Tom Reese/Paul Rubillo, Dividend.com
National City (NCC) plans to cut about 4,000 jobs over the next three years, after reporting a $729 million loss in the third quarter.
The company set aside $1.18 billion during the third quarter for loan-loss provisions, compared with provisions of $368 million during the same quarter a year earlier. Similar to other banks, the loan loss amounts are headed higher.
Management said that non-interest income, or money derived from fees and other charges, fell to $386 million from $624 million during the same quarter last year. Most of the decline in non-interest income came from hedging losses on mortgage servicing rights.
The Bottom Line
We have been avoiding shares of NCC since our June coverage began, when shares were trading just below $6 a share. There has been talk of a potential merger partner looking to acquire NCC, but those rumors have still not come to fruition. We would continue to avoid the stock at this point.
National City (NCC) is not recommended at this time, holding a Dividend.com Rating of 2.0 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
