Top 100 banking companies grew by 5% last year.

The assets held by the nation's 100 largest banking companies jumped by 5.1% last year, while the rest of the industry shrank by 4.2%, according to an American Banker survey.

As a result, the share of assets for the top 100 surged by two full percentage points, to 71.0%, the survey found.

Mergers fueled most of the asset increase. The biggest gainer: Detroit-based Comerica Inc., which grew by 84% with its acquisition of Michigan rival Manufacturers National Corp.

Comerica now ranks as the nation's 26th-largest banking company, up 16 positions from yearend 1991.

Among other big movers were NBD Bancorp. of Detroit, up seven spots to No. 17; Southtrust Corp. of Birmingham, Ala., up nine to No. 46; and Pittsburgh-based Integra Financial Corp., up 10 spots to No. 52.

The survey of the top 100 also found that:

* Net income soared 147%, to $20.2 billion from $8.2 billion in 1991.

* Ninety-five companies recorded profits, compared with only 86 in 1991.

* Tier 1 capital rose 21%, to $161 billion from $133 billion.

Assets at the top 100 grew by $120 billion last year, to $2.488 trillion. That 5.1% growth rate was up from 1.4% in 1991.

By comparison, the assets held at other commercial banking organizations declined by $44.8 billion, to $1.018 trillion.

Overall, banking assets grew by 2.2% last year, or $75.2 billion, to $3.506 trillion.

Changes at the Top

There was only one new company last year in the list of the top 25. Security Pacific Corp. left the ranks when acquired by Bank America Corp. The new member of the club was National City Corp. of Cleveland, up one spot to No. 25.

Another Cleveland-based company, Society Corp., moved up 10 spots to No. 29 by acquiring its neighbor Ameritrust Corp. And NDB's growth was fueled by expansion into Indiana via three acquisitions.

Among other banking companies that grew significantly through acquisitions were Ohio-based Banc One Corp., which climbed four notches to become the eighth-largest company; Pittsburgh's PNC Bank Corp., which jumped from 15th to 10th place; Minneapolis' Norwest Corp., which edged into 15th place from No. 17; and Florida's Barnett Banks Inc., which jumped to No. 18 from No. 20.

Several deals announced in 1992 did not close by yearend and are not reflected in the top 100 ranking. These include Banc One's acquisition of Phoenix's Valley National Corp. and Albany, N.Y.-based KeyCorp's purchase of Puget Sound Bancorp in Tacoma, Wash.

Most institutions sharply improved profitability.

The average return on assets for the top 100 was 0.92%, compared with 0.63% in 1991. Return on equity also rose significantly, to 12.49% from 7.97%.

The higher returns on equity were recorded despite significantly higher capital levels and a resulting reduction in earnings leverage. In response to regulatory and marketplace pressures, bank companies continued to build capital at a rapid clip.

Assets of the top 100

jumped 5.1%, while

the rest of the industry

shrank.

The average ratio of Tier 1 capital to risk-adjusted assets for the group rose from 8.46% in 1991 to 10.03% - well above the regulatory minimum. The average leverage capital ratio, considered the most important measure for regulatory purposes, increased to 7.12% in 1992 from 6.22%.

The performance improvement stemmed from declining interest rates and diminishing loan problems. Especially impressive was the return to profitability in 1992 by most of the major banking companies that lost money in 1991.

The 50 largest banking companies were all in the black, and only two - First Chicago Corp. and Portland, Ore.-based U.S. Bancorp - failed to boost profits from 1991 to 1992. U.S. Bancorp's earnings fell only because it adopted new accounting standards for employee retirement benefits.

For 1991, nine of the top 50 companies, including Citicorp, the largest, registered losses.

Other companies that returned to profitability in 1992 included First Interstate Bancorp; Bank of Boston Corp.; Chicago-based Continental Bank Corp.; MNC Financial Inc.; and Signet Banking Corp.

Even Edison, N.J.-based Midlantic Corp., recognized a year ago as one of the most troubled major banking companies in the country, eked out a $7 million profit in 1992 after losing $543 million the year before.

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