-----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, CXAd8TfmRrp129XlUkb9wiTpOhicF3npjW2Ft5sILiYdG/aif/f0IDK8YGZeBrAA 5dsStbIj+lnh872GOBLZ0A== 0000009749-96-000142.txt : 19961101 0000009749-96-000142.hdr.sgml : 19961101 ACCESSION NUMBER: 0000009749-96-000142 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961017 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19961031 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/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-05920 FILM NUMBER: 96650815 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/A 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 8-K/A CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 17, 1996 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.) 130 LIBERTY STREET, NEW YORK, NEW YORK 10006 (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/A is to file a Press Release 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 financial information contained in the Registrant's Press Release dated October 17, 1996, 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 September 30, 1996, June 30, 1996, and September 30, 1995 and the audited consolidated financial position at December 31, 1995 and its unaudited consolidated results of operations for each of the three-month and nine-month periods ended September 30, 1996 and 1995 and the three-month period ended June 30, 1996. In the opinion of the Registrant's management, all material adjustments necessary for a fair presentation of the Corporation's consolidated financial position at September 30, 1996, June 30, 1996, and September 30, 1995 and its consolidated results of operations for the three-month and nine-month periods ended September 30, 1996 and 1995 and the three-month period ended June 30, 1996 have been made. All such adjustments were of a normal recurring nature. Item 7. Financial Statements and Exhibits (c) Exhibits (99.1) Earnings Press Release of the Registrant dated October 17, 1996 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 October 17, 1996 BANKERS TRUST NEW YORK CORPORATION FORM 8-K/A DATED OCTOBER 17, 1996 EXHIBIT INDEX Exhibit Number Description of Exhibit (99.1) Earnings Press Release of the Registrant dated October 17, 1996. EX-99.1 2 THURSDAY, OCTOBER 17, 1996 BANKERS TRUST THIRD QUARTER EARNINGS PER SHARE OF $1.99 INCREASE 16%. THIRD QUARTER NET INCOME, AT $176 MILLION, INCREASES 14%. New York, October 17, 1996 -- Bankers Trust New York Corporation (BT) today reported that earnings per share in the third quarter of 1996 were $1.99, 16% above the $1.72 per share earned in the same period last year. Net income in the third quarter of 1996 was $176 million, up $21 million, or 14%, from the $155 million of earnings in the 1995 third quarter, and up $25 million, or 17%, from the $151 million earned in the preceding 1996 quarter. BT's earnings per share for the first nine months of 1996 were $5.19, up $4.53 from the $0.66 earned during the first nine months of 1995. Net income for the first nine months of 1996 was $465 million, up $376 million from the $89 million of earnings in the same period of 1995. "Third quarter results demonstrate the effectiveness of our continuing efforts to develop Bankers Trust's core businesses around the world," said Frank Newman, chairman and chief executive officer. "The progress reflects our emphasis on using the innovation that is a hallmark of the Firm to deliver value to our clients," Mr. Newman said. He noted that third quarter performance was especially strong in Investment Banking and Australia/New Zealand, and that results for Asia, Latin America, and Investment Management also showed improvement over those for last year's third quarter. Third quarter earnings included the favorable effect ($18 million after-tax) of the sale of a life insurance company acquired in 1992 in satisfaction of debt. In the third quarter of 1996, total net revenue (net interest revenue after provision for credit losses, plus noninterest revenue) amounted to $1.059 billion, an increase of $107 million, or 11%, from the third quarter 1995 amount. This increase is primarily attributable to higher corporate finance fees and to the gain on the sale of the life insurance company. Total noninterest expenses increased by $81 million compared with those for the third quarter of 1995, reflecting higher incentive compensation and employee benefits, annual pay increases that went into effect July 1, 1996, as well as an increase in staff levels. Excluding personnel costs, the year-over-year increase in total noninterest expenses was $7 million, or 2%. Credit quality continued to improve during the third quarter. At September 30, 1996 total cash basis loans amounted to $488 million, down from $573 million at June 30, 1996 and $752 million at September 30, 1995. At quarter end, the allowance for credit losses represented 198% of cash basis loans. ORGANIZATIONAL HIGHLIGHTS*
