On April 30, Cleveland-based National City Corp.
- Total revenue fell 10% to $1.6 billion as National City focuses on core banking and recently sold its non-prime First Franklin business.
- Net interest income fell 5.6% as the net interest margin decreased slightly to 3.69%.
- Diluted earnings fell nearly 31% on continuing First Franklin charges and other subprime and housing challenges.
- National City carries a lowly one-star rating in Motley Fool CAPS, as does cross-town rival KeyCorp
(NYSE:KEY) and regional peers Fifth Third Bancorp(NASDAQ:FITB) and Comerica(NYSE:CMA) . Investors may do better banking on larger rivals such as US Bancorp(NYSE:USB) at four stars and JPMorgan Chase(NYSE:JPM) at three stars.
(Figures in millions, except per-share data)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Total Revenue |
$1,632 |
$1,813 |
(10.0%) |
Net Interest Income |
$1,118 |
$1,184 |
(5.6%) |
Net Profit |
$319 |
$459 |
(30.5%) |
EPS |
$0.50 |
$0.74 |
(32.4%) |
Get back to basics with a look at the income statement.
Ratio Checkup
Q1 2007 |
Q1 2006 |
Change* |
|
---|---|---|---|
Net Interest Margin |
3.69% |
3.81% |
(0.12%) |
Efficiency Ratio |
67.37% |
62.45% |
4.92% |
Nonperforming Assets / Assets |
0.58% |
0.46% |
0.12% |
Return on Average Assets |
0.94% |
1.33% |
(0.39%) |
Return on Average Equity |
8.98% |
14.91% |
(5.93%) |
Find out more about bank ratios.
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Investments |
$7,208 |
$7,609 |
(5.3%) |
Loans |
$110,259 |
$114,048 |
(3.3%) |
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Core Deposits |
$77,884 |
$69,884 |
11.4% |
Learn about bank assets and bank liabilities.
Related Foolishness:
- Is It Time to Buy Subprime?
- Calculating Return on Assets
- A Closer Look At Bank Stocks
- National City Primed for Growth?
US Bancorp and JPMorgan are Income Investor recommendations. Analyst James Early and other investors like you can show you how to find stocks that pay big dividends with a free trial to Income Investor.
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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.