Washington Mutual Reports Drop in Profit

Washington Mutual Inc., the biggest U.S. savings and loan, said fourth-quarter profit fell for a third consecutive quarter as rising interest rates crimped demand for home loans.

Net income fell to $668 million, or 76 cents a share, from $842 million, or 93 cents, a year earlier, the Seattle-based company said.

Analysts had expected Washington Mutual to report a fourth-quarter profit of $673.3 million, or 76 cents a share.

Net interest income, or what Washington Mutual earned from loans, rose 6% to $1.85 billion from a year earlier. Fee income fell 3% to $1.22 billion. Total loan volume fell 10% to $63.22 billion.

Washington Mutual shares fell 1 cent to $41.60 on the New York Stock Exchange. Earnings were released after regular trading.