EX-99.1 8 0008.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 years ended December 31, 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, substantially all of which were financial 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 a pre-tax gain of approximately $561 million for the year ended December 31, 2000. In addition, the following Unaudited Pro Forma Condensed Statement of Income for the year ended December 31, 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. 86 Bankers Trust Corporation and its Subsidiaries -------------------------------------------------------------------------------- BANKERS TRUST CORPORATION UNAUDITED PRO FORMA CONDENSED STATEMENT OF INCOME (in millions)
For the Year Ended December 31, 2000 ------------------------------------------------------------------- BT Pro Forma Consolidated BTH(a) Adjustments(b) Pro Forma(d) --------------------------------------------------------------------------------------------------------------------------------- Net Interest Revenue Interest revenue $3,635 $(544) $ 81 $3,172 Interest expense 2,988 (429) (125) 2,434 --------------------------------------------------------------------------------------------------------------------------------- Net Interest Revenue 647 (115) 206 738 Provision for credit losses--loans (19) (1) -- (20) --------------------------------------------------------------------------------------------------------------------------------- Net Interest Revenue After Provision for Credit Losses--Loans 666 (114) 206 758 --------------------------------------------------------------------------------------------------------------------------------- Noninterest Revenue Trading 136 (65) 55 126 Fiduciary and funds management 798 -- -- 798 Corporate finance fees 142 (4) -- 138 Other fees and commissions 306 (8) -- 298 Securities available for sale gains (losses) 45 (25) -- 20 Other 759 (65) 91 785 --------------------------------------------------------------------------------------------------------------------------------- Total noninterest revenue 2,186 (167) 146 2,165 --------------------------------------------------------------------------------------------------------------------------------- Noninterest Expenses Salaries and commissions 459 (3) -- 456 Incentive compensation employee benefits 415 (12) -- 403 Agency and other professional service fees 220 (4) -- 216 Communication and data services 84 -- -- 84 Occupancy, net 106 -- -- 106 Furniture and equipment 136 (2) -- 134 Travel and entertainment 45 (1) -- 44 Other 535 (70) 3 468 Restructuring charge (48) -- -- (48) --------------------------------------------------------------------------------------------------------------------------------- Total noninterest expenses 1,952 (92) 3 1,863 --------------------------------------------------------------------------------------------------------------------------------- Income before income taxes 900 (189) 349 1,060 Income taxes 388 437 -------------------------------------------------------------------------- ------ Net Income $ 512 $ 623 ========================================================================== ======
See Notes to Unaudited Pro Forma Condensed Financial Statements. Bankers Trust Corporation and its Subsidiaries 87 -------------------------------------------------------------------------------- BANKERS TRUST CORPORATION UNAUDITED PRO FORMA CONDENSED STATEMENT OF INCOME (in millions)
For the Year Ended December 31, 1999 ---------------------------------------------------------------------------------- BT BTAB, BTI Pro Forma Consolidated and BTAL**(c) BTH(a) Adjustments(b) Pro Forma(d) --------------------------------------------------------------------------------------------------------------------------------- Net Interest Revenue Interest revenue $ 4,419 $ (740) $(213) $309 $3,775 Interest expense 3,612 (521) (120) 149 3,120 --------------------------------------------------------------------------------------------------------------------------------- Net Interest Revenue 807 (219) (93) 160 655 Provision for credit losses--loans (58) 26 (4) -- (36) Net interest revenue after provision for credit losses--loans 865 (245) (89) 160 691 --------------------------------------------------------------------------------------------------------------------------------- Noninterest Revenue Trading 42 258 3 (224) 79 Fiduciary and funds management 1,017 (178) -- -- 839 Corporate finance fees 542 (304) -- -- 238 Other fees and commissions 538 (186) (4) -- 348 Securities available for sale gains (losses) (89) 108 (56) -- (37) Insurance premiums 86 -- -- -- 86 Other 1,364 319 (703) 228 1,208 --------------------------------------------------------------------------------------------------------------------------------- Total noninterest revenue 3,500 17 (760) 4 2,761 --------------------------------------------------------------------------------------------------------------------------------- Noninterest Expenses Salaries and commissions 1,039 (310) (3) -- 726 Incentive compensation and employee benefits* 2,189 (919) (57) -- 1,213 Agency and other professional service fees 430 -- (4) -- 426 Communication and data services 206 (53) -- -- 153 Occupancy, net 198 (35) -- -- 163 Furniture and equipment 221 (33) -- -- 188 Travel and entertainment 114 (48) -- -- 66 Provision for policyholder benefits 114 -- -- -- 114 Other 636 259 (218) (11) 666 Restructuring charge 633 -- (13) -- 620 --------------------------------------------------------------------------------------------------------------------------------- Total noninterest expenses 5,780 (1,139) (295) (11) 4,335 --------------------------------------------------------------------------------------------------------------------------------- Income (loss) before income taxes (1,415) 911 (554) 175 (883) Income taxes 188 275 ----------------------------------------------------------- ------- Net Income (Loss) $(1,603) $(1,158) =========================================================== =======
* 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. 88 Bankers Trust Corporation and its Subsidiaries -------------------------------------------------------------------------------- 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. Bankers Trust Corporation and its Subsidiaries 89