PrivateBancorp, Inc. (PVTBP) has reported a 14.21 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $59.55 million, or $0.73 a share in the quarter, compared with $52.14 million, or $0.65 a share for the same period last year. On an adjusted basis, net profit for the quarter was $59.88 million, when compared with $52.49 million in the last year period.
Revenue during the quarter grew 13.42 percent to $188.74 million from $166.41 million in the previous year period. Net interest income for the quarter rose 13.76 percent over the prior year period to $155.38 million. Non-interest income for the quarter rose 20.72 percent over the last year period to $39.41 million.
PrivateBancorp, Inc. has made provision of $6.05 million for loan losses during the quarter, up 113.63 percent from $2.83 million in the same period last year.
Net interest margin contracted 2 basis points to 3.23 percent in the quarter from 3.25 percent in the last year period. Efficiency ratio for the quarter deteriorated to 48.89 percent from 48.71 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"We are pleased with our fourth quarter performance to cap a strong 2016," said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. "Through the continued successful execution of our business development efforts, and with the benefit of a rising rate environment, we achieved annual double-digit growth in loans, deposits, revenue and net income as we continued to deliver value for our clients and stockholders in 2016. Our dedicated team members remain focused on executing our strategic priorities and building new client relationships while doing more for existing clients, enabling us to drive our bottom-line results.
Liabilities outpace assets growth
Total assets stood at $20,053.77 million as on Dec. 31, 2016, up 16.23 percent compared with $17,252.84 million on Dec. 31, 2015. On the other hand, total liabilities stood at $18,134.10 million as on Dec. 31, 2016, up 16.58 percent from $15,553.89 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $14,870.48 million as on Dec. 31, 2016, up 13.47 percent compared with $13,105.74 million on Dec. 31, 2015. Deposits stood at $16,065.23 million as on Dec. 31, 2016, up 11.99 percent compared with $14,345.59 million on Dec. 31, 2015.
Loans to deposits ratio was 93.72 percent for the quarter, up from 92.48 percent for the previous year quarter.
Investments stood at $3,779.61 million as on Dec. 31, 2016, up 19.56 percent or $618.35 million from year-ago. Shareholders equity stood at $1,919.68 million as on Dec. 31, 2016, up 12.99 percent or $220.72 million from year-ago.
Return on average assets was stable at 1.21 percent in the quarter, when compared with the last year period. At the same time, return on average equity increased 11 basis points to 12.40 percent in the quarter from 12.29 percent in the last year period.
Nonperforming assets moved up 53.86 percent or $32.87 million to $93.89 million on Dec. 31, 2016 from $61.02 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.47 percent in the quarter, up from 0.35 percent in the last year period.
Capital ratios deteriorate
Privatebancorp witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 10.28 percent for the quarter, down from 10.35 percent for the previous year quarter. Equity to assets ratio was 9.57 percent for the quarter, down from 9.85 percent for the previous year quarter. Book value per share was $24.04 for the quarter, up 11.92 percent or $2.56 compared to $21.48 for the same period last year.
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