-----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, JZ28Tl/4oBL6DFa71H1Jx8pGz5ZcUvHeYRg/YZV/nT88XoSeT/rYK6J8zkaX4QTB jVBYmnguM5Bd7AhyE8WhKg== 0000009749-99-000040.txt : 19990427 0000009749-99-000040.hdr.sgml : 19990427 ACCESSION NUMBER: 0000009749-99-000040 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990426 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990426 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANKERS TRUST 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: SEC FILE NUMBER: 001-05920 FILM NUMBER: 99601030 BUSINESS ADDRESS: STREET 1: 130 LIBERTY ST CITY: NEW YORK STATE: NY ZIP: 10006 BUSINESS PHONE: 2122502500 MAIL ADDRESS: STREET 1: 130 LIBERTY STREET CITY: NEW YORK STATE: NY ZIP: 10006 FORMER COMPANY: FORMER CONFORMED NAME: BANKERS TRUST NEW YORK CORP DATE OF NAME CHANGE: 19920703 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) April 26, 1999 BANKERS TRUST 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 A) On April 26, 1999, Bankers Trust Corporation (the "Registrant") released financial information with respect to the quarter ended March 31, 1999. This Current Report on Form 8-K files the Press Release which contains 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 April 26, 1999, is described below and is incorporated herein by reference. 1. Review of certain financial information. 2. The unaudited consolidated financial position of Bankers Trust Corporation and its subsidiaries at March 31, 1999 and March 31, 1998 and the audited consolidated financial position at December 31, 1998 and its unaudited condensed consolidated results of operations for each of the three-month periods ended March 31, 1999, December 31, 1998 and March 31, 1998. In the opinion of the Registrant's management, all material adjustments necessary for a fair presentation of the Corporation's consolidated financial position at March 31, 1999, December 31, 1998 and March 31, 1998 and its condensed consolidated results of operations for the three-month periods ended March 31, 1999, December 31, 1998 and March 31, 1998 have been made. All such adjustments were of a normal recurring nature. The results of operations for the three-month period ended March 31, 1999 is not necessarily indicative of operations for the full year or any other interim period. B) The following schedule was distributed to analysts in conjunction with an Analyst/Investor conference call on April 26, 1999: - Preliminary Emerging Markets Cross Border Exposures at March 31, 1999 is contained in Exhibit 99.2 C) FORWARD-LOOKING STATEMENTS Certain sections of this report contain forward-looking statements and can be identified by the use of such words as "anticipates," "expects," and "estimates," and similar expressions. These statements are subject to certain risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from the current statements. See also "Important Factors Relating to Forward-Looking Statements" contained in the Corporation's Annual Report. Item 7. Financial Statements and Exhibits (c) Exhibits (99.1) Earnings Press Release of the Registrant dated April 26, 1999. (99.2) Preliminary Emerging Markets Cross Border Exposures at March 31, 1999 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 CORPORATION By /s/ DAVID C. FISHER DAVID C. FISHER Controller and Principal Accounting Officer April 26, 1999 BANKERS TRUST CORPORATION FORM 8-K DATED APRIL 26, 1999 EXHIBIT INDEX Exhibit Number Description of Exhibit (99.1) Earnings Press Release of the Registrant dated April 26, 1999. (99.2) Preliminary Emerging Markets Cross Border Exposures at March 31, 1999 EX-99.1 2 MONDAY, APRIL 26, 1999 BANKERS TRUST REPORTS FIRST QUARTER RESULTS New York, April 26, 1999 -- Bankers Trust Corporation (BT) today reported that diluted earnings per share in the first quarter of 1999 were $1.30, compared to $0.23 in the fourth quarter of 1998 and $2.01 in the same period last year. Net income in the first quarter of 1999 was $140 million, compared with $29 million in the 1998 fourth quarter and $222 million in the first quarter of 1998. Frank Newman, chairman of the board and chief executive officer, said: "We are gratified by the firm's progress as we prepare for our merger with Deutsche Bank in the current quarter. Much effort has been focused on the integration of the two