<PAGE>
FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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 20, 1999
-------------------
BANK ONE CORPORATION
- -------------------------------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 333-60313 31-0738296
- -------------------------------------------------------------------------------
(STATE OR OTHER JURISDICTION (COMMISSION (IRS EMPLOYER
OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
One First National Plaza, Chicago, IL 60670
- -------------------------------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE 312-732-4000
------------
<PAGE>
ITEM 5. OTHER EVENTS
- ------
On April 20, 1999, the Registrant issued a press release announcing its
first quarter 1999 earnings. A copy of such press release, including unaudited
financial information released as a part thereof, is attached as Exhibit 99(a)
to this Current Report on Form 8-K and incorporated by reference herein.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
- ------
(c) Exhibits.
Exhibit Number Description of Exhibits
-------------- -----------------------
99(a) Registrant's April 20, 1999 Press Release
regarding 1st Quarter 1999 earnings.
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.
BANK ONE CORPORATION
--------------------
(REGISTRANT)
Date: April 20, 1999 By: /s/ M. Eileen Kennedy
---------------- -----------------------------
Title: Treasurer
2
<PAGE>
EXHIBIT INDEX
Exhibit Number Description of Exhibits
- -------------- -----------------------
99(a) Registrant's April 20, 1999 Press Release regarding 1st
Quarter 1999 earnings.
3
<PAGE>
[BANK ONE CORPORATION News Release Letterhead] EXHIBIT 99(a)
Media Contact:
Thomas A. Kelly (312) 732-7007
Investor Contacts:
Jay S. Gould (312) 732-5771
Holly E. Hobson (312) 732-5782
Sandra M. Catanzaro (312) 732-8013
FOR IMMEDIATE RELEASE
- ---------------------
BANK ONE REPORTS FIRST QUARTER EARNINGS
OF $0.96, INCLUDING SPECIAL ITEMS
CHICAGO, April 20, 1999 - BANK ONE CORPORATION (NYSE: ONE) today announced first
quarter net income of $1.151 billion, or $0.96 per diluted share, up from $933
million in 1998's first quarter, or $0.78 per share.
"Our strong first quarter performance followed our plan," said John B. McCoy,
president and chief executive officer. "We began to see the promised merger
expense and revenue synergies, which should gain momentum throughout the year.
In addition, the 10% growth in revenue reflects our continued focus on our
customers."
The first quarter's results included three special items. A gain of $249 million
pre-tax, or $0.14 per diluted share, resulted from the merger-related sale of 51
branches in Indiana. Ongoing merger-related and restructuring costs totaled $204
million pre-tax, or $0.12 per share. The net effect of these two merger-related
items was a positive impact of $45 million, or $0.02 per share. Additionally,
Concord EFS, Inc. acquired Electronic Payment Services, Inc. (EPS), which
resulted in a pre-tax gain of $111 million, or $0.06 per share, on Bank One's
investment in EPS.
1999 FIRST QUARTER HIGHLIGHTS
The first quarter's highlights, compared to 1998's first quarter, included:
. Managed revenue growth was 10%, excluding the Indiana branch sale and
EPS gains. Managed net interest income, on a fully taxable equivalent
basis, increased 10%, driven by average managed loan growth of 9%. The
managed net interest margin was 5.66%, up from 1998's 5.51%.
(more)
<PAGE>
-2-
. Return on common equity and return on assets, excluding the special
items, were 20.8% and 1.68%, respectively.
. Managed noninterest income grew 9%, with the most significant
increases in market-driven revenue and credit card fees.
. Noninterest expense, excluding merger-related costs, was down 2% from
the fourth quarter and 13% higher than 1998's first quarter.
FIRST QUARTER PERFORMANCE REVIEW
The following detailed discussion is on a managed basis and excludes the one-
time items listed above in order to better describe underlying operating trends.
Managed information has been adjusted to include credit card loans that were
securitized and removed from the balance sheet. The net earnings on securitized
credit card loans are reclassified from noninterest income to net interest
income and provision for loan losses as if the securitization had not occurred.
