EX-99.1 4 ex99-1_24019.txt UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS EXHIBIT 99.1 BANKERS TRUST CORPORATION UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS (IN MILLIONS) The following Unaudited Pro Forma Condensed Statements of Income for the nine months ended September 30, 2000 and 1999 give effect to Bankers Trust Corporation's ("BT" or the "Corporation") transfer of its wholly-owned subsidiary BT Holdings (New York), Inc. ("BTH") to DB U.S. Financial Markets Holding Corporation ("DBUSH"), a subsidiary of Deutsche Bank Americas Holding Corp. ("DBAH") and Taunus Corporation ("Taunus"), which are an indirect and direct subsidiary, respectively, of Deutsche Bank AG. The transfer of BTH to DBUSH took the form of an exchange of stock pursuant to which BTH became a wholly-owned subsidiary of DBUSH. The Corporation received shares of DBUSH equal to the fair market value of BTH's net assets on the date of transfer. The Corporation, as part of an ongoing reorganization, intends to transfer, by dividend or otherwise, the shares received to Taunus. The Corporation recognized an after-tax gain of approximately $301 million in the third quarter of 2000. In addition, the following Unaudited Pro Forma Condensed Statement of Income for the nine months ended September 30, 1999 gives effect to the Corporation's transfer on June 5, 1999 of its wholly-owned subsidiary BT Alex. Brown Incorporated ("BTAB") and substantially all of its interest in Bankers Trust International PLC ("BTI") to Deutsche Bank Securities Inc. and Deutsche Holdings (BTI) Ltd., respectively, which are wholly-owned subsidiaries of Deutsche Bank AG and to the Corporation's sale, on August 31, 1999, of its wholly-owned subsidiary Bankers Trust Australia Limited ("BTAL") to the Principal Financial Group for a price of approximately $1.4 billion. For more information on the transfer of BTAB and BTI and the sale of BTAL, see the Corporation's Annual Report on Form 10-K for the year ended December 31, 1999. The pro forma information is based on the historical consolidated financial statements of BT after giving effect to the pro forma adjustments described in the Notes to the Unaudited Pro Forma Condensed Financial Statements. The pro forma financial data are not necessarily indicative of the results that actually would have occurred had the transfer of BTH, BTAB, and BTI and the sale of BTAL been consummated on the dates indicated or that may be obtained in the future. BANKERS TRUST CORPORATION UNAUDITED PRO FORMA CONDENSED STATEMENT OF INCOME (IN MILLIONS)
For the Nine Months Ended September 30, 2000 BT Pro Forma Consolidated BTH Adjustments Pro Forma (a) (b) (d) NET INTEREST REVENUE Interest revenue $ 2,659 $ (544) $ 81 $ 2,196 Interest expense 2,271 (429) (125) 1,717 NET INTEREST REVENUE 388 (115) 206 479 Provision for credit losses-loans (44) (1) -- (45) Net interest revenue after provision for credit losses-loans 432 (114) 206 524 NONINTEREST REVENUE Trading 127 (65) 55 117 Fiduciary and funds management 595 -- -- 595 Corporate finance fees 107 (4) -- 103 Other fees and commissions 235 (8) -- 227 Securities available for sale gains(losses) 40 (25) -- 15 Other 697 (65) 91 723 Total noninterest revenue 1,801 (167) 146 1,780 NONINTEREST EXPENSES Salaries and commissions 361 (3) -- 358 Incentive compensation and employee benefits 321 (12) -- 309 Agency and other professional service fees 155 (4) -- 151 Communication and data services 65 -- -- 65 Occupancy, net 77 -- -- 77 Furniture and equipment 91 (2) -- 89 Travel and entertainment 31 (1) -- 30 Other 469 (70) 3 402 Restructuring charge (46) -- -- (46) Total noninterest expenses 1,524 (92) 3 1,435 Income before income taxes 709 (189) 349 869 Income taxes 410 459 NET INCOME $ 299 $ 410
See Notes to Unaudited Pro Forma Condensed Financial Statements. BANKERS TRUST CORPORATION UNAUDITED PRO FORMA CONDENSED STATEMENT OF INCOME (IN MILLIONS) For the Nine Months Ended September 30, 1999
BTAB, BT BTI and Pro Forma Consolidated BTAL** BTH Adjustments Pro Forma (c) (a) (b) (d) NET INTEREST REVENUE Interest revenue $ 3,622 $ (740) $ (120) $ 173 $ 2,935 Interest expense 2,971 (521) (68) 65 2,447 NET INTEREST REVENUE 651 (219) (52) 108 488 Provision for credit losses-loans (74) 26 (1) -- (49) Net interest revenue after provision for credit losses-loans 725 (245) (51) 108 537 NONINTEREST REVENUE Trading (55) 258 24 (1) 226 Fiduciary and funds management 805 (178) -- -- 627 Corporate finance fees 488 (304) -- -- 184 Other fees and commissions 456 (186) (2) -- 268 Securities available for sale gains (losses) (150) 108 (10) -- (52) Insurance premiums 86 -- -- -- 86 Other 1,055 319 (437) 112 1,049 Total noninterest revenue 2,685 17 (425) 111 2,388 NONINTEREST EXPENSES Salaries and commissions 903 (310) (2) -- 591 Incentive compensation and employee benefits* 2,046 (919) (27) -- 1,100 Agency and other professional service fees 343 -- (2) -- 341 Communication and data services 172 (53) -- -- 119 Occupancy, net 165 (35) -- -- 130 Furniture and equipment 189 (33) -- -- 156 Travel and entertainment 98 (48) -- -- 50 Provision for policyholder benefits 114 -- -- -- 114 Other 424 259 (100) (14) 569 Restructuring charge 459 -- (9) -- 450 Total noninterest expenses 4,913 (1,139) (140) (14) 3,620 Income (loss) before income taxes (1,503) 911 (336) 233 (695) Income taxes 43 249 NET INCOME (LOSS) $(1,546) $ (944)
* Includes charges of approximately $1.1 billion in change-in-control related costs. ** Includes results of operations of BTAB and BTI through the transfer date, June 5, 1999 and includes results of operations of BTAL through the sale date, August 31, 1999. See Notes to Unaudited Pro Forma Condensed Financial Statements. BANKERS TRUST CORPORATION NOTES TO UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS (a) Elimination of BTH's third-party amounts from BT's historical consolidated financial statements. (b) Adjustment to record BTH intercompany amounts as revenue or expense, as applicable. Intercompany amounts were eliminated in BT's historical consolidated financial statements. (c) Amounts represent the elimination of BTAB's, BTI's and BTAL's third-party amounts from BT's historical consolidated financial statements and adjustments to record BTAB, BTI and BTAL intercompany amounts as third-party revenue or expense, as applicable. Intercompany amounts were eliminated in BT's historical consolidated financial statements. (d) Pro forma amounts reflect the gain on the transfer of BTH and the gain on the sale of BTAL, as applicable.