-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FZVTChFWUYjTmHwBs1Td7rZLRvllYFX4zN3XWYJU7RkxVVj1KL3DFas7J5m08CoO 4wxM4qssNcvIegPraEMNYw== 0000009626-99-000001.txt : 19990120 0000009626-99-000001.hdr.sgml : 19990120 ACCESSION NUMBER: 0000009626-99-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANK OF NEW YORK CO INC CENTRAL INDEX KEY: 0000009626 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 132614959 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06152 FILM NUMBER: 99507760 BUSINESS ADDRESS: STREET 1: ONE WALL STREET 10TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10286 BUSINESS PHONE: 2124951784 MAIL ADDRESS: STREET 1: 100 CHURCH STREET 9TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10286 8-K 1 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8 - K CURRENT REPORT Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 19, 1999 THE BANK OF NEW YORK COMPANY, INC. ---------------------------------- (exact name of registrant as specified in its charter) NEW YORK -------- (State or other jurisdiction of incorporation) 001-06152 13-2614959 --------- ---------- (Commission file number) (I.R.S. employer identification number) One Wall Street, New York, NY 10286 ---------------------------- ----- (Address of principal executive (Zip code) offices) 212 - 495 - 1784 ---------------- (Registrant's telephone number, including area code) 2 ITEM 5. Other Events ------------ Fourth Quarter of 1998 Financial Results ---------------------------------------- On January 19, 1999, The Bank of New York Company, Inc. issued a press release containing unaudited interim financial information and accompanying discussion for the fourth quarter of 1998. Exhibit 99 is a copy of such press release and is incorporated herein by reference. ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits ----------------------------------------------------- (c) Exhibit Description ------- ----------- 99 Unaudited interim financial information and accompanying discussion for the fourth quarter of 1998 contained in the press release dated January 19, 1999, of The Bank of New York Company, Inc. 3 SIGNATURE --------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: January 19, 1999 THE BANK OF NEW YORK COMPANY, INC. (Registrant) By: /s/ Robert Keilman ------------------------ Name: Robert E. Keilman Title: Comptroller 4 EXHIBIT INDEX Exhibit No. Description 99 Unaudited interim financial information and accompanying discussion for the fourth quarter of 1998 contained in the press release dated January 19, 1999, of The Bank of New York Company, Inc. EX-99 2 4TH QUARTER 1998 EARNINGS 1 The Bank of New York Company, Inc. NEWS - ----------------------------------------------------------------------------- One Wall Street, New York, NY 10286 Contact: PUBLIC AND INVESTOR RELATIONS DEPT. For Release: IMMEDIATELY Frank H. Scarangella, SVP - ----------- (212) 635-1590 Nicholas C. Silitch, SVP (212) 635-1591 Gregory A. Burton, AVP (212) 635-1578 THE BANK OF NEW YORK COMPANY, INC. REPORTS ------------------------------------------ Record 1998 E.P.S. of $1.53, Up 13% ----------------------------------- Fourth Quarter E.P.S. of 40 Cents Securities Servicing Fee Revenues Exceed $1 billion, up 27% Noninterest Income Reaches 58% of Revenues 1998 Return on Average Common Equity of 24.25% All Records NEW YORK, N.Y., January 19, 1999 -- The Bank of New York Company, Inc. (NYSE: BK) reports record fourth quarter diluted earnings per share of 40 cents, up 8% from the 37 cents earned in the fourth quarter of 1997. Net income for the fourth quarter was a record $313 million, up 5% from the $298 million earned in the same period in 1997. Results in 1997 included a $177 million pre-tax gain on the sale of the Company's credit card operations as well as a $100 million provision for credit losses. Diluted earnings per share were a record $1.53 for the year of 1998, up 13% from the $1.36 earned a year ago. Net income for the year was a record $1,192 million, an increase of 8% over the prior year's $1,104 million. For the year, return on average common equity was a record 24.25% compared with 22.13% in 1997. 