4th quarter income up for Bank of Hawaii
Advertiser Staff and News Services
Bank of Hawaii Corp. said net income in the fourth quarter rose 9.9 percent from a year ago, reflecting improved asset quality and efficiency.
The company, Hawai'i's second-largest bank holding company, said net income was $28.9 million, compared with $26.3 million a year ago. Earnings per share for the three months ended Dec. 31 were 44 cents, up 10 cents from a year ago and in line with analysts' estimates.
"Our credit quality has improved," said Michael E. O'Neill, chairman and chief executive officer. "We remain optimistic that we can continue to improve our efficiency and benefit from an improved economy this year."
The bank is counting on outsourcing its technology system to improve efficiency and allow it to reduce the number of employees. Allan Landon, chief financial officer, said in a conference call with analysts that job cuts will be made this year. The bank had a staff of 2,891 as of Dec. 31.
Bank of Hawaii took a $7 million charge in the fourth quarter as part of its technology replacement project and a $400,000 charge for restructuring expenses from the closure of four branches in the West Pacific.
The bank said the job cuts are due to changes being made in its information technology systems. The bank initially estimated that it would cut 250 jobs. But because of attrition and other factors, the bank said it was unclear exactly how many layoffs would actually occur.
Bank of Hawaii expects $131 million in net income for the full year. Net income will increase in the second half of 2003 after completion of the systems conversion project, the bank said.
The company said it had gains of $6.4 million on divestitures and restructuring items.
Net interest income for the fourth quarter was $90.2 million, down $16 million from the fourth quarter of 2001, partly because of the managed reduction of loans in an effort to reduce credit risk.
The bank said it would increase its dividend to 19 cents per share, up from the 18 cents per share it has paid each quarter since the beginning of 2000. The dividend will be paid March 14.
