J. P. Morgan, Chemical Both Chalk Up Gains

J. P. Morgan & Co. reported that its profit rose 40.8% in the fourth quarter, while Chemical Banking Corp. eked out only a small profit because of special merger-related charges.

Despite Chemical’s meager returns, the banking company won a small but significant victory on Wall Street, with Moody’s Investors Service upgrading the bank’s long-term debt slightly. It was perhaps the first ratings upgrade of a major New York bank since the 1970s, analysts said. Moody’s had no record of Chemical being upgraded since 1976.

Chemical said it earned $154 million, or 11 cents a share, in 1991, against $440 million, or $1.84 a share, in 1990.

During the quarter it took a special charge of $625 million to cover its merger with Manufacturers Hanover. Although the merger didn’t become final until Dec. 31, Chemical and Manufacturers released combined earnings.

Chemical said it would have earned $779 million, or $3.56 a share, without the special restructuring charge.

J. P. Morgan, one of the nation’s top 10 banks, said it earned $269 million, or $1.35 a share, for the three months ended Dec. 31, compared to $191 million, or 98 cents a share, in the fourth quarter of 1990.

For the full year, it earned $1.14 billion, or $5.80 a share, compared to $1 billion, or $5.21 a share, in 1990.

The increase reflects a special gain of $33 million in the July-September quarter for early retirement of corporate debt and the effect of an accounting change in 1990.

“All areas of the firm helped achieve these strong results,” Chairman Dennis Weatherstone said.

Earnings, D7