J.P. Morgan and Co Inc saidthird-quarter net income rose 3.6 pct to 219.2 mln dlrs, from
211.5 mln a year earlier, partly because of reduced loan-loss
provisions and a lower income tax bill.
    For the first nine months of the year, however, Morgan
posted a loss of 140.8 mln dlrs, compared with a profit of
682.4 mln in the same period of 1986, because it set aside 875
mln dlrs in reserves in the second quarter against shaky
third-world loans.
    The provision for loan losses in the quarter was 20 mln
dlrs, down from 70 mln a year earlier.
    Morgan's tax bill was 52.4 mln dlrs in the quarter, down
from 85.3 mln a year earlier, mainly because of benefits
associated with the second-quarter loan-loss provision.
    Net interest earnings fell to 474.3 mln dlrs from 526.5 mln
as net yield narrowed to 2.71 pct from 3.13 pct and 1.3 billion
dlrs of Brazilian loans remained on non-accrual.
    Non-interest operating income was 296 mln dlrs, up from
292.8 mln. Net charge-offs halved to 16 mln dlrs.
    Expenses jumped 18 pct to 387.3 mln dlrs, with personnel
costs accounting for half of the increase. The effect of the
lower dollar on overseas costs was also a factor.
 Reuter