2 Securities servicing fee revenues grew by 27% reaching $1 billion for the year which, when combined with 15% growth in trust and investment fees, pushed noninterest income to 58% of revenues, up from 54% a year ago. Principal drivers for securities servicing were continued strong growth in securities transaction volumes, augmented by record new business wins and the introduction of new products. Trust and investment's continued growth was the result of new business flow spurred by strong investment performance. Favorable foreign exchange results reflect our expanding global securities servicing businesses. Additional highlights were continued strength in asset quality and the maintenance of one of the best efficiency ratios in the industry at 50.5%. In securities servicing, revenue growth was led by ADRs, domestic and global custody, securities lending, corporate trust, UIT and execution services. The Company's ADR business benefitted from record depositary receipt trading volume on US exchanges which grew 27% in 1998. In addition, the Company was named as agent on 200 new programs from 54 countries, or 80% of all new sponsored depositary receipt programs in 1998. Domestic and global custody continued to gain momentum from significant new business wins in the mutual funds and insurance industries. Net interest income on a taxable equivalent basis for 1998 was $1,709 million compared with $1,890 million in 1997 reflecting the impact of the sale of the Company's credit card business in 1997. Revenues from the Company's securities servicing businesses reached $1 billion in 1998, up from $790 million for the year of 1997. Strong internal growth of 16% was spread over all of the Company's securities servicing businesses with acquisitions contributing the remainder. 3 For the year, overall cash processing fees grew by 7% from a year ago, reaching $256 million. Market share gains in both the international and domestic funds transfer business led to a 13% increase in revenues. Trade finance revenues were flat as improving margins were offset by reduced levels of global trade activity and a decline in letter of credit volume. Fees from cash management services grew 7% over the previous year. Trust and investment fees were $208 million for the year, an increase of 15% over last year as a result of focused and aggressive new business efforts. Keeping pace with the substantial increase in the Company's processing businesses, foreign exchange and other trading revenues grew to $170 million for 1998 compared with $125 million last year reflecting the customer driven nature of this business. Return on average assets was 1.86% for both the fourth and third quarters of 1998 and 1.95% in the fourth quarter of 1997. Return on average assets was 1.89% for the year compared with 1.86% in 1997. Tangible diluted earnings per share (earnings before the amortization of goodwill and intangibles) were $1.62 per share in 1998, up 12% from $1.45 per share in 1997. On the same basis, tangible return on average common equity was 37.13% in 1998 compared with 31.78% in 1997; and tangible return on average assets was 2.06% in 1998 compared with 2.04% in 1997. Average diluted shares outstanding were 782 million for the quarter, up from 779 million in the third quarter of 1998 reflecting the exercise of the Company's warrants, and down from 795 million in the fourth quarter of 1997 as a result of the Company's stock buyback programs. In December 1998, the Company completed its 30 million 1998 4 share buyback program. The Company announced in December its plan to buy back up to 18 million of its common shares through the end of 1999. The Company's estimated Tier 1 capital and Total capital ratios remained strong at 7.88% and 11.90% at December 31, 1998 compared with 7.52% and 11.64% at September 30, 1998, and 7.92% and 11.97% at December 31, 1997. Tangible common equity as a percent of total assets was 6.28% at December 31, 1998 compared with 5.59% at September 30, 1998 and 6.47% one year ago. The leverage ratio was 7.46% at December 31, 1998 compared with 7.24% at September 30, 1998 and 7.59% one year ago. NET INTEREST INCOME - ------------------- 4th 3rd 4th Year-to-date Quarter Quarter Quarter ------------ (In millions) 1998 1998 1997 1998 1997 -------------------------------------------- Net Interest