<PAGE>
[BANK ONE CORPORATION Press Release Letterhead] Exhibit 99(a)
FOR IMMEDIATE RELEASE
---------------------
BANK ONE REPORTS 50 CENTS EARNINGS PER SHARE FOR QUARTER
. TIER 1 CAPITAL STRENGTHENED TO 7.5%
CHICAGO, October 17, 2000 - BANK ONE CORPORATION (NYSE: ONE) today announced
2000 third quarter net income of $581 million, or $0.50 per diluted share. This
compares with net income in the year-ago quarter of $925 million, or $0.79 per
diluted share.
For the first nine months of 2000, net income was $1 million. After preferred
dividends, however, there was a nine-month net loss of $8 million, or $0.01 per
diluted share. The comparable year-ago period produced net income of $3.068
billion, or $2.58 per diluted share.
"Third quarter results were in line with our expectations for financial
performance, credit quality and waste-reduction initiatives," said James Dimon,
chairman and chief executive officer. "Although we are comfortable that we are
making progress on initiatives announced in July, our earnings level is still
not acceptable. However, third quarter results were consistent with our
expectations of second-half earnings of approximately $1.00 per share. In July
we noted a preliminary 2001 earnings objective of $2.86-$2.99 per share. Though
early in our budget process, we believe this still is appropriate.
"Increases in nonperforming loans, particularly in our commercial portfolio,
warrant our continued attention," he said. "These trends resulted in a decision
to increase our credit loss reserve even though overall net charge-offs have not
changed materially. We remain focused on managing these risks, as well as being
disciplined in the origination of consumer credit."
Other actions related to initiatives announced in July included:
. Balance sheet strengthening:
. Completion of the previously announced investment securities portfolio
restructuring.
. The issuance of $1.9 billion of new regulatory capital as planned,
strengthening quarter-end Tier 1 and Total capital ratios.
. Infrastructure improvements:
. Progress on the previously announced $500 million waste-reduction
objective while continuing investments in infrastructure and customer
service capabilities.
. Reduced headcount 1,200 to 81,300 at September 30, 2000.
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. Progress on the Texas/Louisiana system conversion project, which
remains targeted for completion in the third quarter of next year.
. The rollout of 4,400 Internet-enabled, banking platform PCs in banking
centers, bringing the project-to-date rollout to 8,700. The total
rollout of 12,300 PCs is expected to be completed by year-end.
. Management team building:
. The hiring of Jim Boshart, an experienced and recognized
securities professional, to head Capital Markets.
. The hiring of new Commercial Banking and First USA chief
financial officers.
LINE OF BUSINESS DISCUSSION
Highlights - Net Income (Loss) by Line of Business
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
($ millions) % change vs. Adjusted
3Q99 2Q00 3Q00 3Q99 2Q00 2Q00
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Retail $ 268 $ (81) $ 251 (6)% NM% $ 247
Commercial banking 198 (213) 172 (13) NM 214
First USA 288 (379) 177 (39) NM 113
Investment management 82 73 86 5 18 79
Corporate investments 89 61 52 (42) (15) 61
Corporate / unallocated 89 (730) (157) NM 78 (70)
------ ------- ----- -------
Total business segment results 1,014 (1,269) 581 (43) NM 644
Merger-related items and
significant items (89) -- -- NM -- (1,913)
-- ------- ----- -- -------
Total Corporation $ 925 $(1,269) $ 581 (37) NM $(1,269)
NM = not meaningful
-----------------------------------------------------------------------------------------------------
</TABLE>
The 2000 second quarter included $2.940 billion pretax ($1.913 billion after
tax, $1.66 per share) in charges. Excluding the impact of those charges,
adjusted results were $644 million, or $0.55 per share. Those charges impacted
all lines of business, except Corporate Investments. For analytical purposes,
the following tables and discussions present second quarter results adjusted to
exclude the impact of those charges so that underlying trends can be better
understood.
2
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Retail
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Income Statement ($ millions)
Balance Sheet ($ billions) % change vs. Adjusted
3Q99 2Q00 3Q00 3Q99 2Q00 2Q00
---- ---- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C> <C>
Net interest income (1) $1,100 $1,196 $1,236 12% 3% $1,205
Provision for credit losses 83 132 207 NM 57 121
Noninterest income 395 (95) 326 (17) NM 330
Noninterest expense 1,000 1,097 959 (4) (13) 1,024
Net income (loss) 268 (81) 251 (6) NM 247
Return on equity 23% (6)% 17% 17%
Efficiency ratio 67 100 61 67
Loans - average $ 66.9 $ 73.6 $ 74.7 12 1 $ 73.6
Assets - average 73.4 77.9 78.8 7 1 77.9
Deposits - average 88.5 89.4 87.9 (1) (2) 89.4
Common equity - average 4.7 5.9 5.9 26 -- 5.9
NM = not meaningful
(1) Fully taxable equivalent basis
------------------------------------------------------------------------------------------------------------
</TABLE>
Retail reported net income of $251 million, a decrease of $17 million, or 6%,
from the year-ago quarter, reflecting increased provision for credit loss
expense, partially offset by a 4% increase in revenue and a 4% decline in
expenses.
Net interest income of $1.236 billion increased $136 million, or 12%, from the
year-ago quarter, primarily driven by wider loan and deposit spreads and a 12%
increase in average loans outstanding. Loan growth was concentrated in home
equity loans, which were up 37% from a year ago and 8% from the second quarter.
Excluding the impact of the 2000 first quarter sale of the consumer finance
branch network, net interest income increased 15% and average home equity loans
increased 48% from the year-ago quarter. Compared to the second quarter, the
growth in home equity loans was offset by a decline in indirect auto loans and
leases, reflecting increased pricing discipline.
Provision expense was $207 million, up $124 million from the year-ago quarter.
This increase reflected significant loan growth and higher losses in home equity
loans.
Noninterest income declined $69 million, or 17%, from the year-ago quarter,
reflecting the impact of higher auto lease residual losses and lower asset sale
gains. The negative impact of auto lease residuals totaled $58 million in the
current quarter compared with $15 million in the year-ago quarter.
Noninterest expense decreased $41 million, or 4%, from the year-ago quarter.
This decrease reflected the sale of the consumer finance branch network, a
decline in development-related expenses, as well as the impact of previous
expense initiatives.
3
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Commercial Banking
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
Income Statement ($ millions)
Balance Sheet ($ billions) % change vs. Adjusted
3Q99 2Q00 3Q00 3Q99 2Q00 2Q00
---- ---- ---- ---- ---- --------
<S> <C> <C> <C> <C> <C> <C>
Net interest income (1) $ 636 $ 694 $ 685 8% (1)% $ 694
Provision for credit losses 109 778 225 NM (71) 150
Noninterest income 285 312 378 33 21 356
Noninterest expense 507 564 566 12 -- 563
Net income (loss) 198 (213) 172 (13) NM 214
Return on equity 14% (13)% 10% 13%
Efficiency ratio 55 56 53 54
Loans - average $ 74.9 $ 82.1 $ 83.4 11 2 $ 82.1
Assets - average 104.4 110.2 111.0 6 1 110.2
Deposits - average 37.3 40.9 39.2 5 (4) 40.9
Common equity - average 5.7 6.7 6.7 18 -- 6.7
NM = not meaningful
(1) Fully taxable equivalent basis
--------------------------------------------------------------------------------------------------------------
</TABLE>
Commercial Banking net income decreased $26 million, or 13%, from the year-ago
period and was down $42 million from the adjusted second quarter, reflecting an
increase in the provision for credit losses.
Net interest income increased $49 million, or 8%, from the year-ago quarter,
reflecting 11% average loan growth. Large Corporate and Middle Market loans
grew 12% and 11%, respectively. This benefit was partially offset by a slight
decline in the net interest margin, reflecting continued competitive pricing
pressures in both the Middle Market and Large Corporate markets.
The provision for credit losses was $225 million, up $116 million year-over-
year, reflecting loan growth as well as continued deterioration in the
commercial portfolio across several industries and leveraged acquisition finance
transactions. At September 30, 2000, nonperforming loans as a percent of total
commercial loans were 1.60%, up from 1.29% a year ago. Net charge-offs were
0.51% of average commercial loans in the quarter, up slightly from 0.50% in the
year-earlier period.
Noninterest income of $378 million increased $93 million, or 33%, year-over-
year. Lending-related fees were up $35 million reflecting increases in
syndication and other credit-related fees. Market-driven revenue improved $31
million from the year-ago period, driven by trading performance. Treasury
management services (TMS) revenue increased $9 million, or 6%, from the year-ago
quarter reflecting growth in corporate sweep accounts, lockbox services, and
commercial credit cards.
Noninterest expense was $566 million, up $59 million, or 12%, from the year-ago
quarter. This increase mostly reflected higher compensation-related expenses in
the current period.
4
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First USA
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
Income Statement ($ millions)
Balance Sheet ($ billions) % change vs. Adjusted
3Q99 2Q00 3Q00 3Q99 2Q00 2Q00
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net interest income (1) $1,733 $1,451 $1,442 (17)% (1)% $1,451
Provision for credit losses 922 935 853 (7) (9) 900
Noninterest income 410 (153) 324 (21) NM 307
Noninterest expense 778 961 633 (19) (34) 679
Net income (loss) 288 (379) 177 (39) NM 113
Return on outstandings (pretax) 2.5% (3.6)% 1.7% 1.1%
Return on equity 19 (25) 12 7
Efficiency ratio 36 74 36 39
Managed net charge-off ratio 5.33 5.44 5.03 5.44
Loans - average $ 69.2 $ 66.1 $ 65.9 (5) -- $ 66.1
Assets - average 75.0 70.6 69.2 (8) (2) 70.6
Common equity - average 6.1 6.1 6.1 -- -- 6.1
NM = not meaningful
(1) Fully taxable equivalent basis
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
First USA reported net income of $177 million, a decrease of $111 million, or
39%, from the year-ago quarter. This reflected an 18% decline in revenue,
partially offset by lower expenses and provision for credit losses. Third
quarter results reflected a 1.7% pretax return on outstandings, down from 2.5%
in the year-ago quarter, but up from 1.1% in the second quarter on an adjusted
basis.
