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NORWEST CORPORATION REPORTS RECORD QUARTERLY AND SIX MONTH EARNINGS

NORWEST CORPORATION REPORTS RECORD QUARTERLY AND SIX MONTH EARNINGS
 MINNEAPOLIS, July 15 /PRNewswire/ -- Norwest Corporation (NYSE: NOB) today reported record net income of $127.9 million for the quarter ended June 30, 1992, a 21.0 percent increase over the $105.7 million earned in the second quarter of 1991. Net income per common share was a record 86 cents, compared wi7?3 cents in the second quarter of 1991, an increase of 17.8 percent. Return on common equity was 18.8 percent and return on assets was a record 1.27 percent for the second quarter of 1992, compared with 18.1 percent and 1.13 percent, respectively, in the second quarter of 1991.
 For the first six months of 1992, net income was a record $250.3 million or $1.68 per common share, an increase of 25.1 percent and 18.3 percent, respectively, over the $200.0 million or $1.42 per common share earned in the first six months of 1991. Return on common equity was 18.6 percent and return on assets was a record 1.25 percent for the first six months of 1992, compared with 18.0 percent and 1.07 percent, respectively, for the same period a year ago.
 Lloyd P. Johnson, Norwest's chairman and chief executive officer, said, "The performance of all Norwest business units at or above expectations has again resulted in record earnings and earnings per common share. Several business units, including Norwest Financial, Norwest Mortgage and the Community Banking regions of North Dakota, Montana, Iowa and Nebraska, are currently achieving exceptionally strong returns on assets in excess of 1.30 percent.
 "Norwest Mortgage continues to set impressive volume records. Originations of $8.8 billion through June 30, 1992 represent an increase of 49.4 percent over the first six months of 1991. Norwest Mortgage's servicing portfolio totaled $12.5 billion at June 30, an increase of $7.1 billion from a year ago. This increase in the servicing portfolio will provide a reliable and increasing servicing revenue stream for Norwest Mortgage in the years ahead.
 "For the sixth consecutive quarter, consolidated non-performing assets declined and are now at $286.3 million, or 1.42 percent of loans, leases and other real estate owned. This is a decline of $191.0 million or 40.0 percent from June 30, 1991 and a decline of $32.3 million, or 10.2 percent from March 31, 1992. Our allowance for credit losses as a percent of non-performing loans was 287.6 percent at June 30, 1992 and continues to be the strongest ratio among the 25 largest regional bank holding companies.
 "In continuing our practice of maintaining a strong, conservative balance sheet and in light of increased competition in the credit card business, we have re-evaluated the premiums recorded relative to our credit card portfolio acquisitions. While we believe the credit card business continues to be important and are optimistic about its future prospects, we have decided to write down our unamortized credit card premiums by approximately $30 million in the second quarter. During the quarter, we announced that new, competitive credit card rates are being made available to qualified borrowers. We expect this will foster growth and continuing profitability in the credit card business. Also, in the second quarter of 1992 we placed $1.0 billion of investment securities and student loans in the newly designated balance sheet category of assets 'held for sale' because we do not intend to hold these assets for the foreseeable future. Assets in this 'held for sale' category are recorded at the lower of cost or market as prescribed by generally accepted accounting principles. The market value of these assets is approximately $33.0 million in excess of recorded value. Our portfolio of investment securities which we do intend to hold for the foreseeable future totaled $11.0 billion at June 30, 1992 and had net unrealized appreciation totaling $459.1 million."
 Norwest's net interest margin was 5.36 percent during the quarter, a decline of 4 basis points from the first quarter of 1992. This decline is primarily due to prepayments on mortgage-backed securities and lower yields on consumer and commercial loans. We believe that the decline related to prepayments on mortgage-backed securities is temporary and expect that prepayment levels will return to historical levels in future periods. The decline in margin due to these factors was partially offset by lower funding costs due to refinancing of long-term debt at lower interest rates and the continued downward repricing of rates on deposits. Average loans and leases and mortgages held for sale were up 3.0 percent over the second quarter of 1991.
 Consolidated tax-equivalent net interest income in the second quarter of 1992 was $492.0 million, compared with $427.6 million in the second quarter of 1991, an increase of 14.9 percent, and $482.4 million in the first quarter of 1992. The increase from the second quarter of 1991 is due to an 8.4 percent increase in average earning assets and a 31 basis point increase in net interest margin.
 Norwest provided $41.9 million for credit losses in the second quarter of 1992 or 0.84 percent of loans and leases. This compares with $87.9 million or 1.69 percent in the same period a year ago and $47.0 million or 0.95 percent in the first quarter of 1992. Net credit losses totaled $46.7 million, compared with $76.5 million in the second quarter of 1991 and $42.3 million in the first quarter of 1992. As a percent of loans and leases, net credit losses were 0.94 percent in the second quarter of 1992, compared with 1.47 percent in the same period a year ago and 0.86 percent in the first quarter of 1992. For the first six months of 1992, both Norwest's provision for credit losses and net charge-offs amounted to $88.9 million.
