Signet reports stellar quarter, but stock dips Sell-off in banks affects its price

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

Signet Banking Corp. reported good news yesterday for nearly every item a shareholder could care about: earnings, margins, asset quality and the company's growing credit card operation.

The only disappointment yesterday was the company's stock price.

Partly due to a general sell-off in bank stocks amid a drop in the prime rate by a major bank, Signet fell 62.5 cents, to close at $33.625. The fall belied the stellar report from the Richmond, Va., company.

In the three months that ended Sept. 30, Signet earned $45.8 million, or 80 cents a share, a 60 percent increase over 1992 third-quarter earnings of $28.6 million, or 51 cents a share.

The company's net interest margin, which measures the spread between its cost of borrowing and the return on lending, increased to 5.21 percent from 4.42 percent a year ago, and 5.03 percent in the second quarter of this year.

Signet Banking Corp.

Ticker ... ... ... ... ... ... ... ... ... Yesterday's

Symbol ... ... ... ... ... ... ... ... ... Cls. ... ... Chg.

SBK ... .. ... ... ... ... ... ... ... ... 33 5/8 .. .. .. - 5/8

Period ended

Sept. 30 ... ... ... 3rd qtr. ... ... Year ago ... ... Chg.

Net Income .. .. ... $45,763 .. .. .. $28,603 .. .. .. +60.0%

Primary EPS .. .. .. $0.80 ... ... .. $0.51 ... ... .. +56.9%

Annualized return

on avg. assets .. .. 1.52% ... ... .. 1.05%

Add. to allowance

for loan losses ... $12,501 .. ... .. $14,060 .. .. .. -11.1%

... ... ... ... ... 9 mos. ... ... .. Year ago ... ... Chg.

Net Income .. .. .. $124,470 .. .. .. $77,370 .. .. .. +60.9%

Primary EPS ... ... $2.19 ... ... ... $1.40 ... ... .. +56.4%

Annualized return

on avg. assets ... 1.42% ... ... ... 0.92%

Add. to allowance

for loan losses ... $37,010 ... ... $53,478 ... ... ... -30.8%

Figures in thousands (except per share data.)

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