City National Reports Profit Decline

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City National Corp. posted a 40 percent decline in second-quarter profit late Thursday as the bank company set aside $35 million to cover potential losses from loans.


The company, which is the parent of City National Bank, reported net income of $35.5 million (73 cents per share), down from $59.2 million ($1.19) in the same period a year earlier missing Wall Street’s expectations of 81 cents per share, according to Thomson Financial.


Net interest income, the difference between how much it costs a bank to borrow money and how much it receives from making loans, declined 2 percent to $153 million.


The Beverly Hills-based bank company said it expects the ongoing housing slump to weigh on its earnings, saying it anticipates earnings of $3.15 and $3.40 this year, down from $4.52 last year.


Shares in City National were down 5.1 percent to $44.82 in early trading Friday.

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