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NORWEST CORPORATION REPORTS RECORD ANNUAL AND QUARTERLY EARNINGS

 ANNUAL HIGHLIGHTS: (a)
 -- Record annual earnings, up 22.8 percent from prior year
 -- Record return on assets of 1.28 percent
 -- Return on common equity of 19.1 percent
 -- Non-performing assets down $141.6 million from prior year
 -- Record net interest margin of 5.58 percent, up 50 basis points
 from prior year
 (in millions, except
 per share amounts) Fourth Quarter Annual
 1991 1991
 Pct. Pct.
 1992 Change 1992(a) Change
 Net Income $138.4 24.5 $518.4 22.8
 Net Income Per Common Share 0.93 25.7 3.48 19.6
 Return on Common Equity 19.6 16.0 19.1 8.5
 Return on Assets 1.30 15.0 1.28 15.3
 Net Interest Margin 5.81 10.2 5.58 9.8
 Non-Performing Assets $228.1 (38.3) $228.1 (38.3)
 (a) Before the reduction of net income for the cumulative effect of a change in accounting for postretirement medical benefits.
 MINNEAPOLIS, Jan. 20 /PRNewswire/ -- Norwest Corporation (NYSE: NOB) today reported record net income of $518.4 million for 1992, compared with net income of $422.1 million earned in 1991, an increase of 22.8 percent. Net income per common share was a record $3.48 for 1992, compared with $2.91 in 1991, an increase of 19.6 percent. Return on common equity was 19.1 percent and return on assets was a record 1.28 percent for 1992, compared with 17.6 percent and 1.11 percent, respectively, in 1991.
 For the fourth quarter of 1992, net income was a record $138.4 million, compared with net income of $111.2 million in 1991, an increase of 24.5 percent. Net income per common share was a record 93 cents, compared with 74 cents in the fourth quarter of 1991, an increase of 25.7 percent. Return on common equity was 19.6 percent and return on assets was 1.30 percent, compared with 16.9 percent and 1.13 percent, for the fourth quarter of 1991.
 The 1992 annual results discussed above do not include a one-time special charge of $71.7 million, or 51 cents per common share, related to Norwest's early adoption of Statement of Financial Accounting Standards No. 106, Employers' Accounting for Postretirement Benefits Other Than Pensions (FAS 106). Norwest elected to account for the transition obligation, which represents the cumulative liability for these expenses for years prior to 1992, as a one-time special charge in 1992. Normal operating results for 1992 reflect additional annual costs of $5.6 million after-tax or four cents per share related to this change. The accounting rules require that these changes be treated as if they were in effect since the beginning of the year; therefore, the first quarter of 1992 was restated for the one-time special charge and the first three quarters of 1992 were restated to reflect the additional costs throughout the year.
 "Our record 1992 earnings and earnings per share, excluding prior period restatements and the special one-time charge, represent the fifth consecutive year that we've achieved record earnings," said Richard M. Kovacevich, Norwest's president and chief executive officer. "Since 1988, our earnings have increased at an average annual rate of 25.2 percent and our earnings per share have grown at an average annual rate of 11.4 percent. In 1992, all of our business units have continued to deliver strong financial results. Norwest Financial and Norwest Mortgage were especially strong and recorded 1992 earnings increases of 28.7 percent and 70.1 percent, respectively. Loans, leases, student and mortgage loans held for sale increased 24.0 percent or $5.6 billion in 1992, including $2.7 billion of RTC residential real estate loan participations purchased during the second half of the year.
 "Norwest remains committed to achieving outstanding results for our stockholders while maintaining a conservative balance sheet and financial position. Our return on assets of 1.28 percent, return on common equity of 19.1 percent (prior to the cumulative effect of a change in accounting for postretirement medical benefits), allowance to non-performing loans of 397.4 percent, non-performing assets of less than one percent of loans, leases and OREO, and a total risk-based capital ratio of 13.28 percent place us among the highest of the 35 largest domestic bank holding companies.
 "We have decided to transfer substantially all of our investment securities to 'available for sale' at December 31, 1992. This transfer is in keeping with the current direction of the Securities and Exchange Commission and Financial Accounting Standards Board as to accounting for investment securities held by financial institutions and our practice of prompt adoption of new standards. Norwest utilizes the investment securities in our available for sale portfolio to provide the maximum level of net interest income while maintaining acceptable levels of interest sensitivity, risk and liquidity. As of December 31, 1992 we had total unrealized market appreciation in our investments available for sale portfolio of $441.0 million."
