Chase Manhattan Corp., the third largest U.S. banking company, said on Tuesday its fourth-quarter
profits rose 31 percent to $1.146 billion as it took advantage
of volatile markets and skirted problems besetting other
Chase, whose earnings of $1.31 a share beat Wall Street
estimates by 12 cents, said its global bank revenues rose $675
million to $2.495 billion in the fourth quarter as trading
revenues and related net interest income jumped to $692 million
from $96 million. Most of Chase's trading revenues come from the
bank's market-making activities, not trading for its own
Revenues for Chase's global services division, which
includes transaction processing, cash management and trust
services, rose $106 million in the fourth quarter to $724
million, helped by higher volumes from acquisitions.
At the bank's national consumer services unit, which
includes credit cards and mortgage banking, revenues rose 15
percent to $2.217 billion. The acquisition of portfolios,
pricing initiatives and higher levels of consumer card usage all
bolstered cardmember services revenues while the favorable U.S.
interest rate environment helped home finance revenues.
Total operating non-interest expenses rose to $2.87 billion
in the fourth quarter from $2.47 billion in last year's fourth
quarter, partly due to investment spending and the cost of
getting the bank ready for year 2000 and Europe's adoption of
economic and monetary union, Chase said.
The bank also said its exposure to emerging markets in Latin
America and Asia, excluding Japan, Australia and New Zealand,
which had been problematic for many money center banks in the
third quarter, fell 34 percent in 1998.