Downey Savings Reports 52% Quarterly-Profit Drop

Blaming a sharp drop in revenues resulting from asset sales, Downey Savings & Loan Assn. said it posted a $5.6-million profit for the third quarter, down 52% from the $11.6 million earned a year earlier. Revenues fell 9% to $66 million from $72.4 million in last year’s third quarter.

In the first nine months, the Costa Mesa-based S&L; reported net income of $29.45 million, down 40% from the $48.8 million earned in the same period last year. Revenues fell 16% to $201 million from $240.2 million in 1986.

Downey’s assets grew 20% to $3 billion at the end of September from $2.5 billion a year earlier. Its deposits rose 14% to $2.4 billion from $2.1 billion at the same time last year, while its loan portfolio increased 44% to $2.3 billion from $1.6 billion.