Great Western Financial’s Net Soars 68% in Quarter

Marking the best three-month period in its history, Great Western Financial Corp. said it earned $45.3 million in the second quarter, up 68% from the $27 million earned in the second quarter of 1984.

James Montgomery, chairman of the Beverly Hills-based financial institution, attributed the sharp rise to strong lending activity and the declining cost of money. The difference between Great Western’s cost of funds and its yield on loans and investments increased to 2.7% on June 30, up from 1.59% a year ago, Montgomery said.

Great Western Financial, parent company of Great Western Savings, said it originated $1.6 billion in new real estate loans in the second quarter. Though a “robust” amount, that level was 16% less than the record high volume of $1.9 billion in the 1984 second quarter, the company said.

Great Western said its total loan portfolio grew to $19.3 billion at the end of June, an increase of 18% in 12 months. Total assets grew to $23.7 billion, up 16%.