Bank One quarterly profits jump 16 percent

Journal Record, The (Oklahoma City), Apr 17, 2002

CHICAGO (AP) -- Bank One on Tuesday reported a 16 percent gain in quarterly profits as solid results from consumer banking helped continue its slow but steady recovery.

Earnings exceed analysts' predictions.

Bank One said its first quarter profits totaled $787 million, or 67 cents a share, up from $679 million, or 58 cents a share, a year earlier.

That was a penny higher than expected by analysts surveyed by Thomson Financial/First Call.

At the close of regular trading, Bank One shares were down 5 cents at $41.16 on the New York Stock Exchange.

Revenue for the January-March period was $4.15 billion, up 9 percent from $3.79 billion.

The banking giant made $343 million from retail banking in the quarter, up 1 percent from a year ago and 19 percent from the previous quarter. Commercial banking weakened, with earnings slipping 27 percent to $143 million.

"First-quarter results reflect our ongoing progress in growing earnings and increasing returns, despite the difficult credit environment," said chairman and chief executive James Dimon.

Dimon said that while the credit environment remains challenging, Bank One is beginning to see a "slowing of deterioration" in parts of its business which could result in credit costs improving by year's end.

The $787 million profit was the highest since the third quarter of 1999.