Alex. Brown net up 14.6% in 1st period

April 15, 1994|By From Staff Reports

Alex. Brown Inc., the Baltimore-based investment banking firm, credited its diversification for helping boost net income by 14.6 percent in the 1994 first quarter.

"First-quarter results reflect strong performance by a number of our businesses during a period of unsettled market conditions," A. B. Krongard, the company's chief executive officer, said in a statement. He singled out "important contributions" from the company's merchant banking, fixed-income and mergers and acquisitions businesses.

Net income for the quarter was $23 million, or $1.46 a share, compared with $20.1 million, or $1.28 a share, in the same period a year ago. Revenue was up 16.2 percent, to $162.41 million.

Revenues from interest and dividends, spurred by a jump in margin loans the company made to investors, increased by 58 percent, to $15.3 million.

Commissions charged to customers for securities transactions -- boosted by heavy trading in the stock market -- increased by 14 percent, to $38 million.

Revenues for advisory and other services, which includes fees for handling accounts for clients, correspondent services and its merchant banking operations, rose 35 percent, to $22.5 million.

Principal transactions revenue, generated by the company selling and buying securities in its own accounts, increased by 34 percent, to $35.4 million.

The one downside was in investment banking -- a mainstay of the company that involves the handling of stock offerings and underwriting various securities. Revenue from this business dropped by 4 percent, to $51.3 million, as a result of less corporate and municipal underwriting business. That decline was partially offset by increased merger advisory work, restructurings and private placements, the company said.

The company also declared a cash dividend of 15 cents a share -- the same as last quarter -- payable May 6 to stockholders of record as of April 26.

Alex. Brown Inc. .. .. .. .. .. Ticker. .. .. .. .. .. . Yesterday's

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

. .. .. .. .. .. .. .. .. .. .. AB. .. .. .. .. .. .. .. 24 3/8 . .. .+ 1/4 Period ended March 25. .. .. .. 1st qtr. .. .. .. Year ago . Chg.

Revenue. .. .. .. .. .. .. .. $162,412. .. .. .. . $139,739 +16.2%

Net Income. .. .. .. .. .. .. . $23,022. .. .. .. .. $20,083 +14.6%

Primary EPS. .. .. .. .. .. .. .. $1.46. .. .. .. .. . $1.28 +14.1%

Figures in thousands (except per share data.)

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