NET INTEREST INCOME AND MARGIN
Managed net interest income on a tax equivalent basis was $3.661 billion, up 10%
from 1998's first quarter, driven by average loan growth of 9% and a 15 basis
point increase in the net interest margin to 5.66%. The managed net interest
margin was essentially unchanged from the fourth quarter with a slightly lower
level of net interest income, reflecting seasonal levels of credit card loan
activity and noninterest-bearing deposits. Average managed loans were up 3% from
the prior quarter.
Average managed credit card loans increased 18% from 1998's first quarter to
$69.1 billion. At March 31, 1999, managed credit card loans were $68.4 billion,
below the seasonally high $70.0 billion at the end of 1998. First USA added 2.9
million accounts in the first quarter, matching the record setting fourth
quarter. Also, First USA expanded its relationship with America Online,
continued to sign up new partners, including priceline.com and CBS MarketWatch,
and launched new alliances, such as Sports Illustrated and Maxwell House.
NONINTEREST INCOME
Managed noninterest income was $1.625 billion in the first quarter, up 9% from a
year ago, excluding special items. These items included the gains from the sale
of 51 Indiana branches, with $1.9 billion in deposits, required by the merger
with First Chicago NBD Corporation, and from Bank One's investment in EPS.
(more)
<PAGE>
-3-
Market-driven revenue of $215 million increased 30% from the year-ago period and
was significantly stronger than the $99 million in the fourth quarter, primarily
due to improved market conditions.
Fee-based revenue was $1.216 billion in the first quarter, up 7% from last
year's quarter, excluding the accounting impact of the First Chicago Trust
Company and EquiServe transaction closed in the fourth quarter. Also excluding
this impact, fiduciary and investment management fees increased 5%. Credit card
revenues grew 13% to $347 million, while service charges and commissions
increased 5%. Compared to the fourth quarter, fee-based revenue declined due to
the seasonal level of credit card fees.
NONINTEREST EXPENSE
Noninterest expense was $2.737 billion in 1999's first quarter, excluding
merger-related costs of $204 million. Compared to the first quarter of 1998,
expenses increased 13%, or approximately 3% excluding growth of credit card
costs. Credit card expense growth was principally driven by the change in
business practice for marketing made in the fourth quarter.
Noninterest expense declined $70 million from the fourth quarter. Merger synergy
cost savings of approximately $50 million and lower staff and marketing costs
drove the 2% decrease.
PROVISION FOR CREDIT LOSSES AND CREDIT QUALITY
The managed net charge-off ratio was 1.93% for the first quarter, down from
2.08% in last year's period but slightly higher than the fourth quarter's 1.88%.
Managed net charge-offs totaled $1.028 billion in the first quarter, virtually
unchanged from the year-ago quarter and up $52 million from 1998's fourth
quarter. The managed provision for credit losses was also $1.028 billion in the
first quarter, up from $997 million in the first quarter of 1998 and $951
million in the fourth quarter.
Managed net charge-offs for credit cards were 4.89%, compared to 6.05% in 1998's
first quarter and 4.79% in the fourth quarter. Significantly, there was a
positive impact for the conformance of charge-off policies in the 1999 first
quarter and 1998 fourth quarter. Without this change, managed credit card net
charge-offs for the 1999 first quarter and 1998 fourth quarter were 5.32% and
5.42%, respectively.
Commercial and other consumer net charge-offs in the 1999 first quarter were
0.29% and 0.84%, respectively, remaining at historically low levels.
(more)
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-4-
Nonperforming assets were $1.148 billion at the end of the first quarter,
representing 0.74% of loans, up from 0.53% of loans at the end of 1998's fourth
quarter. The increase primarily reflected a $302 million increase in
nonperforming loans, principally within the financial services and energy
industries. The nonperforming assets ratio remains comparable to or below peer
levels.