firms and we look forward to creating a new global leader in high-quality financial services. The first quarter was also marked by a further reduction in our risk profile and significant improvement in our Tier I capital ratio to 8.1% from 7.5% at December 31, 1998." For the current quarter, total net revenue of $1.510 billion was up $73 million from the fourth quarter of 1998 and down $123 million from the first quarter of 1998. Total noninterest expenses of $1.301 billion for the first quarter of 1999 were down $42 million and $24 million from the fourth quarter of 1998 and first quarter of 1998, respectively. At March 31, 1999, the Corporation's Emerging Markets cross- border exposures to Asia, Latin America and Russia were $4.8 billion, down 11% from $5.4 billion at December 31, 1998 and down 61% from $12.4 billion at March 31, 1998. At March 31, 1999, total cash basis loans were $327 million, down from $392 million at December 31, 1998 and up from $247 million at March 31, 1998. As of March 31, 1999, the Corporation estimates that its ratios of Tier 1 Capital and Total Capital to risk-weighted assets were 8.1% and 14.5%, respectively. 2 BUSINESS SEGMENTS During the first quarter of 1999, the Corporation reorganized its business segments. Businesses previously included in the Emerging Markets Group have been transferred to other segments, primarily the Restructuring Portfolio. The Restructuring Portfolio business segment was formed in the first quarter of 1999 and includes the Corporation's exposures (loans, securities, derivatives) that require special monitoring. These exposures are virtually all in emerging markets. The Corporation intends to continue to reduce exposure in the Restructuring Portfolio over a reasonable timeframe. In addition, the securities brokerage and portfolio management activities for high net worth individuals, previously included in the Private Client Services Group, have been transferred to Investment Banking. Traditional banking services for high net worth individuals, previously included in Private Client Services Group, are included in Corporate/Other. Prior period results have been restated for changes in organizational structure. TotalTotal Non- Pretax Net First Quarter 1999 Net Interest Income/ Income/ (in millions) Revenue Expenses (Loss) (Loss) Investment Banking $ 655 $ 548 $107 $ 72 Trading & Sales 292 164 128 86 Global Institutional Services 258 223 35 24 Australia/New Zealand/Int'l Funds Mgmt 161 120 41 27 Restructuring Portfolio 18 141 (123) (82) Corporate/Other 126 105 21 13 Total $1,510 $1,301 $209 $140 TotalTotal Non- Pretax Net Fourth Quarter 1998 Net Interest Income/ Income/ (in millions) Revenue Expenses (Loss) (Loss) Investment Banking $ 739 $ 543 $ 196 $ 116 Trading & Sales 295 149 146 86 Global Institutional Services 302 242 60 36 Australia/New Zealand/Int'l Funds Mgmt 162 94 68 40 Restructuring Portfolio (143) 170 (313) (184) Corporate/Other 82 145 (63) (65) Total $1,437 $1,343 $ 94 $ 29 TotalTotal Non- Pretax Net First Quarter 1998 Net Interest Income/ Income/ (in millions) Revenue Expenses (Loss) (Loss) Investment Banking $ 816 $ 567 $249 $180 Trading & Sales 226 137 89 64 Global Institutional Services 255 227 28 20 Australia/New Zealand/Int'l Funds Mgmt 145 107 38 27 Restructuring Portfolio 134 190 (56) (40) Corporate/Other 57 97 (40) (29) Total $1,633 $1,325 $308 $222 3 Business Segment Results The Investment Banking business recorded net income of $72 million in the first quarter of 1999 compared to net income of $180 million in the prior year quarter and $116 million in the fourth quarter of 1998. The current quarter reflected lower revenue from corporate finance activities and private equity investments as compared to the prior quarters. In addition, fees for brokerage services were lower in the current quarter as compared to the fourth quarter of 1998, but higher than the prior year quarter. Trading & Sales recorded net income of $86 million in the first quarter of 1999, compared to net income of $64 million in the 1998 first quarter and $86 million in the previous quarter. The year-over-year increase was primarily attributable to equity earnings in the Corporation's investment in Long-Term Capital Management, L.P. Excluding this equity pick-up, Trading & Sales results declined reflecting significant