 Non-interest income increased 18.3 percent from the second quarter of 1991. For the first half of the year, non-interest income was up $57.1 million, an increase of 11.4 percent over the first half of 1991. These increases are primarily due to growth in mortgage banking revenues and various fee based services. Non-interest expenses are up 23.9 percent over the second quarter of 1991. This increase is primarily attributable to the writedown of credit card premiums of approximately $30 million, approximately $15 million in other asset writedowns and increased salaries and benefits at Norwest Mortgage reflective of the large volume increases in that business.
 The Banking Group reported earnings of $82.5 million in the second quarter of 1992, 23.9 percent above second quarter 1991 earnings of $66.6 million. Included in second quarter 1992 Banking Group results is approximately $30 million of writedowns of credit card premiums. For the first six months of 1992, the Banking Group had net income of $165.0 million, a 24.0 percent increase compared with $133.1 million in 1991. The improved earnings over the first six months of 1991 reflect a 7.2 percent increase in net interest income and a 55.7 percent decrease in the provision for credit losses, partially offset by a 13.0 percent increase in non-interest expenses. Venture capital realized $2.6 million of net gains in the quarter and had net unrealized appreciation in its investment portfolio of $74.2 million at June 30, 1992.
 Mortgage banking operations earned $10.9 million in the quarter, compared with $10.6 million in the second quarter of 1991, an increase of 2.8 percent. For the first six months of 1992, mortgage banking operations had net income of $26.2 million, an increase of 31.0 percent over the first six months of 1991. Servicing amounted to $12.5 billion at the end of the quarter, reflecting increases of $1.8 billion during the quarter and $7.1 billion from a year ago. Originations amounted to $4.7 billion during the quarter and $8.8 billion year-to-date, increases of 34.7 percent and 49.4 percent, respectively, over the same periods last year.
 Norwest Financial reported record earnings of $38.7 million in the second quarter of 1992, compared with $31.0 million in the second quarter of 1991 and $33.3 million in the first quarter of 1992. Norwest Financial's net income of $72.0 million for the first half of 1992 was up 21.2 percent from the first half of 1991. Net interest income increased 19.8 percent in the first six months of 1992 compared with the same period in 1991 due to an increase in average finance and lease receivables of 7.3 percent and a 120 basis point increase in net interest margin. The increase in net interest margin largely reflects lower short-term rates and the benefits from refinancing long-term debt at lower interest rates.
 Norwest Corporation is a $40.6 billion company providing banking, insurance, investments and other financial services through a total of 1,725 offices in 49 states and inter-nationally.
 NORWEST CORPORATION AND SUBSIDIARIES
 SUMMARY FINANCIAL INFORMATION
 (In millions, except per share amounts)
 Quarter Ended Six Months Ended
 June 30 June 30
 INCOME SUMMARY 1992 1991 1992 1991
 Net interest income $482.3 $416.6 $955.1 $813.3
 Provision for credit losses 41.9 87.9 88.9 181.3
 Non-interest income 288.7 244.0 558.8 501.7
 Non-interest expenses 563.5 454.8 1,098.3 889.0
 Income before income taxes 165.6 117.9 326.7 244.7
 Income tax expense 37.7 12.2 76.4 44.7
 Net income $127.9 $105.7 $250.3 $200.0
 Net income per common share:
 Primary $0.86 $0.73 $1.68 $1.42
 Fully diluted 0.85 0.73 1.65 1.41
 Performance (percents):
 Return on assets 1.27 1.13 1.25 1.07
 Return on common equity 18.8 18.1 18.6 18.0
 Net interest margin 5.36 5.05 5.38 4.94
 ORGANIZATIONAL EARNINGS
 Banking $82.5 $66.6 $165.0 $133.1
 Mortgage banking 10.9 10.6 26.2 20.0
 Norwest Financial Services,
 Inc. and subsidiaries 38.7 31.0 72.0 59.4
 Other (consolidating
