J.P. Morgan, Others Report Strong Profits for 3rd Quarter : Finance: Major banks continue to benefit from falling interest rates and a decline in troubled loans.

J.P. Morgan & Co. and several major regional banks reported healthy third-quarter results Thursday, reflecting higher profits and a decline in troubled loans that has characterized the banking industry all year.

Banks continue to benefit from falling interest rates, which widen the gap between their cost of funds and income from higher yielding loans and securities already on the books. In addition, real estate markets are improving in many regions outside Southern California, which leads to a reduction in banks’ troubled loans and foreclosed real estate.

J.P. Morgan & Co., the nation’s fourth-largest banking company, posted third-quarter net income of $468 million, or $2.30 a share, up from $320 million, or $1.61 a share, in 1992.

The per-share results were sharply higher than analysts’ estimates of $1.74. Nonetheless, Morgan fell 75 cents at $77.75 on the New York Stock Exchange.

Norwest Corp. reported third-quarter earnings of $167.3 million, or 55 cents a share, up 26% from $132.7 million, or 43 cents a share, a year earlier.

The results slightly exceeded analysts’ estimates, but the company’s stock dropped 75 cents to $27.75 on the NYSE.

The company’s banking group reported its third-quarter earnings were $101.4 million, 34.7% higher than the comparable 1992 period; mortgage banking earned $12.6 million, down $5.3 million from last year; and Norwest Financial, the finance company unit, said earnings were $53.3 million, up 35% from year-ago levels.

Society Corp. said it earned $98.2 million, or a record 83 cents per share, for the third quarter, up from $82.8 million, or 69 cents a share, during the comparable period in 1992.

Although the per-share results matched analysts’ estimates, Society’s stock was off 62.5 cents at $30.125 a share on the NYSE.

Society’s 1993 third-quarter results included several non-recurring but offsetting special items related to its acquisition of Ameritrust, a Texas bank.

Society and KeyCorp plan to combine as the nation’s 10th-largest banking company in a $7.8-billion stock swap. The merger agreement, announced last week, is not reflected in the third-quarter earnings statement.

KeyCorp’s third-quarter net income totaled $102.6 million, or 97 cents a share, up 31.4% from $78.1 million, or 75 cents a share, in 1992.

The results were in line with analysts’ expectations, and KeyCorp’s stock was off 37.5 cents at $36.25 on the NYSE.