On Jan. 16, Commerce Bancorp
- Commerce continues to feel the yield curve crunch, as net interest margin declined to 3.35% from 3.77% last year and cost of funds increased to 2.59% from 1.65%.
- The decline in net interest margin kept net income growth at 11.4% and caused return on assets and return on equity.
- Deposit growth, arguably the most important metric for Commerce, was 18.9% in total with core deposits increasing 18%. Comparable-store deposit growth was 17%.
- Commerce also announced that it is being investigated by the Office of the Comptroller of the Currency and Board of Governors of the Federal Reserve System.
(Figures in thousands, except per-share data)
Income Statement Highlights
FY 2006 |
FY 2005 |
Change |
|
---|---|---|---|
Total Revenue |
$1,831,961 |
$1,577,226 |
16.2% |
Net Interest Income |
$1,274,508 |
$1,153,582 |
10.5% |
Net Profit |
$315,149 |
$282,939 |
11.4% |
EPS |
$1.63 |
$1.61 |
1.2% |
Get back to basics with a look at the income statement.
Ratio Checkup
FY 2006 |
FY 2005 |
Change* |
|
---|---|---|---|
Net Interest Margin |
3.35% |
3.77% |
(0.42%) |
Efficiency Ratio** |
72.70% |
71.80% |
0.90% |
Nonperforming Assets / Assets |
0.12% |
0.09% |
0.03% |
Return on Average Assets |
0.75% |
0.83% |
(0.08%) |
Return on Average Equity |
12.26% |
14.90% |
(2.64%) |
**Calculated from available data in press release.
Find out more about bank ratios.
Balance Sheet Highlights
Assets |
FY 2006 |
FY 2005 |
Change |
---|---|---|---|
Investments |
$ 26,089,102 |
$ 22,667,202 |
15.1% |
Net Loans |
$ 15,507,737 |
$ 12,555,079 |
23.5% |
Liabilities |
FY 2006 |
FY 2005 |
Change |
---|---|---|---|
Deposits |
$ 41,288,211 |
$ 34,726,713 |
18.9% |
Total Liabilities |
$ 42,447,826 |
$ 36,156,864 |
17.4% |
Learn about bank assets and bank liabilities.
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Bank of America is an Income Investor recommendation. At the time of publication, Nathan Parmelee had no financial position in any of the companies mentioned. The Motley Fool has a disclosure policy.