Chase, Morgan Report Higher Nets in Quarter

Chase Manhattan Corp., the nation’s third-largest bank holding company, said Monday that its fourth-quarter profits increased 25% in 1985 from the same period a year earlier.

Separately, J. P. Morgan & Co., the fifth-largest bank holding company, reported a 3.9% profit increase during the quarter ended Dec. 31. Morgan said its profits rose to $174 million from $167.5 million in the same quarter of 1984.

Chase Manhattan said that in the quarter ended Dec. 31, it had net income of $151 million, surpassing fourth-quarter 1984 earnings of $120 million.

The company credited increased income from fees, commissions, foreign exchange trading and investments for boosting profits in 1985, but it noted that earnings were offset by an increased loan-loss provision and higher operating expenses.

Net interest income for the fourth quarter was $799 million, up from $724 million during the same period of 1984. Other operating income was $381 million during the fourth quarter, compared to $265 million in the same period of 1984.

The fourth-quarter performance boosted Chase Manhattan’s profits for all of 1985 to a record $565 million from $406 million for 1984. Its previous record net income was $430 million in 1983.

The company’s total assets averaged $86.3 billion during 1985, compared to $85.3 billion during 1984.

For 1985, Chase had net interest income of $2.99 billion, compared to $2.54 billion a year earlier. Other operating income totaled $1.3 billion for the year, compared to $930 billion for 1984.

During the fourth quarter, Chase Manhattan increased its provision for possible loan losses to $125 million from $90 million in the same period of 1984.

For the year, Chase Manhattan’s loan-loss provision was $435 million, compared to $365 million in 1984. Non-accruing and reduced-rate loans totaled about $2 billion at year-end, compared to $2.2 billion on Dec. 31, 1984.

Morgan reported that its net interest earnings rose to $290.1 million in the fourth quarter from $294.1 million a year ago. Non-interest operating income was $256 million, compared to $198.5 million a year earlier.

Total assets were $69.37 billion on Dec. 31, compared to $64.1 billion on Dec. 31, 1984.

Morgan’s loan-loss provision was $90 million in the fourth quarter, compared to $30 million in the fourth quarter of 1984. For the year, the loan-loss provision was $335 million, up from $150 million at the end of 1984.

For all of 1985, Morgan had net income of $705.4 million. That was a 31.2% increase from $537.6 million for 1984.

Net interest income for the year was $1.08 billion, compared to $901.6 million in 1984, while non-interest income was $907.7 million, compared to $681.3 million in 1984, Morgan reported.

For detailed data and results of other companies, please see tables, Page 10.