Total Non- Pretax Net Third Quarter 1996 Total Net interest Income/ Income/ (in millions) Revenue Expenses (Loss) (Loss) Investment Banking $ 231 $122 $109 $ 77 Risk Management Services 84 80 4 3 Trading & Sales 107 65 42 29 Investment Management 76 70 6 4 Client Processing Services 200 165 35 25 Australia/New Zealand 138 77 61 43 Asia 30 24 6 5 Latin America 123 94 29 20 Corporate/Other 70 112 (42) (30) Total $1,059 $809 $250 $176
Total Non- Pretax Net Second Quarter 1996 Total Net interest Income/ Income/ (in millions) Revenue Expenses (Loss) (Loss) Investment Banking $ 274 $118 $156 $109 Risk Management Services 44 76 (32) (22) Trading & Sales 89 65 24 17 Investment Management 74 68 6 4 Client Processing Services 203 166 37 26 Australia/New Zealand 114 70 44 31 Asia 35 26 9 7 Latin America 166 115 51 36 Corporate/Other 42 121 (79) (57) Total $1,041 $825 $216 $151
Total Non- Pretax Net Third Quarter 1995 Total Net interest Income/ Income/ (in millions) Revenue Expenses (Loss) (Loss) Investment Banking $184 $ 83 $101 $ 70 Risk Management Services 107 94 13 9 Trading & Sales 124 70 54 38 Investment Management 64 68 (4) (3) Client Processing Services 177 140 37 25 Australia/New Zealand 97 65 32 22 Asia 7 26 (19) (14) Latin America 123 119 4 3 Corporate/Other 69 63 6 5 Total $952 $728 $224 $155
*Organizational Unit business results are determined based on the Corporation's internal management accounting process, which allocates revenue and expenses among the Organizational Units. Because the Corporation's business is complex in nature and its operations are integrated, it is impractical to segregate respective contributions of the Organizational Units with precision. As a result, estimates and subjective judgments have been made to apportion revenue and expense items. In order to provide comparability from one period to the next, the Corporation will restate this analysis to conform with material changes in the allocation process and/or significant changes in organizational structure. The Investment Banking business contributed net income of $77 million in the third quarter, up from $70 million a year ago but down $32 million from the second quarter of 1996. Net income in the second quarter of 1996 reflected particularly high corporate finance fees, as well as higher realized securities available for sale gains than in the third quarter. Risk Management Services recorded net income of $3 million in the third quarter of 1996, down $6 million from the third quarter of 1995 but up $25 million from the second quarter of 1996. The second quarter of 1996 included a $23 million after-tax loss associated with the sharp drop in copper prices. Net income from the Trading & Sales business, at $29 million, was down $9 million from the third quarter of 1995 but up $12 million from the second quarter of 1996. The current quarter's improvement was largely due to strong results from arbitrage transactions. The Corporation's Investment Management business, which for reporting purposes does not include investment management activities in Australia/NZ, reported net income of $4 million for the current quarter, up $7 million from the 1995 comparable period and unchanged from the second quarter of 1996. At September 30, 1996, assets under management in this organizational unit were approximately $193 billion, compared to $191 billion and $177 billion at June 30, 1996 and September 30, 1995, respectively. Client Processing Services contributed $25 million of net income in the third quarter of 1996, in line with the 1995 third quarter and the preceding quarter of this year. Total revenue increased $23 million from the comparable 1995 period, offset by an increase in noninterest expenses primarily due to an increased level of investment in computer systems. Net income of the Australia/NZ business was $43 million in the third quarter of 1996, up $21 million and $12 million respectively from the third quarter of 1995 and the second quarter of 1996. Virtually all major business lines in Australia/NZ improved, led by the Financial Markets Group. At September 30, 1996, assets under management in Australia/NZ's investment management business were approximately $25 billion, compared