Chase's Profit Doubles; Bank of New York's Dips

Chase Manhattan Corp. on Monday reported $132 million in profits for the second quarter, more than double the level of a year ago.

In other earnings news, Bank of New York Corp., PNC Financial Corp., and First Chicago Corp. all posted second-quarter declines. NCNB Corp. reported a modest gain of 3.5% in profits.

Despite an overall strong quarter, Chase showed continued weakness in the real estate sector. The New York bank charged off $117 million for realty losses, up from $87 million in the first quarter. Nonaccruing real estate loans climbed slightly to $2.3 billion, from $2.1 billion at the end of the previous quarter and $1.3 billion a year earlier.

The banking company took an even bigger hit on international debt, charging off $398 million in foreign loans, primarily to Brazil and Argentina.

For overall credit losses, Chase took a $265 million provision, up from $240 million in the previous period. "It is likely that the provision for possible credit losses will continue at relatively high levels" if the economy doesn't improve, the bank stated.

The second-quarter results were bolstered by a $21 million net gain on the sale of various subsidiaries, including Chase Investors Management Corp. Without the sale, the bank would have earned $111 million.

"We are encouraged with our third consecutive quarter of sound earnings, as well as increased profitability in our core businesses, solid expense control, and improved capital ratios," said Thomas Labrecque, Chase's chairman, in a statement. "In addition, we attained our targeted reduction of 5,000 employees."

On a per-share basis, Chase earned 80 cents, up from 24 cents a year earlier.


Bank of New York reported net income of $61 million, a 12.9% decline from $70 million in the year-earlier period.

A drop in nonperforming commercial real estate loans indicated the company is putting a dent its realty troubles. Those nonperformers totaled $337 million at the end of the quarter, off from $410 million at the end of the first quarter.

In addition, its overall provision for possible loan losses declined to $127 million, from $343 million in the first quarter.

Earnings per share were 75 cents, compared with 90 cents a year ago.


NCNB of Charlotte, N.C., cited stabilized credit quality and net income of $142.2 million, up from $137.4 million a year ago.

Nonperforming assets rose only 2% from the first quarter, to $1.05 billion, the smallest increase in six quarters.

Still, NCNB's loan-loss provision surged 49%, to $125 million from $84.1 million in the year-ago quarter.

The earnings, which were generally in line with a previous statement from the company, amounted to $1.21 a share.


First Chicago posted $57.3 million in earnings, down sharply from $87.4 million in the comparable period last year.

The company charged off $38 million in debt to Third World countries, down from $179 million a year earlier. Chargeoffs for real estate rose to $24 million from $21 million a year earlier and only $1 million in the first quarter.

PNC posted a dip in profits to $93.6 million, from $108.9 million in the second quarter of 1990. Total nonperforming assets, which include nonaccrual loans, restructured loans, and foreclosed assets, declined $83.5 million to $1.211 billion during the second quarter. Nonperforming loans dropped $104.3 million to $871.9 million at the Pittsburgh-based company.

In a sign that its strong recovery is continuing, First Fidelity Bancorp. posted $52 million in profits. That represents a sharp improvement over its $150 million loss a year earlier.

Tom Leander in New York and Kenneth Cline in Atlanta contributed to this article.

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