Wells Fargo Profit Up 13% to $215 Million : Banking: Company cites growth in loans and lower tax rate. Others report mixed results for quarter.

Wells Fargo reported a fourth-quarter profit of $215 million Tuesday, up 13% over year-earlier figures, while several other leading U.S. banks reported mixed results in the quarter.

San Francisco-based Wells Fargo’s per-share earnings for the period ended Dec. 31 were $2.96, compared to $3.18 for the same period in 1993, an increase of 25%.

The nation’s 15th-largest bank said the results reflect smaller loan loss provisions and a lower effective tax rate in the quarter.

Loans were up 6% to $35.3 billion compared to a year ago. In addition, bad loans fell, the number of loans written off was lower and the amount of money the bank set aside in case more loans go bad declined in the quarter.

Year-end earnings totaled $841 million, or $14.78 per share, compared to $612 million, or $10.10 per share, in 1993.

Wells Fargo shares fell $1.50 to $153.25 on the New York Stock Exchange.

“As we came out of the recession in California, our credit quality improved rapidly, but we faced challenges in resuming growth,” Chairman Paul Hazen said in a statement. “We were particularly pleased by our loan growth in the fourth quarter and see it as a foundation for further business expansion in 1995.”

San Francisco-based Union Bank, also citing the improved California economy and increase in loan growth, reported net income of $28.9 million, or 73 cents a share, for the fourth quarter, more than double the $12.4 million, or 27 cents a share, reported for fourth quarter 1993.

For 1994, the bank earned $75.3 million, 9.4% less than the $83.1 million for 1993.

“We have successfully reduced our non-performing assets to a level (1.06%) that compares more favorably with the better commercial banks,” said Kanetaka Yoshida, president and chief executive of Union Bank. “This has been our strategic focus throughout 1994.”

Meanwhile, Chemical Banking Corp. and Chase Manhattan Corp. reported weaker fourth-quarter earnings, citing trading losses in emerging markets such as Mexico.

Chemical, the nation’s fourth-largest bank, said net income fell 48.4% in the quarter ended Dec. 31 to $179 million, or 63 cents a share, from $347 million, or $1.23 a share, in the year-ago period. The 1994 quarter included a restructuring charge of $152 million after taxes.

Even excluding the charge--to cover one-time costs from a plan announced Dec. 1 to slash expenses--earnings would have fallen 4.6% to $331 million, or $1.24 a share, the New York-based banking company said.

Trading revenue fell sharply to $45 million in the quarter from $255 million, hurt by losses in emerging-market debt and sluggish year-end activity, Chemical said.

Losses from unauthorized Mexican peso trading hurt revenue by $40 million after taxes, it said. The peso plunged last month, sparking fears of an economic crisis in what had been seen as one of the world’s fastest-growing markets.

“Despite a difficult operating environment, 1994 was a good year for Chemical and one in which we took important steps to position ourselves for sustained success,” Chairman Walter Shipley said in a statement.

Chemical shares closed down 50 cents at $38.375 on the New York Stock Exchange.

New York-based Chase, the No. 6 bank, said net income dropped 26.8% in the quarter, partly reflecting lower trading revenue. It earned $229 million, or $1.10 a share, compared to $313 million, or $1.53 a share, a year ago.

Trading revenue was $32 million, off sharply from $168 million in the 1993 quarter. Trading was hurt by weak global markets, Mexican and emerging markets, and derivatives, Chase said.

For the year, Chase said net income rose 24.7% to $1.21 billion, or $5.87 a share, from $966.0 million, or $4.79 a share.

Chase’s shares closed down 25 cents at $34.75 on the New York Stock Exchange.

Also Tuesday, Bank of New York Co. said earnings for the quarter rose 28% as income from loans and securities processing surged.

Bank of New York said fourth-quarter net income rose to $201 million, or $1.06 a share, from $157 million, or 81 cents, a year ago.

At NationsBank Corp., fourth-quarter net income rose 8.6%, as fees charged to customers more than offset disappointing income from loans and investments.

The Charlotte, N.C., banking company’s earnings rose to $405 million, or $1.46 a share, from $373 million, or $1.37, a year earlier.

NationsBank’s shares closed down $1.875 at $46.625 on the New York Stock Exchange.

First Chicago Corp. said earnings were unchanged as strong credit card income offset dismal trading results. The Chicago-based banking company said net income was unchanged at $173 million. Per-share income fell to $1.76 from $1.81 a year earlier because of an increase in shares outstanding. First Chicago’s shares closed down 25 cents at $48.50.