On a pro forma basis, the companies forming the new Bank One earned $1.1 billion, or 89 cents a share.

In a two-hour presentation to analysts in New York, executives said they were on track for meeting expense and revenue goals that would add $1.2 billion to annual net income within three years.

Chief executive officer John B. McCoy told analysts that Bank One has defined the operations structure for the new company. "We have pretty good marching orders for where we have to go and everybody understands that," he said.

Mr. McCoy also noted the diversification of $235 billion-asset company's businesses in commercial lending, credit cards, retail banking, consumer finance, and investment management.

Michael Mayo, an analyst with Credit Suisse First Boston, said expenses at the combined company were still high in the third quarter. He said he believes such costs will be a problem if revenues are hurt by an economic slowdown.

Mr. McCoy responded that the company expects to improve expense controls over the next year.

Banc One and First Chicago both benefited from credit cards and other fee-based businesses. Cards are expected to contribute 31% of earnings next year, second only to the 38% from commercial banking.

Banc One said noninterest income rose 15%, to $1.3 billion, and noninterest expense grew 1%, to $1.6 billion. Net interest income declined 4% due to securitizations of credit card loans.

Consumer loans increased 10% and credit card loans 14%, compared with the same period a year earlier.

Noninterest income at First Chicago was $733 million, up 5% from last year's third quarter. Net interest income was flat at $925 million.

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