Net interest income of $1.442 billion was essentially unchanged from the second
quarter but decreased $291 million, or 17%, from the year-ago quarter. The
principal drivers were lower average outstandings and fee revenue, as well as a
narrower spread.
Average managed outstandings for the third quarter were $65.9 billion, down 5%
from the year-ago period and relatively flat with the second quarter average.
First USA had 53.6 million cards issued at quarter end, with 727,000 new
accounts opened during the quarter. Overall, year-over-year attrition on mature
vintage balances has improved and remained stable the last two quarters.
The provision for credit losses of $853 million was down $69 million from the
year-ago quarter, and $47 million from the adjusted second quarter, reflecting
continued reductions in managed net charge-offs. The managed net charge-off rate
declined to 5.03% from 5.33% in the year-ago period and from 5.44% in the prior
quarter reflecting lower bankruptcies. Future charge-off rates may increase due
to a return to normal bankruptcy levels, continued maturing of the portfolio,
and the ongoing impact of the Federal Financial Institution Examination
Council's revised consumer loan charge-off guidelines. The managed 30-day and
90-day delinquency rates were 4.14% and 1.79%, respectively. These were down
from 4.74% and 2.07%, respectively, in the year-ago quarter, but up slightly
from the prior quarter, reflecting normal seasonality.
Noninterest income declined $86 million, or 21%, from the prior year due to
lower securitization income, as well as lower fee revenue. The third quarter
reflected net securitization amortization expense of $22 million. Compared to
the adjusted second quarter, noninterest income increased $17 million, or 6%,
reflecting improved run-rates in a number of fee categories.
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<PAGE>
Noninterest expense declined $145 million, or 19%, from the prior year,
reflecting the impact of waste-reduction initiatives, such as lowering headcount
and processing costs, the sale of the international operations, reduced
marketing expense, as well as a decrease reflecting a change in the methodology
of allocating internal costs/1/, which were partially offset by higher
compensation-related expenses. The $46 million, or 7%, decrease from the
adjusted second quarter primarily reflected the same change in the methodology
of allocating internal costs, which accounted for $30 million of the decline.
Investment Management
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
Income Statement ($ millions)
Balance Sheet ($ billions) % change vs. Adjusted
3Q99 2Q00 3Q00 3Q99 2Q00 2Q00
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net interest income (1) $ 93 $ 101 $ 104 12% 3% $ 101
Provision for credit losses 1 2 2 NM -- 2
Noninterest income 285 288 286 -- (1) 288
Noninterest expense 251 272 252 -- (7) 263
Net income 82 73 86 5 18 79
Return on equity 41% 33% 36% 35%
Efficiency ratio 66 70 65 68
Loans - average $ 5.8 $ 6.5 $ 6.6 14 2 $ 6.5
Assets - average 7.1 7.5 7.6 7 1 7.5
Deposits - average 8.6 8.6 8.2 (5) (5) 8.6
Common equity - average 0.8 0.9 0.9 13 -- 0.9
Assets under management - eop 123.2 131.2 134.6 9 3 131.2
NM = not meaningful
(1) Fully taxable equivalent basis
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
Investment Management net income improved $4 million, or 5%, from the year-ago
period and 9% from the second quarter on an adjusted basis.
Net interest income of $104 million increased 12% from the year-ago period.
Higher spread income associated with the 14% increase in average loans was
partially offset by the effect of a 5% decrease in average deposits.
Noninterest income was essentially unchanged from the year-ago period. Fee
income growth in retail brokerage and insurance activities was offset by a
decline in institutional trust fees.
Noninterest expense was essentially unchanged from the year-ago period.
Increases in volume-driven brokerage commissions and insurance claims expenses
were offset by the impact of waste-reduction initiatives.
Period-end assets under management increased to $134.6 billion, or 9%, from the
year-ago period. One Group(R) mutual fund assets under management increased 19%
to $69.5 billion in the third quarter of 2000. One Group(R) fund performance
continues to remain strong, with 93% of funds rated three stars or
______________________
/1/ This change in allocation methodology better reflects the actual cost of
services provided and was consistently applied across all lines of business.
However, the only lines of business that had a material impact were First USA
with an offset in Corporate / Unallocated.
6
<PAGE>
higher by Morningstar. Average assets under management were basically unchanged
from the prior quarter.
Corporate Investments
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
Income Statement ($ millions)
Balance Sheet ($ billions) % change vs. Adjusted
3Q99 2Q00 3Q00 3Q99 2Q00 2Q00
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net interest income (1) $ 41 $ 30 $ 18 (56)% (40)% $ 30
Provision for credit losses -- 1 -- NM NM 1
Noninterest income 97 52 52 (46) -- 52
Noninterest expense 30 31 25 (17) (19) 31
Net income 89 61 52 (42) (15) 61
Return on equity 35% 20% 17% 20%
Efficiency ratio 22 38 36 38
Loans - average $3.5 $3.5 $3.6 3 3 $ 3.5
Assets - average 7.6 8.4 8.7 14 4 8.4
Common equity - average 1.0 1.2 1.2 20 -- 1.2
NM = not meaningful
(1) Fully taxable equivalent basis
----------------------------------------------------------------------------------------------------------------------
</TABLE>
Corporate Investments net income declined $37 million, or 42%, from the year-ago
period and $9 million from the prior quarter.
Net interest income of $18 million declined $23 million from the year-ago
quarter, reflecting continued higher funding rates as well as growth in
noninterest-bearing investments. The $12 million decline from the prior quarter
was driven by lower yields on the leasing and collateralized debt obligation
portfolios, as well as higher volumes and funding rates.
Noninterest income declined $45 million from the year-ago quarter but was
unchanged from the prior quarter. The year-ago comparison reflected lower
venture capital valuations and the continued weakness in the IPO market,
partially offset by improved gains from investments.
Noninterest expense decreased $5 million, or 17%, from the year-ago quarter and
$6 million, or 19%, from the second quarter as a result of waste-reduction
efforts.
7
<PAGE>
Corporate / Unallocated
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
Income Statement ($ millions)
Balance Sheet ($ billions) % change vs. Adjusted
3Q99 2Q00 3Q00 3Q99 2Q00 2Q00
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net interest income (1) $ 21 $ (75) $(140) NM% (87)% $ (75)
Provision for credit losses -- -- -- -- -- --
Noninterest income 110 (422) 36 (67) NM 10
Noninterest expense 17 582 157 NM (73) 51
Net income (loss) 89 (730) (157) NM 78 (70)
Assets - average $34.1 $42.0 $40.6 19 (3) $42.0
Deposits - average 20.2 20.5 22.9 13 12 20.5
Common equity - average 1.8 (1.1) (1.9) NM (73) (1.1)
NM = not meaningful
(1) Fully taxable equivalent basis
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
Corporate / Unallocated reported a net loss of $157 million compared with net
income of $89 million in the year-ago quarter.
Net interest income in the current quarter represented a net expense of $140
million. Net interest income for this line of business represents the earnings
on the corporate investment securities portfolio, net of the impact of interest
rate risk not allocated to the lines of business and the cost to carry
unallocated net assets and capital. This net amount will vary from period to
period as the unallocated net asset and capital positions change. The Company
will be reviewing the allocation methodology of interest expense.
Noninterest income of $36 million primarily included earnings on miscellaneous
assets. The year-ago quarter included several, previously disclosed, one-time
transactions. The investment securities portfolio restructuring was completed
during the quarter.
Noninterest expense in the quarter totaled $157 million. Of this amount,
approximately $70 million represented costs associated with losses from
operational errors, asset dispositions and severance-related expense. The
remainder represented unallocated corporate expenses, of which $30 million
resulted from this quarter's change in the methodology of allocating internal
overhead costs to the lines of business./2/
CREDIT QUALITY
Nonperforming assets were $2.136 billion at the end of the third quarter, up
$352 million from June 30, 2000. Nonperforming assets include nonperforming
commercial loans, other real estate owned and consumer loans that are 90 days
past due. The nonperforming to related assets ratio was 1.21% at September 30,
2000, up from 1.03% at June 30, 2000. This increase reflected the continued
deterioration in the commercial loan portfolio, with areas of weakness including
health care and certain acquisition finance transactions.
Total managed net charge-offs in the third quarter were $1.091 billion, or 1.86%
of total average managed loans, down slightly from $1.152 billion, or 1.99%, in
the second quarter and $1.105 billion, or
__________________
/2/ This change in allocation methodology better reflects the actual cost of
services provided and was consistently applied across all lines of business.
However, the only lines of business that had a material impact were First USA
with an offset in Corporate / Unallocated.
8
<PAGE>
2.01%, in the year-ago quarter. Credit card managed net charge-offs were 5.03%
in the third quarter compared with 5.33% in the year-ago quarter, but down from
5.44% in the prior quarter. Consumer loan net charge-offs of 0.87% were up from
0.62% in the year-ago quarter and from 0.82% in the prior quarter. Commercial
net charge-offs across all lines of business in the 2000 third quarter were
0.46%, up from 0.40% in the year-ago quarter and compared with 0.47% in the
second quarter.
At September 30, 2000, the allowance for credit losses was $3.090 billion, up
$107 million from the end of the prior quarter. This represented 1.75% of
period-end loans, up from 1.73% at June 30, 2000. The allowance for credit
losses is an estimate of inherent losses in the loan portfolio at a point of
time.
Overall credit quality trends continued to perform as expected, reflecting the
broad-based diversification of the portfolio. Nevertheless, further increases in
nonperforming assets and net charge-offs could occur, which could result in the
need to further build the allowance for loan losses.
CAPITAL MANAGEMENT
The tangible common equity to tangible managed assets ratio was 5.4% at
September 30, 2000, down from 5.7% at the end of the year-ago quarter, but
unchanged from June 30, 2000. Tier 1 and Total capital ratios were 7.5% and
10.9% at quarter end, respectively, up from 7.2% and 10.3%, respectively, at
June 30, 2000. This increase in the capital ratios reflected $1.9 billion of new
regulatory capital consisting of $0.9 billion of trust preferred securities and
$1.0 billion of subordinated debt. Capital ratios remain very strong and exceed
well-capitalized regulatory guidelines.
