1999, Business Wire
Companies or Securities discussed in this article:
Symbol Name
NASDAQ:SVRN Sovereign Bancorp
----------------------------------------------------------------------
Company Snapshot Report
Explanations of the reported fields are available
Sovereign Bancorp, Inc. (NASD:SVRN) 1130 Berkshire Boulevard
Wyomissing, PA 19610
(610) 320-8400 Sector: Financial
Industry: S&Ls/Savings Banks
Complete Financials:DEC 1998 Earnings Announcement: N/A
Business Summary
BRIEF: Sovereign Bancorp is a holding company for Sovereign Bank which operates in PA, NJ, DE, NYand MD. For the FY ended 12/98, total interest income rose 15% to $1.36B. Net interest income after loan loss provision rose 19% to $465.7M. Net income applic. to Common rose 40% to $135M. Net interest income reflect higher earning assets due to acquisitions and growth of the automobile finance division. Earnings reflect gains on the sale of loans.
Ratios and statistics at a glance (as of 04/09/99)
Price $ 13.88 EPS (TTM) $ 0.85
52 Week High $ 22.75 P/E Ratio (TTM) 16.27
52 Week Low $ 8.75 Book Value(MRQ) 7.54
3 Month Avg Daily Vol (Mil) 1.04 Price/Book (MRQ) 1.84
Beta 0.98 Sales Per Share (TTM) $ 8.55
Market Cap (Mil) $ 2,216.21 Return on Assets (TTM) % 0.70
Shares Outstanding (Mil) 159.73 Return on Equity (TTM) % 12.90
Float (Mil) 153.30 Cash Per Share (MRQ) $ 2.95
Indicated Annual Dividend $ 0.10 Current Ratio (MRQ) NM
Dividend Yield % 0.72 Total Debt/Equity (MRQ) NM
Note: Mil = Millions MRQ = Most Recent Quarter TTM = Trailing Twelve Months
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