("Marshall & Ilsley Loss Narrows On On Prior-Year
Provisions," published at 9:11 a.m. EDT, misstated the latest
quarter's loan loss provision in the seventh paragraph. The correct
version follows:)
Marshall & Ilsley Corp.'s (MI)'s second-quarter loss
narrowed on sharply lower loss provisions, but loan quality
continued to worsen during the quarter.
Wisconsin's largest bank has cut costs and jobs and slashed its
dividend to preserve cash. It has struggled with heavy exposure to
some of the most troubled housing markets, as well as commercial
construction loans.
In recent premarket trading, shares rose 2 cents to $5.30 as the
loss was narrower than expected. The stock is down 61% this
year.
Last month, Marshall & Ilsley joined other banks in boosting
capital, netting proceeds of about $552 million from selling 100
million shares, roughly 38% of its shares outstanding.
Chief Executive Mark Furlong said Friday the second quarter
"continued to be challenging" but the company was working on
resolving problem credits. "We remain committed to ensuring M&I
emerges from this cycle in a position of strength and believe we
are continuing to make progress toward our goal of returning to
profitability," the CEO said.
Marshall & Ilsley's loss narrowed to $114.3 million, or 50
cents a share, from $393.8 million, or $1.52 a share, a year
earlier. The latest results included a net 8 cents in gains.
Analysts polled by Thomson Reuters expected a loss, excluding
items, of 69 cents.
Loan-loss provisions fell 2% from the prior quarter to $468.2
million and slumped 47% from a year earlier. Charge-offs, or loans
thought not to be collectible, rose to 3.71% of average loans and
leases from 3.23% a year ago and 2.67% in the prior quarter.
Non-performing loans, or those near default, rose to 5.18% of total
loans and leases from 2% a year ago and from 5.15% in the prior
quarter.
The company's tangible common equity ratio, which measures how
much of a bank's hard assets its common shareholders actually own,
was 7.3%, compared with 6.4% in the prior quarter.
Deposits rose 2.1% from a year earlier and 0.5% during the
quarter. Marshall & Ilsley also continued to see its lending
book shrink, with loans and leases down 2% from a year ago and 0.8%
from the prior quarter.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com
