Bank Profits Outstrip the Predictions : Results: Lower interest rates paid to depositors and an apparent peaking of bad loans are cited. Wells Fargo is a leader.

Major banks, including Wells Fargo & Co., on Tuesday posted better-than-expected first-quarter earnings, largely boosted by lower interest rates paid to depositors and an apparent peaking of bad loans.

Wells Fargo, Citicorp, Chemical Banking Corp., Bankers Trust New York Corp. and Banc One Corp. all reported earnings in the quarter ended March 31 that were generally higher than analysts had expected.

On the thrift front, H. F. Ahmanson & Co. said its earnings rose 27%, but largely because of accounting changes. Without them, earnings would have fallen 59% as Ahmanson, the parent of Home Savings of America, added $118 million to reserves against loan losses and $12 million for possible losses on real estate development.

“There were certainly some big surprises, all on the upside,” said Arthur P. Soter, banking industry analyst at Morgan Stanley & Co. in New York. “The perception is that credit quality for most banks--possibly with the exception of West Coast banks--is stabilizing.”

The common thread, he said, is that banks are benefiting from their lower cost of funds and an apparent peaking of such credit costs as loan charge-offs. “Non-interest expenses are also coming under control,” Soter said.

In San Francisco, Wells Fargo reported net income of $119 million, off 22% from the $152 million posted in the year-earlier period. Earnings were lower because the company added $215 million to its loan-loss reserve during the quarter.

Still, the results were better than expected on Wall Street and triggered a buying spree in Wells Fargo stock. The company’s shares leaped $9.875 to $76.125 on the New York Stock Exchange.

The company, which has a large percentage of loans in the troubled real estate sector, is being watched closely by analysts and regulators. And Carl E. Reichardt, Wells Fargo chairman and chief executive, was guarded in assessing the results.

“Economic recovery around the nation is still fragile, and in much of California we’re still waiting for some clear signs of a turnaround,” he said. “Given this uncertainty, we continue to manage the company with a tight rein.”

In Irwindale, Ahmanson, parent of the nation’s largest thrift, is also watching its loan portfolio closely after it reported first-quarter earnings of $70.7 million, compared to $55.8 million a year ago. But accounting changes reduced tax liability by $48 million.

The thrift’s loan-loss reserves stood at $367.3 million March 31, compared to $303.8 million Dec. 31 and $230.5 million on March 31, 1991. Reserves for real estate losses were $120.5 million, versus $88.9 million a year earlier.

“While non-performing assets have increased, we are encouraged by the decline over the last two months in loans 60 to 89 days delinquent,” Chairman and Chief Executive Richard H. Deihl said in the statement. “I believe that as long as the economy doesn’t weaken further, we will probably see the peak in our non-performing loans around mid-year.”

Among big money-center banks, Citicorp attracted investor attention as first-quarter net income nearly doubled. New York-based Citicorp, the nation’s largest banking company, said net earnings in the period jumped to $183 million from $93 million a year earlier.

Chairman John S. Reed said the results prove that Citicorp’s two-year recovery plan, now five quarters old, is on track. Citicorp’s stock jumped $1.50 a share to $18.25 in NYSE trading.

“You can rest assured that this management is grimly determined to get the job done,” Reed told stockholders.

He said Citicorp will restore its cash dividend, eliminated last year, when it has “a good solid balance sheet and good solid earnings,” and he suggested that such a move could come next year.

Other banking companies posting better than expected earnings:

* Banc One, based in Columbus, Ohio, reported first-quarter net of $178.7 million, up from $129.6 million a year earlier.

* Bankers Trust’s income climbed 9% to $175 million from $160 million, or $1.85, a year ago.

* Chemical Banking, reflecting its merger with Manufacturers Hanover Trust, posted an even better gain, with income climbing 44% to $260 million from $181 million.