Major Banks Post Mixed Results in Second Quarter

Several of the nation’s largest bank holding companies reported second-quarter earnings Monday, with mixed results.

Great Western Financial, Chase Manhattan Corp., NCNB Corp. and Manufacturers Hanover Corp. said net income was up for the second three months of 1991, while Chemical Banking Corp., First Chicago and Bank of New York Co. reported declining profits.

While the results varied, so did the circumstances behind the rise and fall at their bottom lines. Higher provisions for credit losses dampened the earnings of some banking companies, while others profited from strong revenue.

* Great Western Financial, the Beverly Hills-based parent of Great Western Bank, said second-quarter net income rose 2% to $80.2 million. The firm attributed the gain to a strong improvement in its net interest margin and continued growth in net interest income. Net interest margin, the difference between the yield on earning assets and the cost of funds, was 3.60% at June 30, compared to 2.86% a year earlier and 3.17% on March 31.

* Chase Manhattan, the nation’s third-largest banking company, said second-quarter earnings more than doubled to $132 million compared to 1990 net income of $52 million.

The latest quarter’s results included a $21-million net gain from the disposition of several businesses, including Chase’s investment management subsidiary.

* Chemical, the nation’s sixth-largest banking company, said it earned $94 million in the second quarter, down 17% from a year earlier.

The New York company said that net interest income was up but that those gains were offset by a higher loan-loss provision and non-interest expenses.

* NCNB, ranked seventh, said quarterly income rose 3.5% from a year ago to $142.2 million. NCNB said it had higher non-interest expenses in the second quarter and raised its reserves for credit losses.

* No. 9 Manufacturers Hanover’s second-quarter profit more than doubled to $75 million from $33 million, but largely because the company had taken a $60-million charge last year to cover restructuring costs.

* No. 13 First Chicago reported a $57.3-million quarterly profit, down from $87.4 million in the 1990 quarter.