Signet profit tripled in 2nd quarter Results exceed industry estimates

Earnings

July 16, 1992|By David Conn | David Conn,Staff Writer

Signet Banking Corp., benefiting from the drastic actions it took at the end of a dismal 1991 and from the healing effects of sharply lower interest rates, reported second-quarter earnings yesterday that were more than three times those for the same period a year ago.

The Richmond-based company, parent of Signet Bank/Maryland, reported income of $26.7 million, or 96 cents a share, for the three months that ended June 30, up from $8.4 million, or 31 cents a share, a year earlier.

Most securities analysts expected the year-to-year comparison to be dramatic, but Signet managed to exceed the consensus of analysts' estimates by about 11 cents a share.

The news came after the stock market closed. The company's stock fell $1.25 a share yesterday, to $38.125, in light trading.

Signet, which had $11.2 billion in assets June 30, reported the higher earnings despite an 18 percent drop in interest income, to $196.9 million, a decrease that was not surprising given the nearly 10 percent decrease in loans at the end of the first half compared with the same time a year ago.

Interest expenses fell even more sharply -- by almost 38 percent -- largely because of a yearlong drop in interest rates that has lowered expenses and, therefore, raised profit margins of almost all banking companies.

Three months ended 6/30/92

Income Share

'92... ..26,710,000... ... ... ...0.96

'91.. .. 8,378,000... ... ... ... 0.31

% change +218.8... ... ... ... ... +209.7

Six months ended 6/30/92

... ...Income... ... ... ... Share

'92... 48,767,000... ... ...1.77

'91... 14,768,000... ... ...0.55

% change +230.2... ... ... ..+221.8

Balances as of 6/30/92

... ...Assets... ... ... ... Deposits

'92... 11,218,440,000... ...7,970,200,000

'91... 11,325,288,000... ...8,593,195,000

% change-0.9.... ... ... ...-7.2

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