Magazine article American Banker

Fleet Earnings Jump 28% in 2d Quarter on Strength of Severe Cost-Cutting Effort

Magazine article American Banker

Fleet Earnings Jump 28% in 2d Quarter on Strength of Severe Cost-Cutting Effort

Article excerpt

Thanks to cost-cutting measures, Providence, R.I.-based Fleet Financial Group posted net income this quarter ors 152 million, up 28% from $119 million in the same period last year.

This quarter marked the first full quarter of the $48 billion-asset bank's Focus '94, a cost-cutting plan analysts have called the most severe in the industry.

Fleet's executive vice president and chief financial officer, Eugene McQuade, said Focus '94, in which 5,500 employees were laid off, has raised $135 million this quarter, "on our way to our annualized goal of $350 million."

Observers Encouraged

Analysts, including Merrill Lynch's Livia Asher, called Fleet's results "encouraging."

Nonperforming assets at Fleet dropped to $560 million from $852 million in the second quarter of 1993. Nonperforming assets as a percentage of total loans dropped to 2.12% this quarter from 3.24% in the same period last year.

Analysts said they were most impressed by the 13% annualized increase in Fleet's loan volume.

Decline for CoreStates

In Philadelphia, $25.6 billion-asset CoreStates Financial Corp., earned only $63 million in the second quarter, a 31% drop from the $91.3 million it earned during the same period last year.

Had it not taken a $39.7 million charge for its first-quarter acquisition of Independence Bancorp, the bank would have earned $102.7 million, an 11.7% increase from the second quarter of 1993.

Analysts said CoreStates had a solid quarter despite the earnings drop. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.