City National Corp reported better-than-expected first-quarter profit, as both interest and non-interest income grew and the bank holding company paid back TARP funds borrowed from the federal government.
After Thursday’s market close, the Los Angeles parent of City National Bank reported net income of $10 million (19 cents a share), compared with $2 million (4 cents) a year earlier. The results included a non-cash charge of 7 cents a share tied to the repurchase of a remaining $200 million in preferred stock related to the federal government’s Troubled Asset Relief Program.
Analysts surveyed by Thomson Reuters on average had expected per-share earnings of 13 cents.
"With TARP behind us, credit quality showing signs of improvement, and the national economy continuing to recover, we expect enhanced profitability in the remainder of 2010," Chief Executive Russell Goldsmith said in a statement
Net interest income rose 21 percent to more than $175 million, and non-interest income was up 63 percent to nearly $77 million. The bank’s provision for credit losses rose 10 percent to $55 million.
Shares of the Los Angeles-based company earlier closed up 64 cents, or 1 percent, to $58.13 on the New York Stock Exchange.
For reprint and licensing requests for this article, CLICK HERE.