BANK ONE CORPORATION is the nation's fourth largest bank holding company, with
assets of more than $280 billion. Bank One offers a full range of financial
services to large corporate and middle market commercial customers and retail
consumers. It is the largest VISA credit card issuer, 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 more than 1,800 banking centers
and a nationwide network of ATMs. Information about Bank One's financial results
can be accessed on the Internet at www.bankone.com or through fax-on-demand at
---------------
877-ONE-FACT.
Forward-looking Statement
The following appears in accordance with the Private Securities Litigation
Reform Act of 1995:
This discussion of financial results contains forward-looking statements about
the Company, including descriptions of plans or objectives of its management for
future operations, products or services, and forecasts of its revenues, earnings
or other measures of economic performance. Forward-looking statements can be
identified by the fact that they do not relate strictly to historical or current
facts. They often include the words "believe," "expect," "anticipate," "intend,"
"plan," "estimate" or words of similar meaning, or future or conditional verbs
such as "will," "would," "should," "could" or "may."
Forward-looking statements, by their nature, are subject to risks and
uncertainties. A number of factors--many of which are beyond the Company's
control--could cause actual conditions, events or results to differ
significantly from those described in the forward-looking statements. The
Company's reports filed with the Securities and Exchange Commission, including
the Company's Form 10-K for the year ended December 31, 1999, describe some of
these factors, including certain credit, market, operational, liquidity and
interest rate risks associated with the Company's business and operations. Other
factors described in the Company's December 31, 1999 Form 10-K include changes
in business and economic conditions, competition, fiscal and monetary policies
and legislation including the Gramm-Leach-Bliley Act of 1999.
Forward-looking statements speak only as of the date they are made. The Company
does not undertake to update forward-looking statements to reflect circumstances
or events that occur after the date the forward-looking statements are made or
to
9
<PAGE>
reflect the occurrence of unanticipated events, such as further market
deterioration that adversely affects credit quality, auto lease residuals and
credit card asset values.
Line of Business Basis of Discussion
First USA's presentation is on a managed basis with information modified from
reported results to include credit card loans that were securitized and removed
from the balance sheet. The net revenue related to these securitized loans are
reclassified from noninterest income to net interest income and provision for
credit losses as if the securitization had not occurred.
In addition to showing reported results, solely for analytical purposes second
quarter results are also shown on an adjusted basis, which excludes the impact
of that quarter's significant items.
Conference Call and Webcast Information
A conference call and live Webcast discussing the quarter's results will be held
at 3:00 p.m. (EDT) today. To participate in the conference call, phone 800-263-
8506 (domestic) or 719-457-2681 (international); the access code is 693458. The
call will also be Webcast on the Internet at www.bankone.com. A playback of this
---------------
conference call will be available after 6:00 p.m. today through Friday, October
27 by calling 888-203-1112 (domestic) or 719-457-0820 (international); the
access code is 693458.
Supplemental Financial Schedules
A Summary of Selected Financial Information follows. Additional Consolidated and
Line of Business Results are available on Bank One's website www.bankone.com.
---------------
###
Media Contacts:
Thomas A. Kelly (312) 732-7007
Stan A. Lata (312) 732-6209
Investor Contacts:
Jay S. Gould (312) 732-5771
Sandra M. Catanzaro (312) 732-8013
Larry J. Peepo (312) 732-6638
10
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BANK ONE CORPORATION and Subsidiaries
Summary of Selected Financial Information
<TABLE>
<CAPTION>
Three Months Ended
-------------------------------------------------
Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
($ millions, except per-share amounts) 2000 2000 2000 1999 1999
---------------------------------------- -------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
Income Statement Data
---------------------
Net interest income (FTE) $ 2,242 $ 2,257 $ 2,228 $ 2,221 $ 2,271
Provision for credit losses 516 1,013 362 416 277
Noninterest income 1,734 288 1,821 1,782 2,098
Noninterest expense 2,593 3,507 2,661 3,030 2,713
Net income (loss) 581 (1,269) 689 411 925
Per Common Share Data
---------------------
Net income (loss) - basic $ 0.50 $ (1.11) $ 0.60 $ 0.36 $ 0.79
Net income (loss) - diluted (1) 0.50 (1.11) 0.60 0.36 0.79
Cash dividends declared 0.21 0.42 0.42 0.42 0.42
Book value 16.47 16.12 17.43 17.34 17.32
Balance Sheet data
------------------
Loans:
Managed $237,505 $234,412 $229,673 $ 229,196 $ 222,117
Reported 176,419 172,591 168,078 163,877 158,143
Deposits 164,130 163,169 164,643 162,278 156,900
Long-term debt (2) 42,641 39,093 38,753 35,435 34,735
Total assets:
Managed 324,780 316,011 317,176 315,064 311,490
Reported 283,373 272,709 273,008 269,425 264,135
Common stockholders' equity 19,042 18,630 20,081 19,900 19,860
Total stockholders' equity 19,232 18,820 20,271 20,090 20,050
Credit Quality
--------------
Net charge-offs to average loans 0.74% 0.75 0.64% 0.95 0.68%
Allowance for credit losses to loans outstanding 1.75 1.73 1.39 1.39 1.42
Nonperforming assets to related assets 1.21 1.03 0.99 1.02 1.06
Financial Performance Ratios
----------------------------
Net interest margin:
managed 4.66% 4.80% 4.91% 4.98 5.32%
reported 3.68 3.77 3.78 3.79 4.04
Return on assets 0.85 (1.87) 1.03 0.62 1.44
Return on common equity 12.2 (26.0) 13.9 8.2 18.2
Efficiency ratio:
Managed 54.6 103.8 53.7 62.1 52.1
Reported 65.2 137.8 65.7 75.7 62.1
Equity Ratios
-------------
Regulatory leverage ratio 7.5% 7.0% 7.7% 7.7% 7.9%
Risk-based capital:
Tier 1 ratio 7.5 7.2 7.7 7.7 7.7
Total capital ratio 10.9 10.3 10.6 10.7 10.8
Common equity/managed assets ratio 5.9 5.9 6.3 6.3 6.4
Tangible common equity/tangible managed assets 5.4 5.4 5.7 5.7 5.7
Common Stock Data
-----------------
Average shares outstanding, basic 1,156 1,153 1,149 1,147 1,167
Average shares outstanding, diluted (1) 1,167 1,153 1,155 1,154 1,177
Stock price, quarter-end $ 38.06 $ 26.56 $ 34.38 $ 32.00 $ 34.81
</TABLE>
(1) Common equivalent shares have been excluded from the computation of diluted
loss per share in the second quarter of 2000, as the effect would be
antidilutive.
(2) Includes trust preferred capital securities.
1
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Consolidated Statement of Income
<TABLE>
<CAPTION>
Three Months Ended
------------------------------------------------------
Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
($ millions, except per-share amounts) 2000 2000 2000 1999 1999
--------------------------------------------------------- ------ ------- ------ ------ ------
<S> <C> <C> <C> <C> <C>
Interest income $ 5,185 $ 4,966 $4,753 $4,548 $4,314
Interest expense 2,977 2,745 2,560 2,360 2,072
------------------------------------------------------
Net interest income 2,208 2,221 2,193 2,188 2,242
Provision for credit losses 516 1,013 362 416 277
------------------------------------------------------
Net interest income after provision for credit losses 1,692 1,208 1,831 1,772 1,965
------------------------------------------------------
Noninterest Income
Trading profits (losses) 58 (3) 64 17 30
Equity securities gains 31 60 143 100 86
Investment securities gains (losses) 16 (414) 15 2 6
------------------------------------------------------
Market-driven revenue 105 (357) 222 119 122
Credit card revenue 669 477 578 714 897
Fiduciary and investment management fees 196 200 195 216 201
Service charges and commissions 702 694 713 701 671
------------------------------------------------------
Fee-based revenue 1,567 1,371 1,486 1,631 1,769
Other income (loss) 62 (726) 113 32 207
------------------------------------------------------
Total noninterest income 1,734 288 1,821 1,782 2,098
------------------------------------------------------
Noninterest Expense
Salaries and benefits 1,106 1,132 1,098 1,081 970
Net occupancy and equipment expense 207 223 222 244 220
Depreciation and amortization 143 439 163 186 167
Outside services and processing 344 375 408 459 458
Marketing and development 200 245 226 230 341
Communication and transportation 187 207 212 216 205
Other expense 408 657 351 425 296
------------------------------------------------------
Total noninterest expense before merger and
restructuring charges 2,595 3,278 2,680 2,841 2,657
Merger-related and restructuring charges (2) 229 (19) 189 56
------------------------------------------------------
Total noninterest expense 2,593 3,507 2,661 3,030 2,713
Income (loss) before income taxes 833 (2,011) 991 524 1,350
Provision for income taxes 252 (742) 302 113 425
------------------------------------------------------
Net income (loss) $ 581 $(1,269) $ 689 $ 411 $ 925
======================================================
Net income (loss) attributable to common
stockholder's equity $ 578 $(1,272) $ 686 $ 408 $ 922
======================================================
Earnings (loss) per common share
--Basic $ 0.50 $ (1.11) $ 0.60 $ 0.36 $ 0.79
--Diluted (1) $ 0.50 $ (1.11) $ 0.60 $ 0.36 $ 0.79
Average common shares outstanding(millions)
--Basic 1,156 1,153 1,149 1,147 1,167
--Diluted (1) 1,167 1,153 1,155 1,154 1,177
</TABLE>
(1) Common equivalent shares have been excluded from the computation of diluted
loss per share in the second quarter of 2000, as the effect would be
antidilutive.