 adjustments, parent and
 service companies) (4.2) (2.5) (12.9) (12.5)
 Consolidated net income $127.9 $105.7 $250.3 $200.0
 CREDIT QUALITY
 Provision for credit losses $41.9 $87.9 $88.9 $181.3
 Percent of avg. loans &
 leases(a) 0.84 1.69 0.90 1.74
 Net credit losses $46.7 $76.5 $88.9 $139.3
 Percent of avg. loans &
 leases(a) 0.94 1.47 0.90 1.34
 Non-accrual and restructured
 loans $211.5 $336.9 -- --
 Other real estate owned (OREO) 74.8 140.4 -- --
 Total non-performing assets $286.3 $477.3 -- --
 Percent of loans & leases
 & OREO 1.42 2.29 -- --
 Loans past-due 90 days or
 more(b) $53.6 $86.2 -- --
 Allowance for credit losses 608.3 598.6 -- --
 Percent of loans & leases 3.03 2.89 -- --
 Percent of non-performing
 loans 287.58 177.69 -- --
 BALANCE SHEET DATA
 Average Balances
 for the Quarter
 At June 30 Ended June 30
 1992 1991 1992 1991
 Loans, leases, and
 mortgages held for sale(c) $23,665.9 $23,034.9 $23,432 22,751
 Investment securities 10,992.5 11,364.3 12,315 10,342
 Earning assets 36,707.2 35,046.1 36,732 33,896
 Total assets 40,575.1 38,938.3 40,644 37,573
 Deposits 25,535.8 25,723.9 25,632 25,662
 Stockholders' equity 2,984.9 2,445.6 2,933 2,398
 Leverage ratio (percent) 6.92 6.01 -- --
 Tier 1 capital (percent)(d) 11.04 8.68 -- --
 Tier 1 and Tier 2
 capital (percent)(d) 14.45 13.35 -- --
 Stockholders' equity per
 common share $18.89 $16.78 -- --
 (a) Based on annualized net credit losses
 (b) Excluding non-accrual and restructured loans
 (c) Net of unearned discount
 (d) Based on 1992 rules
 NORWEST CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (In millions, except per share amounts)
 Quarter Ended Six Months Ended
 June 30 June 30
 1992 1991 1992 1991
 INTEREST INCOME
 Loans and leases $543.1 $606.1 $1,093.7 1,225.2
 Investment securities 230.0 226.7 476.2 446.4
 Mortgages held for sale 67.3 44.2 127.2 81.3
 Money market investments 5.2 11.3 10.0 37.5
 Trading account securities 7.9 2.7 13.4 4.9
 Total interest income 853.5 891.0 1,720.5 1,795.3
 INTEREST EXPENSE
 Deposits 220.3 320.9 463.6 659.5
 Short-term borrowings 74.9 79.2 149.6 174.8
 Long-term debt 76.0 74.3 152.2 147.7
 Total interest expense 371.2 474.4 765.4 982.0
 Net interest income 482.3 416.6 955.1 813.3
 Provision for credit losses 41.9 87.9 88.9 181.3
 Net interest income after
 provision for credit losses 440.4 328.7 866.2 632.0
 NON-INTEREST INCOME
 Trust 35.0 32.1 73.0 64.7
 Service charges on deposit
 accounts 39.1 37.0 78.3 73.0
 Mortgage banking 56.2 47.4 123.9 91.3
 Data processing 17.0 16.4 33.6 32.7
 Credit card 33.4 37.7 70.6 77.0
 Insurance 49.2 37.6 87.2 72.8
 Other fees and service charges 35.0 30.7 73.5 60.7
 Net investment securities
 gains (losses) 5.7 (2.2) 10.7 4.6
 Net venture capital
 gains (losses) 2.6 (4.3) 7.7 (3.4)
 Other 15.5 11.6 0.3 28.3
 Total non-interest income 288.7 244.0 558.8 501.7
 NON-INTEREST EXPENSES
 Salaries and benefits 256.2 225.3 514.8 440.9
 Net occupancy 39.6 35.9 77.1 72.1
 Equipment rentals, depreciation
 and maintenance 39.7 34.6 76.0 68.3
 Business development 26.5 21.6 48.9 41.0
 Communication 32.2 30.0 63.7 57.7
 Data Processing 20.0 23.1 41.5 47.1
 FDIC assessment and regulatory
 examination fees 15.7 13.3 31.5 26.8
 Intangible asset amortization 16.1 14.7 31.9 29.2
 Other 117.5 56.3 212.9 105.9
 Total non-interest expenses 563.5 454.8 1,098.3 889.0
 INCOME BEFORE INCOME TAXES 165.6 117.9 326.7 244.7
 Income Tax Expense 37.7 12.2 76.4 44.7
 NET INCOME $127.9 $105.7 $250.3 $200.0
 Average common and common
 equivalent shares 141.0 139.6 141.1 136.5
 NET INCOME PER COMMON SHARE
 Primary $0.86 $0.73 $1.68 $1.42
 Fully diluted 0.85 0.73 1.65 1.41
 Dividends declared 0.25 0.23 0.50 0.46
 -0- 7/15/92
 /CONTACT: (Media) Larry Haeg, 612-667-7043, or (Investor) Robert S. Strickland, 612-667-7919, both of Norwest Corporation/
 (NOB) CO: Norwest Corporation ST: Minnesota IN: FIN SU: ERN


AL -- MN003 -- 9377 07/15/92 08:13 EDT
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