-----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, HelMq+lHsESsTdOJ5mVCg4QaD34+Wl7d+U4fIvi78FKt0kFNGZPgYu3ZodWdYRXS ASa0HuL5nFuWCOnklraXqw== 0000009749-95-000093.txt : 19950724 0000009749-95-000093.hdr.sgml : 19950724 ACCESSION NUMBER: 0000009749-95-000093 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950720 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950721 SROS: AMEX SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANKERS TRUST NEW YORK CORP CENTRAL INDEX KEY: 0000009749 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [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: 95555321 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 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 20, 1995 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 20, 1995, 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, 1995 and December 31, 1994 and its unaudited consolidated results of operations for each of the three-month and six- month periods ended June 30, 1995 and 1994. 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, 1995 and December 31, 1994 and its consolidated results of operations for the three-month and six-month periods ended June 30, 1995 and 1994 have been made. All such adjustments were of a normal recurring nature. The results of operations for the three-month and six-month periods ended June 30, 1995 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 20, 1995 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 21, 1995 BANKERS TRUST NEW YORK CORPORATION FORM 8-K DATED July 20, 1995 EXHIBIT INDEX Exhibit Number Description of Exhibit (99) Press Release of the Registrant dated July 20, 1995 EX-99 2 THURSDAY, JULY 20, 1995 BANKERS TRUST REPORTS SECOND QUARTER NET INCOME OF $91 MILLION, OR $.98 PRIMARY EARNINGS PER SHARE New York, July 20, 1995 -- Bankers Trust New York Corporation earned $91 million for the quarter ended June 30, 1995, or $.98 primary earnings per share. In the second quarter of 1994, the Corporation earned $181 million, or $2.09 primary earnings per share. Commenting on the second quarter results, Bankers Trust Chairman Charles S. Sanford, Jr. said: "During the quarter, Bankers Trust achieved the two objectives that we set for ourselves and announced publicly. First, the $91 million of net income returns the Firm to profitability and represents a swing of $213 million from the $122 million net operating loss recorded in the first quarter of this year. Second, the expense reduction programs have been substantially implemented and are on track for producing savings of approximately $200 million this year and approximately $275 million in 1996. With these accomplishments, the quarter can be seen as a transitional one toward the achievement of a third objective: a return to more competitive earnings." "The earnings recovery from the first quarter resulted from markedly improved performance in client-related businesses together with a strong turnaround in trading, which itself was aided by greater focus on client transactions. We have no more important priority than to build enduring client relationships and, in so doing, we have been placing great value on client development efforts that will continue to build profits for the future." Trading revenue and trading-related net interest revenue for the second quarter of 1995 amounted to $136 million, compared with a loss of $77 million in the year's first quarter. The recovery was attributable to a turnaround in the Firm's derivatives business as losses in Latin America lessened significantly during the quarter as a result of a successful reduction of loss making positions. Client derivatives volume remained steady during the second quarter, though comprised mainly of low margin transactions, and infrastructure expenses related to the business were reduced. Revenue Net interest revenue totaled $222 million, down $87 million, or 28%, from the second quarter of 1994 and up $40 million, or 22%, from the first quarter of 1995. Of the decline in the second quarter of 1995 versus the second quarter of 1994, $64 million was from trading-related net interest revenue. A significant portion of the Firm's trading and risk management activities involve positions in interest rate instruments and related derivatives. The revenue from these activities can periodically shift between trading and net interest, depending on a variety of factors, including risk management strategies. Therefore, the Corporation views trading revenue and trading-related net interest revenue together, which are discussed below.