2
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Consolidated Statement of Income
Nine Months Ended
-------------------
Sep 30 Sep 30
($ millions, except per-share amounts) 2000 1999
----------------------------------------------------- ------- -------
Interest income $ 14,904 $ 12,746
Interest expense 8,282 5,913
------------------
Net interest income 6,622 6,833
Provision for credit losses 1,891 833
------------------
Net interest income after provision for credit
losses 4,731 6,000
------------------
Noninterest Income
Trading profits 119 130
Equity securities gains 234 315
Investment securities gains (losses) (383) 92
------------------
Market-driven revenue (30) 537
Credit card revenue 1,724 2,699
Fiduciary and investment management fees 591 577
Service charges and commissions 2,109 2,084
------------------
Fee-based revenue 4,424 5,360
Other income (loss) (551) 1,013
------------------
Total noninterest income 3,843 6,910
------------------
Noninterest Expense
Salaries and benefits 3,336 3,190
Net occupancy and equipment expense 652 666
Depreciation and amortization 745 511
Outside services and processing 1,127 1,284
Marketing and development 671 958
Communication and transportation 606 613
Other expense 1,416 873
------------------
Total noninterest expense before merger
and restructuring charges 8,553 8,095
Merger-related and restructuring charges 208 365
------------------
Total noninterest expense 8,761 8,460
------------------
Income (loss) before income taxes (187) 4,450
Provision for income taxes (188) 1,382
------------------
Net income (loss) $ 1 $ 3,068
==================
Net income (loss) attributable to common
stockholder's equity $ (8) $ 3,059
==================
Earnings per common share
--Basic $ (0.01) $ 2.60
--Diluted (1) $ (0.01) $ 2.58
Average common shares outstanding(millions)
--Basic 1,152 1,175
--Diluted (1) 1,152 1,188
(1) Common equivalent shares have been excluded from the computation of diluted
loss per share for the nine months ended September 30, 2000, as the effect
would be antidilutive.
3
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Consolidated Balance Sheet
<TABLE>
<CAPTION>
Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
($ millions) 2000 2000 2000 1999 1999
--------------------------------------------------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Assets
Cash and due from banks $ 15,388 $ 16,470 $ 15,267 $ 16,076 $ 15,325
Interest bearing due from banks 9,919 7,649 8,105 6,645 5,145
Federal funds sold and securities under resale agreements 12,666 10,592 10,998 9,782 13,257
Trading assets 7,140 10,681 5,587 7,952 6,561
Derivative product assets 3,492 3,278 3,207 3,372 3,746
Investment securities 45,262 38,288 47,459 47,912 47,971
Loans
Commercial 102,819 101,813 98,099 96,352 93,183
Consumer 68,802 66,306 65,087 63,488 58,944
Credit Card 4,798 4,472 4,892 4,037 6,016
---------------------------------------------------------
Total loans 176,419 172,591 168,078 163,877 158,143
Allowance for credit losses (3,090) (2,983) (2,338) (2,285) (2,252)
---------------------------------------------------------
Loans, net 173,329 169,608 165,740 161,592 155,891
Other assets:
Bank premises and equipment, net 2,976 3,073 3,266 3,317 3,279
Other 13,201 13,070 13,379 12,777 12,960
---------------------------------------------------------
Total other assets 16,177 16,143 16,645 16,094 16,239
---------------------------------------------------------
Total assets $ 283,373 $ 272,709 $ 273,008 $ 269,425 $ 264,135
=========================================================
Liabilities
Deposits
Demand $ 28,424 $ 29,055 $ 29,923 $ 31,194 $ 29,979
Savings 62,456 63,722 65,292 64,435 65,906
Time 46,945 43,170 40,263 36,877 35,136
Foreign offices 26,305 27,222 29,165 29,772 25,879
---------------------------------------------------------
Total deposits 164,130 163,169 164,643 162,278 156,900
Federal funds purchased and repurchase agreements 23,983 17,610 18,451 18,720 20,493
Other short-term borrowings 19,800 21,827 18,261 21,211 19,405
Long-term borrowings 40,152 37,515 37,175 33,857 33,157
Guaranteed preferred beneficial interest in the
Corporation's junior subordinated debt 2,489 1,578 1,578 1,578 1,578
Derivative product liabilities 3,149 3,201 3,100 3,332 3,902
Other liabilities 10,438 8,989 9,529 8,359 8,650
---------------------------------------------------------
Total liabilities 264,141 253,889 252,737 249,335 244,085
---------------------------------------------------------
Stockholders' Equity
Preferred stock 190 190 190 190 190
Common stock 12 12 12 12 12
Surplus 10,584 10,605 10,679 10,799 10,740
Retained earnings 9,819 9,484 11,242 11,037 11,099
Accumulated other adjustments to stockholders' equity (71) (135) (358) (263) (258)
Deferred compensation (157) (156) (165) (118) (128)
Treasury stock (1,145) (1,180) (1,329) (1,567) (1,605)
---------------------------------------------------------
Total stockholders' equity 19,232 18,820 20,271 20,090 20,050
---------------------------------------------------------
Total liabilities and stockholders' equity $ 283,373 $ 272,709 $ 273,008 $ 269,425 $ 264,135
=========================================================
Common Shares -- period-end (millions)
Common shares issued 1,181 1,181 1,181 1,182 1,182
Treasury shares 25 26 29 35 35
---------------------------------------------------------
Common shares outstanding 1,156 1,155 1,152 1,147 1,147
=========================================================
</TABLE>
4
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Average Balance Sheet, Yields, & Rates
<TABLE>
<CAPTION>
Third Quarter 2000 Second Quarter 2000 First Quarter 2000
------------------------ --------------------- ----------------------
Managed (1) 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>
Assets
Short-term investments $ 18,673 $ 306 6.52% $17,356 $ 276 6.40% $ 15,451 $ 226 5.88%
Trading assets (2) 8,252 138 6.65 6,442 100 6.24 6,909 100 5.82
Investment securities: (2)
U.S. government and federal agency 12,163 212 6.93 15,074 260 6.94 15,641 258 6.63
States and political subdivisions 1,308 25 7.60 1,398 27 7.77 1,483 28 7.59
Other 10,571 143 5.38 12,516 167 5.37 12,482 165 5.32
-------------------- ------------------- ------------------
Total investment securities 24,042 380 6.29 28,988 454 6.30 29,606 451 6.13
Loans (2) (3)
Commercial 101,224 2,196 8.63 100,146 2,097 8.42 97,973 1,941 7.97
Consumer 67,331 1,544 9.12 65,527 1,455 8.93 65,118 1,493 9.22
Credit Card 65,849 2,508 15.15 66,148 2,485 15.11 67,095 2,499 14.98
-------------------- ------------------- ------------------
Total loans, net 234,404 6,248 10.60 231,821 6,037 10.47 230,186 5,933 10.37
Total earning assets 285,371 7,072 9.86 284,607 6,867 9.70 282,152 6,710 9.56
Allowance for credit losses (3,036) (2,531) (2,367)
Other assets - nonearning 33,534 34,528 33,772
---------- ---------- ----------
Total assets $ 315,869 $316,604 $313,557
========== ========== ==========
Liabilities and Stockholders' Equity
Deposits -- interest-bearing
Savings $ 16,287 $ 62 1.51 $16,973 $ 60 1.42 $ 16,942 $ 61 1.45
Money market 47,080 419 3.54 48,450 410 3.40 47,606 400 3.38
Time 45,906 728 6.31 41,946 609 5.84 38,818 550 5.70
Foreign offices 26,228 410 6.22 28,848 408 5.69 29,443 378 5.16
-------------------- ------------------- ------------------
Total deposits -- interest-bearing 135,501 1,619 4.75 136,217 1,487 4.39 132,809 1,389 4.21
Federal funds purchased and securities
under repurchase agreements 19,331 311 6.40 18,632 281 6.07 19,316 266 5.54
Other short-term borrowings 61,788 1,068 6.88 63,029 1,033 6.59 64,751 1,003 6.23
Long-term debt 41,018 728 7.06 38,642 670 6.97 36,484 607 6.69
-------------------- ------------------- ------------------
Total interest-bearing liabilities 257,638 3,726 5.75 256,520 3,471 5.44 253,360 3,265 5.18
Demand deposits 26,456 27,692 27,921
Other liabilities 12,706 12,503 12,305
Preferred stock 190 190 190
Common stockholders' equity 18,879 19,699 19,781
---------- ---------- ----------
Total liabilities and equity $ 315,869 $316,604 $313,557
========== ========== ==========
Interest income/earning assets $7,072 9.86% $6,867 9.70% $6,710 9.56%
Interest expense/earning assets 3,726 5.20 3,471 4.90 3,265 4.65
---------------------- ----------------- -----------------
Net interest margin $3,346 4.66% $3,396 4.80% $3,445 4.91%
====================== ================= =================
</TABLE>
(1) Managed data adjusted for credit card securitization activity.
(2) Includes tax-equivalent adjustments based on a 35% federal income tax rate.
(3) Nonperforming loans are included in balances used to determine the average
rate.
5
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Average Balance Sheet, Yields, & Rates
<TABLE>
<CAPTION>
Fourth Quarter 1999 Third Quarter 1999
----------------------- ----------------------
Managed (1) Average Income/ Yield/ Average Income/ Yield/
($ millions) Balance Expense Rate Balance Expense Rate
-------------------------------------- ------- ------- ------- -------- ---------------
<S> <C> <C> <C> <C> <C>
Assets
Short-term investments $ 15,985 $ 215 5.34% $ 13,164 $ 159 4.79%
Trading assets (2) 6,614 99 5.94 6,185 84 5.39
Investment securities: (2)
U.S. government and federal agency 15,046 257 6.78 15,111 247 6.48
States and political subdivisions 1,646 30 7.23 1,765 32 7.19
Other 14,666 188 5.09 13,839 172 4.93
-------------------- -----------------
Total investment securities 31,358 475 6.01 30,715 451 5.83
Loans (2) (3)
Commercial 93,491 1,862 7.90 91,186 1,719 7.48
Consumer 62,577 1,334 8.46 59,876 1,285 8.51
Credit Card 68,678 2,570 14.85 69,153 2,661 15.27
-------------------- -----------------
Total loans, net 224,746 5,766 10.18 220,215 5,665 10.21
Total earning assets 278,703 6,555 9.33 270,279 6,359 9.33
Allowance for credit losses (2,294) (2,283)
Other assets - nonearning 34,939 33,721
--------- ---------
Total assets $311,348 $301,717
========= =========
Liabilities and Stockholders' Equity
Deposits -- interest-bearing
Savings $ 18,955 $ 70 1.47 $ 19,705 $ 74 1.49
Money market 46,066 379 3.26 46,526 367 3.13
Time 36,083 481 5.29 34,842 425 4.84
Foreign offices 27,292 338 4.91 25,350 296 4.63
-------------------- -----------------
Total deposits -- interest-bearing 128,396 1,268 3.92 126,423 1,162 3.65
Federal funds purchased and securities
under repurchase agreements 19,126 245 5.08 17,557 213 4.81
Other short-term borrowings 65,873 995 5.99 64,411 900 5.54
Long-term debt 35,672 550 6.12 31,326 460 5.83
-------------------- -----------------
Total interest-bearing liabilities 249,067 3,058 4.87 239,717 2,735 4.53
Demand deposits 29,223 29,189
Other liabilities 13,051 12,479
Preferred stock 190 190
Common stockholders' equity 19,817 20,142
--------- ---------
Total liabilities and equity $311,348 $301,717
========= =========
Interest income/earning assets $6,555 9.33% $6,359 9.33%
Interest expense/earning assets 3,058 4.35 2,735 4.01
------------------------ ----------------
Net interest margin $3,497 4.98% $3,624 5.32%
======================== ================
</TABLE>
(1) Managed data adjusted for credit card securitization activity.
