Shares in City National Corp. gained more than 2 percent early Thursday after the bank reported a dip in first-quarter profit and net interest but still met Wall Street's expectations.
City National reported first-quarter net income of $56.5 million, ($1.15 per share), a 1.2 percent slip from $57.2 million ($1.12) for the same period a year earlier. The results were right on with Wall Street's expectations, according to a poll by Thomson Financial.
The Beverly Hills-based bank holding company said net interest income for the quarter also fell 3.5 percent to $147 million, mainly due to lower returns on both assets as well as equity holdings, the bank said. However, the company still expects earnings-per-share growth of 3 percent to 5 percent during 2007.
The earnings come less than a month after the bank announced it had acquired Rockville, Md.-based Lydian Wealth Management for an undisclosed price. The company said the move was an effort to tap into the institution's base of affluent clients.
Shares in City National closed up 44 cents to $73.58 Wednesday in trading on the New York Stock Exchange.
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