to $24 billion and $22 billion at June 30, 1996 and September 30, 1995, respectively. Asia net income was $5 million in the third quarter of 1996, up $19 million from the third quarter of 1995 and down slightly from the second quarter of 1996. The increase from the third quarter of 1995 was primarily due to improved risk management results. Latin America net income was $20 million in the third quarter of 1996, up $17 million from the third quarter of 1995, and down $16 million from the second quarter of 1996. The second quarter of 1996 results reflected a $22 million net gain after-tax from the sale of Compensa, which was the smaller of the Corporation's two Chilean insurance subsidiaries. Corporate/Other net loss was $30 million in the third quarter of 1996 compared with net income of $5 million in the third quarter of 1995 and a $57 million net loss in the second quarter of 1996. The current quarter's results included a net gain after-tax of $18 million on the sale of Golden American Life Insurance Company, an indirect wholly-owned subsidiary of the Corporation acquired in satisfaction of debt in 1992. The second quarter included unusual legal and professional fees ($20 million after- taxes) related to the completion of the Independent Counsel's report and the settlement of old leveraged derivative disputes. QUARTERLY FINANCIAL COMPARISONS Third Quarter 1996 versus Second Quarter 1996 Net income of $176 million for the third quarter of 1996 was up 17% from the $151 million earned in the second quarter of 1996. Third quarter 1996 combined trading revenue and trading-related net interest revenue increased $80 million from the second quarter of 1996. Page 9 shows combined trading results by organizational units. Insurance premiums declined $11 million during the current quarter, mainly due to the sale of Compensa in the second quarter of 1996. This decline was partially offset by increases in the number of annuity policies sold by Consorcio, the largest life insurance company in Chile, and the average value per policy. Other noninterest revenue totaled $54 million in the current quarter, compared to $76 million in the second quarter of 1996. The current quarter included a gain on the sale of Golden American Life Insurance Company, an indirect wholly-owned subsidiary of the Corporation acquired in satisfaction of debt in 1992. The second quarter of 1996 included a $31 million gain on the sale of Compensa. Salaries and incentive compensation together rose 5% from the second quarter of 1996, primarily reflecting annual pay increases in July. As part of the Corporation's annual pay review in the second quarter, some staff compensation was shifted from incentive compensation into base salary to reflect market conditions. This resulted in somewhat higher than normal growth in salaries with an offsetting decline in incentive compensation. Agency and other professional service fees decreased $28 million during the current quarter. The second quarter included $28 million pre-tax of unusual legal and professional fees related to the completion of the Independent Counsel's report and the settlement of old leveraged derivative disputes. Provision for policyholder benefits decreased $12 million during the third quarter primarily due to the sale of Compensa in the second quarter of 1996. This decline was partially offset by increases in the number of annuity policies sold by Consorcio and the average value per policy. CREDIT QUALITY Credit quality improved further in the quarter. Cash basis loans declined from $573 million in the second quarter of 1996 to $488 million in the third quarter of 1996. This decline was attributable to paydowns on various commercial, industrial, and real estate loans as well as a charge-off in connection with the settlement of an old leveraged derivative transaction. There was no provision for credit losses as compared with a $7 million provision in the prior year's third quarter. The ratio of the allowance for credit losses to total cash basis loans rose to 198% at September 30, 1996 from 170% at June 30, 1996. CAPITAL Total stockholders' equity at September 30, 1996 was $5.324 billion, up $157 million and $340 million respectively from June 30, 1996 and December 31, 1995. The Corporation estimates that its ratios of Tier 1 Capital and Total Capital to risk-adjusted assets were approximately 8.1% and 12.8%, respectively, at September 30, 1996. Overall earnings per share of $1.99 included partially offsetting items that produced a net increase of $0.02 per share. During the quarter the