-----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, YySdS391Y3Y77qqar7lLFXPUIpjRMjNjGk9aWJTiBGdC8VlNcVT1qNnPCJyVLzkA sJ7ng1WNy8c4o22Dj7l8hw== 0000891836-95-000004.txt : 19950607 0000891836-95-000004.hdr.sgml : 19950607 ACCESSION NUMBER: 0000891836-95-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950119 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950123 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: 95502354 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 CURRENT REPORT - FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ______________ FORM 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) January 19, 1995 BANKERS TRUST NEW YORK CORPORATION (Exact Name of Registrant as Specified in Charter) New York 1-5920 13-6180473 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) 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 N/A (Former Name or Former Address, if Changed Since Last Report) 2 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 Bankers Trust New York Corporation (the "Corporation") with the Securities and Exchange Commission under the Securities Act of 1933, as amended. Such information contained in the Corporation's Press Release dated January 19, 1995, attached hereto as Exhibit 99.1, 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 December 31, 1994 and 1993 and its unaudited consolidated results of operations for each of the three-month periods and the years then ended. In the opinion of the Corporation's management, the information described above reflected all material adjustments necessary for a fair presentation of the Corporation's consolidated financial position at December 31, 1994 and 1993 and its consolidated results of operations for each of the three-month periods and the years then ended. All such adjustments were of a normal recurring nature. Detailed information, including notes to financial statements, will be provided in the Corporation's Annual Report on Form 10-K for the year ended December 31, 1994. This Current Report on Form 8-K also reports that on December 21, 1994, the Corporation and its subsidiaries, Bankers Trust Company and BT Securities Corporation, executed a Memorandum of Understanding with the New York State Banking Department, the terms of which are substantially the same as those of the Written Agreement between the Corporation, such subsidiaries and the Federal Reserve Bank of New York, which was filed by the Corporation with its Current Report on Form 8-K dated December 4, 1994. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits. 99.1 Press release of the Corporation, dated January 19, 1995. 3 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. Date: January 23, 1995 BANKERS TRUST NEW YORK CORPORATION By: /s/ James T. Byrne, Jr. Name: James T. Byrne, Jr. Title: Secretary 4 INDEX TO EXHIBITS 99.1 Press release of the Corporation, dated January 19, 1995. EX-99.1 2 PRESS RELEASE EX. 99.1 BANKERS TRUST NEW YORK CORPORATION NEWS RELEASE Fax Release: THURSDAY, JANUARY 10, 1995 BANKERS TRUST REPORTS FOURTH QUARTER NET INCOME OF $101 MILLION OR $1.19 PRIMARY EARNINGS PER SHARE New York, January 19, 1995 -- Bankers Trust New York Corporation earned $101 million for the quarter ended December 31, 1994, or $1.19 primary earnings per share. The earnings compare with $169 million, or $1.98 primary earnings per share, for the third quarter of 1994 and $279 million, or $3.26 primary earnings per share, in the fourth quarter of 1993, which included a record $449 million of trading revenue. For the full year 1994, the Corporation's net income was $615 million, or $7.17 primary earnings per share. For the year ended December 31, 1993 the Corporation earned $1.070 billion before cumulative effects of accounting changes, or $12.40 primary earnings per share. "The year's results were affected by persistently difficult market conditions, which had a negative effect on trading revenue, while revenue increased from the firm's client-related businesses that provide financing, advisory and transaction processing services," said Bankers Trust Chairman Charles S. Sanford, Jr. Revenue Net interest revenue totaled $229 million, down $144 million, or 39%, from the fourth quarter of 1993. Excluding the past-due interest received from Argentina during the fourth quarter of 2 1993, net interest revenue decreased by $115 million, or 33%. Of this decline, $137 million was from trading-related net interest revenue, as shown below. 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 Fourth Quarter 1994 $49 $50 $99 Fourth Quarter 1993 $449 $187 $636
