Magazine article American Banker

Banc One, NationsBank Poised for Loan Rebound

Magazine article American Banker

Banc One, NationsBank Poised for Loan Rebound

Article excerpt

A cyclical upturn in loan demand is coming, and Banc One Corp. and NationsBank Corp. will reap the biggest benefit, according to a leading bank stock analyst.

Robert Albertson of Goldman, Sachs & Co. recently raised his earnings estimates for both banking companies because of the anticipated surge in credit demand.

Bank loan portfolios in general will rise this year by 5% to 6%, he said, while loans will grow at a much faster clip at Banc One and NationsBank.

Double-Digit Loan Growth

Both companies saw their loan portfolios rise at double-digit annualized rates in the fourth quarter of 1992, and the momentum will continue this year, Mr. Albertson projected.

The two companies are helped by the relative economic health of the regions in which they operate and by their own internal strength, Mr. Albertson said.

Banc One, based in Columbus, Ohio, is a Midwest powerhouse. while Charlotte, N.C.-based NationsBank dominates the Southeast.

Mr. Albertson added Banc One and NationsBank Monday to Goldman's list of priority stocks that the firm recommends to its clients. Banc One shares jumped $2.125 Monday, to close at $55.875, and NationsBank rose $1.25 a share, to $54.875.

In Tuesday trading. NationsBank was unchanged, and Banc One rose 12.5 cents, to $56 a share.

Mixed Data on Loan Demand

So far, the evidence of a broad-based pickup in loan demand is pretty mixed.

Consumer installment credit, for example, has risen for five months in a row, after nearly two years of almost steady declines, noted Michael Moran, chief economist at Daiwa Securities America Inc. …

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