Earnings rise sharply for NationsBank

January 19, 1993|By David Conn | David Conn,Staff Writer

NationsBank Corp., the country's fourth-largest bankin company, reported fourth-quarter and year-end earnings yesterday that were sharply higher than a year ago, when the company suffered large merger-related write-offs.

The Charlotte, N.C.-based company said it earned $234 million, or 92 cents a share, in the quarter that ended Dec. 31, compared with a loss of $244 million, or $1.08 a share, a year earlier.

In the fourth quarter of 1991, the company, then called NCNB Corp., recorded $314 million in restructuring costs associated with its acquisition of Richmond, Va.-based C&S/Sovran Corp. That compared with a $50 million expense in the latest quarter for the cost of closing and consolidating facilities.

In 1992, the first full year of operating with the name NationsBank, the company earned $1.15 billion, or $4.52 a share, compared with $202 million, or 75 cents a share, a year earlier.

"Our first year as NationsBank was extraordinarily successful," Hugh McColl, chairman and chief executive officer, said in a statement.

In addition to moving ahead with the C&S/Sovran merger, the company reduced nonperforming assets by 29 percent, to $2 billion, equal to 2.72 percent of loans and real estate owned.

NationsBank's results also illustrated the toll the merger has taken on employees of the two companies.

At the end of 1991, when the merger deal was signed, combinedfull-time employment was 57,177; it fell to 50,828 by the end of last year. The number of branches also declined to 1,737, from 1,865, in the nine states -- including Maryland -- and Washington, where NationsBank operates.

While NationsBank's earnings for both the quarter and the year were far greater than in 1991, they came up just shy of most analysts' predictions. The stock market left the company's shares unchanged yesterday, at $52.125.

( Three months ended 12/31

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

'92 .. .. .. 234,000,000 .. .. .... 0.91

'91 .. .. .. (244,000,000).. .. ... (1.08)

change .. .. .. .. NA .. .. .. .. NA

Twelve months ended 12/31

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

'92 .. .. .. 1,145,000,000.. .. ... 4.52

.. .. .. 202,000,000.. .. .. .. 0.75

% change .. .. .. +466.8 .. .. ... +502.7

Balances as of 12/31

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

'92 .. .. .. .. 118,059,000,000.. .. .. .. $82,727,000,000

'91 .. .. .. .. 110,319,000,000.. .. .. .. 88,075,000,000

% change .. .. .. ... .. +7.0 ... .. .. ... .. 6.1

* Figures include net loans, leases and factored accounts receivable.

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