Trading- Related Net Trading Interest (in millions) Revenue Revenue Total Second Quarter 1995 $79 $57 $136 Second Quarter 1994 $124 $121 $245
This combined total for the second quarter of 1995 was $136 million, a $109 million decrease from the second quarter of 1994. Although the results were below those of the second quarter of 1994, trading revenue rebounded from the weak first quarter of 1995, as trading performance generally improved in Latin American derivatives and in the Firm's proprietary activities, particularly in the Latin American, Australian and Asian markets. Fiduciary and funds management revenue totaled $166 million for the second quarter, down $21 million, or 11%, from the same period last year. The decrease in revenue was due primarily to a decline in transaction volumes in fiduciary services. The $166 million of revenue for the second quarter was down $5 million, or 3%, from the first quarter of 1995. Fees and commissions of $211 million increased by $16 million, or 8%, from the second quarter of 1994. Corporate finance fees of $127 million increased by $12 million, or 10%, from the same period last year. Higher revenue from loan syndication and private placement fees were partially offset by lower revenue from securities underwriting and financial advisory activities. Compared with this year's first quarter, fees and commissions were up $66 million, or 46%, and corporate finance fees increased by $55 million, or 76%. The Corporation's securities available for sale gains were $17 million, compared with $19 million in the prior year's second quarter. Other noninterest revenue totaled $114 million, up $2 million, from the prior year's quarter. This increase was primarily a result of higher insurance premium revenue recorded in the Corporation's Chilean subsidiaries due to an increase in the number of annuity policies sold. This was partially offset by lower net gains from sales of equity investments. The $114 million of other noninterest revenue for the second quarter of 1995 was up $12 million, or 12%, from the first quarter of 1995. Expenses Total noninterest expenses of $678 million decreased by $10 million from the second quarter of 1994. Incentive compensation and employee benefits expense decreased $67 million, or 33%, due to lower bonus expense reflecting the reduced earnings. Salaries expense increased $5 million, or 3%, from the second quarter of 1994 due mostly to salary increases. The number of full time staff at June 30, 1995 decreased by 742, to 13,787 from December 31, 1994. Management has implemented expense reduction programs designed to reduce overall operating expenses -- principally noninterest expenses before bonus, policyholder benefits and minority interest. At this operating expense level, the Corporation previously announced that it would be reducing these expenses by approximately $200 million in 1995 and approximately $275 million annually thereafter. Operating expense trends in the first and second quarters of 1995 show that the Corporation is on target to achieve these cost reductions. All other expenses totaled $349 million for the quarter, up $52 million, or 18%, from last year's second quarter. The provision for policyholder benefits accounted for approximately half of this increase due to an increase in the number of annuity policies sold at the Corporation's Chilean insurance subsidiaries. Asset Quality No provision for credit losses was required for the current or prior year's second quarter. Net charge-offs for the quarter were $2 million, compared with $5 million a year ago. Cash basis loans decreased by $52 million, or 5%, to $925 million during the second quarter. The allowance for credit losses at June 30, 1995, was $1.243 billion, representing 134% of cash basis loans. The allowance for credit losses is available for credit losses arising from the Corporation's portfolio, which is comprised of loans, credit-related commitments, derivatives and other financial instruments. In the opinion of management, the allowance, when taken as a whole, is adequate to absorb reasonably estimated credit losses inherent in the Corporation's portfolio, as defined above. Six Months Results For the first six months of 1995, the Corporation recorded a loss of $31 million, or $.65 primary loss per share excluding an after-tax provision for severance-related costs of $35 