(2) Includes tax-equivalent adjustments based on a 35% federal income tax rate.
(3) Nonperforming loans are included in balances used to determine the average
rate.
6
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Average Balance Sheet, Yields, & Rates
<TABLE>
<CAPTION>
Nine Months Ended
----------------------------------------------------------------
Sep 30, 2000 Sep 30, 1999
-------------------------------- ------------------------------
Managed (1) Average Income Yield/ Average Income Yield/
($ millions) Balance Expense Rate Balance Expense Rate
------------------------------------------------- ---------- ----------- -------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Short-term investments $ 17,166 $ 808 6.29% $ 13,299 $ 463 4.65%
Trading assets (1) 7,205 338 6.27 5,964 234 5.25
Investment securities: (1)
U.S. government and federal agency 14,285 730 6.83 15,290 751 6.57
States and political subdivisions 1,396 80 7.65 1,898 105 7.40
Other (2) 11,851 475 5.35 13,065 469 4.80
------------------- ------------------
Total investment securities 27,532 1,285 6.23 30,253 1,325 5.86
Loans (1) (3)
Commercial 99,786 6,234 8.35 89,067 4,950 7.43
Consumer 65,997 4,492 9.09 58,382 3,808 8.72
Credit card (2) 66,362 7,492 15.08 69,082 7,959 15.40
--------------------- --------------------
Total loans, net 232,145 18,218 10.48 216,531 16,717 10.32
Total earning assets 284,048 20,649 9.71 266,047 18,739 9.42
Allowance for credit losses (2,646) (2,289)
Other assets - nonearning 33,943 35,346
----------- -----------
Total assets $315,345 $ 299,104
=========== ===========
Liabilities and Stockholders' Equity
Deposits -- interest-bearing
Savings $ 16,732 $ 183 1.46 $ 20,173 $ 240 1.59
Money market 47,710 1,229 3.44 44,280 1,066 3.22
Time 42,237 1,887 5.97 34,905 1,303 4.99
Foreign offices 28,166 1,196 5.67 23,100 774 4.48
--------------------- --------------------
Total deposits -- interest-bearing 134,845 4,495 4.45 122,458 3,383 3.69
Federal funds purchased and securities
under repurchase agreements 19,094 858 6.00 19,909 690 4.63
Other short-term borrowings 63,184 3,104 6.56 62,774 2,511 5.35
Long-term debt 38,723 2,005 6.92 27,243 1,195 5.86
--------------------- --------------------
Total interest-bearing liabilities 255,846 10,462 5.46 232,384 7,779 4.48
Demand deposits 27,353 31,905
Other liabilities 12,505 14,210
Preferred stock 190 190
Common stockholders' equity 19,451 20,415
----------- -----------
Total liabilities and equity $315,345 $ 299,104
=========== ===========
Interest income/earning assets $20,649 9.71% $18,739 9.42%
Interest expense/earning assets 10,462 4.92 7,779 3.91
--------------------- -------------------
Net interest margin $10,187 4.79% $10,960 5.51%
===================== ===================
</TABLE>
(1) Managed data adjusted for credit card securitization activity.
(2) Includes tax-equivalent adjustments based on a 35% federal income tax
rate.
(3) Nonperforming loans are included in balances used to determine the average
rate.
7
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Average Balance Sheet, Yields, & Rates
<TABLE>
<CAPTION>
Third Quarter 2000 Second Quarter 2000 First Quarter 2000
----------------------- -------------------------- ---------------------------
Reported Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
($ millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate
---------------------------------------------------- ---------- --------- ---------- --------- ------ --------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Short-term investments $ 18,673 $ 306 6.52% $ 17,356 $ 276 6.40% $ 15,451 $ 226 5.88%
Trading assets (1) 8,252 138 6.65 6,442 100 6.24 6,909 100 5.82
Investment securities: (1)
U.S. government and federal agency 12,163 212 6.93 15,074 260 6.94 15,641 258 6.63
States and political subdivisions 1,308 25 7.60 1,398 27 7.77 1,483 28 7.59
Other 28,861 603 8.31 29,813 575 7.76 30,406 564 7.46
---------------------- ------------------ ------------------
Total investment securities 42,332 840 7.89 46,285 862 7.49 47,530 850 7.19
Loans (1) (2)
Commercial 101,224 2,196 8.63 100,146 2,097 8.42 97,973 1,941 7.97
Consumer 67,331 1,544 9.12 65,527 1,455 8.93 65,118 1,493 9.22
Credit Card 4,704 195 16.49 5,070 212 16.82 4,332 178 16.53
---------------------- ------------------ ------------------
Total loans, net 173,259 3,935 9.04 170,743 3,764 8.87 167,423 3,612 8.68
Total earning assets 242,516 5,219 8.56 240,826 5,002 8.35 237,313 4,788 8.11
Allowance for credit losses (3,036) (2,531) (2,367)
Other assets - nonearning 33,534 34,528 33,772
----------- ---------- ----------
Total assets $ 273,014 $ 272,823 $268,718
=========== ========== ==========
Liabilities and Stockholders' Equity
Deposits -- interest-bearing
Savings $ 16,287 $ 62 1.51 $ 16,973 $ 60 1.42 $ 16,942 $ 61 1.45
Money market 47,080 419 3.54 48,450 410 3.40 47,606 400 3.38
Time 45,906 728 6.31 41,946 609 5.84 38,818 550 5.70
Foreign offices 26,228 410 6.22 28,848 408 5.69 29,443 378 5.16
---------------------- ------------------ ------------------
Total deposits -- interest-bearing 135,501 1,619 4.75 136,217 1,487 4.39 132,809 1,389 4.21
Federal funds purchased and securities
under repurchase agreements 19,331 311 6.40 18,632 281 6.07 19,316 266 5.54
Other short-term borrowings 18,933 319 6.70 19,248 307 6.41 19,912 298 6.02
Long-term debt 41,018 728 7.06 38,642 670 6.97 36,484 607 6.69
---------------------- ------------------ ------------------
Total interest-bearing liabilities 214,783 2,977 5.51 212,739 2,745 5.19 208,521 2,560 4.94
Demand deposits 26,456 27,692 27,921
Other liabilities 12,706 12,503 12,305
Preferred stock 190 190 190
Common stockholders' equity 18,879 19,699 19,781
----------- ---------- ----------
Total liabilities and equity $ 273,014 $ 272,823 $268,718
=========== ========== ==========
Interest income/earning assets $ 5,219 8.56% $5,002 8.35% $4,788 8.11%
Interest expense/earning assets 2,977 4.88 2,745 4.58 2,560 4.33
----------------------- ------------------- -----------------
Net interest margin $ 2,242 3.68% $2,257 3.77% $2,228 3.78%
======================= =================== =================
</TABLE>
(1) Includes tax-equivalent adjustments based on a 35% federal income tax
rate.
(2) Nonperforming loans are included in balances used to determine the average
rate.
8
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Average Balance Sheet, Yields, & Rates
<TABLE>
<CAPTION>
Fourth Quarter 1999 Third Quarter 1999
----------------------- ---------------------
Reported Average Income/ Yield/ Average Income/ Yield/
($ millions) Balance Expense Rate Balance Expense Rate
---------------------------------------------------- ----------- --------- --------- ----------- ------
<S> <C> <C> <C> <C> <C> <C>
Assets
Short-term investments $ 15,985 $ 215 5.34% $ 13,164 $ 159 4.79%
Trading assets (1) 6,614 99 5.94 6,185 84 5.39
Investment securities: (1)
U.S. government and federal agency 15,046 257 6.78 15,111 247 6.48
States and political subdivisions 1,646 30 7.23 1,765 32 7.19
Other 32,495 600 7.33 29,013 541 7.40
---------------------- --------------------
Total investment securities 49,187 887 7.15 45,889 820 7.09
Loans (1) (2)
Commercial 93,491 1,862 7.90 91,186 1,719 7.48
Consumer 62,577 1,334 8.46 59,876 1,285 8.51
Credit Card 4,526 184 16.13 6,905 276 15.86
---------------------- --------------------
Total loans, net 160,594 3,380 8.35 157,967 3,280 8.24
Total earning assets 232,380 4,581 7.82 223,205 4,343 7.72
Allowance for credit losses (2,294) (2,283)
Other assets - nonearning 34,939 33,721
----------- ----------
Total assets $ 265,025 $254,643
=========== ==========
Liabilities and Stockholders' Equity
Deposits -- interest-bearing
Savings $ 18,955 $ 70 1.47 $ 19,705 $ 74 1.49
Money market 46,066 379 3.26 46,526 367 3.13
Time 36,083 481 5.29 34,842 425 4.84
Foreign offices 27,292 338 4.91 25,350 296 4.63
---------------------- --------------------
Total deposits -- interest-bearing 128,396 1,268 3.92 126,423 1,162 3.65
Federal funds purchased and securities
under repurchase agreements 19,126 245 5.08 17,557 213 4.81
Other short-term borrowings 19,550 297 6.03 17,337 237 5.42
Long-term debt 35,672 550 6.12 31,326 460 5.83
---------------------- --------------------
Total interest-bearing liabilities 202,744 2,360 4.62 192,643 2,072 4.27
Demand deposits 29,223 29,189
Other liabilities 13,051 12,479
Preferred stock 190 190
Common stockholders' equity 19,817 20,142
----------- ----------
Total liabilities and equity $ 265,025 $254,643
=========== ==========
Interest income/earning assets $ 4,581 7.82% $ 4,343 7.72%
Interest expense/earning assets 2,360 4.03 2,072 3.68
----------------------- -------------------
Net interest margin $ 2,221 3.79% $ 2,271 4.04%
======================= ===================
</TABLE>
(1) Includes tax-equivalent adjustments based on a 35% federal income tax
rate.
