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CHEMICAL BANKING REPORTS RESULTS

 CHEMICAL BANKING REPORTS RESULTS
 /NOTE TO EDITOR: The following release on Chemical Banking


Corporation's first quarter 1992 financial results reflects the Dec. 31, 1991 merger of Chemical Banking Corporation and Manufacturer's Hanover Corporation in a pooling of interests. Therefore, amounts for all current and prior periods are reported on a consolidated basis./
 NEW YORK, April 21 /PRNewswire/ -- Chemical Banking Corporation (NYSE: CHL) today reported first quarter net income of $260 million, a 44 percent increase from $181 million in the same period a year ago.
 Net income per common share in the first quarter was $1.00, compared with 84 cents per share in the year-ago quarter. The 1992 per share results reflect the sale in January of 57.5 million new shares of the corporation's common stock, which raised $1.52 billion in new common equity during the first quarter.
 "In its first full quarter of operations, the new Chemical's performance was marked by strong results in many key earnings components -- higher net interest income, an increase in trading revenues and improvements in several fee-based banking services," said John F. McGillicuddy, chairman and chief executive officer of Chemical Banking Corporation. "Significantly, our first quarter earnings were achieved despite increases in net charge-offs and the provision for losses, which reflect the continuing impact of the weak economy on certain areas of our credit portfolio."
 "Our performance is a clear indication of the success we are having in building revenues even as we continue the complex task of integrating the business units of Chemical and Manufacturers Hanover," said Walter V. Shipley, president and chief operating officer. "Our higher credit ratings have already resulted in increased opportunities in several key businesses, such as derivative instruments, foreign exchange and operating services, and the corporation is on target in its efforts to realize annual merger-related expenses savings of $225 million by the end of 1992, and a full $750 million by 1995."
 The corporation's estimate Tier 1 risk-based capital ratio under the 1992 guidelines was 6.6 percent at March 31, compared with 5.1 percent at Dec. 31, 1991 and 5.3 percent on March 31, a year ago. The 1992 results included $1.52 billion in new common equity raised through the sale in January of 57.5 million shares of common stock, and $152 million in retained earnings generated during the first quarter.
 Total stockholders' equity at March 31 was $9.0 billion, up $1.7 billion from $7.3 billion at Dec. 31, 1991 and up from $7.4 billion on March 31, 1991.
 Net Interest Income
 Net interest income for the first quarter was $1,115 million, up 18 percent from $942 billion in the same year-ago period.
 The net yield on interest-earning assets was 3.72 percent in the first quarter, compared with 3.07 percent in the year-ago first quarter.
 The increases in both net interest income and the net yield reflected a lower interest rate environment, decreased funding costs and effective asset/liability management.
 Average interest-earning assets for the first quarter were $121.4 billion, compared with $125.9 billion in the year-ago period.
 Noninterest Revenue
 Noninterest revenue for the first quarter was $810 million, an increase of 16 percent from $697 million in the same period a year ago.
 The results reflected increases in revenues from trading activities, fees for other banking services, venture capital revenues, corporate finance and loan syndication fees and trust fees and commissions, and a decrease in investment securities gains.
 Combined revenues from all trading activities were $228 million in the first quarter, up 37 percent from $166 million in the same year-ago period. These results included trading account revenues of $133 million, up from $80 million in the year-ago first quarter, and foreign exchange trading revenues of $95 million, compared with $86 million in the 1991 first quarter.
 Fees for other banking services were $261 million, up 16 percent for $225 million in the year-ago first quarter.
 Corporate finance and loan syndication fees in the first quarter were $54 million, versus $49 million in the same period a year ago.
 Trust fees and commissions in the quarter were $89 million, compared with $82 million in the 1991 first quarter.
 Investment securities gains in the first quarter were $32 million, down from $39 million in the first quarter of 1991.
 Noninterest Expense
 Noninterest expense in the first quarter was $1,199 million, compared with $1,158 million in the first quarter of 1991.
 The 1992 first quarter results included an increase in FDIC insurance premiums and costs associated with foreclosed property, which together were $32 million higher than in the first quarter of 1991. The current quarter results also include higher accruals for incentive compensation costs related to improvements in revenues from several capital markets activities.
 For the first quarter, the ratio of noninterst operating expense to total operating revenue improved to 62.6 percent, from 65.5 percent in the 1991 fourth quarter and from 70.8 percent in the first quarter a year ago.