Corporation purchased $50 million of its Series Q and Series R preferred stock at a discount, which is reflected as an increase in earnings per share of $0.08. Offsetting this increase is a reduction in earnings per share of approximately $0.06 due to a net increase of common shares primarily issued in connection with the purchase of Wolfensohn. During the quarter the Corporation announced its authorization to repurchase up to three million shares of its common stock, in addition to its previously announced program to repurchase shares issued under employee stock option and award plans. The remainder of this release contains the following tables: Page 1. BTNY Consolidated Quarterly Statement of Income 7 2. BTNY Consolidated Year-To-Date Statement of Income 8 3. Combined Trading Revenue and Trading-Related Net Interest Revenue 9 4. Net Interest Revenue 9 5. BTNY Consolidated Balance Sheet 10 6. Stock and Capital Data 11 7. Nonperforming Assets and Allowance for Credit Losses 12 For additional information, contact Douglas Kidd, 212 250-7225 or Tom Parisi, 212 250-7235 (Media); Eric Durant 212 250-6901 (Investors). Bankers Trust news releases, including quarterly results, are available on the Internet (http://www.bankerstrust.com/earnings). BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES CONSOLIDATED QUARTERLY STATEMENT OF INCOME (in millions, except per share data) (unaudited)
NET INTEREST REVENUE Interest revenue $1,556 $1,459 $1,669 Interest expense 1,352 1,216 1,421 Net interest revenue 204 243 248 Provision for credit losses 7 - - Net interest revenue after provision for credit losses 197 243 248 NONINTEREST REVENUE Trading* 257 146 219 Fiduciary & funds management 174 198 196 Corporate finance fees 74 136 119 Other fees & commissions 78 82 86 Net revenue from equity investment transactions 85 72 74 Securities available for sale gains 10 25 11 Insurance premiums 64 63 52 Other 13 76 54 Total noninterest revenue 755 798 811 NONINTEREST EXPENSES Salaries 196 202 229 Incentive compensation & employee benefits 187 235 228 Agency & other professional service fees 70 98 70 Communication & data services 45 47 52 Occupancy, net 41 36 38 Furniture & equipment 40 41 42 Travel & entertainment 20 24 24 Provision for policyholder benefits 75 78 66 Other 54 64 60 Total noninterest expenses 728 825 809 Income before income taxes 224 216 250 Income taxes 69 65 74 NET INCOME $ 155 $ 151 $ 176 NET INCOME APPLICABLE TO COMMON STOCK $ 139 $ 137 $ 168 Cash dividends declared per common share $1.00 $1.00 $1.00 EARNINGS PER COMMON SHARE: PRIMARY $1.72 $1.67 $1.99 FULLY DILUTED $1.71 $1.66 $1.98 *The Corporation accounts for revenues from a wide range of business activities as "trading". See table on page 9. Certain prior period amounts have been reclassified to conform to the current presentation.
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES CONSOLIDATED YEAR-TO-DATE STATEMENT OF INCOME (in millions, except per share data) (unaudited)
NINE MONTHS ENDED SEPTEMBER 30, 1995 1996 NET INTEREST REVENUE Interest revenue $4,429 $4,718 Interest expense 3,821 4,014 Net interest revenue 608 704 Provision for credit losses 21 5 Net interest revenue after provision for credit losses 587 699 NONINTEREST REVENUE Trading* 258 612 Fiduciary & funds management 511 577 Corporate finance fees 273 341 Other fees & commissions 235 255 Net revenue from equity investment transactions 124 167 Securities available for sale gains 29 51 Insurance premiums 176 177 Other 78 179 Total noninterest revenue 1,684 2,359 NONINTEREST EXPENSES Salaries 598 632 Incentive compensation and employee benefits 455 690 Agency & other professional service fees 214 228 Communication & data services 140 145 Occupancy, net 120 111 Furniture & equipment 122 124 Travel & entertainment 67 66 Provision for policyholder benefits 202 216 Other 172 183 Provision for severance-related costs 50 - Total noninterest expenses 2,140 2,395 Income before income taxes 131 663 Income taxes 42 198 NET INCOME $ 89 $ 465 NET INCOME APPLICABLE TO COMMON STOCK $53 $428 Cash dividends declared per common share $3.00 $3.00 EARNINGS PER COMMON SHARE: PRIMARY $.66 $5.19 FULLY DILUTED $.65 $5.16 *The Corporation accounts for revenues from a wide range of business activities as "trading". See table on page 9. Certain prior period amounts have been reclassified to conform to the current presentation.
COMBINED TRADING REVENUE AND TRADING-RELATED NET INTEREST REVENUE The Corporation views trading revenue and trading-related net interest revenue together, as presented in the table below.
