EARNINGS : Mixed Profit Reports From 2 Big N.Y. Banks
NEW YORK — Chemical Banking Corp. on Thursday reported static earnings for the second quarter, while profit at Bank of New York more than doubled as the result of its acquisition of Irving Bank Corp. late last year.
At Chemical, income gains were offset by higher expenses and a slump in bond trading profits.
For the quarter ended June 30, Chemical reported net income of $128.6 million, up 0.7% from $127.7 million in the year-ago period.
Net interest income totaled $565 million, down 5% from $595.1 million. Chemical attributed the decrease to $4.4 billion lower average earning assets resulting from the divestiture of certain businesses and assets.
Non-interest income, including fees for trust and other banking services, totaled $252.2 million, up 12.6% from $223.9 million a year ago.
Foreign Exchange Record
Provision for loan losses totaled $90.9 million, which includes $45 million loaned to countries that are rescheduling their debt. A year ago, Chemical’s loan-loss provision amounted to $95.8 million.
Chemical said profit from foreign exchange trading totaled a record $51.5 million during the quarter, but trading account activities lost $1.8 million, contrasted with a $25.7-million profit a year ago.
Total assets amounted to $75.9 billion at the end of the second quarter, compared to $75.8 billion a year ago.
At Bank of New York, net income for the second quarter totaled $114.3 million, up 130% from $49.7 million a year ago. The jump reflects the November, 1988, acquisition of Irving Bank.
Chairman J. Carter Bacot noted in a statement that the bank experienced strong growth in all major commercial lending areas during the second quarter. He also noted that “cost savings arising from the merger are being realized sooner than anticipated.â€
Net interest income totaled $327.5 million, up 84% from $177.8 million a year ago. Non-interest income, bolstered by loan syndication fees and credit card fees, totaled $230.8 million, compared to $119.4 a year ago.
Allowances for loan losses totaled $919.3 million at the end of the second quarter, compared to $31.9 million a year ago. The bank reported a $30.6-million charge-off related to its non-performing Argentine debt.
Total assets at the end of the quarter amounted to $49.59 billion, up 109% from $23.62 billion a year ago.
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