reductions in the Corporation's risk positions. Global Institutional Services contributed $24 million of net income in the first quarter of 1999, up $4 million from the 1998 first quarter and down $12 million from the previous quarter. The fourth quarter of 1998 included a benefit from a contingency payment related to the 1997 sale of the Corporation's defined contribution recordkeeping and participant services business. Net income of the Australia/New Zealand/International Funds Management business was $27 million in the first quarter of 1999, unchanged from the first quarter of 1998 and down $13 million from the previous quarter. A decline in this segment's investment banking business contributed to the decrease in net income from the prior quarter. Restructuring Portfolio net loss in the first quarter of 1999 was $82 million, compared with a net loss of $40 million in the first quarter of 1998 and a net loss of $184 million in the fourth quarter of 1998. The current quarter reflected the Corporation's reductions in risk in emerging markets. Corporate/Other includes the income and expenses of smaller businesses that are not included in the main business segments and revenue and expenses that have not been allocated to business segments. QUARTERLY FINANCIAL COMPARISONS First Quarter 1999 versus Fourth Quarter 1998 Net income for the first quarter of 1999 was $140 million as compared to $29 million in the fourth quarter of 1998. First quarter 1999 combined trading revenue and trading-related net interest revenue was $417 million. This was an increase of $214 million from the fourth quarter of 1998. Page 8 shows combined trading results by business segment. Fiduciary and funds management revenue was $271 million in the first quarter of 1999, down $18 million from the fourth quarter of 1998. The decrease was primarily due to lower global private banking commissions and lower client processing fees, partly offset by higher investment management fees. At 4 March 31, 1999, assets under management were approximately $378 billion compared to $362 billion at December 31, 1998. Corporate finance fees decreased by $93 million from the fourth quarter of 1998 primarily due to lower revenue from merger and acquisition and loan syndication activities. Other fees and commissions of $211 million decreased $22 million from the previous quarter. A decrease in customer trading activity resulted in lower fees for brokerage services. Securities available for sale losses totaled $4 million as compared to gains of $25 million in the previous quarter. Other noninterest revenue was $87 million in the current quarter, compared to $120 million in the prior quarter. The current quarter included losses from mark-to-market adjustments on venture capital equity securities. In addition, the prior quarter included a benefit from a contingency payment related to the 1997 sale of the Corporation's defined contribution recordkeeping and participant services business. Incentive compensation and employee benefits increased $102 million primarily due to higher performance-based pay, amortization of employee stock awards granted in 1999 for 1998 performance and other employee benefits. Other noninterest expenses declined by $79 million. The fourth quarter of 1998 reflected a $60 million fine to federal authorities and a $3.5 million payment to the State of New York as part of an agreement to resolve an investigation concerning inappropriate transfers of unclaimed funds and related recordkeeping problems that occurred between 1994 and early 1996. First Quarter 1999 Versus First Quarter 1998 Net income for the first quarter of 1999 was $140 million as compared to $222 million of net income earned in the first quarter of 1998. First quarter 1999 combined trading revenue and trading-related net interest revenue was $417 million, up $27 million from the first quarter of 1998. Page 8 shows combined trading results by business segment. Fiduciary and funds management revenue was $271 million in the first quarter of 1999, up $10 million from the prior year period. The increase was primarily due to higher client processing fees and improved funds management revenue. At March 31, 1999, assets under management were $378 billion compared to $334 billion at March 31, 1998. Corporate finance fees of $197 million decreased $134 million from the $331 million earned in the first quarter of 1998. The decline is primarily attributable to lower revenue from underwriting and loan syndication activities. Other fees and commissions of $211 million increased $51 million from the prior year quarter. Increased customer trading activity primarily due to the acquisition of NatWest Markets' European equities business in the second quarter of 1998 resulted in higher fees for brokerage services. 