UPDATE 2-City National Q2 profit beats Wall Street view

* Q2 adj EPS $0.56 vs est $0.49

* Expects credit costs to remain elevated in 2010

* Sees net charge-offs, provision costs down in 2010

* Net interest income up 17 pct

* Non-interest income up 91 pct

* Provision for loan losses falls 54 pct
(Adds conference call details)

July 22 (BestGrowthStock) – Bank holding company City National Corp
(CYN.N: ) posted a better-than-expected second-quarter profit (Read more your timing to make a profit.),
helped by revenue growth and an improvement in credit quality.

“We do expect credit costs to remain somewhat elevated
through the end of this year, but we also anticipate continuing
reductions to net charge-offs and provision costs for in 2010,”
Chief Executive Russell Goldsmith said on a call with analysts.

The company also said it expects significantly increased
profitability in 2010 over 2009.

Net income available to common shareholders for the quarter
rose to $41.3 million, or 78 cents a share, from $1.3 million,
or 2 cents a share, last year.

Excluding items, net income was $30.0 million, or 56 cents
a share.

Revenue rose 39 percent to $304.5 percent.

Analysts on average expected the company to earn 49 cents a
share, on revenue of $252.9 million, according to Thomson
Reuters I/B/E/S.

Net interest income at the company, which offers banking,
investment and trust services, rose 17 percent to $185.3
million, while non interest income jumped 91 percent to $122.5
million.

Second-quarter provision for credit losses fell to $32
million from $70 million.

Shares of the Los Angeles-based company closed at $53
Thursday on the New York Stock Exchange.

Stock Market Trading

(Reporting by Archana Shankar in Bangalore; Editing by Vinu
Pilakkott and Don Sebastian)

UPDATE 2-City National Q2 profit beats Wall Street view