Banc One Corporation: The Evolution of Partnership

26 Pages Posted: 30 May 2017

See all articles by Jeanne Liedtka

Jeanne Liedtka

University of Virginia - Darden School of Business

Abstract

Paul Walsh, newly appointed chairman of Banc One Diversified Services Corporation, with responsibility for products in the historically nonbanking areas of securities, insurance, leasing, consumer finance, asset management, and mortgage, reviewed 1992's successful results and thought of his upcoming meeting with the presidents of the affiliate banks. In light of Banc One's remarkable performance, he pondered what approach to take to persuade them of the need for a new strategic partnership between his organization and their banks in order to move Banc One beyond traditional banking as they knew it.

Excerpt

UVA-BP-0335

Rev. Feb. 25, 2011

Banc One Corporation: The Evolution of Partnership

The most important difference between bankers in the 1980s and bankers in the 1990s will be their ability to manage opportunity.

—John B. McCoy

The year 1992 had proved to be the most successful year in Banc One Corporation's history. Its highlights included (1) the completion of a series of acquisitions that made Banc One the nation's ninth-largest bank; (2) a 32% increase in earnings that extended the bank's record of consecutive annual earnings-per-share increases to 24 years; and (3) a 10-year average return on equity and assets that placed it first among the 25 largest U.S. banks. In 1991, Institutional Investor named the firm “America's best-run bank.” “Banc One is only the leading example of the new strength of the United States' regional banks. The future lies outside the money centres,” The Banker stated. “Perhaps the most amazing aspect of Banc One is its consistency,” Forbes reported. “Year after year in a climate notoriously unfriendly to banks, Banc One has continued its stellar performance streak.”

. . .

Keywords: business policy

Suggested Citation

Liedtka, Jeanne, Banc One Corporation: The Evolution of Partnership. Darden Case No. UVA-BP-0335, Available at SSRN: https://ssrn.com/abstract=2973916 or http://dx.doi.org/10.2139/ssrn.2973916

Jeanne Liedtka (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
804-924-1404 (Phone)
804-924-6378 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/liedtka.htm

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