Trading Gains Lift Chase Profits

Chase Manhattan said Tuesday its first-quarter earnings grew 13 percent, handily beating Wall Street's expectations, on big gains from its trading and consumer businesses.

Chase said its profit from operations rose to $1.17 billion, or $1.32 a share, from $1.05 billion, or $1.17 a share, a year ago. Analysts surveyed by First Call had expected the money center bank to post earnings of $1.25.

Chase shares rose 3/4 to 85 3/4. Citigroup and BankAmerica on Monday also bested estimates.

Operating revenue at Chase rose 10 percent to $5.4 billion. Revenue from trading and related net interest income rose 21 percent to $837 million. Operating revenue rose 12 percent to $2.16 billion in its National Consumer Services business, which includes credit cards and home finance.

On the downside, Chase saw a 12-percent decline in investment banking fees to $317 million "reflecting the overall market decline in leveraged financings."

Net income at the bank matched its operating results; a year-ago, net income was $725 million or 80 cents, including special items.

Written By Emily Church, CBS MarketWatch