Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, October 19, 1994 TAG: 9410190060
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Short
The bank attributed the performance to special pre-tax costs of $82.6 million for corporate restructuring and for terminating data processing contracts. Without these charges, the result would have been earnings of $57.2 million or 98 cents a share, an increase of 25 percent.
For the nine months, Signet said it had income of $107 million or $1.86 a share compared with last year's $124.5 million or $2.19 a share.
Chairman Robert M. Freeman said the special charges "will launch our program to improve profitability and increase operating efficiency."
He said more than half the charges were taken in Signet's credit card business and relate to ending data processing contracts. The rest included charges for staff reductions and consolidation of operations and facilities in the core bank.
Fundamentals of the company "were very encouraging," Freeman said. "Consumer loan growth during the quarter was strong, and the net interest margin rebounded nicely from the second quarter. Nonperforming assets continued their steady downward trend, and we reduced real estate exposure through the sale of about $100 million of real-estate related loans."
Assets fell from $11.7 billion to $11 billion because the company sold off some of its credit card business.
by CNB