(FORTUNE Magazine) – It was an uneven year for the world's largest service companies. Profits of banks and other financial institutions on FORTUNE's unique list soared, and most retailers did well too. But companies in two categories -- diversified services and utilities -- ran into headwinds. Total profits in these categories fell 69% and 42%, respectively. As a result, the Service 500 as a whole managed only a 2.3% increase in income in 1993. Sales rose 4%. To compile the list, we separated the world's leading service companies into eight categories, then ranked each according to revenues or assets, depending on industry practice. So what went right? Plenty. Commercial banks were solidly profitable. Citicorp's earnings rose 207% to a record $2.2 billion, partly because the bank was able to reduce its commercial real estate exposure. Retailers recovered nicely from the previous year's rout: The group's earnings rose 70%. Wal-Mart for the first time edged Sears as the world's biggest retailer, but the news was hardly all bad for the leaner Sears. It topped Wal-Mart -- just barely -- in profits, earning $2.4 billion, helped by such nonretail operations as Allstate insurance. In diversified services, 11 of the 20 Japanese trading companies had lower ! profits -- a big reason the category performed so poorly -- but the most damage was caused by AT&T. As a result of the Financial Accounting Standards Board's Statement 106, which requires companies to deduct accumulated health insurance liabilities owed to retirees, AT&T went from a $3.8 billion profit in 1992 to a loss of the same magnitude last year. Major losses also dragged down the utility group. Ontario Hydro lost $2.8 billion, and British Gas went from a profit of $835 million in 1992 to a loss of $800 million last year. Both companies cited restructuring costs. Two major U.S. utilities also took big FASB charges. The world's airlines gained a bit of altitude. Five of 17 made money, vs. three of 16 in 1992. British Airways reported its 12th straight profitable year. Singapore Airlines was a rambunctious newcomer, arriving on the list for the first time, with earnings of $500 million.

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Financial institutions and retailers were the big winners this year. Japanese trading companies took the first six places on the diversified services list. Rapid expansion into the Pacific Rim and Latin America worked wonders for Fluor. Credit Lyonnais reported huge losses, and its plans to emulate the mighty Deutsche Bank lay in ruins. Canadian Imperial had the highest income growth among commercial banks. Widespread natural disasters didn't seem to affect American International Group's profits. Halifax Building Society was the most profitable savings bank for the third year in a row. Despite a severe recession at home, Australian Mutual Provident had an impressive surge in profits. Comprehensive restructuring helped a leaner Sears rise out of the ashes of last year. Deutsche Bundesbahn, Germany's national railroad, lost a record $5.7 billion. Telefonos de Mexico rang up the highest profit figure in this list for the second year in a row.

CHART: NOT AVAILABLE CREDIT: DESIGN AND GRAPHICS BY JEAN HELD CAPTION: COUNTRIES WITH THE MOST COMPANIES WHO WON WHO LOST HOW THE GLOBAL SERVICE 500 STACKS UP THE 100 LARGEST DIVERSIFIED SERVICE COMPANIES THE 100 LARGEST COMMERICAL BANKING COMPANIES THE 50 LARGEST DIVERSIFIED FINANCIAL COMPANIES THE 50 LARGEST SAVINGS INSTITUTIONS THE 50 LARGEST LIFE INSURANCE COMPANIES THE 50 LARGEST RETAILERS THE 50 LARGEST TRANSPORTATION COMPANIES THE 50 LARGEST UTILITIES

CHART: NOT AVAILABLE CREDIT: DESIGN AND GRAPHICS BY JEAN HELD CAPTION: HIGHLIGHTS THE BIGGEST MONEY LOSERS ARRIVALS AND DEPARTURES SERVICE MEDIANS