City National Posts 12 Percent Quarterly Profit Growth

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City National Corp. reported a 12 percent jump in fourth-quarter net income driven by strong loan growth and a dramatic jump in trust and investment fees. The company also forecast earnings-per-share growth of 11 percent to 14 percent in 2005.


City National Bank, which operates 52 branches primarily in Southern California, reported a 17 percent jump in residential mortgage loans and a 34 percent increase in real estate construction loans testaments to the continuing strength of the Southern California real estate market.


City National posted fourth quarter net income of $49.7 million, or 97 cents per share, up from $44.4 million, or 87 cents per share, in the fourth quarter ended Dec. 31, 2004. Net interest income rose 11 percent to $145.3 million.


The company took a non-cash charge of $4.8 million, or nine cents per share, related to the impairment of certain fixed-rate securities.


During all of 2004, trust and investment fee revenue jumped 45 percent to $68.4 million, driven by a 19 percent increase in assets under management to $16.2 billion.


For the year, net income rose 10.5 percent to $206.3 million, or $4.04 per share, up from $186.7 million, or $3.72 per share, in 2003. Net interest income in 2004 rose 6 percent to $559.5 million.

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