THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, April 25, 1996 TAG: 9604250420
SECTION: BUSINESS PAGE: D3 EDITION: FINAL
SOURCE: BY PAUL NOWELL, ASSOCIATED PRESS
LENGTH: Medium: 51 lines
The value of NationsBank Corp.'s shares has grown so rapidly that the bank's board of directors soon may consider a proposal to split the stock, chairman Hugh McColl said Wednesday.
Meanwhile, he said, any acquisitions by NationsBank in the near future would likely target nonbanking companies such as mutual funds or software technology firms.
At the bank's annual meeting in Charlotte, McColl told about 500 shareholders the question of whether to split the bank's stock was a direct result of the company's strong performance in 1995 and the first quarter of this year.
``As you know, our valuation increased 54 percent in 1995 and another 14 to 15 percent to date in 1996,'' he said. ``The market is beginning to recognize the strength and earnings power of our company.
``If the (stock) market continues to respond to our performance in this manner, I am sure that at some point our directors will take this under consideration.''
Asked if such a decision could come at the board's meeting Wednesday afternoon, McColl said: ``It's something we could consider later in the year.''
NationsBank, which has assets of $194 billion, operates in nine states and the District of Columbia. Last week, the nation's fourth-largest banking company reported a 16 percent gain in its first-quarter earnings, despite having to absorb $77 million in merger-related charges.
The Charlotte-based bank earned $513 million, or $1.70 per share, in the first three months of 1996. The company earned $443 million, or $1.60 per share, in the same quarter a year ago.
For 1995, NationsBank's profits rose by 15 percent to $1.95 billion, or $7.13 per share, compared with $1.69 billion, or $6.12 per share in 1994.
McColl conducted the annual meeting at a rapid pace.
He also addressed the issue of future acquisitions.
``Our track record with opportunistic acquisitions speaks for itself,'' he said. ``As always, we will continue to consider opportunities to expand our core franchise, most likely in contiguous states - but only at prices that benefit our shareholders. This is nothing new.''
McColl later indicated any acquisitions would likely involve financial and technology firms instead of banks. by CNB