-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, ll/2hNB89d+InZ3IgTvCtcennRyxKoQ1GEENrZl5ASMkO8K9VF7MbIbaVmnaf+31 iQLQZkwMmt7tWdH53CWfJg== 0000009749-94-000078.txt : 19940729 0000009749-94-000078.hdr.sgml : 19940729 ACCESSION NUMBER: 0000009749-94-000078 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940722 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19940727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANKERS TRUST NEW YORK CORP CENTRAL INDEX KEY: 0000009749 STANDARD INDUSTRIAL CLASSIFICATION: 6022 IRS NUMBER: 136180473 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05920 FILM NUMBER: 94540330 BUSINESS ADDRESS: STREET 1: 280 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2122502500 MAIL ADDRESS: STREET 1: 280 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: BT NEW YORK CORP DATE OF NAME CHANGE: 19671107 8-K 1 ITEMS 5 & 7 - 2ND QUARTER EARNINGS PRESS RELEASE UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 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) July 22, 1994 ______________ BANKERS TRUST NEW YORK CORPORATION _______________________________________________________________ (Exact name of registrant as specified in its charter) NEW YORK _______________________________________________________________ (State or other jurisdiction of incorporation) 1-5920 13-6180473 _________________________ ___________________________________ (Commission file number) (IRS employer identification no.) 280 PARK AVENUE, NEW YORK, NEW YORK 10017 _______________________________________________________________ (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code (212) 250-2500 ______________ Item 5. Other Events The purpose of this Current Report on Form 8-K is to file certain financial information to be incorporated into currently effective registration statements filed by the Registrant with the Securities and Exchange Commission under the Securities Act of 1933, as amended. Such information contained in the Registrant's Press Release dated July 22, 1994, is described below and is incorporated herein by reference. 1. Review of certain financial information. 2. The unaudited consolidated financial position of Bankers Trust New York Corporation and its subsidiaries at June 30, 1994 and December 31, 1993 and its unaudited consolidated results of operations for each of the three-month and six-month periods ended June 30, 1994 and 1993. In the opinion of the Registrant's management, all material adjustments necessary for a fair presentation of the Corporation's consolidated financial position at June 30, 1994 and December 31, 1993 and its consolidated results of operations for the three-month and six-month periods ended June 30, 1994 and 1993 have been made. All such adjustments were of a normal recurring nature, except for the cumulative effects of accounting changes for postretirement and postemployment benefits (recorded in the first quarter of 1993). The results of operations for the three-month and six-month periods ended June 30, 1994 are not necessarily indicative of the results of operations for the full year or any other interim period. Item 7. Financial Statements and Exhibits (c) Exhibits (99) Press Release of the Registrant dated July 22, 1994 SIGNATURES 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, hereunto duly authorized. BANKERS TRUST NEW YORK CORPORATION By /s/ GEOFFREY M. FLETCHER Geoffrey M. Fletcher Senior Vice President and Principal Accounting Officer July 27, 1994 BANKERS TRUST NEW YORK CORPORATION FORM 8-K DATED JULY 22, 1994 EXHIBIT INDEX Exhibit Number Description of Exhibit (99) Press Release of the Registrant dated July 22, 1994 EX-99 2 2ND QTR '94 EARNINGS PRESS RELEASE FRIDAY, JULY 22, 1994 BANKERS TRUST REPORTS SECOND QUARTER NET INCOME OF $181 MILLION, OR $2.09 PER SHARE; RETURN ON EQUITY WAS 16% New York, July 22, 1994 -- Bankers Trust New York Corporation earned $181 million for the quarter ended June 30, 1994, or $2.09 primary earnings per share. In the second quarter of 1993, the Corporation earned $251 million, or $2.90 primary earnings per share. Return on average common equity for the second quarter of 1994 was 16%. "Trading revenue rebounded from the first quarter, but declined versus the strong results achieved in last year's second quarter, as market conditions continued to be difficult during the most recent three months," said Chairman Charles S. Sanford, Jr. "This quarter's return on equity of 16% reflected significant levels of revenue from our corporate finance and fiduciary and funds management businesses. Also noteworthy were a continued improvement in asset quality and a 17% increase in book value per common share from the second quarter of 1993." Revenue Net interest revenue totaled $309 million, up $10 million from the second quarter of 1993. The Corporation views trading revenue and trading-related net interest revenue in combination, as quantified below (in millions):
