Advertisement
YOU ARE HERE: LAT HomeCollections

3 Banks Report Higher Profits; Chemical Slips

July 15, 1986

Chemical New York Corp., parent of the nation's sixth-largest bank, on Monday reported an 8.4% decline in its second-quarter profit while three other major banking companies posted higher net income for the period.

Chase Manhattan Corp., the nation's No. 3 banking company, posted a profit gain of 11%, and No. 5 J. P. Morgan & Co. was up 50.6%.

First Chicago Corp., the nation's 10th-largest banking company, said its profit was more than five times larger than a year ago, when its expenses included a special reserve involving its disposal of a foreign bank investment.

Chemical reported that its net income for the quarter ended June 30 totaled $98.3 million, compared to $107.3 million in the same period last year. Lower gains on the sales of investment securities, losses in the trading account and a larger provision for loan losses more than offset higher net interest income, stronger service fees and improved profits from foreign exchange trading, the banking company said.

Chase Manhattan, the New York-based parent of the nation's third-largest bank, posted second-quarter net income of $145.7 million, up from $130.8 million a year earlier.

Chase said increased net interest income, rising income from fees and foreign exchange trading and gains from the sale of securities boosted its profit.

Chase took a $135-million provision for bad loans, compared to $105 million for the second quarter of 1985. The loan loss reserve as of June 30 totaled $955.8 million, up from $820.6 million a year earlier.

J. P. Morgan reported a second-quarter profit of $237 million, up from $157.4 million a year ago.

Morgan credited increased net interest and non-interest income and gains from investment securities for its strong performance.

First Chicago, parent of First National Bank of Chicago, reported a record profit of $63.6 million in the second quarter, compared to net income of $11.7 million a year ago.

Advertisement
Los Angeles Times Articles
|
|
|