First Interstate, Chase Post Sharp Third-Quarter Gains

First Interstate Bancorp and Chase Manhattan Corp. reported sharp gains in third-quarter profit Monday.

First Interstate said its third-quarter earnings doubled to $150.5 million, or $1.80 a share, from $75 million, or 82 cents a share, a year ago.

The results exceeded analysts’ expectations of $1.65 a share.

The Los Angeles-based banking company benefited from increases in both net interest and non-interest income, as well as declines in its provision for loan losses and operating expenses.

The company’s board raised its dividend on common stock to 50 cents a share from 40 cents, payable Nov. 30. It is the second dividend increase this year.

For the first nine months of 1993, earnings were $590.7 million, or $7.20 a share, up from $200.2 million, or $2.31 a share, during the 1992 period.

Credit quality at the bank, with operations in 13 states, continued to improve.

First Interstate’s stock plunged $3.25 to $60.75 a share on the New York Stock Exchange.

Chase Manhattan, the sixth-largest bank holding company in the nation, said its third-quarter profit rose 52% to $267 million, or $1.25 per share, from $176 million, or 94 cents a share, a year earlier.

“The performance of our core business was strong across the board,” the company said, citing increased net interest revenue and strong trading revenues.

“In addition, we made excellent progress in liquidating real estate assets held for disposition at favorable prices,” the New York-based company said.

Chase said it expects to book unspecified gains in the fourth quarter from the sale of about $260 million of its $722-million portfolio of U.S. real assets held for accelerated sale.

For the first nine months of the year, Chase’s net income grew 39% to $653 million, or $3.23 a share, from $470 million, or $2.59 a share, in the same period in 1992.

Chase Manhattan’s stock fell $1.75 to $34.125 a share on the NYSE.