Nationsbank: An Excess Of Zeal?

NationsBank Corp.'s vital statistics are as robust and bright as the shiny facade of its landmark headquarters in Charlotte, N.C. With an entrepreneurial zeal rare among bankers, NationsBank Chairman Hugh L. McColl Jr. has pursued an aggressive six-year acquisition and diversification spree that has made it the third-largest bank in the country, with assets of $171 billion in September. Profits for the year may top $1.7 billion.

One of McColl's major initiatives has been a campaign to go head-to-head with Wall Street. In 1992, the bank formed an ambitious joint brokerage venture with Dean Witter, Discover & Co. to market a variety of investment products through bank branches. It has also moved into investment banking and was one of the top three bank underwriters of corporate securities in 1993. Profit for the brokerage, NationsSecurities, was $41 million in 1993, nearly four times that of NationsBank's brokerage unit prior to the joint venture. And the bank's $94 million in 1993 investment banking income was more than double 1992's level.