Bank of New York's Earnings Rise 23%
March 29, 2011
NEW YORK -- Bank of New York Co.'s second-quarter earnings rose 23%, boosted largely by the sale of a large credit card portfolio. The New York bank holding company posted net earnings of $275 million, or $1.35 per share, compared with $226 million, or $1.14 a share, in the year-ago quarter. Its results exceeded analysts' average estimates of about $1.20 per share. The results include a one-time gain of $400 million for the sale of the bank's AFL-CIO Union credit card portfolio to Household International, Inc. sale, and a $350 million charge against earnings for bad debt reserves. Without the two special items, the bank's earnings were $1.18 per share. While second-quarter bank earnings have generally exceeded analysts' expectations, a number of large banks are reporting mounting problems with bad credit card debts. Bank of New York, a large regional concern in the Northeast, said it added to reserves for bad debts after anticipating higher losses on credit cards opened in 2009 and 2010, and following a review of the credit cards' performance ``and industry and economic trends.'' In composite trading on the New York Stock Exchange, Bank of New York's shares rose 87.5 cents to $49.875.
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