Citing growth in its consumer lending business, European American Bank Inc. said Monday it posted a 32% jump in full-year net income to $88.7 million.

The Uniondale, N.Y.-based bank also saw fourth-quarter earnings increase to $22.6 million, up 30% over the year-earlier period.

"The success of our co-branded credit card for TWA exceeded projections and delivered significant profits in its first year," said Edward Travaglianti, EAB's president and chief operating officer.

The bank's total average loan volume grew to $2.3 billion in 1994, 17% higher than in 1993.

Total outstanding loans grew to $2.75 billion in the same period, a 39.4% jump. The allowance for loan losses was $74.8 million, or 2.71% of total loans. The provision for loan losses for 1994 was $41.5 million, compared with $29 million for 1993.

However, operating expenses increased last year - to $213.5 million - due to, among other things, higher costs associated with growth in the loan portfolio, the bank said.

Net interest income jumped to $268.6 million at the end of 1994, 18% over the prior year. The bank's net interest margin increased to 4.6% from 4.34% during the same period.

EAB, a $6.8 billion-asset subsidiary of Amsterdam, Netherlands-based ABN Amro Bank N.V., also reported a 4.69% return on average assets for the full year 1994, up from 4.34% in 1993.

Return on shareholder equity was 20.57% at Dec. 31, up from 18.86% in the prior year.

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