MNC chief sees 4th-quarter profit Lerner says company may pay dividend in '92.

May 16, 1991|By Ross Hetrick | Ross Hetrick,Evening Sun Staff

Alfred Lerner, chairman and chief executive officer of MNC Financial Inc., told shareholders today that he "hopes and expects" MNC to be profitable in the last three months of the year.

He also told reporters after the company's annual meeting that MNC "has a shot" at paying dividends sometime in 1992. Dividends were dropped in the 1990 fourth quarter.

MNC, the parent of Maryland National Bank, is the largest bank holding company in the state. The company last year lost $439.5 million, or $5.23 a share, primarily because of bad commercial real estate loans. It made a profit of $154 million in the first quarter, but without the sale of its credit card division, MNC would have lost about $150 million.

At a meeting attended by about 500 people, Lerner said the bank needs an improvement in the commercial real estate market to become profitable.

"The wild card is what shows up tomorrow that we didn't know about," Lerner said, referring to the possibility of more bad loans.

Lerner said the commercial real estate market should remain about the same during 1991 and possibly improve in 1992.

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