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Bank One Profits Rise 11 Percent

January 20, 2004

CHICAGO (AP) _ Bank One Corp., which agreed last week to be acquired by J.P. Morgan Chase & Co. for $58 billion, on Tuesday reported nearly $1 billion in profits for the fourth quarter, an 11 percent increase from a year ago that handily beat Wall Street’s expectations.

The nation’s sixth-largest bank reported solid gains from retail and commercial banking, boosted by growth in deposits and improved credit quality, and said its credit-card unit benefited from higher loan volumes.

Revenues, however, were less than analysts expected.

Net income for the October-December period was $978 million, or 87 cents per share, compared with $842 million, or 72 cents per share, a year earlier. Analysts surveyed by Thomson First Call had expected earnings of 80 cents a share.

Revenue was $4.11 billion, down 2 percent from $4.2 billion. The consensus estimate by analysts was for revenue of $4.27 billion.

Chairman and chief executive officer Jamie Dimon said the results show a company in top shape as it prepares to merge into what will be the nation’s second-largest banking company, behind Citigroup.

``We are ending 2003 in excellent condition, with common and upgraded systems, a fortress balance sheet and noticeable growth across most lines of business,″ Dimon said. ``We’re seeing results of the improved processes and disciplines that we’ve implemented.″

For the full year, net income was $3.53 billion, or $3.11 per share, up from $3.29 billion, or $2.80 per share, in 2002. Revenue declined 3 percent to $16.2 billion from $16.7 billion.


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