Magazine article American Banker

Bank of New York Stock Rises after a Meeting with Analysts

Magazine article American Banker

Bank of New York Stock Rises after a Meeting with Analysts

Article excerpt

Shares of Bank of New York Co. climbed Thursday, after an analyst meeting Wednesday that focused attention on the bank's strong credit card and fee-based businesses.

The stock was up $1, to $56.625, after trading as high as $56.875 earlier in the day. The action ended a weeklong lull in the stock.

Bank stocks in general were trading higher in Thursday. Diane Glossman of Salomon Brothers Inc. attributed the activity to bargain hunting.

Telling New Data

Although much of the information released by Bank of New York at the analyst meeting had been widely known, the company put out some new figures that underscored "how far the business mix has gotten skewed to niche businesses," said Judah Kraushaar of Merrill Lynch & Co.

The bank said each of five key business lines -- credit cards, securities and other processing, special industries lending, factoring and trust, and investment management -- would grow 10% or more, to contribute 60% of next year's earnings.

Mr. Kraushaar said he would have estimated before the meeting that niche business would contribute 45% of earnings. His estimate didn't include factoring and financial service businesses that Bank of New York acquired recently, he added.

"The meeting was very punchy and well organized. They showed us they've got a lot of growth segments," said George Salem, a banking analyst at Prudential Securities Inc.

Conservative and Understated

"If you examined the things they've been saying, there wasn't much new," Mr. …

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