Third Second Third Quarter Quarter Quarter ($ in millions) 1995 1996 1996 Trading Revenue $257 $146 $219 Trading-Related Net Interest Revenue (Estimate) 20 64 71 Total Trading Revenue & Trading-Related NIR $277 $210 $290 By Organizational Unit ($ in millions) Investment Banking $ 9 $ 21 $ 31 Risk Management Services 92 43 75 Trading & Sales 114 72 93 Investment Management (1) 2 5 Client Processing Services 2 2 1 Australia/New Zealand 30 34 59 Asia (2) 9 12 Latin America 25 28 21 Corporate/Other 8 (1) (7) Total Trading Revenue & Trading-Related NIR $277 $210 $290 Note: The Corporation accounts for revenues from a wide range of business activities as "trading". Investment Banking produces trading revenues in secondary market activities with clients, primarily in sectors where the Firm also serves as underwriter. A small portion of trading revenues arise from private equity investments that are accounted for on a mark-to-market basis. Risk Management Services generates trading revenues primarily from new derivative transactions with clients and in managing the risks the Corporation assumes on such transactions. Trading & Sales produces trading revenues through proprietary position- taking, including arbitrage, as well as market making and other client activities. Geographically-Based Businesses produce trading revenues from all the above business activities. Corporate/Other includes various transactions which, for management accounting purposes, are not recorded in Organizational Units.
NET INTEREST REVENUE
Third Second Third Quarter Quarter Quarter ($ in millions) 1995 1996 1996 Nontrading-related net interest revenue $184 $179 $177 Trading-related net interest revenue 20 64 71 Net interest revenue $204 $243 $248 Average rates (fully taxable basis) Yield on interest-earning assets 7.56% 6.47% 6.78% Cost of interest-bearing liabilities 6.91% 5.64% 6.21% Interest rate spread .65% .83% .57% Net interest margin 1.04% 1.09% 1.02% Average balances (billions) Loans $11.7 $13.1 $13.8 Total interest-earning assets $82.3 $91.0 $98.2 Total assets $109.4 $117.8 $123.4 Total interest bearing liabilities $77.7 $86.7 $91.0
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions)
September 30 December 31 June 30 September 30 1995* 1995 1996* 1996* ASSETS Cash and due from banks $ 1,715 $ 2,337 $ 1,663 $ 825 Interest-bearing deposits in banks 1,605 2,023 2,065 4,100 Federal funds sold 29 854 365 856 Sec. purch. under resale agreements 11,485 13,206 25,420 22,073 Securities borrowed 12,063 10,951 13,373 14,926 Trading assets: Government securities 20,698 20,704 14,565 16,075 Corporate debt securities 5,267 5,648 7,637 8,678 Equity securities 4,892 5,098 6,869 5,585 Swaps, options & other derivatives 11,885 10,555 9,486 10,363 Other trading assets 7,622 5,888 5,218 7,056 Total trading assets 50,364 47,893 43,775 47,757 Securities available for sale 7,140 6,283 6,851 7,461 Loans 12,786 12,633 14,249 15,264 Allowance for credit losses (1,032) (992) (972) (967) Accounts receivable & accrued interest 3,168 4,220 2,841 3,417 Other assets 4,626 4,594 4,971 5,135 Total $103,949 $104,002 $114,601 $120,847 LIABILITIES Noninterest-bearing deposits Domestic offices $ 2,898 $ 2,687 $ 3,327 $ 2,552 Foreign offices 522 605 488 647 Interest-bearing deposits Domestic offices 5,052 5,402 6,091 7,401 Foreign offices 15,685 17,014 15,387 18,072 Total deposits 24,157 25,708 25,293 28,672 Trading liabilities: Securities sold, not yet purchased Government securities 9,390 11,092 10,918 11,020 Equity securities 3,105 3,262 4,655 3,729 Other trading liabilities 376 473 377 389 Swaps, options & other derivatives 11,801 11,264 10,333 10,266 Total trading liabilities 24,672 26,091 26,283 25,404 Sec. sold under repurch. agreements 17,899 15,247 24,050 23,989 Other short-term borrowings 16,573 15,761 15,755 18,799 Accounts payable and accrued expenses 4,351 3,931 4,531 5,252 Other liabilities 2,632 2,736 2,563 2,650 Long-term debt 8,354 9,294 10,709 10,507 Total liabilities 98,638 98,768 109,184 115,273 PREFERRED STOCK OF SUBSIDIARY 250 250 250 250 STOCKHOLDERS' EQUITY Preferred stock 865 865 866 816 Common stock 84 84 84 84 Capital surplus 1,301 1,302 1,308 1,319 Retained earnings 3,295 3,316 3,393 3,450 Common stock in treasury, at cost (373) (336) (273) (173) Other stockholders' equity (111) (247) (211) (172) Total stockholders' equity 5,061 4,984 5,167 5,324 Total $103,949 $104,002 $114,601 $120,847 * Unaudited Certain prior period amounts have been reclassified to conform to the current presentation.
