Financial services company Marshall & Ilsley Corp. (MI) posted a narrower loss for the fourth-quarter, in the absence of a year-ago hefty goodwill impairment charge.
The Milwaukee, Wisconsin-based reported net loss attributable to shareholders of $259.5 million or $0.54 per share, compared to a loss of $1.89 billion or $7.25 per share in the prior year quarter. Net loss attributable to M&I narrowed to $234.3 million from $1.88 billion in the corresponding quarter of 2008.
The financial results for the fourth quarter of 2008 included a goodwill impairment charge of $1.488 billion, after-tax.
On average, 21 analysts polled by Thomson Reuters expected the company to report a loss of $0.48 per share for the quarter. Analysts' estimates typically exclude special items.
Net interest income on a fully taxable-equivalent basis for the quarter totaled $406.1 million, down 13.4% from $469 million in the same quarter of last year.
Marshall & Ilsley's non-interest revenue was $243.8 million, compared to $166.1 million in the fourth quarter of 2008. Ten Wall Street analysts had a consensus revenue estimate of $563.98 million for the quarter.
The company noted that its average loans and leases totaled $45.3 billion, down 10% from last year. When adjusted for the targeted reduction in the Corporation's construction and development portfolio, loans fell $1.2 billion or 3% from prior year. Average deposits edged up 2% to $41.6 billion, and average non-interest bearing deposits rose 32% to $8.0 billion from last year.
Provision for loan and lease losses was $639 million, while net charge-offs for the most recent quarter were $572.3 million.
For fiscal 2009, net loss attributable to shareholders was $858.8 million or $2.46 per share, compared to a net loss of $2.06 billion or $7.92 per share a year ago. The financial results for the year ended December 31, 2008 included a goodwill impairment charge of $1.488 billion, after-tax.
Full-year net interest income on a fully taxable-equivalent basis dropped 11.1% to $1.61 billion from $1.81 billion in the prior year. Total non-interest revenues grew 22.4% to $915.6 million from $748.1 million in the previous year.
Mark Furlong, president and CEO of Marshall & Ilsley, said, "Our aggressive approach to managing credit continued to impact M&I's financial results during the fourth quarter of 2009. Despite the loss, there are some encouraging signs that credit quality has stabilized and core earnings trends have improved. M&I remains committed to returning the Company to profitability as soon as possible."
Among other players in the field, Bank of America Corp. (BAC) posted fourth-quarter loss applicable to common shareholders of $5.2 billion or $0.60 per share, compared to a net loss of $2.39 billion or $0.48 per share in the year-ago quarter. The bank reported a fourth-quarter net loss of $194 million, narrower than a net loss of $1.79 billion reported in the same period a year earlier. The bank's revenue, net of interest expense on a fully taxable-equivalent basis, rose to $25.08 billion from $15.68 billion a year ago.
Another peer, Minneapolis, Minnesota-based U.S. Bancorp (USB) reported fourth-quarter net income of $602 million or $0.30 per share, up from $330 million or $0.15 per share in the same quarter last year. Total net revenue for the quarter rose to $4.38 billion from $3.62 billion in the comparable quarter last year.
Marshall & Ilsley shares, which have been trading between $2.98 and $10.79 in the past 52 weeks, are currently trading at $7.23, up $0.25 or 3.58%.
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