Bank of Hawaii sees gain on Visa deal
Bank of Hawaii Corp. said the sale of its shares in Visa Inc. will add to the company's profit in the first quarter.
Bank of Hawaii said Wednesday it made money off two transactions — the sale of its Visa shares and the sale of its interest in an aircraft lease.
The credit card company went public earlier this month, generating $18 billion or about $44 a share.
In a filing with the Securities & Exchange Commission, the bank said it will use the money for employee incentives, to pay a call premium on its trust preferred securities and to contribute to the Bank of Hawaii Charitable Foundation.
On the down side, Bank of Hawaii said it would set aside more money to cover losses "reflecting increased risk in the commercial leasing and consumer portfolios." The bank didn't say how much money it planned to set aside pay day advance.
But even after earmarking more money to cover bad loans, Bank of Hawaii (NYSE: BOH) said it still expects an increase in net income of between $7 million and $9 million in the first quarter.
The company said it will release its first quarter results on April 21.