SECURITY PACIFIC <SPC> ADDS 500 MLN TO RESERVE
Security Pacific Corp said it intends
to add 500 mln dlrs to its provision for credit losses during
the second quarter, a move that will result in a loss for the
period of about 175 mln dlrs.
    The company added, however, that it now expects to post a
profit for the full year of about 150 mln dlrs.
    Security Pacific said the reserve is specifically related
to its loans to the developing world.
    Security Pacific, which has assets of about 64 billion
dlrs, reported 1986 net income of 385.9 mln dlrs. Last year it
posted second quarter net income of 93.5 mln.
    In making the announcement, Security Pacific said the extra
500 mln dlrs will raise its reserve for credit losses to about
1.3 billion dlrs, or 2.8 pct of total loans and leases
outstanding.
    It said the amount of reserves allocated to Lesser
Developed Country (LDC) debt represents about one-third of the
company's total LDC debt portfolio.
 Reuter
