Brazil Payments Boost Chemical Bank Profits
The first major U.S. bank reporting fourth-quarter results, Chemical Banking Corp., said today its 1988 net income was lifted by Brazil’s payments on almost two years’ of interest on its loans.
The No. 4 U.S. banking company’s fourth-quarter net profit rose to $288.5 million, or $4.66 a share, from $229.6 million, or $3.83 a share, last year.
The Brazilian payments are also likely to boost year-end results for other major New York banks, which last year suffered their worst year in history as Brazil halted its interest payments to commercial banks.
Brazil’s stepping up of repayments at the end of last year added $161 million, net of withholding taxes, to Chemical’s fourth-quarter results.
For the year as a whole, Chemical earned $753.6 million, or $12.02 a share. In 1987, it lost $853.7 million, or $16.68 a share, due to adding $1.1 billion to its reserves for Third World loan losses that included Brazil and other nations.
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