Trading- Related Net Trading Interest Revenue Revenue Total Second Quarter 1994 $124 $121 $245 Second Quarter 1993 $405 $122 $527
The $282 million decrease in this combined total from the results achieved in the second quarter of 1993 was primarily attributable to sharply lower revenue from proprietary trading and positioning activities, as generally rising interest rates and related volatility in the United States and European markets made positioning activities difficult. In addition, these market conditions contributed to lower revenue during the second quarter for the Firm's traditional interest rate and currency risk management products. On April 15, 1994, a debt exchange took place between the Brazilian government and its commercial bank creditors, including the Corporation, thereby completing the long-awaited refinancing of Brazil's medium- and long-term debt. Subsequent sales of these Brady bonds and Past-Due Interest bonds by the Corporation have had a significant positive impact on trading revenue and, to a lesser extent, net interest revenue for the second quarter of 1994. Fiduciary and funds management revenue totaled $187 million for the second quarter, up $11 million, or 6%, from the same period last year. The increased revenue reflected higher levels of global private banking assets under management as well as new business in cash and securities processing, retirement services and corporate trust, offset in part by lower performance-based fees from foreign exchange funds managed. Fees and commissions of $195 million increased by $22 million, or 13%, from the second quarter of 1993. Corporate finance fees of $115 million increased by $13 million to their second highest level in nearly five years, led by higher revenue from financial advisory, private placement and merger and acquisition activities. These results were partially offset by lower leasing syndication and securities underwriting fees. Also impacting fees and commissions was higher fees from the structuring of products for employee benefit plans. Other noninterest revenue totaled $112 million, up $42 million from the prior year's quarter. This increase was due to several factors including the impact of an insurance settlement related to the January 1993 fire at 280 Park Avenue, higher insurance premium revenue from operations in Chile and a gain from the revaluation of non-trading foreign currency investments, versus a loss in the prior year. Expenses Total noninterest expenses of $688 million decreased by $61 million from the second quarter of 1993. Incentive compensation and employee benefits expense decreased $111 million, or 35%, almost entirely due to lower bonus expense reflecting the reduced earnings. Salaries expense increased $22 million, or 13%, from the second quarter of 1993. The average number of employees increased by 4% versus the same period, to 13,833. All other expenses totaled $297 million for the quarter, up $28 million, or 10%, from last year's second quarter. Increases in the provision for policyholder benefits, service bureaus and agency personnel fees were offset in part by a decrease in other real estate expense. Asset Quality The Corporation recorded $5 million of net charge-offs and no provision for credit losses in the second quarter of 1994. In the prior year's quarter, net charge-offs of $51 million and a provision for credit losses of $23 million were recognized. Cash basis loans declined by $118 million, or 14%, to $744 million during the second quarter. Total nonperforming assets, including renegotiated loans, declined for the tenth consecutive quarter to $1.152 billion. The allowance for credit losses at June 30, 1994 was $1.340 billion, representing 180% of cash basis loans. Six Months Results For the first six months of 1994, the Corporation's net income was $345 million, or $3.99 primary earnings per share. For the six months ended June 30, 1993 the Corporation earned $481 million before cumulative effects of accounting changes, or $5.54 primary earnings per share. The Corporation's return on average common equity for the first half of 1994 was 15%. Effects of Accounting Changes On January 1, 1994, the Corporation adopted FASB Interpretation No. 39, "Offsetting of Amounts Related to Certain Contracts." The Interpretation requires that unrealized gains and losses on swaps, forwards, options and similar contracts be