National City Chairman Recaps 2000 Corporate Performance and Tells Stockholders That Company is Poised for Continued Growth in 2001

Apr 23, 2001, 01:00 ET from National City Corporation

    CLEVELAND, April 23 /PRNewswire Interactive News Release/ -- National City
 Corporation (NYSE:   NCC) Chairman and Chief Executive Officer David A. Daberko
 today outlined the corporation's growth objectives for 2001.  He said the
 $.54 operating income reported for the first quarter of the year "puts us well
 on the way to achieving this objective."
     Speaking today at the company's Annual Meeting of Stockholders, Daberko
 talked about the successes upon which the company plans to build and the
 investments it has made to assure future growth.  Achievements during the year
 2000 included:
 
     * Middle market corporate banking, which accounts for 32 percent of
       National City's earnings, grew by 10 percent,
     * Credit card unit grew loans by 5 percent and earnings by 13 percent,
     * Home equity loans grew by more than $1 billion, representing a
       30 percent increase for the year.
 
     "All of this loan growth was achieved within the sound credit underwriting
 practices that have led analysts and investors to recognize National City as
 one of the strongest major banks in the country from a credit quality
 standpoint," said Daberko.
     Daberko also highlighted National Processing, National City's 87 percent
 owned item processing subsidiary.  National Processing (NYSE:   NAP), the
 nation's second largest processor of credit and debit card transactions, had
 14 percent revenue growth for the year and produced a 39 percent gain in
 operating earnings.
     National City's stock transfer unit, part of the company's asset
 management business, was named the best in the U.S. for the third time in four
 years.  The Armada Small Cap Value fund, managed by National City Investment
 Management Company, produced a 34 percent rate of return for the year, ranking
 it in the top 10 percent of all small cap value funds.
     The company has made measurable progress in servicing customers better
 through a company-wide service quality improvement initiative.  It produced
 faster response times, fewer errors and better error resolution.
     Technology spending was increased by more than 50 percent in 2000,
 resulting in most of the company's products becoming available to customers on
 a newly designed website 24 hours a day, seven days a week.
     Retail Sales and Distribution, which includes the company's branch banking
 network, deposit taking, direct lending and small business banking, has set
 goals for 2001 that include increases in deposits, small business
 relationships and referrals to other units in the company.  Retail Sales and
 Distribution has committed to improving the service level in its branch system
 by improving wages, increased training and enhancing customer service.  The
 company is also aggressively marketing a set of on-line banking products aimed
 at helping small businesses become more efficient and competitive in a tough
 market environment.
     Corporate banking will be working to broaden its capital markets and cash
 management activities.  At the same time, it will seek well priced, well
 structured middle market corporate loans.
     Finally, Daberko told stockholders the company is also focused on cost
 control throughout the corporation, but reached the decision that reducing
 long-term expense growth would not be effective by making across-the-board
 staff cuts.  Instead, he said, the company has opted to contain expenses
 through targeted process improvements.
     Stockholders elected 16 members to the board of directors, and approved
 the 2001 Stock Option Plan and the selection of Ernst & Young LLP as
 independent auditors.  By an overwhelming majority, stockholders defeated a
 proposal from an individual stockholder to sell or seek a merger of the
 corporation with another financial institution.
     Mr. Daberko's comments contain forward-looking statements that involve
 significant risks and uncertainties, including changes in general economic and
 financial market conditions and the Corporation's ability to execute its
 business plans.  Although management believes the expectations reflected in
 such forward-looking statements are reasonable, actual results may differ
 materially.  Further, National City Corporation has disclosed in its SEC
 filings that it is engaged in a dispute with the Internal Revenue Service
 concerning the deductibility of certain expenses for the years 1990 through
 1998 related to corporate-owned life insurance programs.  In the event a
 satisfactory settlement is not reached in negotiations with the IRS, an
 additional charge of up to $40 million may need to be recorded either later
 this year or in a subsequent year, pending full adjudication of the matter.
 