(2) Nonperforming loans are included in balances used to determine the average
rate.
9
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Average Balance Sheet, Yields, & Rates
<TABLE>
<CAPTION>
Nine Months Ended
-------------------------------------------------------------------
Reported Sep 30, 2000 Sep 30, 1999
---------------------------------- -------------------------------
Average Income Yield/ Average Income Yield/
($ millions) Balance Expense Rate Balance Expense Rate
------------------------------------- --------------------------------- ---------- -------------------
<S> <C> <C> <C> <C> <C> <C>
Short-term investments $ 17,166 $ 808 6.29% $ 13,299 $ 463 4.65%
Trading assets (1) 7,205 338 6.27 5,964 234 5.25
Investment securities: (1)
U.S. government and federal agency 14,285 730 6.83 15,290 751 6.57
States and political subdivisions 1,396 80 7.65 1,898 105 7.40
Other (1) 29,690 1,742 7.84 28,513 1,568 7.35
------------------------ ----------------------
Total investment securities 45,371 2,552 7.51 45,701 2,424 7.09
Loans (1) (2)
Commercial 99,786 6,234 8.35 89,067 4,950 7.43
Consumer 65,997 4,492 9.09 58,382 3,808 8.72
Credit card 4,702 585 16.62 8,146 955 15.67
------------------------ ----------------------
Total loans, net 170,485 11,311 8.86 155,595 9,713 8.35
Total earning assets 240,227 15,009 8.35 220,559 12,834 7.78
Allowance for credit losses (2,646) (2,289)
Other assets - nonearning 33,943 35,346
------------ ------------
Total assets $271,524 $ 253,616
============ ============
Liabilities and Stockholders' Equity
Deposits -- interest-bearing
Savings $ 16,732 $ 183 1.46 $ 20,173 $ 240 1.59
Money market 47,710 1,229 3.44 44,280 1,066 3.22
Time 42,237 1,887 5.97 34,905 1,303 4.99
Foreign offices 28,166 1,196 5.67 23,100 774 4.48
------------------------ ----------------------
Total deposits -- interest-bearing 134,845 4,495 4.45 122,458 3,383 3.69
Federal funds purchased and securities
under repurchase agreements 19,094 858 6.00 19,909 690 4.63
Other short-term borrowings 19,363 924 6.37 17,286 645 4.99
Long-term debt 38,723 2,005 6.92 27,243 1,195 5.86
------------------------ ----------------------
Total interest-bearing liabilities 212,025 8,282 5.22 186,896 5,913 4.23
Demand deposits 27,353 31,905
Other liabilities 12,505 14,210
Preferred stock 190 190
Common stockholders' equity 19,451 20,415
------------ ------------
Total liabilities and equity $271,524 $ 253,616
============ ============
Interest income/earning assets $15,009 8.35% $12,834 7.78%
Interest expense/earning assets 8,282 4.61 5,913 3.58
---------------------- --------------------
Net interest margin $ 6,727 3.74% $ 6,921 4.20%
====================== ====================
</TABLE>
(1) Includes tax-equivalent adjustments based on a 35% federal income tax rate.
(2) Nonperforming loans are included in balances used to determine the average
rate.
10
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Credit Quality
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------------------------------------
Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
($ millions) 2000 2000 2000 1999 1999
------------------------------------------------------ ------------ --------- --------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Provision for credit losses $ 516 $ 1,013 $ 362 $ 416 $ 277
Gross charge-offs $ 388 $ 383 $ 338 $ 468 $ 342
Recoveries 69 64 72 85 75
-----------------------------------------------------------
Net charge-offs $ 319 $ 319 $ 266 $ 383 $ 267
Net charge-offs
Commercial $ 116 $ 117 $ 84 $ 71 $ 91
Consumer 147 135 123 256 93
Credit card 56 67 59 56 83
-----------------------------------------------------------
Total net charge-offs $ 319 $ 319 $ 266 $ 383 $ 267
Credit card net charge-offs -- managed $ 828 $ 900 $ 969 $ 1,119 $ 921
Net charge-off ratios
Commercial 0.46% 0.47% 0.34% 0.30% 0.40%
Consumer 0.87 0.82 0.76 1.64 0.62
Credit card 4.76 5.29 5.45 4.95 4.81
Total net charge-off ratio 0.74 0.75 0.64 0.95 0.68
Total net charge-off ratio -- managed 1.86 1.99 2.04 2.57 2.01
Credit card net charge-off ratio-- managed 5.03 5.44 5.78 6.52 5.33
Allowance for credit losses -- period-end $ 3,090 $ 2,983 $ 2,338 $ 2,285 $ 2,252
Nonperforming assets -- period-end
Nonperforming loans
Commercial $ 1,464 $ 1,250 $ 1,093 $ 1,053 $ 1,027
Consumer 562 440 471 506 542
-----------------------------------------------------------
Total 2,026 1,690 1,564 1,559 1,569
Other, including other real estate owned 110 94 97 106 113
-----------------------------------------------------------
Total nonperforming assets $ 2,136 $ 1,784 $ 1,661 $ 1,665 $ 1,682
Allowance to ending loans 1.75% 1.73% 1.39% 1.39% 1.42%
Allowance to nonperforming loans 153 177 149 147 144
Nonperforming assets to related assets 1.21 1.03 0.99 1.02 1.06
Credit card delinquency rate - managed
30+ days 4.14% 3.83% 4.08% 4.57% 4.74%
90+ days 1.79% 1.69% 1.91% 2.13% 2.07%
</TABLE>
11
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Capital and Related Information
<TABLE>
<CAPTION>
Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
($ millions, except per-share amounts) 2000 2000 2000 1999 1999
---------- ----------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C>
Regulatory leverage ratio 7.5% 7.0% 7.7% 7.7% 7.9%
Tier 1 capital ratio 7.5 7.2 7.7 7.7 7.7
Total risk adjusted capital ratio 10.9 10.3 10.6 10.7 10.8
Common equity/ managed assets ratio 5.9 5.9 6.3 6.3 6.4
Tangible common equity / tangible managed assets 5.4 5.4 5.7 5.7 5.7
Book value of common equity per share $ 16.47 $ 16.12 $ 17.43 $ 17.34 $ 17.32
Regulatory Risk Weighted Assets
-------------------------------
Tier 1 capital $ 20,433 $ 19,121 $ 20,573 $ 20,247 $ 20,128
Tier 2 capital 9,119 8,350 7,899 7,967 7,991
-------------------------------------------------------------
Total capital $ 29,552 $ 27,471 $ 28,472 $ 28,214 $ 28,119
Total risk weighted assets $272,095 $266,937 $268,339 $263,169 $259,747
Intangible Assets
-----------------
Goodwill $ 876 $ 894 $ 916 $ 934 $ 955
Other nonqualifying intangibles 405 436 637 669 723
-------------------------------------------------------------
Subtotal $ 1,281 $ 1,330 $ 1,553 $ 1,603 $ 1,678
Qualifying intangibles 235 256 555 583 592
-------------------------------------------------------------
Total $ 1,516 $ 1,586 $ 2,108 $ 2,186 $ 2,270
Managed Income Statement Statistics (1)
($ millions)
------------------------------------------
Net interest income -- FTE $ 3,346 $ 3,396 $ 3,445 $ 3,497 $ 3,624
Provision for credit losses 1,288 1,846 1,272 1,296 1,115
Credit card revenue 337 171 271 318 382
Other noninterest income 1,065 (189) 1,243 1,068 1,201
Noninterest expense 2,593 3,507 2,661 3,030 2,713
Net income 581 (1,269) 689 411 925
</TABLE>
(1) Adjusted for credit card securitization activity.