recognized as assets and liabilities, except where such gains and losses arise from contracts covered by qualifying master netting agreements. It was the Corporation's former policy to record such unrealized gains and losses on a net basis on the balance sheet. As the result of this adoption, at June 30, 1994 the Corporation's consolidated total assets and total liabilities each increased by $14 billion. In the first quarter of 1993, the Corporation adopted accounting standards for postretirement benefits other than pensions (SFAS 106) and postemployment benefits (SFAS 112). Capital The Corporation estimates that its ratios of Tier 1 Capital and Total Capital to risk-adjusted assets were approximately 8.50% and 13.90%, respectively, at June 30, 1994. The Leverage Ratio was 5.97% at that same date. Total stockholders' equity of $4.793 billion increased by $48 million from the first quarter of 1994. Contacts Media: Douglas B. Kidd (212) 454-3532 Thomas A. Parisi (212) 454-1686 Investor: Mary M. Flournoy (212) 454-3201 BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES FINANCIAL STATISTICS ($ in millions, except per share data) (unaudited)
First Second Quarter Quarter Six Months 1994 1993 1994 1994 1993 Income before cumulative effects of accounting changes $181 $251 $164 $345 $481 Cumulative effects of accounting changes - - - - (75) Net income $181 $251 $164 $345 $406 Primary earnings per common share: Income before cumulative effects of accounting changes $2.09 $2.90 $1.90 $3.99 $5.54 Cumulative effects of accounting changes - - - - (.89) Net income $2.09 $2.90 $1.90 $3.99 $4.65 Fully diluted earnings per common share: Income before cumulative effects of accounting changes $2.09 $2.90 $1.90 $3.99 $5.53 Cumulative effects of accounting changes - - - - (.89) Net income $2.09 $2.90 $1.90 $3.99 $4.64 Cash dividends declared $.90 $.78 $.90 $1.80 $1.56 Book value per common share (1) $53.37 $45.66 $52.41 Profitability ratios Return on average common stockholders' equity 15.87% 26.07% 14.85% 15.36% N/M - Excluding cumulative effects of accounting changes N/A N/A N/A N/A 24.93% Return on average total assets .71% 1.16% .61% .66% N/M - Excluding cumulative effects of accounting changes N/A N/A N/A N/A 1.17% Net interest revenue (fully taxable basis) $330 $319 $391 $721 $634 Average rates (fully taxable basis) Yield on interest-earning assets 6.91% 5.50% 6.17% 6.52% 5.68% Cost of interest-bearing liabilities 5.33% 4.33% 4.38% 4.83% 4.41% Interest rate spread 1.58% 1.17% 1.79% 1.69% 1.27% Net interest margin 1.79% 1.61% 1.96% 1.87% 1.70% Average balances Loans $12,586 $15,593 $13,003 $12,793 $15,934 Total interest-earning assets $74,107 $79,268 $81,037 $77,553 $75,317 Total assets $101,896 $86,752 $109,113 $105,485 $83,030 Total interest-bearing liabilities $71,197 $71,210 $77,935 $74,547 $68,024 Common stockholders' equity $4,348 $3,785 $4,343 $4,346 $3,718 Total stockholders' equity $4,798 $4,043 $4,602 $4,701 $4,071 At end of period Common stockholders' equity to total assets 4.19% 4.57% 4.14% Total stockholders' equity to total assets 4.62% 4.87% 4.57% Risk-based capital ratios Tier 1 Capital (2) 8.50% 8.12% 8.89% Total Capital (2) 13.90% 14.10% 14.66% Leverage Ratio (2) 5.97% 5.84% 5.39% Employees 13,990 13,406 13,748
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES FINANCIAL STATISTICS (CONT'D.) (in millions) (unaudited)
June 30, March 31, 1994 1993 1994 Nonperforming assets Cash basis loans Secured by real estate $405 $ 564 $462 Real estate related 49 59 52 Highly leveraged 170 210 162 Other 118 173 124 Refinancing country 2 189 62 Total cash basis loans $744 $1,195 $862 Renegotiated loans Mexican government Par Bonds $ - $461 $ - Other 14 38 20 Total renegotiated loans $14 $499 $20 Other real estate $310 $298 $283 Other nonperforming assets $84 $153 $101 Second Quarter Six Months 1994 1993 1994 1993 Allowance for credit losses Balance, beginning of period $1,345 $1,529 $1,324 $1,620 Net charge-offs Charge-offs 17 75 38 205 Recoveries 12 24 54 33 Total net charge-offs (recoveries)* 5 51 (16) 172 Provision for credit losses - 23 - 53 Balance, end of period $1,340 $1,501 $1,340 $1,501 *Components: Secured by real estate $ 14 $44 $ 12 $ 50 Real estate related 2 - 2 1 Highly leveraged - - (9) 17 Other - 2 9 100 Refinancing country (11) 5 (30) 4 Total $ 5 $51 $(16) $172 N/A Not applicable. N/M Not meaningful. (1) This calculation includes the effect of common shares issuable under deferred stock awards. (2) Risk-based capital ratios at June 30, 1994 are preliminary. At both June 30, 1994 and March 31, 1994, all three regulatory capital ratios excluded any benefit from the adoption of SFAS 115.