5 Net revenue from equity investments decreased $32 million from the prior year quarter. The current quarter reflected lower gains on direct equity investments. Insurance premium revenue and the provision for policyholder benefits expense both reflected the general decline in the Chilean annuities market. As compared to the first quarter of 1998, salaries and commissions expense increased $37 million, or 11%, primarily due to an increase in the average number of employees and higher annual salaries. Incentive compensation and employee benefits decreased $65 million, or 13%, from the prior year quarter due to lower performance-based pay partially offset by the amortization of employee stock awards granted in 1999 for 1998 performance. The remainder of this release contains the following tables: Page 1. BTC Condensed Consolidated Quarterly Statement of Income 7 2. Combined Trading Revenue and Trading-Related Net Interest Revenue 8 3. Net Interest Revenue 8 4. BTC Consolidated Balance Sheet 9 5. Stock and Capital Data 10 6. Nonperforming Assets and Allowances for Credit Losses 11 7. Emerging Markets Cross-Border Exposures 12 For additional information, contact William McBride, 212-250-7961. Bankers Trust news releases, including quarterly results, are available on the Internet (http://www.bankerstrust.com/earnings). 6 BANKERS TRUST CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED QUARTERLY STATEMENT OF INCOME (in millions, except per share data) (unaudited) First Fourth First Quarter Quarter Quarter 1998 1998 1999 NET INTEREST REVENUE Interest revenue $1,989 $1,716 $1,511 Interest expense 1,587 1,448 1,250 Net interest revenue 402 268 261 Provision for credit losses-loans - 20 - Net interest revenue after provision for credit losses-loans 402 248 261 NONINTEREST REVENUE Trading revenue* 191 79 340 Fiduciary & funds management 261 289 271 Corporate finance fees 331 290 197 Other fees & commissions 160 233 211 Net revenue from equity investments 131 99 99 Securities available for sale gains (losses) (6) 25 (4) Insurance premiums 69 54 48 Other 94 120 87 Total noninterest revenue 1,231 1,189 1,249 NONINTEREST EXPENSES Salaries and commissions 336 358 373 Incentive compensation & employee benefits 497 330 432 Agency & other professional service fees 105 127 91 Communication & data services 54 72 66 Occupancy, net 46 62 58 Furniture & equipment 54 77 69 Travel & entertainment 37 48 30 Provision for policyholder benefits 85 71 63 Other 111 198 119 Total noninterest expenses 1,325 1,343 1,301 Income before income taxes 308 94 209 Income taxes 86 65 69 NET INCOME $ 222 $ 29 $ 140 NET INCOME APPLICABLE TO COMMON STOCK $ 211 $ 23 $ 134 Cash dividends declared per common share $1.00 $1.00 $1.00 EARNINGS PER COMMON SHARE: BASIC $2.08 $0.24 $1.33 DILUTED $2.01 $0.23 $1.30 * The Corporation accounts for revenue from a wide range of business activities as "trading". See table on page 8. Certain prior period amounts have been reclassified to conform to the current presentation. 7 COMBINED TRADING REVENUE AND TRADING-RELATED NET INTEREST REVENUE The Corporation views trading revenue and trading-related net interest revenue (NIR) together, as presented in the table below. First Fourth First Quarter Quarter Quarter (in millions) 1998 1998 1999 Trading Revenue $191 $ 79 $340 Trading-Related Net Interest Revenue (Estimate) 199 124 77 Total Trading Revenue & Trading -Related NIR $390 $203 $417 By Business Segment (in millions) Investment Banking $105 $ 37 $106 Trading & Sales 181 238 238 Global Institutional Services 1 2 6 Australia/New Zealand/Int'l Funds Mgmt 39 45 49 Restructuring Portfolio 49 (155) (13) Corporate/Other 15 36 31 Total Trading Revenue & Trading -Related NIR $390 $ 203 $417 Note: The Corporation accounts for revenue from a wide range of business activities as "trading". Investment Banking