PHILADELPHIA — Sovereign Bancorp, Inc., parent company of Sovereign Bank, reported increased cash earnings for the fourth quarter and year 2000, but saw a drop in net income for both periods.
The company reported cash earnings of $308.6 million for 2000, compared to $231.5 million last year. For the fourth quarter, cash earnings were $80.4 million, up from $59.8 million for the same period a year ago.
Cash earnings are operating earnings excluding amortization of intangible assets and ESOP related expenses. Cash return on tangible equity was 46.9 percent in 2000, compared with 26.6 percent in 1999. For 2000, cash return on average equity and cash return on average assets were 18.3 percent and .99 percent respectively, up from 17.7 percent and .97 percent in 1999. Cash return on tangible equity was 70.1 percent for the fourth quarter of 2000, compared to 25.6 percent for the fourth quarter of 1999.
For the year, Sovereign lost $30.2 million, compared to net earnings of $179.3 million a year ago. The company also reported a loss in net income of $3.3 million for the fourth quarter, compared to net earnings of $29.2 million for the same period last year.