This combined total for the fourth quarter of 1994 was $99 million, a $291 million decrease from the third quarter of 1994 and a decline of $537 million from the record results achieved in the fourth quarter of 1993. Many of the Firm's proprietary trading businesses, principally fixed income instruments, recorded lower revenue during the period, as market conditions remained generally unsettled. In addition, trading results declined significantly in the emerging markets of Asia and Latin America. During the current quarter the volume of traditional risk management products slowed. Fiduciary and funds management revenue totaled $177 million for the fourth quarter, down $8 million, or 4%, from the same period last year. Lower revenue from performance-based funds management fees were offset in part by continued growth in global private banking assets under management. Fees and commissions of $216 million increased by $24 million, or 13%, from the fourth quarter of 1993. Corporate finance fees of $132 million increased by $24 million to their highest level in 3 five years, due to higher revenue from loan syndication fees, offset in part by lower fees from securities underwriting and leasing syndication fees. The Corporation's securities available for sale gains were $21 million, compared with investment securities losses of $2 million in the prior year's fourth quarter. Other noninterest revenue totaled $161 million, up $116 million from the prior year's quarter. This increase was due to an increase in net revenue from equity investment transactions, higher insurance premium revenue and gains from the revaluation of non-trading foreign currency investments, versus a loss in the prior year. Expenses Total noninterest expenses of $709 million decreased by $107 million, or 13%, from the fourth quarter of 1993. Incentive compensation and employee benefits expense decreased $99 million, or 38%, due primarily to lower bonus expense reflecting the reduced earnings. Salaries expense increased $29 million, or 16%, from the fourth quarter of 1993. The average number of employees increased by 6% versus the same period, to 14,432. All other expenses totaled $338 million for the quarter, down $37 million, or 10%, from last year's fourth quarter. This decline was due to a decrease in other real estate expense, primarily resulting from a gain on the sale of a foreclosed property, as well as a lower level of contributions expense. This was offset in part by an increase in the provision for policyholder benefits. 4 Asset Quality During the fourth quarter of 1994, $423 million of leveraged derivative contracts were reclassified as receivables in the loan account and placed on a cash basis. Of this amount, $72 million was subsequently charged-off to the allowance for credit losses. Approximately one half of the remainder related to transactions with Proctor and Gamble. With these transfers and charge-offs, the Corporation has taken action on those leveraged derivative transactions that likely will not perform according to the contract and has charged-off the balances deemed to be uncollectible. The provision for credit losses for the quarter was $8 million, compared with $23 million in the prior year's fourth quarter. Net charge-offs for the quarter were $85 million, compared with $184 million a year ago. Nonrefinancing country net charge-offs for the fourth quarter of 1994 totaled $87 million. As mentioned above, this amount included charge-offs of $72 million related to leveraged derivative transactions. Cash basis loans increased by $303 million, or 44%, to $996 million during the fourth quarter. This increase was primarily attributable to the above- mentioned reclassifications of various leveraged derivative transactions. The allowance for credit losses at December 31, 1994, was $1.252 billion, representing 126% 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. Credit losses include credit charge-offs and losses on sales and swaps of refinancing country loans held in the portfolio. 5 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. Effects of Accounting Changes During the fourth quarter of 1994, the Corporation adopted FASB Interpretation No. 41, "Offsettings of Amounts Related to Certain Repurchase and Reverse Repurchase Agreements." The Interpretation allows the netting, under certain circumstances, of certain repurchase and reverse repurchase agreements. It was the Corporation's former policy to record such transactions on a gross basis on the balance sheet. As the result of this adoption, at December 31, 1994, the Corporation's consolidated total assets and total liabilities each decreased by $500 million. 