 Norwest's net interest margin was 5.58 percent during 1992, up 50 basis points from 1991. This increase is primarily due to the lower cost of core deposits and the benefits of refinancing long-term debt at lower interest rates. Net interest margin continued to improve in the fourth quarter of 1992 and was 5.81 percent, compared with 5.72 percent in the third quarter of 1992. Average loans, leases, student and mortgage loans held for sale in 1992 were up 7.4 percent primarily due to higher mortgage origination volume.
 Non-performing assets were $228.1 at Dec. 31, 1992, or 0.99 percent of loans, leases and other real estate owned, a $141.6 million decrease from the prior year-end and a $38.8 million decrease from the third quarter of 1992. The allowance for credit losses as a percent of non- performing loans was 397.4 percent at year-end.
 Consolidated tax-equivalent net interest income for the year and fourth quarter of 1992 was $2,044.7 million and $558.9 million, respectively, compared with $1,740.4 million and $463.3 million in 1991, an increase of 17.5 percent and 20.6 percent, respectively. The full year increase from 1991 is due to a 7.0 percent increase in average earning assets and a 50 basis point increase in net interest margin.
 Norwest provided $176.9 million and $48.3 million for credit losses for the year and quarter ended December 31, 1992, or 0.87 percent and 0.89 percent of average loans and leases, compared with $330.4 million and $65.6 million, respectively, or 1.61 percent and 1.30 percent of average loans and leases, in the same periods a year ago. Net credit losses totaled $196.7 million and $56.3 million, compared with $282.9 million and $65.4 million, respectively, for the year and fourth quarter of 1991. As a percent of average loans and leases, net credit losses were 0.97 percent and 1.04 percent for the year- and quarter- ended Dec. 31, 1992, compared with 1.38 percent and 1.30 percent in the same periods a year ago.
 Non-interest income was up $193.2 million, an increase of 19.2 percent over 1991. This increase is primarily due to growth in mortgage banking revenues, gains on sales of investment securities available for sale, venture capital gains and growth in various fee- based services. Excluding investment securities gains, venture capital gains and gains on sales of investment securities available for sale, non-interest income was up 12.3 percent over 1991. Non-interest expenses increased 24.8 percent over 1991. This increase is primarily attributable to the writedown of intangible assets totalling approximately $68 million, other asset writedowns of approximately $82 million, charges related to prepayment of Norwest Financial debt and increased salaries and benefits at Norwest Mortgage, reflecting large volume increases in originations and servicing.
 The Banking Group reported record earnings of $321.2 million in 1992, 14.6 percent above 1991 earnings of $280.3 million. For the fourth quarter of 1992, the Banking Group had record net income of $82.3 million, compared with $73.4 million in 1991. Included in the 1992 Banking Group earnings are approximately $65 million of intangible asset writedowns and $76 million of other asset writedowns. The improved Banking Group earnings over 1991 reflect an 8.6 percent increase in net interest income that is primarily attributable to increases in net interest margin, a 41.8 percent decrease in the provision for credit losses and a 13.0 percent increase in non-interest income, partially offset by a 13.8 percent increase in non-interest expenses. Norwest Venture Capital realized $29.7 million of gains in 1992, compared with net losses of $4.6 million in 1991 and had net unrealized appreciation in its portfolio of $93.8 million at Dec. 31, 1992.
 "Norwest mortgage banking set records for its business in virtually every key area of performance," said Les Biller, executive vice president, South Central Community Banking. "Net income rose 70.1 percent to $53.4 million, originations rose 59.6 percent to more than $21 billion and servicing grew to over $21.5 billion, an increase of 150.9 percent over last year. Fourth quarter 1992 net income increased 154.1 percent to $9.4 million. We have developed the largest retail mortgage franchise in the country with 458 offices in 49 states, using a long-term strategy that emphasizes a conservative, cautious and well controlled approach. We believe this distribution network will allow us to increase our market share in an extremely fragmented industry where the five largest mortgage originators hold only a 14.1 percent market share. We are the nation's third largest mortgage originator, holding approximately 2.7 percent of the industry's market share."