CAPITAL
The common equity to assets ratio increased to 8.3% as of March 31, 1999, from
7.8% at December 31, 1998. Tangible common equity to assets was 7.4%. Tier 1 and
total capital ratios were 8.1% and 11.6%, respectively.
BANK ONE CORPORATION, headquartered in Chicago, is the nation's fifth largest
bank holding company, with assets of more than $250 billion. Bank One offers a
full range of financial services to commercial and business customers and
consumers. It is one of the nation's largest credit card lenders, the second-
largest bank-owned finance company, the third-largest bank lender to small
businesses, and one of the top 25 managers of mutual funds. A leader in the
retail market, Bank One operates approximately 2,000 banking centers and a
nationwide network of ATMs. In addition, it is a major commercial bank in the
United States and in select international markets.
Information about Bank One's financial results can be accessed on the Internet
at www.bankone.com and www.investquest.com or through fax-on-demand at 614-844-
--------------- -------------------
3860. A telephone recording discussing the first quarter's results is available
by calling 800-293-4240 (domestic) or 402-220-9744 (international) through April
30, 1999.
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Three Months
Financial Highlights Three Months Ended March 31 Ended
--------------------------------------
($ millions, except per-share amounts) 1999 1998 % Change Dec 31, 1998
- ------------------------------------------------------ ---------- --------- --------- ------------
PER SHARE DATA
- --------------
<S> <C> <C> <C> <C>
Earnings -- Basic $ 0.97 $ 0.80 21 $ 0.19
-- Diluted 0.96 0.78 23 0.19
Dividends 0.42 0.38 11 0.38
INCOME STATEMENT DATA
- ---------------------
Net income $ 1,151 $ 933 23 $ 226
Net interest income (FTE) 2,309 2,320 - 2,368
Provision for credit losses 281 391 (28) 272
Noninterest income 2,590 1,916 35 2,068
Restructuring charges and merger-related costs 204 - N/M 1,049
Operating expense(1) 2,737 2,431 13 2,807
FINANCIAL PERFORMANCE RATIOS
- ----------------------------
Net interest margin -- managed 5.66% 5.51% 5.67%
-- reported 4.30 4.54 4.40
Return on assets 1.85 1.59 0.37
Return on common equity 22.9 20.3 4.4
Efficiency -- managed 52.1 50.2 75.4
-- reported 60.0 57.4 86.9
BALANCE SHEET DATA
- ------------------
Average: Loans -- managed $ 213,379 $ 196,002 9 $ 207,471
-- reported 153,271 158,091 (3) 149,146
Earning assets -- managed 262,283 244,387 7 257,413
-- reported 217,909 207,243 5 213,411
Total assets 252,922 238,038 6 243,515
Deposits 154,148 150,475 2 150,247
Common equity 20,361 18,597 9 20,067
End of Period: Loans -- managed 213,814 197,067 8 216,391
-- reported 154,850 158,387 (2) 155,398
Total assets 250,402 240,560 4 261,496
Deposits 153,699 153,817 - 161,542
Common equity 20,870 18,945 10 20,370
</TABLE>
(1) Noninterest expense reduced by restructuring charges and merger-related
costs, including certain merger integration costs.
