Great Western Narrows Quarterly Loss; AT&T;’s Profit Slips

Great Western Bank reported a loss of $18.2 million in the fourth quarter, an improvement over the $97.3 million the savings and loan said it lost in the final three months of 1992.

The loss resulted primarily from loan-loss provisions of $149 million and a restructuring charge of $30 million, attributable to separation costs relating to planned layoffs.

Great Western took the loss provisions as part of a continuing campaign to clean out bad loans. It disposed of $1.6 billion in problem assets in 1993.

The S&L; reported an annual profit of $62 million, compared to $85 million it earned in 1992. Great Western, the nation’s second-largest savings and loan, with more than $38 billion in assets, had loan-loss charges of $555 million last year, compared to write-offs of $640 million in 1992.

Analysts, who expected the quarterly loss, praised the thrift for bringing its problem loans down to manageable levels and for its continuing restructuring that will help reduce its annual overhead by as much as $100 million.

“I’m very enthused by what I’ve seen,” said analyst Bruce Harting at Salomon Bros. “I no longer feel like I’m out on a limb recommending the company.”

But others, such as Peter Treadway of Smith Barney, Harris Upham, noted that falling interest rates have hurt Great Western’s interest income and that higher than expected loan-loss provisions in the fourth quarter indicate lingering loan problems. “I’d have to call it a disappointing quarter,” Treadway said.

Meanwhile, the Chatsworth-based S&L; confirmed that it will cut 1,000 jobs, or 25% of its administrative staff, during the next year in a bid to cut its costs. The strategy is expected o require about 500 layoffs.

Great Western shares closed up 37.5 cents to $19.25 in New York Stock Exchange trading.