The lack of loan growth has held back bank earnings and stock prices.

But Japanese officials are pressuring banks there to cut back on loan growth and to increase profitability.

The companies cited strong loan growth, tight expense controls and acquisitions.

Its loan growth was 44 percent in 1987, compared with an industry norm of 7 percent.

Its earnings rose 1.3 percent, as a bigger provision for expected bad loans and a higher tax rate offset loan growth.

"As an institution, we are looking at no loan growth from a very low base."

"When you have zero loan growth for two years, you really feel the heat."

In response, state banks have since been ordered to curtail loan growth, which has hit the property market hard.

Our planning has been for loan growth in the 8 to 10 percent range for 1988.

Mr. Schack said loan growth at his unit was between 15 and 20 percent.