5
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------------------------------------
Consolidated Statement of Income Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
($ millions, except per-share amounts) 1999 1998 1998 1998 1998
- -------------------------------------- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
Interest income $ 4,196 $ 4,326 $ 4,412 $ 4,432 $ 4,354
Interest expense 1,916 1,989 2,039 2,084 2,065
-----------------------------------------------------------
Net interest income 2,280 2,337 2,373 2,348 2,289
Provision for credit losses 281 272 345 400 391
-----------------------------------------------------------
Net interest income after provision for credit losses 1,999 2,065 2,028 1,948 1,898
-----------------------------------------------------------
Noninterest Income
Trading profits 67 (2) 18 65 60
Equity securities gains(losses) 96 61 (4) 121 72
Investment securities gains 52 32 41 49 33
-----------------------------------------------------------
Market-driven revenue 215 91 55 235 165
Credit card revenue 952 1,078 867 630 701
Fiduciary and investment management fees 179 199 207 203 198
Service charges and commissions 690 680 639 666 660
-----------------------------------------------------------
Fee-based revenue 1,821 1,957 1,713 1,499 1,559
Other income 554 20 231 354 192
-----------------------------------------------------------
Total noninterest income 2,590 2,068 1,999 2,088 1,916
-----------------------------------------------------------
Noninterest Expense
Salaries and benefits 1,147 1,167 1,080 1,123 1,107
Net occupancy and equipment expense 241 217 217 209 202
Depreciation and amortization 175 180 167 167 166
Outside services and processing 406 410 318 348 273
Marketing and development 315 340 264 221 199
Communication and transportation 200 214 192 190 185
Merger-related and restructuring charges 164 935 - 127 -
Other expense 293 393 301 334 299
----------------------------------------------------------
Total nonininterest expense 2,941 3,856 2,539 2,719 2,431
-----------------------------------------------------------
Income before income taxes 1,648 277 1,488 1,317 1,383
Provision for Income Taxes 497 51 434 422 450
-----------------------------------------------------------
Net income $ 1,151 $ 226 $ 1,054 $ 895 $ 933
===========================================================
Net income attributable to common stockholders' equity $ 1,148 $ 223 $ 1,051 $ 891 $ 929
===========================================================
Earnings per common share
--Basic $ 0.97 $ 0.19 $ 0.90 $ 0.76 $ 0.80
--Diluted 0.96 0.19 0.89 0.75 0.78
Average common shares outstanding(millions)
--Basic 1,178 1,175 1,172 1,169 1,165
--Diluted 1,193 1,188 1,188 1,189 1,191
</TABLE>
6
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Consolidated Balance Sheet Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
($ millions) 1999 1998 1998 1998 1998
- --------------------------------------------------------- ----------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Assets
Cash and due from banks $ 13,854 $ 19,878 $ 14,109 $ 16,217 $ 15,142
Interest bearing due from banks 4,130 4,642 4,621 5,590 5,167
Federal funds sold and securities under resale agreements 9,209 9,862 10,066 9,040 9,121
Trading assets 5,660 5,345 5,770 5,342 5,250
Derivative product assets 4,510 6,954 4,600 4,342 4,373
Investment securities (1) 44,565 44,852 32,658 31,863 31,388
Loans
Commercial 87,581 88,438 81,895 83,279 81,152
Consumer 57,869 57,926 56,379 58,737 58,173
Credit Card 9,400 9,034 15,783 18,007 19,062
--------------------------------------------------------
Total loans 154,850 155,398 154,057 160,023 158,387
Allowance for credit losses (2,270) (2,271) (2,751) (2,752) (2,794)
--------------------------------------------------------