 Norwest Financial reported its 18th consecutive year of record net income amounting to $159.0 million in 1992, compared with $123.5 million in 1991, an increase of 28.7 percent. Fourth quarter net income of $48.2 million was a 41.8 percent increase over the same 1991 period. Norwest Financial's net interest income increased 20.3 percent in 1992. This is due to increases in average finance and lease receivables of 7.3 percent to $3.6 billion and a 125 basis point increase in the net interest margin. The improved margin is primarily due to lower borrowing costs.
 Norwest Corporation is a $44.6 billion company providing banking, insurance, investments and other financial services through 1,946 offices in all 50 states, all 10 Canadian provinces and internationally.
 NORWEST CORPORATION AND SUBSIDIARIES
 SUMMARY FINANCIAL INFORMATION
 (In millions, Except per share amounts)
 Quarter Ended Year Ended
 December 31 December 31
 Income Summary 1992 1991 1992 1991
 Net interest income $550.3 $453.3 $2,009.0 $1,697.6
 Provision for credit losses 48.3 65.6 176.9 330.4
 Non-interest income 298.3 259.1 1,202.7 1,009.5
 Non-interest expenses 614.2 518.4 2,335.2 1,871.7
 Income before income taxes 186.1 128.4 699.6 505.0
 Income tax expense 47.7 17.2 181.2 82.9
 Net income (a) $138.4 $111.2 $518.4 $422.1
 Net income per common
 share: (a)
 Primary $0.93 $0.74 $3.48 $2.91
 Fully diluted 0.92 0.73 3.42 2.89
 Performance: (percent)(a)
 Return on assets 1.30 1.13 1.28 1.11
 Return on common equity 19.6 16.9 19.1 17.6
 Net interest margin 5.81 5.27 5.58 5.08
 Organizational Earnings
 Banking $82.3 $73.4 $321.2 $280.3
 Mortgage banking 9.4 3.7 53.4 31.4
 Norwest Financial
 Services, Inc.
 and subsidiaries 48.2 34.0 159.0 123.5
 Other (consolidating
 adjustments, parent
 and service companies) (1.5) 0.1 (15.2) (13.1)
 Consolidated net income (a) $138.4 $111.2 $518.4 $422.1
 Credit Quality
 Provision for credit losses $48.3 $65.6 $176.9 $330.4
 Percent of avg. loans
 & leases (b) 0.89 1.30 0.87 1.61
 Net credit losses $56.3 65.4 $196.7 282.9
 Percent of avg. loans
 & leases (b) 1.04 1.30 0.97 1.38
 Non-accrual and
 restructured loans $155.5 267.5 - -
 Other real estate
 owned (OREO) 72.6 102.2 - -
 Total non-performing assets $228.1 369.7 - -
 Percent of loans
 & leases & OREO 0.99 1.82 - -
 Loans past-due
 90 days or more (c) $44.3 71.0 - -
 Allowance for credit losses 617.8 608.1 - -
 Percent of loans & leases 2.69 3.01 - -
 Percent of non-performing
 loans 397.38 227.28 - -
 Average Balances
 for the Quarter
 At December 31 Ended December 31
 Balance Sheet Data 1992 1991 1992 1991
 Loans, leases, student
 loans and mortgages
 held for sale (d) $28,814.2 $23,233.0 $27,119 $22,611
 Investment securities 874.8 12,341.5 4,744 11,952
 Investment securities
 available for sale 10,416.6 - 5,945 -
 Earning assets 40,631.3 36,178.0 38,395 35,140
 Total assets 44,557.1 40,293.3 42,323 38,938
 Deposits 26,969.8 26,520.6 26,191 25,541
 Stockholders' equity 3,072.7 2,835.4 3,018 2,794
 Leverage ratio (pct.) 6.92 6.82 - -
 Tier 1 capital (pct.) 10.37 10.21 - -
 Tier 1 and Tier 2 capital (pct.)13.28 14.31 - -
 Stockholders' equity per
 common share $19.49 $17.81 - -
 (a) Before the reduction of net income of $71.7 million, or 51 cents per common share, for the cumulative effect of a change in accounting for postretirement medical benefits
 (b) Based on annualized amounts
 (c) Excluding non-accrual and restructured loans
 (d) Net of unearned discount
 NORWEST CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (In millions, Except per share amounts)