 Noninterest expense in the first quarter reflected expense savings related to the Dec. 31, 1991 merger of Chemical Banking Corporation and Manufacturers Hanover Corporation. During the first quarter, the corporation realized savings of approximately $50 million, primarily from workforce reductions as a result of attrition and layoffs.
 Total staff at March 31, 1992 was 41,951, down 3,117 from 45,068 on the same date a year ago and down approximately 2,500 from July 15, 1991, when the merger of Chemical and Manufacturers Hanover was first announced.
 Provision and Allowance for Losses
 The provision for losses was $375 million in the first quarter, compared with $450 million in the fourth quarter of 1991 and $279 million in the first quarter of 1991.
 Non-LDC net charge-offs were $375 million in the first quarter, compared with $346 million in the fourth quarter of 1991 and $265 million in the first quarter of 1991. LDC net charge-offs, including losses on sales and swaps, were $1 million in the first quarter, compared with $57 million in the same period a year ago.
 At March 31, the non-LDC allowance for losses was $2,012 million, up $150 million from $1,862 million on the same date a year ago.
 The LDC allowance at March 31 was $1,262 million, compared with $2,320 million on the same date a year ago. Total LDC medium- and long- term outstandings at March 31 were $3.9 billion, versus $5.2 billion on the same date a year ago.
 Nonperforming Assets
 Non-LDC nonperforming loans at March 31 were $3,421 million, compared with $3,380 million at Dec. 31, 1991 and $3,398 million on March 31 a year ago. Total non-LDC nonperforming assets at March 31 were $5,005 million, compared with $4,907 million at Dec. 31 and $4,446 million on March 31, 1991.
 LDC nonperforming loans were $1,236 million at March 31, down $1,114 million from $2,350 million at March 31, 1991.
 At March 31, total nonperforming assets were $6,241 million, down from $6,796 million on the same date a year ago.
 CHEMICAL BANKING CORPORATION
 Nonperforming Assets
 (Dollars in millions)
 3/31/92 12/31/91 3/31/91
 Non-LDC nonperforming loans $ 3,421 $ 3,380 $ 3,398
 Assets acquired as loan satisfactions 1,584 1,527 1,048
 Total non-LDC nonperforming assets 5,005 4,907 4,446
 LDC nonperforming loans:
 Brazil 737 745 1,709
 Argentina 317 315 351
 Other LDC countries 182 188 290
 Total LDC nonperforming loans 1,236 1,248 2,350
 Total nonperforming assets 6,241 6,155 6,796
 CHEMICAL BANKING CORPORATION
 Allowance for Losses
 (Dollars in millions)
 3/31/92 3/31/91
 Total allowance for losses $ 3,274 $4,182
 As a percent of total loans 4.0 4.9
 Non-LDC allowance for losses 2,012 1,862
 As a percent of non-LDC loans 2.6 2.5
 LDC allowance for losses 1,262 2,320
 As a percent of term outstandings
 including previous charge-offs
 with claims retained 59(A) 58
 (A) 32 percent excluding previous charge-offs with claims retained
 CHEMICAL BANKING CORPORATION
 Stockholders' Equity and Capital Ratios
 (Dollars in billions)
 3/31/92 12/31/91 3/31/91
 Total stockholders' equity $9.0 $7.3 $7.4
 Common stockholders' equity 7.4 5.7 6.0
 Tangible equity 7.8 6.1 6.2
 Ratios: (in percent)
 Total equity to assets 6.6 5.2 5.3
 Common equity to assets 5.4 4.1 4.3
 Tangible equity to assets 5.8 4.5 4.5
 Tier I Leverage 6.0 4.7 4.7
 Risk-based capital (1992 guidelines):
 Tier I (4.0 percent required) 6.6 (A) 5.1 5.3
 Total (8.0 percent required) 10.8 (A) 9.1 9.5
 (A) Estimated
 Other Financial Data
 Total assets at March 31 were $136.2 billion, versus $139.2 billion on the same date a year ago. Total loans at March 31 were $82.8 billion, compared with $85.2 billion a year ago. At the end of the first quarter, total deposits were $92.8 billion, compared with $87.6 billion at March 31, 1991.
 The return on average total assets for the first quarter was .75 percent, compared with .51 percent in the same year-ago period. The return on average common stockholders' equity was 13.24 percent for the first quarter, compared with 10.44 percent in the first quarter of 1991.
 Book value per common share was $30.52 at March 31, versus $33.03 per share on the same date a year ago.
 Texas Commerce Bancshares
 Texas Commerce Bancshares (TCB) earned $44 million in the first quarter, versus $28 million in the year-ago first quarter.
 Non-performing assets at TCB were reduced for the 15th consecutive quarter, to a total of $640 million at March 31, 1992.
 The performance reflected an increase in net interest income and higher noninterest revenue, partially offset by higher noninterest expense (primarily related to foreclosed property and FDIC assessments). The net yield on interest-earning assets was 4.11 percent in the first quarter, versus 3.55 percent in the 1991 first quarter.
 -0- 4/21/92
 /CONTACT: John Meyers, 212-270-7454, or John Stefans, 212-270-7438, or (investors) John Borden, 212-270-7318, all of Chemical Banking/
 (CHL) CO: Chemical Banking Corporation ST: New York IN: FIN SU: ERN


SM-TO -- NY071 -- 0714 04/21/92 13:30 EDT
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Date:Apr 21, 1992
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