SAN FRANCISCO Glendale Federal Bank reported a narrowed loss of $4.8 million for the June quarter, compared with a $29.9 million loss in the same period last year, reflecting gradual gains in revenue and credit quality.
The net loss. equal to 25 cents a share. was expected as the Glendale. Calif.-based thrift continues to recover from the crisis that brought it close to failure last year.
For its full 1994 fiscal year, which ended in June, Glendale Federal lost $208.6 million. versus an $80.8 million loss for fiscal I993. Fiscal 1994 was affected by several special items, including a $136.2 million writeoff for the pending sale of the thrift's Florida operations.
"Maybe we have got another quarter of losses before we go into positive territory." predicted PaineWebber's Gary Gordon.
Earthquake Slowed Turnaround
Glendale Federal chairman and chief executive Stephen J. Trafton said last year that he hoped the thrift would return to profitability in fiscal 1994. But that timetable was delayed by losses associated with the January earthquake.
In the latest quarter, Glendale Federal trimmed problem loans and foreclosed property 19.8% to $695.2 million, or 4.14% of assets, largely through bulk sales. Still, the thrift had $228 million in credits newly recorded as nonperforming, including $116.4 million related to the temblor.
Mr. Irafton said he hopes in fiscal 1995 to hold revenue steady to reduce operating expenses 15%, and to cut loan-loss provisions in half to approximately $70 million.