STOCK AND CAPITAL DATA
Third Second Third Quarter Quarter Quarter 1995 1996 1996 FOR THE QUARTER Return on Average Common Stockholders' Equity 13.5% 12.9% 15.0% Return on Average Total Assets .56% .52% .57% PER COMMON SHARE Earnings: Primary $1.72 $1.67 $1.99 Fully Diluted $1.71 $1.66 $1.98 Cash Dividends Declared $1.00 $1.00 $1.00 Market Price, End of Period $70.25 $73.875 $78.625 Book Value, End of Period (1) $51.72 $51.86 $53.11 COMMON SHARES (shares in thousands except par value) Common stock $1 par value: Authorized, at period end 300,000 300,000 300,000 Issued, at period end 83,679 83,679 83,679 Common stock in treasury, at period end 5,085 3,758 2,193 Average Common and Common Equivalent Shares Outstanding Primary 81,039 81,900 84,442 Fully Diluted 81,403 82,351 84,885 CAPITAL RATIOS, END OF PERIOD Common Stockholders' Equity to Total Assets 4.0% 3.8% 3.7% Total Stockholders' Equity to Total Assets 4.9% 4.5% 4.4% Bankers Trust New York Corporation: Risk-Based Capital Ratios (2) Tier 1 Capital 8.1% 8.3% 8.1% Total Capital 13.0% 13.5% 12.8% Leverage Ratio (2) 5.5% 5.5% 5.3% Bankers Trust Company: Risk-Based Capital Ratios (2) Tier 1 Capital 8.7% 9.3% 9.2% Total Capital 11.1% 12.4% 12.4% Leverage Ratio (2) 5.5% 5.5% 5.5% (1) This calculation includes the effect of the vested portion of common shares issuable under deferred stock awards. (2) Regulatory capital ratios at September 30, 1996 are preliminary.
NONPERFORMING ASSETS AND ALLOWANCE FOR CREDIT LOSSES
September 30 June 30 September 30 1995 1996 1996 Nonperforming assets (in millions) Cash basis loans Secured by real estate $394 $308 $291 Real estate related 23 31 26 Highly leveraged 148 128 99 Other 187 106 72 Total cash basis loans $752 $573 $488 Renegotiated loans Secured by real estate $ 89 $89 $89 Other nonrefinancing country 12 - - Total renegotiated loans $101 $89 $89 Other real estate $281 $219 $220 Other nonperforming assets $64 $ 68 $13
September 30 June 30 September 30 1995 1996 1996 Allowance for credit losses (in millions) Balance, beginning of period $1,243 $987 $972 Net charge-offs Charge-offs 223 21 19 Recoveries 5 6 14 Total net charge-offs* 218 15 5 Provision for credit losses 7 - - Balance, end of period $1,032 $972 $967 *Components: Secured by real estate $ 9 $ - $(1) Real estate related - - (1) Highly leveraged 6 3 (5) Other 203 13 14 Refinancing country - (1) (2) Total $218 $ 15 $ 5
BANKERS TRUST NEW YORK CORPORATION 130 LIBERTY STREET NEW YORK, NEW YORK 10006 Geoffrey M. Fletcher Senior Vice President and Principal Accounting Officer October 31, 1996 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/A dated October 17, 1996 (the "Form 8-K/A"). The Form 8-K/A amends the Form 8-K filed on October 17, 1996 which was incorrectly identified as an Item 3 (Bankruptcy or Receivership) filing. The Form 8-K/A 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-----