Loans, net 152,580 153,127 151,306 157,271 155,593
Other assets:
Bank premises and equipment, net 3,235 3,340 3,431 3,433 3,454
Other 12,659 13,496 12,097 11,080 11,072
--------------------------------------------------------
Total other assets 15,894 16,836 15,528 14,513 14,526
--------------------------------------------------------
Total assets $ 250,402 $ 261,496 $ 238,658 $ 244,178 $ 240,560
========================================================
Liabilities
Deposits
Demand $ 35,110 $ 39,854 $ 34,757 $ 38,551 $ 36,706
Savings 63,378 62,645 58,813 59,542 60,561
Time 34,844 36,302 36,694 37,887 39,716
Foreign offices 20,367 22,741 18,660 18,527 16,834
--------------------------------------------------------
Total deposits 153,699 161,542 148,924 154,507 153,817
Federal funds purchased and repurchase agreements 20,111 23,164 20,619 19,088 19,818
Other short-term borrowings 16,780 16,937 13,223 15,768 14,079
Long-term borrowings 23,985 21,295 21,138 21,245 21,286
Guaranteed preferred beneficial interest in the
Corporation's junior subordinated debt 1,003 1,003 1,003 1,003 1,003
Derivative product liabilities 4,772 7,147 4,749 4,327 4,143
Other liabilities 8,992 9,848 8,384 8,475 7,179
--------------------------------------------------------
Total liabilities 229,342 240,936 218,040 224,413 221,325
--------------------------------------------------------
Stockholders' Equity
Preferred stock 190 190 190 190 290
Common stock 12 12 12 12 12
Surplus 10,734 10,769 12,488 12,549 12,583
Retained earnings 10,179 9,528 9,750 9,094 8,602
Accumulated other adjustments to stockholders' equity 96 239 244 177 208
Deferred compensation (151) (94) (157) (182) (162)
Treasury stock - (84) (1,909) (2,075) (2,298)
--------------------------------------------------------
Total stockholders' equity 21,060 20,560 20,618 19,765 19,235
--------------------------------------------------------
Total liabilities and stockholders' equity $ 250,402 $ 261,496 $ 238,658 $ 244,178 $ 240,560
========================================================
Common Shares -- period-end (millions)
Common shares issued 1,180 1,179 1,223 1,222 1,221
Treasury shares - 2 47 52 56
--------------------------------------------------------
Common shares outstanding 1,180 1,177 1,176 1,170 1,165
========================================================
</TABLE>
(1) Includes the Corporation's undivided interest in securitized credit card
receivables. As part of conforming accounting practices, the Corporation's
undivided interest in such receivables was reclassified from loans to
investment securities in 1998.
7
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
First Quarter 1999 Fourth Quarter 1998 First Quarter 1998
--------------------------- -------------------------- -----------------------------
Average Balance Sheet, Yields, & Rates Average Income Yield/ Average Income Yield/ Average Income Yield/
($ millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate
- -------------------------------------- ---------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Short-term investments $ 14,141 $ 162 4.65% $ 15,871 $ 177 4.42% $ 14,895 $ 201 5.47%
Trading assets (1) 5,655 96 6.88 5,961 85 5.66 6,413 92 5.82
Investment securities: (1)
U.S. government and federal agency 15,365 245 6.47 14,739 243 6.54 18,205 299 6.66
States and political subdivisions 2,023 39 7.82 2,086 43 8.18 2,335 47 8.16
Other (2) 27,454 483 7.13 25,608 568 8.80 7,304 96 5.33
------------------ ------------------ ------------------
Total investment securities 44,842 767 6.94 42,433 854 7.98 27,844 442 6.44
Loans (1) (3)
Commercial 87,058 1,582 7.37 85,018 1,633 7.62 79,724 1,556 7.92
Consumer 57,177 1,282 9.09 56,263 1,284 9.05 57,734 1,461 10.26
Credit card 9,036 336 15.08 7,865 324 16.34 20,633 633 12.44
------------------ ------------------ ------------------
