City National Profit Rises

But shares fall.
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City National

(CYN)

fell 8% after posting a soft first quarter and trimming guidance.

The company earned $57.2 million, or $1.12 a share in the quarter, compared with $55.5 million, or $1.09 a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of $1.21 a share in the most recent quarter.

First-quarter revenue rose 5% from a year ago to $207.3 million.

The Beverly Hills, Calif.-based company expects earnings per share to grow 8% to 10% for 2006, compared with its earlier forecast of 9% to 12%.

"In the first quarter, commercial lending and noninterest income grew strongly and credit quality remained excellent," the company said. "Although deposits were somewhat less than anticipated, our overall business and progress adding new clients, growing revenue and building momentum for the year ahead positions City National for another successful year.''

Shares fell $6.50 to $71.50.

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