Sanwa Profit Declines 7% in 4th Quarter

Los Angeles-based Sanwa Bank California, the state’s fourth-largest bank, said its net income declined 7% in the fourth quarter to $22.4 million as a result of a special tax charge. For 1997, the bank’s profit increased 23% to $89.7 million over the previous year. Closely held Sanwa Bank, with $8.1 billion in assets and more than 100 offices, is rumored to be a prime acquisition candidate as more banks consolidate because of a loosening of regulations governing banking. Sumitomo Bank Ltd.’s announcement in December that it would sell its Sumitomo Bank California sparked rumors that other Asian-owned banks in Southern California may be sold. “We’re not selling,” said spokesman Keith Karpe, who said Sanwa is in the midst of an aggressive expansion plan statewide.