BankAmerica Up 2%; Northrop in Black Ink

BankAmerica Corp. reported a 2% rise in third-quarter profit Wednesday. It said the economy’s continuing weakness was constraining business.

The nation’s second-largest bank also said troubled assets generally declined.

The San Francisco-based company earned $486 million, or $1.19 a share, for the period ended Sept. 30. That compares to $476 million, or $1.22 a share, for last year’s third quarter.

Earnings per share fell because there were 10 million more shares outstanding than a year ago and because of a $26-million award to its employees, the bank said. Without that special item, earnings would have been $501 million, or $1.23 a share.

BankAmerica, with about half its loans and profit in California, is still feeling the effects of the state’s depressed economy. Overall, loans were down to $121.8 billion, from $123.1 billion in second-quarter 1993 and $130.6 billion in the third quarter of 1992.

BankAmerica’s net interest margin, which measures the difference between the cost of funds and income from loans and investments, was 4.76%, unchanged from the second quarter but up slightly from 4.72% a year ago.