     About National City
     National City Corporation is a $91 billion financial holding company
 headquartered in Cleveland, Ohio. Through its subsidiaries, the company
 provides a full range of financial services including investment banking,
 brokerage, mutual fund, insurance and traditional banking services to
 individuals and businesses. National City has offices in Ohio, Pennsylvania,
 Indiana, Kentucky, Illinois and Michigan. National City can be found on the
 World Wide Web at http://www.nationalcity.com .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X81448621
 
 

SOURCE National City Corporation
    CLEVELAND, April 23 /PRNewswire Interactive News Release/ -- National City
 Corporation (NYSE:   NCC) Chairman and Chief Executive Officer David A. Daberko
 today outlined the corporation's growth objectives for 2001.  He said the
 $.54 operating income reported for the first quarter of the year "puts us well
 on the way to achieving this objective."
     Speaking today at the company's Annual Meeting of Stockholders, Daberko
 talked about the successes upon which the company plans to build and the
 investments it has made to assure future growth.  Achievements during the year
 2000 included:
 
     * Middle market corporate banking, which accounts for 32 percent of
       National City's earnings, grew by 10 percent,
     * Credit card unit grew loans by 5 percent and earnings by 13 percent,
     * Home equity loans grew by more than $1 billion, representing a
       30 percent increase for the year.
 
     "All of this loan growth was achieved within the sound credit underwriting
 practices that have led analysts and investors to recognize National City as
 one of the strongest major banks in the country from a credit quality
 standpoint," said Daberko.
     Daberko also highlighted National Processing, National City's 87 percent
 owned item processing subsidiary.  National Processing (NYSE:   NAP), the
 nation's second largest processor of credit and debit card transactions, had
 14 percent revenue growth for the year and produced a 39 percent gain in
 operating earnings.
     National City's stock transfer unit, part of the company's asset
 management business, was named the best in the U.S. for the third time in four
 years.  The Armada Small Cap Value fund, managed by National City Investment
 Management Company, produced a 34 percent rate of return for the year, ranking
 it in the top 10 percent of all small cap value funds.
     The company has made measurable progress in servicing customers better
 through a company-wide service quality improvement initiative.  It produced
 faster response times, fewer errors and better error resolution.
     Technology spending was increased by more than 50 percent in 2000,
 resulting in most of the company's products becoming available to customers on
 a newly designed website 24 hours a day, seven days a week.
     Retail Sales and Distribution, which includes the company's branch banking
 network, deposit taking, direct lending and small business banking, has set
 goals for 2001 that include increases in deposits, small business
 relationships and referrals to other units in the company.  Retail Sales and
 Distribution has committed to improving the service level in its branch system
 by improving wages, increased training and enhancing customer service.  The
 company is also aggressively marketing a set of on-line banking products aimed
 at helping small businesses become more efficient and competitive in a tough
 market environment.
     Corporate banking will be working to broaden its capital markets and cash
 management activities.  At the same time, it will seek well priced, well
 structured middle market corporate loans.
     Finally, Daberko told stockholders the company is also focused on cost
 control throughout the corporation, but reached the decision that reducing
 long-term expense growth would not be effective by making across-the-board
 staff cuts.  Instead, he said, the company has opted to contain expenses
 through targeted process improvements.
     Stockholders elected 16 members to the board of directors, and approved
 the 2001 Stock Option Plan and the selection of Ernst & Young LLP as
 independent auditors.  By an overwhelming majority, stockholders defeated a
 proposal from an individual stockholder to sell or seek a merger of the
 corporation with another financial institution.
     Mr. Daberko's comments contain forward-looking statements that involve
 significant risks and uncertainties, including changes in general economic and
 financial market conditions and the Corporation's ability to execute its
 business plans.  Although management believes the expectations reflected in
 such forward-looking statements are reasonable, actual results may differ
 materially.  Further, National City Corporation has disclosed in its SEC
 filings that it is engaged in a dispute with the Internal Revenue Service
 concerning the deductibility of certain expenses for the years 1990 through
 1998 related to corporate-owned life insurance programs.  In the event a
 satisfactory settlement is not reached in negotiations with the IRS, an
 additional charge of up to $40 million may need to be recorded either later
 this year or in a subsequent year, pending full adjudication of the matter.
 
     About National City
     National City Corporation is a $91 billion financial holding company
 headquartered in Cleveland, Ohio. Through its subsidiaries, the company
 provides a full range of financial services including investment banking,
 brokerage, mutual fund, insurance and traditional banking services to
 individuals and businesses. National City has offices in Ohio, Pennsylvania,
 Indiana, Kentucky, Illinois and Michigan. National City can be found on the
 World Wide Web at http://www.nationalcity.com .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X81448621
 
 SOURCE  National City Corporation

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