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GENTRA REPORTS SECOND QUARTER RESULTS

 TORONTO, Aug. 27 /PRNewswire/ -- Gentra Inc. today announced a loss for the second quarter of 1993 of $77 million, or 57 cents per common share, compared with a loss of $8 million, or 14 cents per common share, for the second quarter of 1992. The loss for the six months to June 30, 1993 was $152 million or $1.14 per common share. In the same period in 1992 the company recorded net income of $16 million before payment of preferred and common share dividends or a loss of 10 cents per common share.
 As a result primarily of weakened real estate loan quality the company recorded loan loss provisions of $100 million in the first six months of 1993 including $39 million in the second quarter. Loan losses for the first six months of 1992 were $75 million.
 The results will have no material impact on the price to be paid by Royal Bank of Canada for the businesses it will acquire under Gentra's Plan of Arrangement. The plan effects the sale of substantially all of Gentra's Canadian and international operating subsidiaries.
 On Aug. 30, 1993 Gentra will seek final approval of the plan from the Ontario Court.
 The results for the six months ended June 30, 1993 and comparative figures for 1992 follow:
 GENTRA INC.
 (In millions except earnings per share)
 Quarter Six months
 Period ended June 30, 1993 1992 1993 1992
 Investment income 423 665 897 1,344
 Interest expense 385 549 798 1,117
 Net investment income 38 116 99 227
 Provision for loan losses 39 54 100 75
 Total (1) 62 (1) 152
 Fees and other income 87 90 170 174
 Total 86 152 169 326
 Operating expenses
 Salaries 70 74 138 145
 Premises, computer
 and equipment 37 37 71 75
 Other 49 39 93 76
 Total 156 150 302 296
 Inc. (loss) bef. taxes
 and discontinued
 United States operations (70) 2 (133) 30
 Income taxes 7 9 19 17
 Net income (loss)
 before discontinued
 United States operations (77) (7) (152) 13
 Net income from
 discontinued
 United States operations --- (1) --- 3
 Net income (loss) (77) (8) (152) 16
 Earnings (loss) per common
 share (basic and fully
 diluted) - before
 discontinued United
 States operations $ (0.57) $ (0.13) $ (1.14) $ (0.10)
 Earnings (loss) per
 common share (basic
 and fully diluted) $ (0.57) $ (0.14) $ (1.14) $ (0.08)
 Common shares
 outstanding at
 June 30 (thousands) --- --- 158,593 153,038
 As of 6/30/93 12/31/92
 Total assets 21,440 25,114
 -0- 8/27/93
 /CONTACT: Sheila Robb, managing partner - public affairs, of Gentra Inc., 416-981-6655/


CO: Gentra Inc. ST: Ontario IN: FIN SU: ERN

MP -- NY052 -- 6719 08/27/93 15:42 EDT
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Publication:PR Newswire
Date:Aug 27, 1993
Words:450
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