Manny Hanny’s Net Skids; Wells’ Rises

Citicorp and Wells Fargo & Co. reported higher second-quarter earnings Tuesday while Manufacturers Hanover Corp. said its profit tumbled during the period.

Citicorp, the nation’s largest banking concern, based in New York, said its net income for the three months ended June 30 rose 10% over the comparable 1988 period to $395 million.

Manufacturers Hanover reported that its profit fell 74% to $106 million. The 1988 second quarter included $336 million in one-time gains from asset sales and tax benefits.

Wells Fargo’s second-quarter net income rose 18% to $147.4 million.

Citicorp

Citicorp said its net interest revenue rose 8% to $1.84 billion, while other revenue rose 5% to $1.5 billion and non-interest expenses rose 6% to $2.6 billion.

The company took a $329-million provision for possible credit losses and wrote off $534 million in credit, including $223 million to debtor nations. Citicorp announced earlier in the year that it was writing down $185 million of medium- and long-term debt related to its Argentine loans.

Citicorp’s total reserve for loan losses was $3.9 billion as of June 30, down from $4.5 billion a year ago.

Manny Hanny

Manufacturers Hanover said its second-quarter results reflected strength in regional banking and global wholesale activities. Results for the year-earlier quarter included a $291-million gain from the sale of Manufacturers Hanover Consumer Services Inc.

Net interest income was up nearly 1% to $453 million, while non-interest revenue fell 47.2% to $353 million and non-interest expense was nearly flat at $530 million.

Net interest revenue was reduced by $38 million in the quarter and by $70 million in the first six months because of $894 million in non-performing loans from Argentina.

The company took a provision for possible credit losses of $100 million in the second quarter, down from $133 million in the 1988 period.

Net chargeoffs of loans to developing countries in the quarter totaled $291 million, up from $56 million in the 1988 quarter. It included $247 million in net chargeoffs of medium- and long-term loans to Argentina.

As of June 30, Manufacturers Hanover’s total loan-loss reserve was $2.06 billion, down from $2.53 billion a year earlier.

Wells Fargo

Wells Fargo, based in San Francisco, said its second-quarter benefited from increased net interest income from greater domestic loan volume.

Net interest income was $531.5 million, compared to $482.1 million a year ago.

Wells Fargo took a $100-million provision for loan losses in the quarter and net loan chargeoffs were $42.7 million. Non-performing loans totaled $1.2 billion as of June 30, down from $1.4 billion a year earlier.