Income $451 $430 $409 $1,709 $1,890 Net Interest Rate Spread 2.22% 2.14% 2.19% 2.22% 2.88% Net Yield on Interest- Earning Assets 3.20 3.15 3.26 3.24 3.89 Net interest income on a taxable equivalent basis was $451 million in the fourth quarter of 1998 compared with $430 million in the third quarter of 1998 and $409 million in the fourth quarter of 1997. The net interest rate spread was 2.22% in the fourth quarter of 1998, up from 2.14% in the third quarter of 1998 and 2.19% one year ago. The net yield on interest-earning assets was 3.20% compared with 3.15% in the third quarter of 1998 and 3.26% in last year's fourth quarter. For the year of 1998, net interest income on a taxable equivalent basis, amounted to $1,709 million compared with $1,890 million in 1997. 5 The net interest rate spread was 2.22% in 1998 compared with 2.88% in 1997, while the net yield on interest-earning assets was 3.24% in 1998 and 3.89% in 1997. The decrease in net interest income, net interest rate spread, and yield from 1997 reflect the impact of the sale of the Company's credit card operations. NONINTEREST INCOME - ------------------ 4th Quarter Year-to-date ------------ ------------ (In millions) 1998 1997 1998 1997 ----------------------------- Processing Fees Securities $274 $213 $1,000 $ 790 Cash 63 61 256 239 ---- ---- ------ ------ 337 274 1,256 1,029 Trust and Investment Fees 54 47 208 181 Service Charges and Fees 79 74 326 354 Foreign Exchange and Other Trading Activities 51 39 170 125 Securities Gains 50 45 175 136 Sale of Credit Card Portfolio - 177 - 177 Other 26 33 148 135 ---- ---- ------ ------ Total Noninterest Income $597 $689 $2,283 $2,137 ==== ==== ====== ====== Securities servicing fees increased 29% to $274 million compared with $213 million in the fourth quarter of 1997. Strong internal growth across all areas reached 16%, with remaining growth coming from acquisitions. Fourth quarter service charges and fees of $79 million were up from $74 million in the fourth quarter of 1997 reflecting the U.K. asset based lending acquisitions, but were off slightly from $81 million in the third quarter due to a decline in syndication activity. Increased customer flows resulting from increased volatility in the 6 markets led to revenues from foreign exchange and other trading activities of $51 million in the fourth quarter compared with $30 million in the third quarter of 1998 and $39 million in the fourth quarter of 1997. The Company reported $50 million of securities gains in the fourth quarter as compared to $51 million in the third quarter and $45 million a year ago. NONINTEREST EXPENSE AND INCOME TAXES - ------------------------------------ Total noninterest expense for the quarter was $507 million, up 5% from $491 million in the same period last year. For the year, noninterest expense was $1,928 million compared with $1,874 million in 1997, a 3% increase. Noninterest expense for the fourth quarter included $8 million, approximately 1 cent per share, related to making computer systems Year 2000 compliant. For the year of 1998, Year 2000 expenses were $33 million or approximately 3 cents per share. The efficiency ratio for the fourth quarter of 1998 was 50.8%. For the year of 1998, the efficiency ratio was 50.5% compared with 50.2% last year. The upward move from a year ago in the efficiency ratio is primarily attributable to the sale of the Company's credit card operations and Year 2000 systems expenses. The effective tax rate for the fourth quarter and year of 1998 was 34.7% and 35.2% compared with 36.3% and 36.4% last year. 7 NONPERFORMING ASSETS - -------------------- Change 12/31/98 (Dollars in millions) 12/31/98 9/30/98 9/30/98 ----------------------------------- Loans: Commercial Real Estate $ 26 $ 36 $(10) Other Commercial 65 56 9 Foreign 53 40 13 Community Banking 35 45 (10) ---- ---- ---- Total Loans 179 177 2 Other Real Estate 14 18 (4) ---- ---- ---- Total $193 $195 $ (2) ==== ==== ==== Nonperforming Assets Ratio 0.5% 0.5% Allowance/Nonperforming Loans 355.5 360.4 Allowance/Nonperforming Assets 328.9 327.8 Nonperforming assets totaled $193 million at December 31, 1998, compared with $195 million at September 30, 1998, a decrease of $2 million. This was the thirtieth consecutive quarter of nonperforming asset decreases. 