Chase Manhattan Shows Signs of Weakness
Lackluster growth in key areas should make investors cautious.
Chase Manhattan's (CMB) first-quarter earnings release Wednesday contained plenty of good news, but lackluster growth in the banking giant's key units may be reason enough to pass on this stock.
Much of the improvement in Chase's first-quarter earnings was tied to robust stock-market activity. The company exceeded Wall Street's consensus earnings estimate for the period by $0.04 with earnings of $1.59 per share, marking a 20% increase over the year-earlier period. Chase H&Q, the company's investment-banking unit, deserves credit for much of the earnings growth. It doubled its fees to $648 million, in part because of the late-1999 acquisition of San Francisco-based Hambrecht & Quist. Investment-trading revenues were also strong, as was income from Chase's securities-processing business.
Laura Pavlenko Lutton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.