Golden West Net Up 25%
LOS ANGELES - Golden West Financial Corp. said second-quarter earnings rose 25%.
The announcement by Oakland-based Golden West, parent of World Savings and Loan Association, followed a disclosure by Great Western Financial Corp., Beverly Hills, that its quarterly earnings were flat.
Golden West reported net income of $62 million, or 97 cents a share, up from $49 million, or 78 cents a share, a year earlier.
Great Western, the nation's second-largest thrift company, earned $80.2 million, or 60 cents a share, up 2% from $78.2 million, or 60 cents a share.
Loan-Loss Provision Raised
Golden West's chairman and chief executive, Herbert Sandler, said the recession has pushed nonperforming assets up. But at 0.92% of loans, its level remains the envy of virtually all financial institutions. To take care of any problems, Golden West almost doubled its loan loss provision to $5.8 million from the $3.2 million taken in the year-earlier period.
For the first half, Golden West earned $114 million or $1.80 a share, up 19% from $96 million, or $1.53 a share.
James F. Montgomery, chairman and chief executive of Great Western, attributed its meager gain to a wider net interest margin and growth in net interest income despite "a sluggish real estate market and substantially reduced loan volume."
