PREVIEW-Steep provision, costs to hit PrivateBancorp's Q4

viernes 23 de enero de 2009 19:37 CET
 

* To report Q4 results on Jan. 26

* Analysts see Q4 loss/shr of $0.15

* Higher loan loss provision and costs to take toll

* Analysts: co will need fresh capital in 2009

By Amiteshwar Singh

BANGALORE, Jan 23 (Reuters) - A higher loan loss provision and operating expenses stemming from its aggressive growth strategy are set to spoil PrivateBancorp Inc's (PVTB.O: Cotización) fourth-quarter results, and the regional bank may need to raise capital in 2009.

The Chicago-based company has been pursuing a competitive growth plan, adding new hires and continuing to get business accounts.

"While I still expect them to post very substantial growth, particularly on the loan side, I think credit costs and expense growth will continue to weigh on the company," Sandler O'Neill analyst Daniel Arnold told Reuters.

The company's push to hire executives from LaSalle Bank, which is now a unit of Bank of America (BAC.N: Cotización), was "obviously very expensive," Arnold said. PrivateBancorp is still trying to cover the costs, he added.   Continuación...