Manufacturers Hanover Net Income Increases

Manufacturers Hanover Corp., the nation’s fourth-largest banking company, said its third-quarter net income rose 5.3% from the same quarter last year.

Continental Illinois Corp. of Chicago, posted a 15% rise in third-quarter profit.

Manufacturers Hanover, based in New York, reported net income of $105.8 million in the quarter ended Sept. 30. That compared to a profit of $100.5 million a year earlier.

The bank holding company said higher non-interest revenue was offset partly by lower net interest revenue and a larger provision for income taxes. In addition, Manufacturers Hanover had a one-time gain of $17.5 million in the 1985 third quarter from changes in state income tax laws.

The company took a loan-loss provision of $139.5 million, compared to $147.2 million a year earlier, to raise its reserve for possible bad loans to $952.7 million, or 1.72% of total loans.

Continental Illinois, the nation’s 14th-largest banker, reported a third-quarter profit of $41.1 million, up from $35.8 million a year earlier.

John Swearingen, chairman and chief executive, credited the profit gains to higher non-interest income and a reduced provision for loan losses, which offset lower net interest income and higher operating expenses.