Banking
Wachovia Beats Expectations
Chris Frankie
07/11/01 - 11:32 AM EDT
Wachovia(WB Quote) beat second-quarter earnings expectations by 2 cents as the Southern banking giant's profits rose 76% from the year-ago period. The Winston-Salem based bank, which has been the subject of a takeover duel between First Union(FTU Quote) and SunTrust(STI Quote), said its operating earnings totaled $252.7 million, or $1.22 a share. Twenty analysts polled by Thomson Financial/First Call had expected $1.20 a share. In the year-earlier period, the company earned $143.3 million, or 70 cents a share. Wachovia said gains on securities transactions offset increased loan loss provisions. In the second quarter, the bank set aside $215.7 million for bad loans, compared with $121.5 million in the first quarter. The bank also stood by its decision, in April, to accept a $13.7 billion takeover bid from First Union. In May, SunTrust launched a hostile takeover attempt, offering $14.1 billion for the bank. Wachovia shareholders are slated to vote on First Union's bid on Aug. 3. Wachovia was recently off 1.3% to $66.71. Its price over the past 52 weeks has ranged from $47.43 to $71.40.