CHEMICAL <CHL> NET HURT BY BRAZIL, EXPENSES
  Chemical New York Corp said its
  first-quarter profits fell by 16 pct, largely because it placed
  1.04 billion dlrs of loans to Brazil on non-accrual.
      Chemical reported first-quarter net income of 86.2 mln
  dlrs, down from 102.6 mln a year earlier, but declaring the
  Brazilian loans non-performing cost Chemical 21 mln dlrs in
  lost interest income, or 12 mln dlrs after-tax.
      A 13.3 pct jump in non-interest expense to 471.3 mln dlrs
  from 415.9 mln also hit the bottom line. It said the rise was
  mainly due to staff costs associated with continued growth in
  consumer, capital markets and investment banking activities.
      Excluding the effect of placing Brazil on non-accrual,
  Chemical said its net income would have been 98.2 mln dlrs, or
  4.3 pct below 1986 earnings.
      Brazil suspended interest payments on 68 billion dlrs of
  medium- and long-term debt on February 20. If they are not
  resumed by year's end, Chemical said its after-tax net for the
  whole of 1987 will be reduced by about 51 mln dlrs.
      Chemical also placed 52 mln dlrs of loans to Ecuador on
  non-accrual because the Quito government also suspended
  interest payments on its foreign debt. This reduced interest
  income by 1.5 mln dlrs.
      Chemical said net interest income fell to 476.4 mln dlrs
  from 488.9 mln and its net spread narrowed to 3.61 pct from
  3.96 pct.
      This reflected the reclassification of Brazilian loans, a
  reduced federal income tax rate (which affected the calculation
  of the taxabale-equivalent adjustment on tax-exempt assets) and
  a narrowing of the spread between the prime rate and Chemical's
  cost of funds.
      Foreign exchange trading profits rose to 37.9 mln dlrs from
  27.0 mln, but bond trading profits dropped to 21.9 mln dlrs
  from 26.2 mln.
      Fees from trust and other banking services rose to 146.5
  mln dlrs from 129.3 mln a year earlier, Chemical said.
      The provision for loan losses was 87.2 mln dlrs, compared
  with 83.8 mln. Net loan charge-offs were 86.5 mln, up from 60.7
  mln, leaving the allowance for loan losses at 672.6 mln dlrs at
  quarter's end, or 1.74 pct of loans outstanding, compared with
  594.3 mln, or 1.50 pct, a year earlier.
      Non-accruing loans at the end of March were 2.39 billion
  dlrs (1.35 billion excluding Brazil), compared with 1.35
  billion at the end of 1986 and 1.22 billion at the end of
  March, 1986.