million taken in connection with the Corporation's expense reduction programs. Net loss for the first six months, including the effect of this provision was $66 million, or $1.10 primary loss per share. For the six months ended June 30, 1994 the Corporation earned $345 million, or $3.99 primary earnings per share. Capital On May 15, 1995, the Corporation reset the interest rate on its $100 million 7.50% Convertible Capital Securities giving the holders the right to convert the debt securities into depositary shares. Holders of more than $96.4 million aggregate principal amount of the 7.50% Convertible Capital Securities have converted their securities into approximately 3.9 million depositary receipts, each representing a one-fortieth interest in a share of the Parent Company's 7.50% Cumulative Preferred Stock, Series P. Also, on June 30, 1995, the Corporation issued $125 million, or 5 million depositary shares at $25 per share, each representing a one-hundredth interest in a share of the Corporation's 7 3/4% Cumulative Preferred Stock, Series S. The preferred stock component of total stockholders' equity increased by approximately $224 million during the second quarter of 1995 primarily as a result of the above. The Corporation estimates that its ratios of Tier 1 Capital and Total Capital to risk-adjusted assets were approximately 8.70% and 14.00%, respectively, at June 30, 1995. The Leverage Ratio was 5.52% at that same date. For additional information, contact Douglas Kidd, (212) 454-3532 or Tom Parisi, (212) 454-1686 (Media); Howard Schneider (212) 250-3609 (Investors). BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES FINANCIAL STATISTICS ($ in millions, except per share data) (unaudited)
First Second Quarter Quarter Six Months 1995 1994 1995 1995 1994 Net income (loss) $91 $181 $(157) $(66) $345 Per common share Primary earnings (loss) $.98 $2.09 $(2.11) $(1.10) $3.99 Fully diluted earnings (loss) $.98 $2.09 $(2.11) $(1.10) $3.99 Cash dividends declared $1.00 $.90 $1.00 $2.00 $1.80 Book value (1) $49.80 $53.37 $50.04 Profitability ratios Return on average common stockholders' equity 7.84% 15.87% N/M N/M 15.36% Return on average total assets .33% .71% N/M N/M .66% Net interest revenue (fully taxable basis) $231 $330 $197 $428 $721 Average rates (fully taxable basis) Yield on interest-earning assets 7.53% 6.91% 7.09% 7.32% 6.52% Cost of interest-bearing liabilities 6.70% 5.33% 6.28% 6.49% 4.83% Interest rate spread .83% 1.58% .81% .83% 1.69% Net interest margin 1.14% 1.79% 1.02% 1.08% 1.87% Average balances Loans $10,776 $12,586 $11,683 $11,227 $12,793 Total interest-earning assets $81,393 $74,107 $78,228 $79,819 $77,553 Total assets $109,773 $101,896 $104,539 $107,150 $105,485 Total interest-bearing liabilities $77,674 $71,197 $75,642 $76,664 $74,547 Common stockholders' equity $4,044 $4,348 $4,207 $4,125 $4,346 Total stockholders' equity $4,735 $4,798 $4,686 $4,711 $4,701 At end of period Common stockholders' equity to total assets 3.91% 4.19% 3.75% Total stockholders' equity to total assets 4.75% 4.62% 4.35% Risk-based capital ratios (2) Tier 1 Capital 8.70% 8.41% 8.73% Total Capital 14.00% 13.82% 14.20% Leverage Ratio 5.52% 5.97% 5.18% Employees 13,787 13,990 14,144 N/M Not meaningful. (1) This calculation includes the effect of common shares issuable under deferred stock awards. (2) Regulatory capital ratios at June 30, 1995 are preliminary.
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES FINANCIAL STATISTICS (CONT'D) (in millions) (unaudited)
June 30, March 31, 1995 1994 1995 Nonperforming assets Cash basis loans Secured by real estate $412 $405 $403 Real estate related 25 49 26 Highly leveraged 110 170 111 Other 378 118 437 Refinancing country - 2 - Total cash basis loans $925 $744 $977 Renegotiated loans Secured by real estate $ 89 $13 $ 90 Other 12 1 12 Total renegotiated loans $101 $14 $102 Other real estate $263 $310 $265 Other nonperforming assets $64 $84 $66
Second Quarter Six Months 1995 1994 1995 1994 Allowance for credit losses Balance, beginning of period $1,245 $1,345 $1,252 $1,324 Net charge-offs (recoveries) Charge-offs 13 17 47 38 Recoveries 11 12 24 54 Total net charge-offs (recoveries)* 2 5 23 (16) Provision for credit losses - - 14 - Balance, end of period $1,243 $1,340 $1,243 $1,340 *Components: Secured by real estate $(3) $ 14 $ 3 $ 12 Real estate related - 2 2 2 Highly leveraged 2 - 22 (9) Other 4 - 4 9 Refinancing country (1) (11) (8) (30) Total $ 2 $ 5 $23 $(16)
