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Banking industry

Crestar Financial Corporation Reports Record Net Income for Q3 1998

Strategic Insights

— 1 min read

Crestar Financial Corporation, a Richmond, Virginia-based banking holding company, announced record net income of $88.9 million for the third quarter of 1998, a 12% increase from the same quarter in 1997. This marked the company's highest quarterly earnings to date, driven by strong net interest income and a net pre-tax gain from the sale of out-of-market bank card loans.

Key Takeaways:

  • Crestar's Q3 1998 net income was $88.9 million, a 12% increase from Q3 1997.
  • Return on assets (ROA) was 1.42% and return on equity (ROE) was 15.77% for the quarter.
  • For the first nine months of 1998, net income was $261.2 million, up 15% from the same period in 1997.
  • Crestar sold $576 million of out-of-market bank card loans to Fleet Financial Group, resulting in a net pre-tax gain of $54.0 million.
  • The company spent $43.5 million of the non-recurring revenue to restructure and reconfigure consumer lending operations and delivery systems, as well as personnel-related merger costs triggered by the pending merger with SunTrust Banks, Inc.
  • Fully-taxable net interest income of $226.1 million in the quarter was up 3% from the second quarter of 1998.
  • Average loans for the third quarter were $16.0 billion, down 1% from the second quarter of this year, reflecting the sale of the bank card loans.
  • Noninterest income, excluding securities gains and losses, was $118.7 million in the quarter, up 4% from the second quarter of 1998.

Statistics:

  • Net income for Q3 1998: $88.9 million
  • Return on assets (ROA) for Q3 1998: 1.42%
  • Return on equity (ROE) for Q3 1998: 15.77%
  • Net income for the first nine months of 1998: $261.2 million
  • Earnings per diluted share for the first nine months of 1998: $2.30
  • Average loans for the third quarter: $16.0 billion
  • Noninterest income, excluding securities gains and losses, for Q3 1998: $118.7 million

Sources:

  • PRNewswire, "Crestar Financial Corporation Reports Record Net Income for Third Quarter and First Nine Months of 1998" (October 13, 1998)
  • Crestar Financial Corporation, "Third Quarter 1998 Earnings Release" (October 13, 1998)

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