12
<PAGE>
BANK ONE CORPORATION LINE OF BUSINESS DETAIL*
<TABLE>
<CAPTION>
Three Months Ended Sep 30, 2000
-------------------------------
Income Statement ($ millions) Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Chg Prior Yr. Chg. Prior Qtr
Balance Sheet ($ billions) 2000 2000 2000 1999 1999 1999 1999 Amt % Amt %
---- ---- ---- ---- ---- ---- ---- --- - --- -
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Retail (incld. Wingspan)
---------------------------------
Net interest income FTE $ 1,236 $ 1,205 $ 1,236 $ 1,118 $ 1,100 $ 1,082 $ 1,079 $ 136 12% $ 31 3%
Provision 207 121 167 116 83 83 133 124 149% 86 71%
Noninterest income 326 330 306 339 395 408 399 (69) -17% (4) -1%
Noninterest expense 959 1,024 1,002 995 1,000 962 976 (41) -4% (65) -6%
----- ------ -------- -------- -------- -------- -------- ---- ----
Pretax income (FTE) 396 390 373 346 412 445 369 (16) -4% 6 2%
Taxes & FTE adj 145 143 137 110 144 155 122 1 1% 2 1%
----- ------ -------- -------- -------- -------- -------- ---- ----
Net Income - adjusted 251 247 236 236 268 290 247 (17) -6% 4 2%
Significant items 0 (328) 0 0 0 0 0 0 0% 328 N/M
----- ------ -------- -------- -------- -------- ------- ----
Net income - reported 251 (81) 236 236 268 290 247 (17) -6% 332 N/M
Return on equity ** 17% 17% 18% 20% 23% 25% 22% -6% 0%
Efficiency ratio ** 61% 67% 65% 68% 67% 65% 66% -6% -6%
** Net income - adjusted
Loans - avg $ 74.7 $ 73.6 $ 73.1 $ 68.8 $ 66.9 $ 64.9 $ 63.9 $ 7.8 12% $ 1.1 1%
Assets - avg 78.8 77.9 79.6 74.9 73.4 71.4 70.4 5.4 7% 0.9 1%
Deposits - avg 87.9 89.4 88.3 87.6 88.5 89.2 90.9 (0.6) -1% (1.5) -2%
Common equity - avg 5.9 5.9 5.3 4.6 4.7 4.6 4.5 1.2 26% 0.0 0%
Supplemental Information:
------------------------
Headcount *** 35,979 36,700 N/A N/A N/A N/A N/A N/A N/A (721) -2%
*** Full-time
Loans
-----
Commercial loans - avg $ 11.8 $ 11.8 $ 11.5 $ 11.6 $ 10.9 $ 10.8 $ 10.5 $ 0.9 8% $ -- 0%
Home equity loans - avg 28.3 26.3 25.5 23.4 20.6 18.9 17.5 7.7 37% 2.0 8%
Indirect auto loans/leases - avg 24.0 24.4 24.3 24.0 23.5 23.2 22.9 0.5 2% (0.4) -2%
Other personal loans - avg 10.6 11.1 11.8 9.8 11.9 12.0 13.0 (1.3) -11% (0.5) -5%
Total loans - avg 74.7 73.6 73.1 68.8 66.9 64.9 63.9 7.8 12% 1.1 1%
Distribution
------------
# Banking centers 1,818 1,832 1,839 1,854 1,884 1,919 1,955 (66) -4% (14) -1%
# ATMs 6,377 6,530 6,651 6,824 7,088 7,372 8,007 (711) -10% (153) -2%
# on-line customers (000s) 825 690 590 488 440 326 306 385 88% 135 20%
Investments
-----------
IMG sales volume ($ millions) $ 1,028 $ 1,105 $ 1,193 $ 959 $ 969 $ 1,223 $ 926 $ 59 6% $ (77) -7%
</TABLE>
NOTE: Certain balance sheet breakdowns (i.e., loans, deposits) are based on
line-of-business definitions and as a result would not necessarily agree to
consolidated financial information, which is based on a regulatory reporting
definitional framework
*2Q00 adjusted for one-time items; FUSA on managed basis.
See 3/17/00 Form 10-K for definitions and methodologies.
1
<PAGE>
BANK ONE CORPORATION LINE OF BUSINESS DETAIL*
<TABLE>
<CAPTION>
Three Months Ended Sep 30, 2000
----------------------------------
Income Statement ($ millions) Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Chg Prior Yr. Chg. Prior Qtr
Balance Sheet ($ billions) 2000 2000 2000 1999 1999 1999 1999 Amt % Amt %
---- ---- ---- ---- ---- ---- ---- --- - --- -
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Commercial Banking
--------------------------
Net interest income FTE $ 685 $ 694 $ 664 $ 672 $ 636 $ 628 $ 602 $ 49 8% $ (9) -1%
Provision 225 150 132 113 109 108 105 116 106% 75 50%
Noninterest income 378 356 354 316 285 329 351 93 33% 22 6%
Noninterest expense 566 563 570 582 507 538 568 59 12% 3 1%
----- ----- ------ ------ ------ ------ ------ ------ ------
Pretax income (FTE) 272 337 316 293 305 311 280 (33) -11% (65) -19%
Taxes & FTE adj 100 123 116 94 107 108 92 (7) -7% (23) -19%
----- ----- ------ ------ ------ ------ ------ ------ ------
Net Income - adjusted 172 214 200 199 198 203 188 (26) -13% (42) -20%
Significant items 0 (427) 0 0 0 0 0 0 0% 427 N/M
----- ----- ------ ------ ------ ------ ------ ------ ------
Net income - reported 172 (213) 200 199 198 203 188 (26) -13% 385 N/M
Return on equity ** 10% 13% 13% 14% 14% 14% 13% -4% -3%
Efficiency ratio ** 53% 54% 56% 59% 55% 56% 60% -2% -1%
** Net income - adjusted
Loans - avg $ 83.4 $ 82.1 $ 80.4 $ 78.0 $ 74.9 $ 73.0 $ 71.5 $ 8.5 11% $ 1.3 2%
Assets - avg 111.0 110.2 110.2 109.9 104.4 104.4 104.9 6.6 6% 0.8 1%
Deposits - avg 39.2 40.9 39.2 38.9 37.3 37.4 37.2 1.9 5% (1.7) -4%
Common equity - avg 6.7 6.7 6.2 5.6 5.7 5.8 5.7 1.0 18% 0.0 0%
Supplemental Information:
-------------------------
Headcount *** 16,551 16,394 N/A N/A N/A N/A N/A N/A N/A 157 1%
*** Full-time
Com'l Banking Credit Quality
----------------------------
Loans - charge-off % 0.51% 0.52% 0.41% 0.33% 0.50% 0.41% 0.36% 0.01% -0.01%
Nonperforming loans - $ mill. $ 1,362 1,054 978 985 $ 965 $ 905 $ 860 $ 397 41% $ 308 29%
Nonperforming loans - % 1.60% 1.19% 1.24% 1.24% 1.29% 1.23% 1.22% 0.31% 0.41%
Middle Market
-------------
Loans and Leases - avg $ 32.6 $ 32.0 $ 31.0 $ 29.9 $ 29.5 $ 29.2 $ 30.0 $ 3.1 11% $ 0.6 2%
Credit Quality
Charge-offs - % 0.39% 0.11% 0.26% 0.18% 0.24% 0.18% 0.15% 0.15% 0.28%
Nonperforming loans - $ mill. $ 454 $ 301 $ 399 $ 371 $ 327 $ 279 $ 332 $ 127 39% $ 153 51%
Nonperforming loans - % 1.36% 0.92% 1.08% 1.05% 1.22% 1.02% 1.27% 0.14% 0.44%
Deposits - avg $ 17.8 $ 18.8 $ 18.7 $ 18.8 $ 18.8 $ 18.6 $ 18.6 $ (1.0) -5% (1.0) -5%
Corporate Banking
-----------------
Loans and Leases - avg $ 50.8 $ 50.1 $ 49.4 $ 48.1 $ 45.4 $ 43.8 $ 41.5 $ 5.4 12% $ 0.7 1%
Credit Quality
Charge-offs - % 0.51% 0.70% 0.48% 0.44% 0.64% 0.54% 0.46% -0.13% -0.19%
Nonperforming loans - $ mill. $ 909 $ 753 $ 579 $ 614 $ 639 $ 626 $ 528 $ 270 42% $ 156 21%
Nonperforming loans - % 1.56% 1.30% 1.16% 1.39% 1.33% 1.36% 1.20% 0.23% 0.26%
Deposits - avg $ 21.3 $ 22.1 $ 20.5 $ 20.1 $ 18.5 $ 18.8 $ 18.6 $ 2.8 15% $ (0.8) -4%
Syndications
------------
Lead Arranger Deals:
Volume ($ billions) $ 16.6 $ 16.5 $ 9.6 $ 16.2 $ 13.2 $ 9.6 $ 8.9 $ 3.4 26% $ 0.1 1%
Number of transactions 60 60 35 66 42 41 41 18 43% 0 0%
League table standing - rank 4 4 5 4 4 5 5 0 0% 0 0%
League table standing - mkt share 5% 5% 5% 7% 5% 3% 5% 0 0% 0 0%
</TABLE>
*2Q00 adjusted for one-time items; FUSA on managed basis.
See 3/17/00 Form 10-K for definitions and methodologies.