8 LOAN LOSS PROVISION AND NET CHARGE-OFF - -------------------------------------- 4th 3rd 4th Year-to-date Quarter Quarter Quarter ------------ (In millions) 1998 1998 1997 1998 1997 ------- ------- ------- ---- ---- Provision $ 5 $ 5 $ 100 $ 20 $ 280 ==== ==== ===== ==== ===== Net (Charge-offs) Recoveries: Commercial Real Estate - 5 1 7 3 Other Commercial (3) (16) (39) (24) (75) Consumer (1) (1) (2) (5) (5) Foreign (1) (1) (1) (4) 3 Other (2) - (3) (3) (5) Credit Card - - - - (275) ---- ---- ----- ---- ----- Total $ (7) $(13) $ (44) $(29) $(354) ==== ==== ===== ==== ===== Other Real Estate Expense $ - $ - $ 12 $ 2 $ 11 (Recoveries) The allowance for loan losses was $636 million, or 1.66% of loans at December 31, 1998 compared with $638 million, or 1.66% of loans at September 30, 1998 and $641 million, or 1.82% of loans at December 31, 1997. The ratio of the allowance to nonperforming assets was 328.9% at December 31, 1998 compared with 327.8% at September 30, 1998 and 307.2% at December 31, 1997. *************************** (Financial highlights and detailed financial statements are attached. A new accounting pronouncement related to comprehensive income was adopted in 1998. This changed how certain components of shareholders' equity are presented. Prior periods have been restated for this change.) 9 THE BANK OF NEW YORK COMPANY, INC. Financial Highlights (Dollars in millions, except per share amounts) (Unaudited)
1998 1997 Change ---- ---- ------ For the Three Months Ended December 31: - --------------------------------------- Net Income $ 313 $ 298 5.0% Per Common Share: Basic $ 0.41 $ 0.40 3.6 Diluted 0.40 0.37 8.1 Cash Dividends Paid 0.14 0.13 7.7 Return on Average Common Shareholders' Equity 23.88% 23.73% Return on Average Assets 1.86 1.95 1998 1997 Change For the Twelve Months Ended December 31: ---- ---- ------ - ---------------------------------------- Net Income $ 1,192 $ 1,104 7.9% Per Common Share: Basic $ 1.59 $ 1.44 10.3 Diluted 1.53 1.36 12.6 Cash Dividends Paid 0.54 0.49 10.2 Return on Average Common Shareholders' Equity 24.25% 22.13% Return on Average Assets 1.89 1.86 As of December 31: - ------------------ Assets $63,579 $59,961 6.0% Loans 38,426 35,127 9.4 Securities 6,458 6,628 -2.6 Deposits - Domestic 27,469 27,577 -0.4 - Foreign 17,203 13,780 24.8 Long-Term Debt 2,086 1,809 15.3 Minority Interest - Preferred Securities 1,300 1,000 30.0 Preferred Shareholders' Equity 1 1 0.0 Common Shareholders' Equity 5,475 5,001 9.5 Common Shareholders' Equity Per Share 7.10 6.69 6.1 Market Value Per Share of Common Stock 40.25 28.91 39.2 Allowance for Loan Losses as a Percent of Loans 1.66% 1.82% Tier 1 Capital Ratio 7.88 7.92 Total Capital Ratio 11.90 11.97 Leverage Ratio 7.46 7.59 Tangible Common Equity Ratio 6.28 6.47
10 THE BANK OF NEW YORK COMPANY, INC. Consolidated Statements of Income (In millions, except per share amounts) (Unaudited)
For the Three For the Twelve Months Ended Months Ended December 31, December 31, 1998 1997 1998 1997 ---- ---- ---- ---- Interest Income - --------------- Loans $ 697 $ 631 $2,770 $2,910 Securities Taxable 61 66 271 244 Exempt from Federal Income Taxes 16 9 61 35 ----- ----- ------ ------ 77 75 332 279 Deposits in Banks 57 71 184 188 Federal Funds Sold and Securities Purchased Under Resale Agreements 64 57 203 162 Trading Assets 5 5 21 21 ----- ----- ------ ------ Total Interest Income 900 839 3,510 3,560 ----- ----- ------ ------ Interest Expense - ---------------- Deposits 340 331 1,374 1,290 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 42 33 145 121 Other Borrowed Funds 50 43 204 168 Long-Term Debt 36 32 136 126 ----- ----- ------ ------ Total Interest Expense 468 439 1,859 1,705 ----- ----- ------ ------ Net Interest Income 432 400 1,651 1,855 - ------------------- Provision for Loan Losses 5 100 20 280 ----- ----- ------ ------ Net Interest Income After Provision for Loan Losses 427 300 1,631 1,575 ----- ----- ------ ------ Noninterest Income - ------------------ Processing Fees Securities 274 213 1,000 790 Cash 63 61 256 239 ----- ----- ------ ------ 337 274 1,256 1,029 Trust and Investment Fees 54 47 208 181 Service Charges and Fees 79 74 326 354 Securities Gains 50 45 