Magazine article American Banker

Stocks: Chase Slips 2% but Remains Long-Term Pick on Wall St

Magazine article American Banker

Stocks: Chase Slips 2% but Remains Long-Term Pick on Wall St

Article excerpt

A glowing report about Chase Manhattan Corp. in Tuesday's issue of The New York Times had little impact on the bank's stock price.

Chase's stock fell 2.10%, more than the 0.41% drop in the Standard & Poor's bank index.

But that did not chill the enthusiasm of bank analysts. Susan Roth, an analyst at Donaldson, Lufkin & Jenrette, said she is impressed by some of the steps taken by William B. Harrison since he became president and chief executive officer on June 1.

Those steps include forming an Internet unit and shuffling some top executives. Ms. Roth said these moves signal a willingness to keep the bank moving forward, both strategically and financially.

Because of the successful integration of Manufacturers Hanover Trust Co., Chemical Banking Corp., and Chase Manhattan Corp., "the new Chase has emerged as one of the most powerful players in the global banking and financial services arena," Ms. Roth said.

She said Chase has already achieved what many of the financial service industry's megamergers are striving for: "scale and marketship in its core business."

Chase appears capable of generating 10% to 12% average annual earnings per share growth, Ms. Roth says.

She is especially upbeat about Chase's new Internet unit, which will offer free on-line banking, free bill paying, and investment services, and make credit decisions for credit cards and personal loans.

The company will roll out more services this fall, including bill presentment, full mortgage banking capabilities, and discount brokerage services. …

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