Signet profit up 73% in quarter

April 13, 1993|By David Conn | David Conn,Staff Writer

Signet Banking Corp. yesterday reported a 73.5 percent increase in first-quarter earnings over a year ago, as the Richmond-based company enjoyed improved credit quality and a sharp increase in profits from its credit card operation.

Signet, parent of Signet Bank/Maryland, earned $38.3 million, or $1.35 a share, in the three months that ended March 31, compared with net income of $22.1 million, or 81 cents a share, in the first quarter of 1992.

The company's nonperforming assets fell to $142.1 million, from $306.3 million a year ago, while the amount of reserves set aside to cover future nonperformers rose to 352 percent from 189 percent in 1991.

More than anything, Signet benefited from an 82 percent increase in interest income from its credit cards.

"The 1993 results reflected further improvement in the net yield margin due primarily to the significant growth experienced in the credit card portfolio, and increases in noninterest sources of revenue," said Robert M. Freeman, chairman and chief executive officer.

Signet

Banking Corp.. .. .. ..Ticker.. .. .. .. ..Yesterday's .. .. .. .. .. .. .. ..Symbol.. .. .. .. .. Cls... .. .. ..Chg.

.. .. .. .. .. .. ..SBK.. .. .. .. .. .. 56 7/8 .. .. .. .. +1 5/8

Period ended.. .. .. .

Mar. 31.. .. .. ... .. 1st qtr.. .. .. .. Year ago .. .. ..Chg.

Net Income.. .. .. ... $38,267 .. .. .. .. $22,057 .. .. ..+73.5%

Primary EPS.. .. .. .. ..$1.35 .. .. .. .. ..$0.81 .. .. ..+66.7%

Annualized return

on avg. assets .. .. .. ..1.37%.. .. .. .. .. 0.78%

Add. to allowance

for loan losses .. .. .. $15,498.. .. .. .. $24,960 .. .. -37.9%

.. .. .. .. .. .. .. ..Balances as of

.. .. ... .. .. .. .. ..3/31/93 .. .. .. ... 3/31/92

Assets .. .. .. .. .. ..$11,520,186 .. .. .. $11,267,287.. .. +2.2%

Deposits .. .. .. ... ..$7,585,535 .. .. .. .$8,310,312.. .. ..-8.7%

Loans outst. .. .. .. ..$6,304,535 .. .. .. $5,707,036 .. .. ..-10.5%

Loan loss

reserve .. .. .. .. .. $273,283.. .. .. .. ..$319,302 .. .. ...-14.4%

Figures in thousands (except per share data.)

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