produces trading revenue in secondary market activities with clients, primarily in sectors where the Firm also serves as underwriter. A small portion of trading revenue arises from private equity investments that are accounted for on a mark-to-market basis. Trading & Sales produces trading revenue through proprietary position-taking, including arbitrage, new derivative transactions with clients, as well as market making and other client activities. Australia/New Zealand/Int'l Funds Mgmt produce trading revenue from all the above business activities. Restructuring Portfolio produces trading revenue from trading positions previously held by the emerging markets businesses. Corporate/Other includes various transactions which, for management accounting purposes, are not recorded in the business segments. NET INTEREST REVENUE First Fourth First Quarter Quarter Quarter ($ in millions) 1998 1998 1999 Nontrading-related net interest revenue (Estimate) $203 $144 $184 Trading-related net interest revenue (Estimate) 199 124 77 Net interest revenue $402 $268 $261 Average rates (fully taxable basis) Yield on interest-earning assets 7.17% 6.52% 6.15% Cost of interest-bearing liabilities 5.84% 5.66% 5.23% Interest rate spread 1.33% .86% .92% Net interest margin 1.47% 1.04% 1.09% Average balances ($ in billions) Loans $21.4 $23.3 $23.0 Total interest-earning assets $113.0 $104.9 $100.2 Total assets $150.5 $148.4 $137.2 Total interest-bearing liabilities $110.3 $101.4 $97.0 8 BANKERS TRUST CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions) March 31 December 31 March 31 1998* 1998 1999* ASSETS Cash and due from banks $ 1,504 $ 2,837 $ 1,753 Interest-bearing deposits with banks 2,068 2,382 1,187 Federal funds sold 1,630 2,484 2,475 Sec. purch. under resale agreements 22,843 17,053 21,249 Securities borrowed 22,832 14,709 18,487 Trading assets: Government securities 13,517 5,731 6,064 Corporate debt securities 9,495 5,519 4,415 Equity securities 8,963 5,810 5,657 Swaps, options & other derivatives 14,797 17,376 11,223 Other trading assets 13,591 11,734 11,820 Total trading assets 60,363 46,170 39,179 Securities available for sale 12,893 12,748 10,371 Loans, net 21,178 22,633 19,690 Customer receivables 1,572 1,524 1,854 Accounts receivable & accrued interest4,729 3,815 3,677 Other assets 5,925 6,760 7,184 Total $157,537 $133,115 $127,106 LIABILITIES Noninterest-bearing deposits Domestic offices $ 2,969 $ 2,784 $ 2,521 Foreign offices 1,624 1,689 1,790 Interest-bearing deposits Domestic offices 24,180 18,259 15,871 Foreign offices 17,568 14,602 16,155 Total deposits 46,341 37,334 36,337 Trading liabilities: Securities sold, not yet purchased Government securities 8,821 4,149 5,567 Equity securities 5,235 6,458 6,066 Other trading liabilities 789 789 426 Swaps, options & other derivatives 14,273 15,857 10,536 Total trading liabilities 29,118 27,253 22,595 Securities loaned and securities sold under repurchase agreements 21,881 17,420 15,889 Other short-term borrowings 24,868 16,313 18,438 Accounts payable and accrued expenses 5,875 5,210 5,277 Other liabilities 5,819 5,466 5,351 Long-term debt not included in risk-based capital 12,740 14,890 13,939 Long-term debt included in risk-based capital 3,306 3,113 3,122 Trust preferred capital securities** 1,473 1,420 1,421 Total liabilities 151,421 128,419 122,369 PREFERRED STOCK OF SUBSIDIARY 304 - - STOCKHOLDERS' EQUITY Preferred stock 658 394 394 Common stock 105 105 105 Capital surplus 1,592 1,613 1,617 Retained earnings 4,225 3,504 3,452 Common stock in treasury, at cost (803) (1,056) (828) Other stockholders' equity 458 599 490 Accumulated other comprehensive income: Net unrealized gains (losses) on securities available for sale, net of taxes (52) (65) (65) Foreign currency translation, net of taxes (371) (398) (428) Total stockholders' equity 5,812 4,696 4,737 Total $157,537 $133,115 $127,106 * Unaudited. ** Mandatorily redeemable capital securities of subsidiary trusts holding solely junior subordinated deferrable interest debentures included in risk-based capital. Certain prior period amounts have been reclassified to conform to the current presentation. 