Republic N.Y. Says Profits Up 12% In Quarter and 13% for the Year

Fourth-quarter earnings at Republic New York Corp. rose nearly 12% to $89.4 million, helping push total net income for the year to a record $340 million, up 13% from 1993.

Net interest income, or earnings from loans, rose 13% to $218 million. Noninterest income fell 18% to $91.1 million and included a 43% decline in trading income.

"Earnings were on target and expenses pretty flat," said Mark C. Alpert, a bank analyst with Alex. Brown & Sons Inc.

Return on average assets at the $41 billion-asset bank remained unchanged at 0.74%, and return on average equity rose slightly to 15.88%. Both measures of profitability were below average compared with peers.

"They tend to run a low-risk operation," remarked Charles W. Peabody, an analyst with UBS Securities Inc. But with some banks shaken by a downturn in trading profits and uncertainty about the direction that financial markets are heading, Republic's reputation for prudent management could help it drum up extra business.

"In a period when there is a flight to quality, their franchise and reputation for preservation and return of capital won't help them in terms of producing a 1% ROA, but will help them gain business and clientele," Mr. Peabody said.

Operating expenses rose 5.1% in 1994 compared with 1993, mainly as a result of acquisitions, while credit quality continued to improve. Provisions for loan losses were $3 million in the fourth quarter, down from $15 million last year. Nonaccrual loans stood at $58 million at yearend, the lowest level since 1986. +++ Republic New York Corp. New York, NY Dollar amounts in millions (except per share) Fourth Quarter 4Q94 4Q93 Net income $89.4 $79.9 Per share 1.46 1.34 ROA 0.74% 0.74% ROE 15.88% 15.27% Net interest margin 2.65% 2.43% Net interest income 218.1 193.1 Noninterest income 91.1 111.3 Noninterest expense 181.6 174.4 Loss provision 3.0 15.0 Net chargeoffs 2.6 (16.1) Full Year 1994 1993 Net income 340.0 $301.2 Per share 5.61 5.05 ROA 0.74% 0.73% ROE 15.20% 15.08% Net interest margin 2.64% 2.48% Net interest income 846.5 775.9 Noninterest income 386.4 395.5 Noninterest expense 721.5 635.0 Loss provision 19.0 85.0 Net chargeoffs 11.4 13.3 Balance Sheet 12/94 12/93 Assets $41,068 $39,494 Deposits 22,726 22,801 Loans 8,913 9,509 Reserve/nonp. loans549.19% 328.64% Nonperf. loans/loans 0.65% 1.00% Nonperf.assets/assets0.20% 0.30% Leverage cap. ratio 6.00% 5.61% Tier 1 cap. ratio 16.20% 15.16% Tier 1+2 cap. ratio 27.50% 26.20% ===

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