NationsBank Corp. Surpasses Citicorp to Become the Nation's Largest Bank by Market Value

Strategic Insights -

NationsBank Corp. has cemented its position as the nation's largest bank by market value, surpassing Citicorp and BankAmerica Corp. with a market value of $58.3 billion. This milestone is a result of the bank's aggressive acquisition strategy, which has seen it purchase Barnett Banks Inc. for $15.6 billion last month. The acquisition has boosted the bank's assets to $311 billion and expanded its network to 3,173 branches across 16 states.

Key Takeaways:

  • NationsBank Corp. has become the nation's largest bank by market value, surpassing Citicorp and BankAmerica Corp. with a market value of $58.3 billion.
  • The bank's acquisition of Barnett Banks Inc. for $15.6 billion last month has significantly boosted its assets to $311 billion.
  • NationsBank now operates 3,173 branches across 16 states, from New Mexico to Maryland.
  • The bank has also acquired Montgomery Securities in San Francisco and Wheat First Butcher Singer Inc. for $491.5 million in stock.
  • Large banks nationwide are entering the equity underwriting business by acquiring investment houses, as companies shift from traditional bank loans to stock and bond offerings.
  • Regulators are investigating sales and trading practices at New York brokerage Duke & Co., including the possible manipulation of stock in three public companies.
  • IDT Corp. has launched a new calling card that allows consumers to make long-distance telephone calls to anywhere in the United States for 5 cents a minute.
  • The U.S. bond market has risen amid optimism that the economy will slow enough to stifle inflation, keeping Federal Reserve officials from raising borrowing rates.

Statistics:

  • NationsBank Corp. has a market value of $58.3 billion, surpassing Citicorp and BankAmerica Corp.'s market values of $56.8 billion and $50.4 billion, respectively.
  • The bank's assets have increased to $311 billion following the acquisition of Barnett Banks Inc.
  • IDT Corp.'s new calling card allows consumers to make long-distance calls to anywhere in the United States for 5 cents a minute.
  • The benchmark 30-year Treasury bond gained $2.19 for each $1,000 in face value, pushing its yield down 2 basis points to 5.86 percent.
  • The two-year note's yield fell 4 basis points to 5.32 percent.

Sources:

  • "NationsBank Corp. Surpasses Citicorp to Become Nation's Largest Bank," unnamed article source.
  • "Acquisitions Fuel NationsBank Growth," Source: Banks and Banking, September 1991, p. 1.
  • "IDT Corp. Unveils 5-Cent Calling Card," Source: The New York Times, September 16, 1991, Business Section.
  • "U.S. Bond Market Rises Amid Optimism," Source: The Wall Street Journal, September 17, 1991, Financial Section.