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 December 31, 1994, the Corporation's consolidated total assets and total liabilities each increased by $12 billion. In the first quarter of 1993, the Corporation adopted accounting standards for postretirement benefits other than pensions (SFAS 106) and postemployment benefits (SFAS 112). Capital The Corporation estimates that its ratios of Tier 1 Capital and Total Capital to risk-adjusted assets were approximately 9.00% and 14.70%, respectively, at December 31, 1994. The Leverage Ratio was 5.25% at that same date. 6 For additional information, contact Douglas Kidd, (212) 454-3532 or Tom Parisi, (212) 454-1686 (Media); Mary Flournoy (212) 454-3201 (Investors). 7 BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES FINANCIAL STATISTICS ($ in millions, except per share data) (unaudited)
Third Fourth Quarter Quarter Year 1994 1993 1994 1994 1993 Income before cumulative effects of accounting changes $101 $279 $169 $615 $1,070 Cumulative effects of accounting changes - - - - (75) Net income $101 $279 $169 $615 $995 Primary earnings per common share: Income before cumulative effects of accounting changes $1.19 $3.26 $1.98 $7.17 $12.40 Cumulative effects of accounting changes - - - - (.89) Net income $1.19 $3.26 $1.98 $7.17 $11.51 Fully diluted earnings per common share: Income before cumulative effects of accounting changes $1.18 $3.25 $1.98 $7.17 $12.29 Cumulative effects of accounting changes - - - - (.88) Net income $1.18 $3.25 $1.98 $7.17 $11.41 Cash dividends declared $1.00 $.90 $.90 $3.70 $3.24 Book value per common share (1) $53.67 $51.90 $54.08 Profitability ratios Return on average common stockholders' equity 8.64% 25.91% 14.64% 13.48% N/M -Excluding cumulative effects of accounting changes N/A N/A N/A N/A 26.33% Return on average total assets .38% 1.27% .66% .59% N/M -Excluding cumulative effects of accounting changes N/A N/A N/A N/A 1.25% Net interest revenue (fully taxable basis) $252 $398 $282 $1,255 $1,396 Average rates (fully taxable basis) Yield on interest-earning assets 7.05% 6.21% 6.70% 6.70% 5.88% Cost of interest-bearing liabilities 5.93% 4.52% 5.31% 5.23% 4.48% Interest rate spread 1.12% 1.69% 1.39% 1.47% 1.40% Net interest margin 1.29% 2.07% 1.54% 1.64% 1.82% Average balances Loans $12,548 $14,211 $11,755 $12,470 $15,310 Total interest-earning assets $77,642 $76,388 $72,493 $76,300 $76,798 Total assets $106,009 $87,165 $102,356 $104,828 $85,623 Total interest-bearing liabilities $75,521 $69,976 $70,402 $73,748 $69,676 Common stockholders' equity $4,364 $4,180 $4,364 $4,355 $3,901 Total stockholders' equity $4,759 $4,430 $4,812 $4,743 $4,203 At end of period Common stockholders' equity to total assets 4.44% 4.65% 4.03% Total stockholders' equity to total assets 4.85% 4.92% 4.40% Risk-based capital ratios Tier 1 Capital (2) 9.00% 8.50% 8.22% Total Capital (2) 14.70% 14.46% 13.48% Leverage Ratio (2) 5.25% 6.28% 5.54% Employees 14,529 13,571 14,221
8 BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES FINANCIAL STATISTICS (CONT'D) (in millions) (unaudited)
December 31, September 30, 1994 1993 1994 Nonperforming assets Cash basis loans Secured by real estate $356 $455 $365 Real estate related 29 58 27 Highly leveraged 150 193 188 Other 459 150 111 Refinancing country 2 118 2 Total cash basis loans $996 $974 $693 Renegotiated loans Secured by real estate $65 $14 $13 Other 1 7 1 Total renegotiated loans $66 $21 $14 Other real estate $301 $287 $330 Other nonperforming assets $63 $101 $67
Fourth Quarter Year 1994 1993 1994 1993 Allowance for credit losses Balance, beginning of period $1,329 $1,485 $1,324 $1,620 Net charge-offs Charge-offs 93 200 168 460 Recoveries 8 16 71 71 Total net charge-offs* 85 184 97 389 Provision for credit losses 8 23 25 93 Balance, end of period $1,252 $1,324 $1,252 $1,324 *Components: Secured by real estate $ - $ 40 $24 $116 Real estate related 1 1 23 3 Highly leveraged 3 (1) (5) 15 Other 83 146 92 265 Refinancing country (2) (2) (37) (10) Total $85 $184 $97 $389 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 December 31, 1994 are preliminary. At both December 31, 1994 and September 30, 1994, all three regulatory capital ratios excluded any benefit from the adoption of SFAS 115.