175 136 Other 77 249 318 437 ----- ----- ------ ------ Total Noninterest Income 597 689 2,283 2,137 ----- ----- ------ ------ Noninterest Expense - ------------------- Salaries and Employee Benefits 315 277 1,178 1,066 Net Occupancy 40 40 166 166 Furniture and Equipment 23 25 86 95 Other 129 149 498 547 ----- ----- ------ ------ Total Noninterest Expense 507 491 1,928 1,874 ----- ----- ------ ------ Income Before Income Taxes 517 498 1,986 1,838 Income Taxes 179 181 699 669 Distribution on Trust Preferred Securities 25 19 95 65 ----- ----- ------ ------ Net Income $ 313 $ 298 $1,192 $1,104 - ---------- ===== ===== ====== ====== Net Income Available to Common Shareholders $ 313 $ 296 $1,192 $1,095 - ----------------------- ===== ===== ====== ====== Per Common Share Data: - ---------------------- Basic Earnings $0.41 $0.40 $1.59 $1.44 Diluted Earnings 0.40 0.37 1.53 1.36 Cash Dividends Paid 0.14 0.13 0.54 0.49 Diluted Shares Outstanding 782 795 781 807
11 THE BANK OF NEW YORK COMPANY, INC. Consolidated Balance Sheets (Dollars in millions, except per share amounts) (Unaudited)
December 31, December 31, 1998 1997 ---- ---- Assets - ------ Cash and Due from Banks $ 3,999 $ 5,769 Interest-Bearing Deposits in Banks 4,504 2,126 Securities: Held-to-Maturity 964 1,127 Available-for-Sale 5,494 5,501 ------- ------- Total Securities 6,458 6,628 Trading Assets at Fair Value 1,622 2,616 Federal Funds Sold and Securities Purchased Under Resale Agreements 3,281 2,820 Loans (less allowance for loan losses of $636 in 1998 and $641 in 1997) 37,790 34,486 Premises and Equipment 856 835 Due from Customers on Acceptances 946 1,187 Accrued Interest Receivable 354 356 Other Assets 3,769 3,138 ------- ------- Total Assets $63,579 $59,961 ======= ======= Liabilities and Shareholders' Equity - ------------------------------------ Deposits Noninterest-Bearing (principally domestic offices) $11,481 $12,561 Interest-Bearing Domestic Offices 16,091 15,607 Foreign Offices 17,100 13,189 ------- ------- Total Deposits 44,672 41,357 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 1,571 2,329 Other Borrowed Funds 4,534 4,673 Acceptances Outstanding 951 1,196 Accrued Taxes and Other Expenses 2,191 1,910 Accrued Interest Payable 188 182 Other Liabilities 610 503 Long-Term Debt 2,086 1,809 ------- ------- Total Liabilities 56,803 53,959 ------- ------- Guaranteed Preferred Beneficial Interests in the Company's Junior Subordinated Deferrable Interest Debentures 1,300 1,000 ------- ------- Shareholders' Equity Class A Preferred Stock - par value $2.00 per share, authorized 5,000,000 shares, outstanding 22,820 shares in 1998 and 23,844 shares in 1997 1 1 Common Stock-par value $7.50 per share, authorized 1,600,000,000 shares, issued 970,767,767 shares in 1998 and 920,425,238 shares in 1997 7,281 6,904 Additional Capital 142 12 Retained Earnings 1,317 529 Accumulated Other Comprehensive Income 341 285 ------- ------- 9,082 7,731 Less: Treasury Stock - 197,648,459 shares in 1998 and 170,641,008 shares in 1997, at cost 3,593 2,714 Loan to ESOP - 1,801,003 shares in 1998 and 2,113,658 in 1997, at cost 13 15 ------- ------- Total Shareholders' Equity 5,476 5,002 ------- ------- Total Liabilities and Shareholders' Equity 63,579 $59,961 ======= =======
12 THE BANK OF NEW YORK COMPANY, INC. Average Balances and Rates on a Taxable Equivalent Basis Preliminary (Dollars in millions)
For the three months For the three months ended December 31, 1998 ended December 31, 1997 ----------------------- ----------------------- Average Average Average Average Balance Interest Rate Balance Interest Rate ------- -------- ------- ------- -------- ------- ASSETS - ------ Interest-Bearing Deposits in Banks (primarily foreign) $ 4,484 $ 57 5.03% $ 4,499 $ 71 6.22% Federal Funds Sold and Securities Purchased Under Resale Agreements 5,108 64 4.94 4,083 57 5.54 Loans Domestic Offices 20,226 373 7.32 18,774 365 7.73 Foreign Offices 19,558 327 6.62 15,857 266 6.66 ------- ----- ------- ----- Total Loans 39,784 700 6.98 34,631 631 7.24 ------- ----- ------- ----- Securities U.S. Government Obligations 2,602 37 5.59 3,030 44 5.74 U.S. Government Agency Obligations 691 11 6.50 473 8 6.47 Obligations of States and Political Subdivisions 680 13 7.70 