Total loans,net 153,271 3,200 8.47 149,146 3,241 8.62 158,091 3,650 9.36
Total earning assets 217,909 4,225 7.86 213,411 4,357 8.10 207,243 4,385 8.58
Allowance for credit losses (2,324) (2,700) (2,764)
Other assets 37,337 32,804 33,559
--------- --------- ---------
Total assets $252,922 $243,515 $238,038
========= ========= =========
Deposits -- interest-bearing
Savings $ 19,975 $ 83 1.69% $ 19,260 $ 105 2.16% $ 21,520 $ 125 2.36%
Money market 43,377 356 3.33 41,064 362 3.50 37,882 360 3.85
Time 35,786 450 5.10 36,790 496 5.35 39,858 541 5.50
Foreign offices 21,357 233 4.42 19,853 238 4.76 17,856 231 5.25
----------------- ------------------ ------------------
Total deposits -- interest-bearing 120,495 1,122 3.78 116,967 1,201 4.07 117,116 1,257 4.35
Federal funds purchased and securities
under repurchase agreements 21,862 246 4.56 23,171 260 4.45 21,815 282 5.24
Other short-term borrowings 16,861 198 4.76 13,847 181 5.19 12,680 173 5.53
Long-term debt 23,903 350 5.94 22,208 347 6.20 21,974 353 6.52
----------------- ------------------ ------------------
Total interest-bearing liabilities 183,121 1,916 4.24 176,193 1,989 4.48 173,585 2,065 4.82
Demand deposits 33,653 33,280 33,359
Other liabilities 15,597 13,784 12,179
Preferred stock 190 191 318
Common stockholders' equity 20,361 20,067 18,597
--------- --------- ---------
Total liabilities and equity $252,922 $243,515 $238,038
========= ========= =========
Interest income/earning assets $ 4,225 7.86% $ 4,357 8.10% $4,385 8.58%
Interest expense/earning assets 1,916 3.56 1,989 3.70 2,065 4.04
================== ================= ==================
Net interest margin $ 2,309 4.30% $ 2,368 4.40% $2,320 4.54%
================== ================= ==================
</TABLE>
(1) Includes tax-equivalent adjustments based on a 35% federal income tax rate
(2) As part of conforming accounting practices, the Corporation's undivided
interest in securitized credit card receivables was reclassified from
loans to investment securities in 1998. Such amounts averaged $15.7
billion for the first quarter of 1999, $14.3 billion for the fourth
quarter of 1998, and $0.8 billion for the first quarter of 1998.
(3) Nonperforming loans are included in balances used to determine the average
rate
8
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------------------------------------
Credit Quality Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
($ millions) 1999 1998 1998 1998 1998
- --------------------------------------------- ----------- ---------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
Provision for credit losses $ 281 $ 272 $ 345 $ 400 $ 391
Gross charge-offs $ 367 $ 377 $ 443 $ 560 $ 565
Recoveries 86 80 98 118 151
-----------------------------------------------------------
Net charge-offs $ 281 $ 297 $ 345 $ 442 $ 414
Net charge-offs
Commercial $ 63 $ 80 $ 43 $ 80 $ 19
Consumer 120 104 98 95 116
Credit card 98 113 204 267 279
-----------------------------------------------------------
Total net charge-offs $ 281 $ 297 $ 345 $ 442 $ 414
Total net charge-offs -- managed $ 1,028 $ 976 $ 943 $ 1,065 $ 1,020
Net charge-off ratios
Commercial 0.29% 0.38% 0.21% 0.39% 0.10%
Consumer 0.84 0.74 0.68 0.66 0.80
Credit card 4.34 5.75 5.24 5.75 5.41
Total net charge-off ratio 0.73 0.80 0.89 1.12 1.05
Total net charge-off ratio -- managed 1.93 1.88 1.91 2.15 2.08
Allowance for credit losses -- period-end $ 2,270 $ 2,271 $ 2,751 $ 2,752 $ 2,794
Nonperforming assets -- period-end
Nonperforming loans $ 1,031 $ 729 $ 718 $ 640 $ 725
Other, including other real estate owned 117 90 87 70 63
-----------------------------------------------------------
Total nonperforming assets $ 1,148 $ 819 $ 805 $ 710 $ 788
Allowance to ending loans 1.47% 1.46% 1.79% 1.72% 1.76%
Allowance to nonperforming loans 220 312 383 430 385
Nonperforming assets ratio 0.74 0.53 0.52 0.44 0.50