 Quarter Ended Year Ended
 December 31 December 31
 1992 1991 1992 1991
 INTEREST INCOME
 Loans and leases $562.8 $577.9 $2,191.6 $2,394.8
 Investment securities 87.0 253.0 721.5 938.0
 Investment securities
 available for sale 115.0 - 168.7 -
 Student loans held for sale 18.0 - 24.2 -
 Mortgages held for sale 81.6 56.2 279.4 192.1
 Money market investments 2.6 5.9 17.0 53.4
 Trading account securities 3.9 3.4 23.0 10.7
 Total interest income 870.9 896.4 3,425.4 3,589.0
 INTEREST EXPENSE
 Deposits 178.8 283.5 839.7 1,251.0
 Short-term borrowings 64.1 79.1 269.6 334.9
 Long-term debt 77.7 80.5 307.1 305.5
 Total interest expense 320.6 443.1 1,416.4 1,891.4
 Net interest income 550.3 453.3 2,009.0 1,697.6
 Provision for credit losses 48.3 65.6 176.9 330.4
 Net interest income after
 provision for credit losses 502.0 387.7 1,832.1 1,367.2
 NON-INTEREST INCOME
 Trust 38.7 34.9 155.7 137.6
 Service charges on
 deposit accounts 42.5 37.4 161.4 148.0
 Mortgage banking 66.0 46.6 273.2 185.2
 Data processing 16.1 15.8 66.1 64.2
 Credit card 31.2 38.0 134.0 152.2
 Insurance 30.8 31.3 153.1 138.5
 Other fees and service charges 32.8 31.5 135.7 122.4
 Net investment securities
 gains (losses) (0.1) 12.6 8.9 22.5
 Net venture capital gains (losses) 12.6 (1.4) 29.7 (4.6)
 Net investment securities available
 for sale gains (losses) (0.1) - 51.0 -
 Other 27.8 12.4 33.9 43.5
 Total non-interest income 298.3 259.1 1,202.7 1,009.5
 NON-INTEREST EXPENSES
 Salaries and benefits 289.4 239.6 1,087.1 908.9
 Net occupancy 41.5 40.6 165.9 148.5
 Equipment rentals, depreciation
 and maintenance 44.5 37.3 160.0 139.6
 Business development 31.7 26.2 111.5 87.8
 Communication 37.6 32.6 135.6 119.6
 Data processing 22.7 16.7 85.4 85.9
 FDIC assessment and regulatory
 examination fees 16.4 16.0 63.9 58.4
 Intangible asset amortization 16.7 15.5 65.0 60.5
 Other 113.7 93.9 460.8 262.5
 Total non-interest expenses 614.2 518.4 2,335.2 1,871.7
 INCOME BEFORE INCOME TAXES AND
 CUMULATIVE EFFECT OF A CHANGE IN
 ACCOUNTING FOR POSTRETIREMENT
 MEDICAL BENEFITS 186.1 128.4 699.6 505.0
 Income tax expense 47.7 17.2 181.2 82.9
 Net income before cumulative
 effect of a change in accounting
 for postretirement medical
 benefits 138.4 111.2 518.4 422.1
 Cumulative effect on years ended
 prior to Dec. 31, 1992 of a
 change in accounting for
 postretirement medical benefits,
 net of tax - - 71.7 -
 NET INCOME $138.4 $111.2 $446.7 $422.1
 Quarter Ended Year Ended
 December 31 December 31
 1992 1991 1992 1991
 Average common and common
 equivalent shares 141.1 140.6 141.0 138.5
 NET INCOME PER COMMON SHARE
 Primary
 Before cumulative effect of a
 change in accounting for
 postretirement medical
 benefits $0.93 0.74 3.48 2.91
 Cumulative effect on years ended
 prior to Dec. 31, 1992 of a
 change in accounting for
 postretirement medical
 benefits - - (0.51) -
 Net Income $0.93 $0.74 $2.97 $2.91
 Fully diluted
 Before cumulative effect of a
 change in accounting for
 postretirement medical
 benefits $0.92 0.73 3.42 2.89
 Cumulative effect on years ended
 prior to Dec. 31, 1992 of a
 change in accounting for
 postretirement medical
 benefits - - (0.48) -
 Net Income $0.92 $0.73 $2.94 $2.89
 DIVIDENDS DECLARED $0.29 $0.25 $1.08 $0.94
 -0- 1/20/93
 /CONTACT: (Media) Larry Haeg, 612-667-7043, or (Investor) Robert S. Strickland, 617?-7919, both of Norwest Corporation/
 (NOB)


CO: Norwest Corporation ST: Minnesota IN: FIN SU: ERN

AL -- MN003 -- 6713 01/20/93 08:13 EST
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