They also reflected a continued high level of other problem loans.

And problem loans fell by 13 percent over the quarter.

Analysts say that problem loans - on which interest has not been paid for six months - amount to nearly $150 billion.

The company provided more information about the problem loans in London.

Banks have time to work out problem loans - sometimes years, as in the case of third world debt.

"I made a call in early March and learned that problem loans would likely increase," he said.

At times, especially during the economic downturn of the early 1990s, I had to deal with problem loans.

In the 2001 review, problem loans rose 86 percent, or $54.3 billion.

The bank was also able to set aside less for problem corporate loans.

The company said problem loans might rise in the first quarter.