The U.S. subsidiaries of three overseas banks Tuesday reported eye- popping percentage increases in quarterly earnings.

Royal Bank of Scotland's Citizens Financial Group was up 100%, HSBC Americas Inc. gained 30%, and Sanwa Bank California rose 38%.

Analysts attributed the gains-proportionally greater than at major domestic banking companies-to disciplined managements and deep-pocketed parents. But the trend is not universal: Harris Bankcorp in Chicago, an affiliate of Bank of Montreal, reported flat earnings last week due to acquisition-related costs.

"One of the advantages to being owned by a rich parent is that the parent can clean them up," said Merrill Lynch & Co. analyst Matthew Burnell. "They also have the benefit of getting back-office systems at a lower cost" because development expenses are spread over a broader, global base.

Citizens of Providence, R.I., which is 75%-owned by Royal Bank of Scotland and 25% by Bank of Ireland, earned $45.1 million in its third fiscal quarter.

The $15.8 billion-asset unit, which has been on an acquisition tear through New England over the last five years, attributed the doubling of net income to growth in deposits and loans.

"The four-state franchise we've assembled is growing rapidly and paying off in record earnings," said Lawrence K. Fish, chairman and chief executive officer.

Deposits grew by 13%, to $12.9 billion. Net interest income was $147.8 million, up 24%. Net loans grew 12%, to $9 billion, driven by a 22% jump in commercial loans, to $1.5 billion.

Noninterest income rose 9%, to $39.8 million. But income from mortgage banking dropped 87%, to $1.6 million, due to Citizens' exit from the mortgage servicing business last year. Expenses dipped 2%, to $109.6 million.

HSBC Americas, parent of Buffalo-based Marine Midland Bank, reported $116 million of net income, propelled in part by acquisitions. The $32.9 billion-asset Marine Midland bought First Federal Savings and Loan, Rochester, N.Y., in January.

Executives said cost savings from that acquisition and two others would fuel earnings over the next few quarters.

Net interest income grew 1%, to $299.7 million. Net loans rose 43%, to $20.5 billion. Noninterest income rose 19%, to $88.9 million. Expenses were up 24%, to $195.8 million, due to additional staff and operations acquired over the year.

The $8.1 billion-asset Sanwa Bank California, Los Angeles-based subsidiary of Sanwa Bank Ltd. in Osaka, Japan, posted record net income of $22.7 million.

"We have really figured out how to best utilize existing resources to grow earnings," said Tamio Takakura, president of the U.S. unit.

He attributed part of the gains to "disruptions" from the mergers of other California banks, notably that of Wells Fargo & Co. with First Interstate Bancorp.

Marketing efforts aimed at defecting Wells Fargo customers "have really been paying off," said Mr. Takakura.

Core deposits grew 10%, to $4.4 billion. Strong expansion in commercial loans helped drive Sanwa's net interest income up 10%, to $81.3 million. Net loans grew 6%, to $6.4 billion. +++

Sanwa Bank California Los Angeles Dollar amounts in millions (except per share) Second Quarter 2Q97 2Q96 Net income $22.7 $16.4 Per share - - ROA 1.14% 0.89% ROE 12.55% 9.32% Net interest margin 4.83% 4.97% Net interest income 88.8 84.1 Noninterest income 20.6 18.7 Noninterest expense 65.4 62.2 Year to Date 1997 1996 Net income $43.9 $31.2 Per share - - ROA 1.12% 0.86% ROE 12.10% 8.88% Balance Sheet 6/30/97 6/30/96 Assets $7,900.0 $7,300.0 Deposits 6,100.0 5,600.0 Loans 6,200.0 5,700.0

HSBC Americas Inc. (Marine Midland Bank) Buffalo, N.Y. Dollar amounts in millions (except per share) Second Quarter 2Q97 2Q96 Net income $116.1 $89.1 Per share - - ROA 1.55% 1.73% ROE 22.90% 20.74% Net interest margin 4.29% 4.72% Net interest income 299.7 226.7 Noninterest income 88.9 74.4 Noninterest expense 195.8 157.6 Year to Date 1997 1996 Net income $230.6 $175.0 Per share - - ROA 1.69% 1.73% ROE 23.32% 20.72% Balance Sheet 6/30/97 6/30/96 Assets $32,872.7 $22,727.0 Deposits 23,285.6 17,263.8 Loans 20,476.6 14,302.1

Harris Bank Chicago Dollar amounts in millions (except per share) Second Quarter 2Q97 2Q96 Net income $43.3 $43.3 Per share - - ROA 0.83% 0.00% ROE 11.11% 15.22% Net interest margin 3.71% 3.66% Net interest income 171.5 151.0 Noninterest income 93.9 83.4 Noninterest expense 177.0 150.1 Year to Date 1997 1996 Net income $88.4 $86.0 Per share - - ROA 0.86% 0.96% ROE 11.49% 15.21% Balance Sheet 6/30/97 6/30/96 Assets $22,119.0 $19,678.0 Deposits 16,313.0 14,286.0 Loans 12,414.0 11,167.0

Citizens Financial Group, Inc. Providence, R.I. Dollar amounts in millions (except per share) Third Quarter 3Q97 3Q96 Net income $45.1 $22.4 Per share - - ROA 1.48% 0.96% ROE 26.77% 19.91% Net interest margin 4.27% 4.04% Net interest income 147.8 119.4 Noninterest income 39.8 36.6 Noninterest expense 107.9 109.6 Year to Date 1997 1996 Net income $142.3 $100.2 Per share - - ROA 1.35% 1.20% ROE 24.10% 24.82% Balance Sheet 6/30/97 6/30/96 Assets $15,764.6 $14,653.5 Deposits 12,973.7 11,498.6 Loans 9,003.5 8,065.9 * third quarter ended June 30, 1997 ===

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