BankAmerica Profit Rises on Higher Fees

BankAmerica Corp. said Wednesday that its fourth-quarter earnings rose 6% as higher fees from checking accounts and other services offset sluggish growth in lending income.

Net income for the nation’s No. 3 bank rose to $747 million, or $1.93 a share, from $704 million, or $1.74, in the last three months of 1995. As expected, the period included a $280-million restructuring charge and a $147-million gain tied to the initial public offering of a credit-card-processing business.

“This was really a year of improving the way we manage the company, and I think the results reflect that,” Chief Financial Officer Michael O’Neill said.

The results exceeded Wall Street’s expectations of $1.89 a share. That sent BankAmerica stock up $5.625 to close at $107.375 on the New York Stock Exchange.

O’Neill said the company’s domestic loans grew by $3 billion to $139 billion during the quarter, with loans in California accounting for about 30% of the gain.

For the year, BankAmerica earned $2.9 billion, or $7.31 a share, up from $2.7 billion, or $6.49 a share, in 1995.

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Irwindale-based H.F. Ahmanson & Co. said its fourth-quarter net income rose 50%, helped by fees, the sale of branches and consumer lending.

The nation’s largest thrift, which operates as Home Savings of America, said net income rose to $91.2 million, or 78 cents a share, from $60.7 million, or 41 cents, during the same period in 1995. That beat the average Wall Street forecast of 60 cents a share.

“The company had a very productive year, completing the acquisition of 61 former First Interstate branches, building infrastructure and income and expanding our product lines,” Chairman and Chief Executive Charles Rinehart said.

At a Glance:

Sanwa Bank California reported fourth-quarter earnings of $24.1 million, compared with $12.2 million in the year-ago quarter. The Los Angeles-based bank posted record net income of $73 million in fiscal 1996, compared with $53 million in fiscal 1995. . . . Fleet Financial Corp.’s fourth-quarter earnings rose 16% as the nation’s 11th-largest bank reaped benefits from acquisitions and saw increases in its national lending businesses. . . . First Chicago NBD Corp. reported fourth-quarter earnings of $377 million, or $1.14 a share, up from $318 million, or 96 cents, a year ago.

PNC Bank Corp. said net income rose to $271.9 million, or 80 cents a share, from profit from operations of $204.1 million, or 60 cents, during the same period in 1995. . . . Wachovia Corp. said fourth-quarter net income rose 17% to $170.7 million, or $1.02 a share, from $146.2 million, or 85 cents, a year earlier. . . . Federal Home Loan Mortgage Corp., or Freddie Mac, said earnings rose about 10% in the fourth quarter to $321 million, or 43 cents a share, from $291 million, or 38 cents, a year earlier.

Sun Microsystems Inc.’s second-quarter earnings rose 42% to $178.3 million, or 46 cents a share, from $126 million, or 32 cents, in the year-earlier period. Analysts were expecting earnings of 42 cents.

Kaufman & Broad Home Corp. reported fourth-quarter net income of $19.9 million, or 50 cents per share, compared with $17.9 million, or 45 cents, in the year-ago quarter.

Premisys reported second-quarter net income of $6.1 million, or 23 cents per share, up more than 50% from $3.8 million, or 15 cents, a year ago.

Jacobs Engineering Group Inc. reported first-quarter net income of $10.9 million, or 42 cents per share, compared with $9.5 million, or 37 cents, for the year-ago quarter.

Cirrus Logic Inc. reported third-quarter net income of $10.3 million, or 16 cents per share, compared with net income of $3.0 million, or 5 cents, a year ago.

Xilinx Inc. reported third-quarter net income of $26.2 million, or 33 cents per share, compared with $32.2 million, or 41 cents, for the year-ago quarter.

Raychem Corp. reported second-quarter net income of $52 million, or $1.14 per share, compared with $25 million, or 55 cents, a year ago.