Bank of America, Wachovia profits soar on mergers

WACHOVIA, NATIONAL CITY, PNC

At Charlotte-based Wachovia, profit excluding merger costs totaled $1.21 per share, topping the average analyst forecast by three cents. Revenue rose 31 percent to $8.59 billion, topping forecasts for $7.91 billion.

Results benefited from the $24.2 billion purchase on October 1 of Golden West Financial Corp., an Oakland, California adjustable-rate mortgage specialist and 285-branch thrift.

The purchase helped boost consumer and business banking profit 73 percent to $1.67 billion. Earnings also rose incorporate and investment banking, capital management and wealth management.

"We think we've got really good momentum," Chief Executive Ken Thompson said on a conference call. "Although credit costs are rising, this largely reflects (loan) growth, including our reentry into the credit card business."

Net income at National City rose to $842 million, or $1.36 per share, from $398 million, or 64 cents.

Excluding a gain from selling a subprime mortgage unit and credit losses from that unit, profit totaled 64 cents per share, a nickel below forecasts.

Chief Executive David Daberko in an interview said consumer borrowers, except in subprime, appear "very healthy," while commercial borrowing trends remain healthy apart from "stress" in commercial real estate.

At PNC, net income rose to $376 million, or $1.27 per share, from $355 million, or $1.20, helped by higher revenue from brokerage and asset management units. Excluding items, profit totaled $1.30 per share, matching forecasts.

(Additional reporting by Christian Plumb)