ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, April 25, 1996 TAG: 9604250028
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
DATELINE: CHARLOTTE, N.C.
SOURCE: Associated Press
The value of NationsBank Corp.'s shares has grown so rapidly that the bank's directors soon may consider a proposal to split the stock, Chairman Hugh McColl said Wednesday.
Meanwhile, he said, any acquisitions by NationsBank in the very 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 result of the company's 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.''
In trading on the New York Stock Exchange Wednesday, NationsBank's shares closed at $78, down 121/2 cents from Tuesday's final price.
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 to $1.69 billion, or $6.12 per share in 1994.
In an interview, McColl said any acquisitions would likely involve financial and technology firms instead of banks.
``We are not running around looking for something to buy,'' he said. ``We've made that statement 18 times and it looks like people are finally paying attention to us.''
NationsBank, which has assets of $194 billion, operates in nine states and the District of Columbia.
LENGTH: Short : 49 lines ILLUSTRATION: PHOTO: AP. Shareholders emerge from the annual meeting inby CNBCharlotte, N.C.