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (in millions, except per share data) (unaudited)
Increase THREE MONTHS ENDED JUNE 30, 1994 1993 (Decrease) NET INTEREST REVENUE Interest revenue $1,255 $1,067 $ 188 Interest expense 946 768 178 Net interest revenue 309 299 10 Provision for credit losses - 23 (23) Net interest revenue after provision for credit losses 309 276 33 NONINTEREST REVENUE Trading 124 405 (281) Fiduciary and funds management 187 176 11 Fees and commissions 195 173 22 Securities available for sale gains 19 - 19 Investment securities gains - 8 (8) Other 112 70 42 Total noninterest revenue 637 832 (195) NONINTEREST EXPENSES Salaries 189 167 22 Incentive compensation and employee benefits 202 313 (111) Occupancy, net 38 39 (1) Furniture and equipment 37 34 3 Other 222 196 26 Total noninterest expenses 688 749 (61) Income before income taxes 258 359 (101) Income taxes 77 108 (31) NET INCOME $ 181 $ 251 $ (70) NET INCOME APPLICABLE TO COMMON STOCK $ 172 $ 246 $ (74) EARNINGS PER COMMON SHARE: PRIMARY $2.09 $2.90 $(.81) FULLY DILUTED $2.09 $2.90 $(.81) Cash dividends declared per common share $.90 $.78 $.12
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (in millions, except per share data) (unaudited)
Increase SIX MONTHS ENDED JUNE 30, 1994 1993 (Decrease) NET INTEREST REVENUE Interest revenue $2,466 $2,088 $ 378 Interest expense 1,787 1,489 298 Net interest revenue 679 599 80 Provision for credit losses - 53 (53) Net interest revenue after provision for credit losses 679 546 133 NONINTEREST REVENUE Trading 138 751 (613) Fiduciary and funds management 375 335 40 Fees and commissions 377 320 57 Securities available for sale gains 23 - 23 Investment securities gains - 12 (12) Other 229 148 81 Total noninterest revenue 1,142 1,566 (424) NONINTEREST EXPENSES Salaries 366 332 34 Incentive compensation and employee benefits 364 584 (220) Occupancy, net 75 74 1 Furniture and equipment 76 68 8 Other 448 372 76 Total noninterest expenses 1,329 1,430 (101) Income before income taxes and cumulative effects of accounting changes 492 682 (190) Income taxes 147 201 (54) INCOME BEFORE CUMULATIVE EFFECTS OF ACCOUNTING CHANGES 345 481 (136) Cumulative effects of accounting changes - (75) 75 NET INCOME $ 345 $ 406 $ (61) NET INCOME APPLICABLE TO COMMON STOCK $ 331 $ 394 $ (63) PRIMARY EARNINGS PER COMMON SHARE: Income before cumulative effects of accounting changes $3.99 $5.54 $(1.55) Cumulative effects of accounting changes - (.89) .89 Net income $3.99 $4.65 $ (.66) FULLY DILUTED EARNINGS PER COMMON SHARE: Income before cumulative effects of accounting changes $3.99 $5.53 $(1.54) Cumulative effects of accounting changes - (.89) .89 Net income $3.99 $4.64 $ (.65) Cash dividends declared per common share $1.80 $1.56 $.24
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET ($ in millions, except par value) (unaudited)
June 30, December 31, 1994 1993 ASSETS Cash and due from banks $ 2,662 $ 1,750 Interest-bearing deposits with banks 1,579 1,638 Federal funds sold 1,574 361 Securities purchased under resale agreements 12,257 9,567 Securities borrowed 5,396 2,937 Trading assets 54,669 48,276 Securities available for sale 6,961 7,073 Loans 13,223 15,200 Allowance for credit losses (1,340) (1,324) Premises and equipment, net 763 719 Due from customers on acceptances 401 455 Accounts receivable and accrued interest 2,367 2,561 Other assets 3,127 2,869 Total $103,639 $92,082 LIABILITIES Deposits Noninterest-bearing In domestic offices $ 3,080 $ 3,185 In foreign offices 612 707 Interest-bearing In domestic offices 5,671 7,120 In foreign offices 11,099 11,764 Total deposits 20,462 22,776 Trading liabilities 25,151 9,349 Securities sold under repurchase agreements 21,509 23,834 Other short-term borrowings 19,188 18,992 Acceptances outstanding 402 455 Accounts payable and accrued expenses 3,656 3,771 Other liabilities 2,646 2,524 Long-term debt 5,582 5,597 Total liabilities 98,596 87,298 PREFERRED STOCK OF SUBSIDIARY 250 250 STOCKHOLDERS' EQUITY Preferred stock 450 250 Common stock, $1 par value Authorized, 300,000,000 shares Issued, 83,678,973 shares 84 84 Capital surplus 1,319 1,321 Retained earnings 3,404 3,226 Common stock in treasury, at cost: 1994, 4,714,603 shares; 1993, 3,076,439 shares (358) (233) Other (106) (114) Total stockholders' equity 4,793 4,534 Total $103,639 $92,082
BANKERS TRUST NEW YORK CORPORATION 280 PARK AVENUE NEW YORK, NEW YORK 10017 Geoffrey M. Fletcher Senior Vice President and Principal Accounting Officer July 27, 1994 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 Dear Sirs: Accompanying this letter is Bankers Trust New York Corporation's report on Form 8-K dated July 22, 1994 (the "Form 8-K"). The Form 8-K is being filed electronically through the EDGAR System. One hard copy of the Form 8-K will be sent to the Securities and Exchange Commission's Filer Support Unit, Alexandria, Virginia. If there are any questions or comments in connection with the enclosed filing, please contact the undersigned at 212-250-7098. Very truly yours, BANKERS TRUST NEW YORK CORPORATION By: GEOFFREY M. FLETCHER Geoffrey M. Fletcher Senior Vice President and Principal Accounting Officer -----END PRIVACY-ENHANCED MESSAGE-----