CHICAGO — First Chicago Corp. posted a $122.9-million second-quarter profit Wednesday, a dramatic improvement over last year's performance that reflects higher income from fees and a more stable lending environment.
First Chicago, the leading banking group in the Midwest, lost $599.9 million in the second quarter of 1987 after adding $800 million to its reserve for non-performing Third World loans.
First Chicago reported that its non-interest income, profit derived from its non-traditional businesses, soared 94% to $234.7 million in the April-June quarter just ended. Fees from its strong credit card business rose to $58.8 million from $32.5 million a year earlier.
First Chicago, the parent of the First National Bank of Chicago, also said it had reduced its foreign loan portfolio by $350 million in the first six months to about $2.6 billion. First Chicago's reserve against non-performing loans stands at 41% of the bank's Third World loans.