First Chicago Reports Third-Quarter Profit

First Chicago Corp., the nation’s 10th-largest banking company, said it had a third-quarter profit of $56.4 million, compared to a loss of $71.8 million in the same period a year ago.

First Chicago is parent of First National Bank of Chicago, the nation’s ninth-largest bank.

For the first nine months of its fiscal year, First Chicago said its profit more than tripled to $104.8 million, compared to net income of $30.9 million a year ago.

The latest report was a marked improvement from the third quarter in 1984, when the banking concern charged off $277.9 million in bad loans. It had said at the time that the big write-off was a one-time event.

In the latest quarter, First Chicago reported a 9% gain in net interest income, to $281.4 million, and a 63% jump in non-interest income, to $193.6 million.

The banking company took a provision for loan losses of $150.4 million in the third quarter, down from $308 million a year ago. Those provisions directly reduce earnings and are added to the loan-loss reserve.

At the same time, the banking company charged off $69.9 million in loans for the latest quarter, compared to the $277.7 million charge-off a year ago.

Loan charge-offs are deducted from the loan-loss reserve but have no direct effect on earnings.

For detailed data and results of other companies, please see tables, Page 3.