Two large New York banks yesterday reported sharp increases in their second-quarter earnings, reflecting large profit margins in their lending businesses.
Chase Manhattan Corp., the nation's third largest bank holding company with deposits in its Chase Manhattan Bank of about $50 billion, said its profits rose 28 percent to a record $103 million ($3.04 a share) from $80.1 million ($2.34) in the comparable 1979 period.
A chase spokesman said it was the first time the bank's profits topped $100 million.
Irving Bank Corp., parent company of Irving Trust Co., reported earnings jumped 45 percent to $23.3 million ($2.65 a share) from $16.1 million ($1.83) in the year-earlier period.
Irving Trust is the nation's 14th largest bank holding company with deposits of about $12 billion.
Officials at both banks attributed their second-quarter gains largely to steep increases in their net interest income -- the difference between interest paid out to depositors and interest earned on loans.
Irving Trust, for example, posted a 39 percent increase in net interest income to $125.1 million from $92.1 million in the comparable 1979 period.
Banks benefitted from a sharp decline in May and early June of interest rates that affect their costs of doing business.
Westinghouse Electric Corp. yesterday reported improved sales and earnings for the second quarter and first half compared with the same periods in 1979.
Net income for the quarter amounted to $104 million ($1.22 a share) compared with a net loss of $79 million in 1979 after extraordinary losses linked with uranium-supply contracts and a profit of $90.1 million ($1.06) before the extraordinary losses. Sales were $2.13 billion versus $2 billion last year.
For the first half, Westinghouse, a major manufacturer of electrical and mechanical equipment, recorded net income of $204.6 million ($2.40) on sales of $4.2 billion. In 1979, first-half income was $4.2 million (5 cents) after extraordinary losses on sales of $3.8 billion. Before the extraordinary losses, income was $174.1 million ($2.02).
The extraordinary losses arose from settlements with utilities who sued Westinghouse after the company canceled uranium supply contracts in 1975 due to the skyrocketing price of the nuclear fuel.
Westinghouse attributed the improvement in earnings to higher operating profits on increased sales volume and higher income from other sources.
Colgate-Palmolive Co. reported yesterday that its earnings fell 23.5 percent to $38.6 million (48 cents a share) in the second quarter from $50.5 million (62 cents) a year earlier.
Sales of the consumer products company, whose products include Fab detergent, Ajax cleanser and Colgate toothpaste, rose 13.6 percent to $1.27 billion from $1.12 billion.
Colgate reported first-half net income of $89.6 million ($1.10), just up from $89.3 million ($1.09) a year earlier. Sales rose to $2.51 billion from $2.20 billion.
Control Data Corp. reported net earnings of $39 million ($2.25 a share) for the second quarter of 1980, up from $37.6 million ($2.18) in the same quarter last year.
Revenues rose to $943 million from $771 million.
For the first half of 1980, the computer and financial services company announced net earnings of $74.2 million ($4.28) compared with $62.6 million ($3.63) in the first half of 1979. Sales were $1.8 billion compared with $1.5 billion in the first half of 1979.
Control Data's financial subsidiary, Commericial Credit Co., of Baltimore, showed a better comparative gain than the corporation's main venture in computer manufacture, sales and services. Commercial Credit had earnings of $15.2 million in the second quarter compared with $13.9 million one year ago, while computer operations netted $23.8 million in the second quarter this year and $23.7 million for the same 1979 quarter.
Marvin G. Rogers, Control Data executive vice president for finance, said sales of computer peripheral equipment to other industry suppliers continued strong in the latest quarter, and rental and services revenues climbed 16 percent.
Second-quarter earnings for Commercial Credit reflected higher investment income in insurance operations, which more than offset the effect of higher credit loss provisions in the finance operations.
E.F. Hutton Group Inc., one of the nation's largest investment firms, earned $21.27 million ($2.51 a share) in the second quarter, up from $9.66 million ($1.16) a year ago on a rise in revenues to $290.75 million from $177.75 million.
First-half net income was $41.3 million ($4.91) on revenues of $552.34 million compared with $14.69 million ($1.77 on revenues of $318.56 million in the comparable 1979 period.
Chairman Robert Fomon said investment banking and other diversified financial activities contributed strongly to the gains as did commissions on securities trading.
Time Inc., the nation's largest magazine publisher, said yesterday its second-quarter earnings dropped 3.8 percent to $40.7 million ($1.45 a share) from $42.7 million ($1.52) in the same period last year despite a 11.3 percent rise in revenues to $699.7 million from $629.6 million.
The company's first-half profits showed virtually no gain from the first six months of 1979 at $69 million ($2.45) compared with $68.9 million.Revenues rose to $1.36 billion from $1.17 billion in the comparable 1979 period.
Times Inc.'s chairman, Andrew Heiskell, said a slowdown in the nation's economy appeared to have depressed results of the company's magazines in recent weeks.