672 14 8.41 Other Securities, including Trading Securities 2,578 37 5.76 2,417 23 3.73 ------- ----- ------- ----- Total Securities 6,551 98 5.97 6,592 89 5.32 ------- ----- ------- ----- Total Interest-Earning Assets 55,927 919 6.51% 49,805 848 6.76% ----- ----- Allowance for Loan Losses (637) (611) Cash and Due from Banks 2,755 3,732 Other Assets 8,563 7,641 ------- ------- TOTAL ASSETS $66,608 $60,567 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY - --------------------- Interest-Bearing Deposits Money Market Rate Accounts $ 5,195 56 4.28% $ 4,748 56 4.65% Savings 7,661 46 2.37 7,674 50 2.57 Certificates of Deposit $100,000 & Over 679 9 5.20 538 8 5.64 Other Time Deposits 2,366 28 4.70 2,520 31 4.94 Foreign Offices 17,836 201 4.48 14,759 186 5.00 ------- ----- ------- ----- Total Interest-Bearing Deposits 33,737 340 4.00 30,239 331 4.34 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 3,663 42 4.48 2,864 33 4.51 Other Borrowed Funds 3,782 50 5.26 3,204 43 5.41 Long-Term Debt 2,082 36 6.69 1,827 32 6.93 ------- ----- ------- ----- Total Interest-Bearing Liabilities 43,264 468 4.29% 38,134 439 4.57% ----- ----- Noninterest-Bearing Deposits 10,273 10,080 Other Liabilities 6,569 6,329 Minority Interest- Preferred Securities 1,300 1,000 Preferred Stock 1 74 Common Shareholders' Equity 5,201 4,950 ------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $66,608 $60,567 ======= ======= Net Interest Earnings and Interest Rate Spread $ 451 2.22% $ 409 2.19% ===== ==== ===== ==== Net Yield on Interest- Earning Assets 3.20% 3.26% ==== ====
13 THE BANK OF NEW YORK COMPANY, INC. Average Balances and Rates on a Taxable Equivalent Basis Preliminary (Dollars in millions)
For the twelve months For the twelve months ended December 31, 1998 ended December 31, 1997 ----------------------- ----------------------- Average Average Average Average Balance Interest Rate Balance Interest Rate ------- -------- ------- ------- -------- ------- ASSETS - ------ Interest-Bearing Deposits in Banks (primarily foreign) $ 3,437 $ 184 5.35% $ 3,277 $ 188 5.75% Federal Funds Sold and Securities Purchased Under Resale Agreements 3,880 203 5.24 2,964 162 5.46 Loans Domestic Offices 19,773 1,511 7.64 21,576 1,930 8.94 Foreign Offices 18,567 1,264 6.81 15,001 984 6.56 ------- ------ ------- ------ Total Loans 38,340 2,775 7.24 36,577 2,914 7.97 ------- ------ ------- ------ Securities U.S. Government Obligations 3,057 175 5.73 2,814 163 5.78 U.S. Government Agency Obligations 581 38 6.52 411 26 6.44 Obligations of States and Political Subdivisions 672 54 7.98 652 56 8.57 Other Securities, including Trading Securities 2,844 139 4.87 1,845 86 4.65 ------- ------ ------- ------ Total Securities 7,154 406 5.66 5,722 331 5.78 ------- ------ ------- ------ Total Interest-Earning Assets 52,811 3,568 6.76% 48,540 3,595 7.40% ------ ------ Allowance for Loan Losses (643) (784) Cash and Due from Banks 3,237 3,798 Other Assets 7,736 7,688 ------- ------- TOTAL ASSETS $63,141 $59,242 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY - --------------------- Interest-Bearing Deposits Money Market Rate Accounts $ 4,998 232 4.65% $ 4,326 196 4.54% Savings 7,682 193 2.51 7,921 202 2.55 Certificates of Deposit $100,000 & Over 687 37 5.41 675 37 5.48 Other Time Deposits 2,299 110 4.80 2,514 124 4.92 Foreign Offices 16,411 802 4.88 14,902 731 4.91 ------- ------ ------- ------ Total Interest-Bearing Deposits 32,077 1,374 4.28 30,338 1,290 4.25 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 3,147 145 4.60 2,410 121 5.00 Other Borrowed Funds 3,761 204 5.42 3,177 168 5.27 Long-Term Debt 1,972 136 6.90 1,815 126 6.92 ------- ------ ------- ------ Total Interest-Bearing Liabilities 40,957 1,859 4.54% 37,740 1,705 4.52% ------ ------ Noninterest-Bearing Deposits 10,185 9,572 Other Liabilities 5,850 6,050 Minority Interest- Preferred Securities 1,233 830 Preferred Stock 1 103 Common Shareholders' Equity 4,915 4,947 ------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $63,141 $59,242 ======= ======= Net Interest Earnings and Interest Rate Spread $1,709 2.22% $1,890 2.88% ====== ==== ====== ==== Net Yield on Interest- Earning Assets 3.24% 3.89% ==== ====
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