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (in millions, except per share data) (unaudited)
Increase THREE MONTHS ENDED JUNE 30, 1995 1994 (Decrease) NET INTEREST REVENUE Interest revenue $1,520 $1,255 $ 265 Interest expense 1,298 946 352 Net interest revenue 222 309 (87) Provision for credit losses - - - Net interest revenue after provision for credit losses 222 309 (87) NONINTEREST REVENUE Trading 79 124 (45) Fiduciary and funds management 166 187 (21) Fees and commissions 211 195 16 Securities available for sale gains 17 19 (2) Other 114 112 2 Total noninterest revenue 587 637 (50) NONINTEREST EXPENSES Salaries 194 189 5 Incentive compensation and employee benefits 135 202 (67) Occupancy, net 38 38 - Furniture and equipment 40 37 3 Other 271 222 49 Total noninterest expenses 678 688 (10) Income before income taxes 131 258 (127) Income taxes 40 77 (37) NET INCOME $ 91 $ 181 $ (90) NET INCOME APPLICABLE TO COMMON STOCK $ 79 $ 172 $ (93) EARNINGS PER COMMON SHARE: PRIMARY $.98 $2.09 $(1.11) FULLY DILUTED $.98 $2.09 $(1.11) Cash dividends declared per common share $1.00 $.90 $.10
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (in millions, except per share data) (unaudited)
Increase SIX MONTHS ENDED JUNE 30, 1995 1994 (Decrease) NET INTEREST REVENUE Interest revenue $2,873 $2,466 $ 407 Interest expense 2,469 1,787 682 Net interest revenue 404 679 (275) Provision for credit losses 14 - 14 Net interest revenue after provision for credit losses 390 679 (289) NONINTEREST REVENUE Trading 1 138 (137) Fiduciary and funds management 337 375 (38) Fees and commissions 356 377 (21) Securities available for sale gains 19 23 (4) Other 216 229 (13) Total noninterest revenue 929 1,142 (213) NONINTEREST EXPENSES Salaries 402 366 36 Incentive compensation and employee benefits 268 364 (96) Occupancy, net 79 75 4 Furniture and equipment 82 76 6 Provision for severance-related costs 50 - 50 Other 531 448 83 Total noninterest expenses 1,412 1,329 83 Income (loss) before income taxes (93) 492 (585) Income taxes (27) 147 (174) NET INCOME (LOSS) $ (66) $ 345 $(411) NET INCOME (LOSS) APPLICABLE TO COMMON STOCK $ (86) $ 331 $(417) EARNINGS (LOSS) PER COMMON SHARE: PRIMARY $(1.10) $3.99 $(5.09) FULLY DILUTED $(1.10) $3.99 $(5.09) Cash dividends declared per common share $2.00 $1.80 $.20
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET ($ in millions, except par value) (unaudited)
June 30, December 31, 1995 1994 ASSETS Cash and due from banks $ 1,739 $ 1,985 Interest-bearing deposits with banks 1,357 3,390 Federal funds sold 238 2,544 Securities purchased under resale agreements 17,629 9,943 Securities borrowed 6,929 6,197 Trading assets 50,565 47,514 Securities available for sale 6,479 7,475 Loans 11,537 12,501 Allowance for credit losses (1,243) (1,252) Premises and equipment, net 931 915 Due from customers on acceptances 370 378 Accounts receivable and accrued interest 2,697 2,356 Other assets 3,709 3,070 Total $102,937 $97,016 LIABILITIES Deposits Noninterest-bearing In domestic offices $ 2,465 $ 3,285 In foreign offices 527 541 Interest-bearing In domestic offices 5,170 5,769 In foreign offices 14,443 15,344 Total deposits 22,605 24,939 Trading liabilities 28,404 20,949 Securities sold under repurchase agreements 18,933 15,617 Other short-term borrowings 14,010 18,222 Acceptances outstanding 370 378 Accounts payable and accrued expenses 3,615 3,174 Other liabilities 2,347 2,328 Long-term debt 7,514 6,455 Total liabilities 97,798 92,062 PREFERRED STOCK OF SUBSIDIARY 250 250 STOCKHOLDERS' EQUITY Preferred stock 863 395 Common stock, $1 par value Authorized, 300,000,000 shares Issued, 83,678,973 shares 84 84 Capital surplus 1,300 1,317 Retained earnings 3,240 3,494 Common stock in treasury, at cost: 1995, 5,327,632 shares; 1994, 5,609,707 shares (391) (416) Other (207) (170) Total stockholders' equity 4,889 4,704 Total $102,937 $97,016
BANKERS TRUST NEW YORK CORPORATION 280 PARK AVENUE NEW YORK, NEW YORK 10017 Geoffrey M. Fletcher Senior Vice President and Principal Accounting Officer July 21, 1995 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 20, 1995 (the "Form 8-K"). The Form 8-K is being filed electronically through the EDGAR System. 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-----