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The Honolulu Advertiser

Posted on: Tuesday, April 26, 2005

Bank of Hawaii enjoys 14 percent rise in profits

 •  HEI profits down despite gains at American Savings
 •  Central Pacific's earnings per share up 23 percent

Advertiser Staff

Bank of Hawaii's first-quarter net income beat the expectations of Wall Street analysts, as growth in lending, mortgage banking, investments and other activity drove up profits by 14 percent. Shares of the bank rose 4 percent to close at $46.10 yesterday.

First quarter 2005

  • Revenue: $153 million, up 5.6 percent from a year ago
  • Net income: $45.5 million, up 14 percent from a year ago
  • Earnings per share: 83 cents, up 20 percent from a year ago
  • Net interest income: $100.7 million, up 5 percent vs. yr ago
  • Non-interest income: $52.3 million, up 7 percent vs. yr ago
  • Total assets: $9.91 billion, down 1 percent from year ago
  • Total loans and leases: $6.02 billion, up 5 percent vs. yr ago



Reasons

  • Growth in lending contributed to higher net interest income in the quarter.
  • Non-interest income — from fees, investments and other sources — rose in nearly all categories. Mortgage banking had the fastest growth, up 31 percent to $2.6 million.
  • Operating expenses fell 2.6 percent to $81 million, helping the bottom line.



What they are saying

"We were pleased with the quarter. A good financial performance gives us a good start for 2005."

— Al LANDON | Chairman, CEO

"Earnings were very strong. ... Other banks have higher revenue growth, but it's hard to compare with Bank of Hawaii's profitability and asset quality."

— Brett rabatin | FTN analyst



What's next

  • The bank expects fiscal 2005 net income to range from $176 million to $179 million because of a strong first quarter and delay to 2006 of a $1 million accounting charge relating to expensing of stock options.
  • The bank authorized another $100 million in stock repurchases. Its board of directors has authorized a total of $1.35 billion in stock buybacks so far.
  • The bank declared a quarterly cash dividend of 33 cents per share payable on June 14. Its dividend yield is 2.9 percent.