RIVERWOODS, Ill. - SPS Transaction Services Inc. reported a 22% increase in net income for the fourth quarter, to $9.9 million.

The per-share equivalent was up seven cents, to 37 cents.

The fast-growing credit card and transaction processing company also raised net income by 23% for the year, to $37.7 million, while the per- share figure rose to $1.40, from $1.14.

Net operating revenues rose 16% in the quarter, to $64.7 million, and 20% for the year, to $245.8 million.

"Increases in consumer and commercial credit volume contributed to a strong fourth quarter," said Robert L. Wieseneck, president and chief executive officer.

"We set a number of company operating records during December," he added, "including processing over 500,000 new credit card account applications during the month."

Funded and managed active accounts grew to 3.9 million, from 3.2 million at the end of 1993. Outstanding credit card loans, including securitized loans, rose in 1994 by more than $400 million, or 64%, to $1.1 billion.

Loans outstanding include the Incredible Universe and Computer City portfolios bought from Tandy Corp. Dec. 30.

SPS also signed an agreement Jan. 19 to issue and own the receivables of Tandy's Radio Shack and McDuff consumer credit cards. When they reached the agreement in principle last month, the companies said $400 million would be transferred in this transaction to SPS' Hurley State Bank in South Dakota.

SPS reported an increase in electronic point of sale transactions, to 93.5 million in the fourth quarter, from 82.2 million in the comparable quarter of 1993.

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