BANKING & FINANCE - Dec. 13, 1994

S&L; Profits Hit 18-Month High: As interest rates rose, profits for the savings and loan industry increased $280 million in the third quarter to the highest level in 18 months. The Office of Thrift Supervision said S&Ls; earned $1.52 billion in the July-September quarter, compared to $1.24 billion in the previous three months. With short-term interest rates continuing to climb, thrifts paid out 3.63% of their assets in interest expenses, compared to 3.42% for the second quarter. Interest income rose more slowly in the third quarter, to 6.49% of assets from 6.35%.