9 STOCK AND CAPITAL DATA First Fourth First Quarter Quarter Quarter 1998 1998 1999 FOR THE QUARTER Return on Average Common Stockholders' Equity 16.7% 2.1% 12.5% Return on Average Total Assets .60% .08% .41% PER COMMON SHARE Earnings: Basic $2.08 $0.24 $1.33 Diluted $2.01 $0.23 $1.30 Cash Dividends Declared $1.00 $1.00 $1.00 Market Price, End of Period $120.31 $85.44 $88.25 Book Value, End of Period $49.82 $42.66 $43.06 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 105,379 105,380 105,380 Common stock in treasury, at period end 7,522 9,666 7,727 Average Common and Common Equivalent Shares Outstanding Basic 101,357 99,029 100,658 Diluted 105,123 101,691 102,957 CAPITAL RATIOS, END OF PERIOD Common Stockholders' Equity to Total Assets 3.3% 3.2% 3.4% Total Stockholders' Equity to Total Assets 3.7% 3.5% 3.7% Bankers Trust Corporation: Risk-Based Capital Ratios (1) Tier 1 Capital 8.2% 7.5% 8.1% Total Capital 14.2% 13.6% 14.5% Leverage Ratio(1) 4.5% 3.5% 3.8% Bankers Trust Company: Risk-Based Capital Ratios(1) Tier 1 Capital 8.6% 10.5% 11.8% Total Capital 12.3% 13.4% 13.7% Leverage Ratio(1) 5.4% 5.7% 6.4% (1) Regulatory capital ratios at March 31, 1999 are preliminary. 10 NONPERFORMING ASSETS AND ALLOWANCES FOR CREDIT LOSSES (in millions) March 31 December 31 March 31 1998 1998 1999 Nonperforming assets Cash basis loans Secured by real estate $ 92 $104 $ 91 Real estate related 15 14 11 Highly leveraged 25 66 55 Other 115 208 170 Total cash basis loans $247 $392 $327 Renegotiated loans $25 $26 $25 Other real estate $190 $87 $92 Other nonperforming assets $4 $8 $8 Allowances for credit losses Loans Balance, beginning of quarter $699 $667 $652 Provision for credit losses - 20 - Net charge-offs Charge-offs 7 40 60 Recoveries 3 5 11 Total net charge-offs 4 35 49 Balance, end of quarter $695 $652 $603 Other liabilities Balance, beginning of quarter $13 $13 $18 Provision for credit losses - 5 - Balance, end of quarter $13 $18 $18 11 EMERGING MARKETS CROSS-BORDER EXPOSURES(1) ($ in billions) March 31, December 31, March 31, 1998 1998 1999* Korea, Republic of $1.4 $0.8 $0.9 Indonesia 1.0 0.4 0.4 Hong Kong 0.7 0.4 0.3 Thailand 0.5 0.2 0.2 Malaysia 0.2 0.1 0.1 Other(2) 1.4 0.8 0.7 Total Emerging Asia $5.2 $2.7 $2.6 Brazil $2.6 $0.7 $0.6 Mexico 1.2 0.6 0.5 Argentina 0.9 0.5 0.4 Venezuela 0.3 0.1 - Other(3) 0.8 0.6 0.5 Total Latin America $5.8 $2.5 $2.0 Russian Federation $1.4 $0.2 $0.2 Total $12.4 $5.4 $4.8 As a % of Total Assets 7.9% 4.1% 3.8% (1) Based on FFIEC instructions. Shown by country of ultimate risk. Excludes local country claims on local residents. (2) Includes Peoples Republic of China, Republic of Taiwan, India, Philippines, Singapore and Sri Lanka. (3) Includes Chile, Colombia, Peru, Ecuador, Nicaragua, Panama and Uruguay. * Preliminary. 12 EX-99.2 3 EXHIBIT 99.2 Emerging Markets Cross Border Exposures(1) March 31, 1999 ($ billions) PRELIMINARY
Total Deriva- Cross Trade Trading/ tives/ Commit- Border Finance Other(2) FX Loans ments Exposure Korea, Republic of $0.2 $0.3 $0.3 $ - $0.1 $0.9 Indonesia - 0.1 0.3 - - 0.4 Hong Kong - 0.1 0.1 0.1 - 0.3 Thailand - - 0.1 - - 0.2 Malaysia - - - - - 0.1 Other(3) 0.1 0.2 0.4 0.1 - 0.7 Total Emerging Asia $0.2 $0.7 $1.3 $0.2 $0.1 $2.6 Brazil $0.2 $0.2 $ - $0.1 $0.1 $0.6 Mexico 0.1 0.1 - 0.2 0.1 0.5 Argentina - 0.2 - 0.1 - 0.4 Venezuela - - - - - - Other(4) 0.2 0.2 - 0.1 - 0.5 Total Latin America $0.4 $0.8 $0.1 $0.5 $0.2 $2.0 Russian Federation $ - $ - $ - $0.2 $ - $0.2 Total $0.7 $1.5 $1.3 $1.0 $0.3 $4.8 (1) Based on FFIEC instructions, shown by country of ultimate risk. First five columns represent management's view of types of claims. Excludes local country claims on local residents. Numbers may not total due to rounding differences. (2) Includes securities, deposits and other exposures. (3) Includes Peoples Republic of China, Republic of Taiwan, India, Philippines, Singapore & Sri Lanka. (4) Includes Chile, Colombia, Peru, Ecuador, Nicaragua, Panama and Uruguay.
BANKERS TRUST CORPORATION 130 LIBERTY STREET NEW YORK, NEW YORK 10006 David C. Fisher Controller and Principal Accounting Officer April 26, 1999 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 Dear Sirs: Accompanying this letter is Bankers Trust Corporation's Report on Form 8-K dated April 26, 1999 (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 212-250-3681. Very truly yours, BANKERS TRUST CORPORATION By: DAVID C. FISHER DAVID C. FISHER Controller and Principal Accounting Officer -----END PRIVACY-ENHANCED MESSAGE-----