Financial services company
third-quarter earnings declined about 1%.
The company earned $59 million, or $1.20 a share in the quarter, compared with $59.80 million, or $1.17 a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of $1.19 a share in the most recent quarter.
Third-quarter revenue rose about 2% from a year ago to $213.5 million, led by strong loan growth and rise in fee income, as against analysts estimate of $219.69 million.
The Beverly Hills, Calif.-based company expects earnings a share to grow 1% to 4% for the full year 2006 compared with a year ago.
In the third quarter, net interest income declined 5% to $152 million and net interest margin declined 27 basis points to 4.53% from the third quarter of 2005.
Non interest income rose 21% to $64.8 million due to the growth of City National's wealth management and international services fee revenue.
Average loans rose 12% to $10.01 billion from the third quarter of 2005. Average deposits remained flat at $11.91 billion.
"Double-digit growth in loans and wealth management revenue, excellent credit quality, fairly stable deposits and a very robust, although narrower, net interest margin, plus our strong capital base, all underscore the fundamental strength of City National's business model," the company said. "Notwithstanding the challenges of this interest-rate environment, our company continues to add clients, broaden its product offerings, including new deposit products and our state-of-the-art remote deposit capture product, and make progress as California's Premier Private and Business Bank."
The company's shares were trading down $1.20, or 1.8%, at $66.0 in after-hours activity Wednesday.
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