9 BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (in millions, except per share data) (unaudited)
Increase THREE MONTHS ENDED DECEMBER 31, 1994 1993 (Decrease) NET INTEREST REVENUE Interest revenue $1,357 $1,171 $ 186 Interest expense 1,128 798 330 Net interest revenue 229 373 (144) Provision for credit losses 8 23 (15) Net interest revenue after provision for credit losses 221 350 (129) NONINTEREST REVENUE Trading 49 449 (400) Fiduciary and funds management 177 185 (8) Fees and commissions 216 192 24 Securities available for sale losses 21 - 21 Investment securities gains - (2) 2 Other 161 45 116 Total noninterest revenue 624 869 (245) NONINTEREST EXPENSES Salaries 208 179 29 Incentive compensation and employee benefits 163 262 (99) Occupancy, net 31 41 (10) Furniture and equipment 45 39 6 Other 262 295 (33) Total noninterest expenses 709 816 (107) Income before income taxes 136 403 (267) Income taxes 35 124 (89) NET INCOME $ 101 $ 279 $ (178) NET INCOME APPLICABLE TO COMMON STOCK $ 95 $ 273 $ (178) EARNINGS PER COMMON SHARE: PRIMARY $1.19 $3.26 $(2.07) FULLY DILUTED $1.18 $3.25 $(2.07) Cash dividends declared per common share $1.00 $.90 $.10
10 BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (in millions, except per share data) (unaudited)
Increase YEAR ENDED DECEMBER 31, 1994 1993 (Decrease) NET INTEREST REVENUE Interest revenue $5,030 $4,436 $ 594 Interest expense 3,858 3,122 736 Net interest revenue 1,172 1,314 (142) Provision for credit losses 25 93 (68) Net interest revenue after provision for credit losses 1,147 1,221 (74) NONINTEREST REVENUE Trading 465 1,631 (1,166) Fiduciary and funds management 740 703 37 Fees and commissions 756 710 46 Securities available for sale gains 72 - 72 Investment securities gains - 13 (13) Other 440 307 133 Total noninterest revenue 2,473 3,364 (891) NONINTEREST EXPENSES Salaries 774 687 87 Incentive compensation and employee benefits 724 1,172 (448) Occupancy, net 146 155 (9) Furniture and equipment 163 144 19 Other 944 877 67 Total noninterest expenses 2,751 3,035 (284) Income before income taxes and cumulative effects of accounting changes 869 1,550 (681) Income taxes 254 480 (226) INCOME BEFORE CUMULATIVE EFFECTS OF ACCOUNTING CHANGES 615 1,070 (455) Cumulative effects of accounting changes - (75) 75 NET INCOME $615 $ 995 $ (380) NET INCOME APPLICABLE TO COMMON STOCK $587 $ 972 $ (385) PRIMARY EARNINGS PER COMMON SHARE: Income before cumulative effects of accounting changes $7.17 $12.40 $(5.23) Cumulative effects of accounting changes - (.89) .89 Net income $7.17 $11.51 $(4.34) FULLY DILUTED EARNINGS PER COMMON SHARE: Income before cumulative effects of accounting changes $7.17 $12.29 $(5.12) Cumulative effects of accounting changes - (.88) .88 Net income $7.17 $11.41 $(4.24) Cash dividends declared per common share $3.70 $3.24 $.46
11 BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET ($ in millions, except par value) (unaudited)
December 31, December 31, 1994 1993 ASSETS Cash and due from banks $1,985 $1,750 Interest-bearing deposits with banks 3,390 1,638 Federal funds sold 2,544 361 Securities purchased under resale agreements 9,943 9,567 Securities borrowed 6,197 2,937 Trading assets 47,422 48,276 Securities available for sale 7,475 7,073 Loans 12,593 15,200 Allowance for credit losses (1,252) (1,324) Premises and equipment, net 915 719 Due from customers on acceptances 378 455 Accounts receivable and accrued interest 2,356 2,561 Other assets 3,070 2,869 Total $ 97,016 $ 92,082 LIABILITIES Deposits Noninterest-bearing In domestic offices $ 3,285 $ 3,185 In foreign offices 541 707 Interest-bearing In domestic offices 6,603 7,120 In foreign offices 14,510 11,764 Total deposits 24,939 22,776 Trading liabilities 20,949 9,349 Securities sold under repurchase agreements 15,617 23,834 Other short-term borrowings 18,222 18,992 Acceptances outstanding 378 455 Accounts payable and accrued expenses 3,174 3,771 Other liabilities 2,328 2,524 Long-term debt 6,455 5,597 Total liabilities 92,062 87,298 PREFERRED STOCK OF SUBSIDIARY 250 250 STOCKHOLDERS' EQUITY Preferred stock 395 250 Common stock, $1 par value Authorized, 300,000,000 shares Issued, 83,678,973 shares 84 84 Capital surplus 1,317 1,321 Retained earnings 3,494 3,226 Common stock in treasury, at cost: 1994, 5,609,707 shares; 1993, 3,076,439 shares (416) (233) Other (170) (114) Total stockholders' equity 4,704 4,534 Total $ 97,016 $ 92,082
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