Capital
($ millions, except per-share amounts)
- ---------------------------------------------
Common equity/assets ratio 8.3% 7.8% 8.6% 8.0% 7.9%
Tier 1 capital ratio 8.1 7.9 8.6 8.3 8.3
Total risk adjusted capital ratio 11.6 11.3 12.4 12.3 12.5
Regulatory leverage ratio 8.0 8.0 8.5 8.0 7.9
Tangible common equity to net assets 7.4 6.8 7.7 7.4 7.2
Book value of common equity per share $ 17.68 $ 17.31 $ 17.37 $ 16.72 $ 16.26
Intangibles -- period-end
Goodwill $ 1,048 $ 1,075 $ 1,094 $ 1,117 $ 1,095
Other intangibles 1,407 1,621 1,125 631 700
-----------------------------------------------------------
Total intangibles $ 2,455 $ 2,696 $ 2,219 $ 1,748 $ 1,795
</TABLE>
9
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Managed Income Statement Statistics(1) Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
($ millions) 1999 1998 1998 1998 1998
- --------------------------------------------------- --------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
Reported
- --------------------------------------------------------
Net interest income -- FTE $ 2,309 $ 2,368 $ 2,402 $ 2,379 $ 2,320
Provision for credit losses 281 272 345 400 391
Noninterest income 2,590 2,068 1,999 2,088 1,916
Noninterest expense 2,941 3,856 2,539 2,719 2,431
Net income 1,151 226 1,054 895 933
Securitized
- ---------------------------------------------------------
Net interest income -- FTE $ 1,352 $ 1,314 $ 1,083 $ 962 $ 1,000
Provision for credit losses 747 679 598 623 606
Noninterest income (605) (635) (484) (339) (394)
Noninterest expense - - 1 - -
Net income - - - - -
Managed
- ---------------------------------------------------------
Net interest income -- FTE $ 3,661 $ 3,682 $ 3,485 $ 3,341 $ 3,320
Provision for credit losses 1,028 951 943 1,023 997
Noninterest income 1,985 1,433 1,515 1,749 1,522
Noninterest expense 2,941 3,856 2,540 2,719 2,431
Net income 1,151 226 1,054 895 933
Managed balance sheet and net interest margin
- ---------------------------------------------------------
Total average loans $ 213,379 $ 207,471 $ 197,978 $ 197,867 $ 196,002
Total average earning assets 262,283 257,413 245,422 247,152 244,387
Total average assets 297,296 287,517 275,259 277,534 275,182
Net interest margin 5.66% 5.67% 5.63% 5.42% 5.51%
</TABLE>
(1) Managed data only adjusted for credit card securitization activity
10
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Managed Credit Card Detail Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
($ millions) 1999 1998 1998 1998 1998
- ---------------------------------------------------- --------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C>
Period-end loans - managed $ 68,364 $ 70,027 $ 65,169 $ 58,710 $ 57,742
- securitized (58,964) (60,993) (49,386) (40,703) (38,680)
- reported 9,400 9,034 15,783 18,007 19,062
Average loans - manage $ 69,144 $ 66,190 $ 59,090 $ 58,233 $ 58,544
- securitized (60,108) (58,325) (43,512) (39,660) (37,911)
- reported 9,036 7,865 15,578 18,573 20,633
Net charge-offs -- amount - managed $ 845 $ 792 $ 802 $ 890 $ 885
- securitized (747) (679) (598) (623) (606)
- reported 98 113 204 267 279
Net charge-offs -- rate - managed 4.89% 4.79% 5.43% 6.11% 6.05%
- securitized 4.97 4.66 5.50 6.28 6.39
- reported 4.34 5.75 5.24 5.75 5.41
Delinquency rate -- 30+ days - managed 4.51% 4.47% 4.50% 4.34% 4.82%
- securitized 4.67 4.64 4.49 4.34 4.91
- reported 3.51 3.34 4.54 4.34 4.65
Delinquency rate -- 90+ days - managed 2.06% 1.98% 1.90% 1.97% 2.19%
- securitized 2.15 2.06 1.94 2.02 2.24
- reported 1.51 1.41 1.79 1.85 2.09
Credit card charge volume - managed $ 26,863 $ 29,237 $ 25,106 $ 24,091 $ 22,701
New accounts opened (thousands) - managed 2,910 2,919 2,538 2,271 2,330
Cardmembers (thousands) - managed 58,316 56,568 57,204 52,805 51,155
</TABLE>
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