BankAmerica Profit Rises 11%

BankAmerica Corp., engaged in a well-publicized struggle for market share with its cross-town rival Wells Fargo & Co., on Wednesday said second-quarter earnings rose 11% on revenue growth from loans, customer fees and record trading income.

Net income at the nation’s third-largest bank holding company rose to $799 million, or $1.07 per share, from $723 million, or 92 cents, in the second quarter of 1996. The per-share results include the effects of a 2-for-1 stock split, which was effective June 2.

The results roundly beat analysts’ average estimate of $1.04 per share. Shares of the San Francisco-based company rose $2.50 to close at $69.13 on the New York Stock Exchange.

The results contrast with those of Wells, which Tuesday reported disappointing earnings as a result of persistent problems in integrating its purchase of First Interstate Bancorp.

BofA’s net interest income rose 1.6% to $2.19 billion as total loans expanded 5.1% to $168.8 billion. The net interest margin narrowed to 4.11% from 4.27% while the bank’s provision for credit losses was unchanged from last year at $250 million.

At a Glance:

Other major U.S. banks reported higher earnings.

Fleet Financial Group Inc. said second-quarter net income rose 18% to $328 million, or $1.19 a share, from $278 million, or 96 cents, a year earlier.

PNC Bank said second-quarter earnings rose 4% to $259 million, or 81 cents a share, from $248 million, or 72 cents, a year earlier.

Republic New York said second-quarter earnings rose 7.2% to $110.5 million, or $1.93 a share, from $103.1 million, or $1.71, a year earlier.

Wachovia said second-quarter earnings rose 3.9% to $165.6 million, or $1.01 a share, from $159.4 million, or 94 cents, in the same quarter last year.

State Street Boston Corp.’s second-quarter profit increased 30% to a record $92 million, or 57 cents a share, from $71 million, or 44 cents, in the second quarter of last year.

Eastman Kodak Co. said second-quarter profit fell 16% as a price war started by Fuji Photo Film Co. sliced into sales, making it unlikely that 1997 earnings will exceed last year’s. Kodak’s second-quarter net income fell to $368 million, or $1.12 a share, from $440 million, or $1.30, a year ago. The company was expected to report earnings of $1.38 a share, according to analysts’ estimates.

PG&E; Corp. reported second-quarter earnings of $192.9 million, or 49 cents per share, compared with $103 million, or 25 cents, a year ago. The earnings increase reflects a one-time gain.

AMR Corp., the parent of American Airlines, posted second-quarter earnings of $302 million, or $3.26 per share, compared with $293 million, or $3.35 a share last year. Total operating revenues rose to $4.71 billion from $4.55 billion a year ago.

Northrop Grumman Corp. reported a 16% increase in second-quarter earnings to $100 million, or $1.72 per share, compared with $86 million, or $1.69, in the year-ago quarter.

Archer-Daniels-Midland Co.’s fiscal fourth-quarter net income fell a less-than-expected 3.5% to $122.7 million, or 23 cents a share, from $127.2 million, or 24 cents, in the year-earlier period.

Lucent Technologies Inc. said fiscal third-quarter earnings nearly tripled to $213 million, or 33 cents a share, compared with $72 million, or 11 cents, in the 1996 period.

NCR Corp. said second-quarter losses narrowed by 78% to $4 million, or 4 cents a share, down from a loss of $18 million, or 18 cents, in the same period last year.

GTE Corp.’s second-quarter profit rose 4.5% to $671 million, or 70 cents per share. A year earlier, the company earned $642 million, or 66 cents.

General Dynamics Corp.’s second-quarter net income rose 19% to $80 million, or $1.28 a share, from $67 million, or $1.06, in the 1996 quarter.

Weyerhaeuser Co. said second-quarter profit fell 13% to $90 million, or 47 cents a share, from $103 million, or 52 cents, in the year-ago quarter.

Golden West Financial Corp., the parent of World Savings, said second-quarter earnings rose 9.7% to $87.3 million, or $1.54 a share, compared with $79.6 million, or $1.35, in the year-ago period.

Jacobs Engineering Group Inc. reported fiscal third-quarter net income of $12 million, or 46 cents per shares, compared with $10.4 million, or 40 cents, in the year-ago period.

Callaway Golf Co. reported second-quarter earnings of $46.8 million, or 66 cents per share, compared with $39 million, or 55 cents, a year ago.