2
<PAGE>
BANK ONE CORPORATION LINE OF BUSINESS DETAIL*
<TABLE>
<CAPTION>
Three Months Ended Sep 30, 2000
-------------------------------
Income Statement ($ millions) Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Chg Prior Yr. Chg. Prior Qtr
Balance Sheet ($ billions) 2000 2000 2000 1999 1999 1999 1999 Amt % Amt %
---- ---- ---- ---- ---- ---- ---- --- - --- -
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
First USA
----------------------------
Net interest income FTE $ 1,442 $ 1,451 $ 1,525 $ 1,570 $ 1,733 $ 1,781 $ 1,797 $ (291) -17% $ (9) -1%
Provision 853 900 969 933 922 898 840 (69) -7% (47) -5%
FAS 125 gains (22) (30) (41) (26) 12 50 25 (34) N/M 8 27%
** Excludes charges in excess of ** **
normal run rate
Other noninterest income 345 337 305 445 398 405 323 (53) -13% 8 2%
----- ----- ----- ----- ----- ----- ----- -----
Noninterest income 324 307 264 419 410 455 348 (86) -21% 17 6%
Noninterest expense 633 679 715 754 778 818 854 (145) -19% (46) -7%
----- ----- ----- ----- ----- ----- ----- ----- -----
Pretax income (FTE) 280 179 105 302 443 520 451 (163) -37% 101 56%
Taxes & FTE adj 103 66 38 96 155 181 149 (52) -34% 37 56%
----- ----- ----- ----- ----- ----- ----- ----- -----
Net Income - adjusted 177 113 67 206 288 339 302 (111) -39% 64 57%
Significant items 0 (492) 0 0 0 0 0 0 0 492 N/M
----- ----- ----- ----- ----- ----- ----- ----- -----
Net income - reported 177 (379) 67 206 288 339 302 (111) -39% 556 N/M
Return on O/S (ROO) pretax *** 1.7% 1.1% 0.6% 1.7% 2.5% 3.0% 2.7% -0.9% 0.6%
Return on equity *** 12% 7% 4% 14% 19% 23% 20% -7% 5%
Efficiency ratio *** 36% 39% 40% 38% 36% 37% 40% 0% -3%
*** Net income - adjusted
Loans - avg $ 65.9 $ 66.1 $ 67.1 $ 68.7 $ 69.2 $ 68.9 $ 69.1 $ (3.3) -5% $ (0.2) 0%
Assets - avg 69.2 70.6 72.8 74.9 75.0 75.0 74.8 (5.8) -8% (1.4) -2%
Common equity - avg 6.1 6.1 6.2 6.0 6.1 6.0 6.0 0.0 0% 0.0 0%
Supplemental Information:
------------------------
Headcount **** 10,856 11,009 N/A N/A N/A N/A N/A N/A N/A (153) -1%
**** Full-time
% of Avg. Outstandings *
------------------------
Net interest income FTE 8.71% 8.83% 9.14% 9.07% 9.94% 10.37% 10.55% -1.23% -0.12%
Provision 5.15% 5.44% 5.78% 5.39% 5.33% 5.23% 4.93% -0.18% -0.29%
Noninterest income 1.96% 1.87% 1.58% 2.42% 2.35% 2.65% 2.04% -0.39% 0.09%
Noninterest expense 3.82% 4.13% 4.29% 4.35% 4.46% 4.76% 5.01% -0.64% -0.31%
Pretax income FTE 1.69% 1.09% 0.63% 1.74% 2.54% 3.03% 2.65% -0.85% 0.60%
Net income 1.07% 0.69% 0.40% 1.19% 1.65% 1.97% 1.77% -0.58% 0.38%
Credit card loans - eop
-----------------------
Owned credit card loans $ 4.8 $ 4.5 $ 4.9 $ 4.0 $ 6.0 $ 8.1 $ 9.4 $ (1.2) -20% $ 0.3 7%
Seller's interest in credit cards 19.7 18.5 17.4 19.7 16.6 14.5 14.7 3.1 19% 1.2 6%
----- ----- ----- ----- ----- ----- ----- ----- -----
Loans on balance sheet 24.5 23.0 22.3 23.7 22.6 22.6 24.1 1.9 8% 1.5 7%
Securitized credit card loans 41.4 43.3 44.2 45.7 47.4 46.9 44.3 (6.0) -13% (1.9) -4%
----- ----- ----- ----- ----- ----- ----- ----- -----
Managed credit card loans $ 65.9 $ 66.3 $ 66.5 $ 69.4 $ 70.0 $ 69.5 $ 68.4 $ (4.1) -6% $ (0.4) -1%
Credit Quality
--------------
Managed charge-offs-$ $ 828 $ 900 $ 969 $ 1,119 $ 921 $ 905 $ 845 $ (93) -10% $ (72) -8%
Managed charge-offs-ratio 5.03% 5.44% 5.78% 6.52% 5.33% 5.25% 4.89% -0.30% -0.41%
Delinquency ratio - 30+ days 4.14% 3.83% 4.08% 4.57% 4.74% 4.30% 4.51% -0.60% 0.31%
Delinquency ratio - 90+ days 1.79% 1.69% 1.91% 2.13% 2.07% 1.96% 2.06% -0.28% 0.10%
Charge volume ($ mill) $ 34.6 $ 36.8 $ 34.0 $ 37.5 $ 36.1 $ 35.6 $ 33.5 $ (1.5) -4% $ (2.2) -6%
New accounts opened (000s) 727 826 950 1,076 1,835 2,287 2,910 (1,108) -60% (99) -12%
Cards issued (000s) 53,650 54,648 56,378 64,191 64,523 65,620 64,863 (10,873) -17% (998) -2%
</TABLE>
*2Q00 adjusted for one-time items; FUSA on managed basis.
See 3/17/00 Form 10-K for definitions and methodologies.
3
<PAGE>
BANK ONE CORPORATION LINE OF BUSINESS DETAIL*
<TABLE>
<CAPTION>
Three Months Ended Sep 30, 2000
-------------------------------
Income Statement ($ millions) Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Chg Prior Yr. Chg. Prior Qtr
Balance Sheet ($ billions) 2000 2000 2000 1999 1999 1999 1999 Amt % Amt %
---- ---- ---- ---- ---- ---- ---- --- - --- -
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Management
-------------------------
Net interest income FTE $ 104 $ 101 $ 100 $ 91 $ 93 $ 99 $ 93 $ 11 12% $ 3 3%
Provision 2 2 2 1 1 0 0 1 100% 0 0%
Noninterest income 286 288 287 297 285 295 302 1 0% (2) -1%
Noninterest expense 252 263 257 261 251 255 308 1 0% (11) -4%
------- ------- ------- ------- ------- ------- ------- ------ -------
Pretax income (FTE) 136 124 128 126 126 139 87 10 8% 12 10%
Taxes & FTE adj 50 45 47 40 44 48 29 6 14% 5 12%
------- ------- ------- ------- ------- ------- ------- ------ -------
Net Income - adjusted 86 79 81 86 82 91 58 4 5% 7 9%
Significant items 0 (6) 0 0 0 0 0 0 0% 6 N/M
------- ------- ------- ------- ------- ------- ------- ------ -------
Net income - reported 86 73 81 86 82 91 58 4 5% 13 18%
Return on equity ** 36% 35% 36% 38% 41% 41% 26% -5% -1%
Efficiency ratio ** 65% 68% 66% 67% 66% 65% 78% -1% -3%
** Net income - adjusted
Loans - avg $ 6.6 $ 6.5 $ 6.4 $ 6.0 $ 5.8 $ 5.7 $ 5.4 $ 0.8 14% $ 0.1 2%
Assets - avg 7.6 7.5 7.7 7.4 7.1 7.1 6.9 0.5 7% 0.1 1%
Deposits - avg 8.2 8.6 8.7 8.9 8.6 8.7 8.9 (0.4) -5% (0.4) -5%
Common equity - avg 0.9 0.9 0.9 0.9 0.8 0.9 0.9 0.1 18% 0.0 5%
Supplemental Information:
------------------------
Headcount *** 6,583 6,645 N/A N/A N/A N/A N/A N/A N/A (62) -1%
*** Full-time
Assets Under Management
-----------------------
Mutual Funds - EOP $ 69.5 $ 67.4 $ 66.9 $ 64.4 $ 58.3 $ 59.6 $ 57.5 $ 11.2 19% $ 2.1 3%
Other - EOP 65.1 63.8 63.7 64.5 64.9 67.4 67.3 0.2 0% 1.3 2%
------- ------- ------- ------- ------- ------- ------- ------
Total AUM - EOP $ 134.6 $ 131.2 $ 130.6 $ 128.9 $ 123.2 $ 127.0 $ 124.8 $ 11.4 9% $ 3.4 3%
Morningstar Rankings
--------------------
% of 4 & 5 ranked funds 55% 62% 59% 54% 65% 61% 69% -10% -7%
% of 3+ ranked funds 93% 90% 90% 84% 85% 88% 85% 8% 3%
Retail Brokerage
----------------
Mutual fund & annuities sales $ 1,012 $ 1,103 $ 1,182 $ 941 $ 957 $ 1,181 $ 893 $ 55 6% $ (91) -8%
# of accounts (000s) 379 370 362 349 351 N/A N/A 28 8% 9 2%
Mkt value cust. assts-eop ($ bill) $ 24.1 $ 23.6 $ 24.0 $ 23.4 N/A N/A N/A N/A N/A $ 0.5 2%
Wealth Management
-----------------
Loans - avg $ 6.5 $ 6.4 $ 6.2 $ 5.8 $ 5.6 $ 5.3 $ 5.1 $ 0.9 16% $ 0.1 2%
Deposits - avg 6.8 7.2 7.1 7.2 7.1 7.2 7.2 (0.3) -4% (0.4) -6%
# of Wealth Advisors 616 654 661 749 758 809 852 (142) -19% (38) -6%
</TABLE>
*2Q00 adjusted for one-time items; FUSA on managed basis.
See 3/17/00 Form 10-K for definitions and methodologies.
4
<PAGE>
BANK ONE CORPORATION LINE OF BUSINESS DETAIL*
<TABLE>
<CAPTION>
Three Months Ended Sep 30, 2000
---------------------------------
Income Statement ($ millions) Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Chg Prior Yr. Chg. Prior Qtr
Balance Sheet ($ billions) 2000 2000 2000 1999 1999 1999 1999 Amt % Amt %
---- ---- ---- ---- ---- ---- ---- --- - --- -
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Corporate Investments
---------------------------
Net interest income FTE $ 18 $ 30 $ 35 $ 36 $ 41 $ 48 $ 50 $ (23) -56% $ (12) -40%
Provision 0 1 1 0 0 0 0 0 N/M (1) N/M
Noninterest income 52 52 185 97 97 97 116 (45) -46% 0 0%
Noninterest expense 25 31 39 33 30 34 37 (5) -17% (6) -19%
------ ------ ------ ------ ------ ------ ------ ------ ------
Pretax income (FTE) 45 50 180 100 108 111 129 (63) -58% (5) -10%
Taxes & FTE adj (7) (11) 39 12 19 21 25 (26) -137% 4 35%
------ ------ ------ ------ ------ ------ ------ ------ ------
Net Income - adjusted 52 61 141 88 89 90 104 (37) -42% (9) -15%
Significant items 0 0 0 0 0 0 0 0 0% 0 0%
------ ------ ------ ------ ------ ------ ------ ------
Net income - reported 52 61 141 88 89 90 104 (37) -42% (9) -15%
Return on equity ** 17% 20% 47% 35% 35% 36% 42% -18% -3%
Efficiency ratio ** 36% 38% 18% 25% 22% 23% 22% 14% -2%
** Net income - adjusted
Loans - avg $ 3.6 $ 3.5 $ 3.4 $ 3.4 $ 3.5 $ 3.4 $ 3.5 $ 0.1 3% $ 0.1 3%
Assets - avg 8.7 8.4 8.0 7.9 7.6 7.5 8.0 1.1 14% 0.3 4%
Common equity - avg 1.2 1.2 1.2 1.0 1.0 1.0 1.0 0.2 20% 0.0 0%
Supplemental Information:
-------------------------
Headcount *** 210 318 N/A N/A N/A N/A N/A N/A N/A (108) -34%
*** Full-time
</TABLE>
*2Q00 adjusted for one-time items; FUSA on managed basis.
See 3/17/00 Form 10-K for definitions and methodologies.
5
<PAGE>
BANK ONE CORPORATION LINE OF BUSINESS DETAIL*
<TABLE>
<CAPTION>
Three Months Ended Sep 30, 2000
----------------------------------
Income Statement ($ millions) Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Chg Prior Yr. Chg. Prior Qtr
Balance Sheet ($ billions) 2000 2000 2000 1999 1999 1999 1999 Amt % Amt %
-------- -------- -------- ------- ------- -------- -------- ------- ----- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Corporate/Unallocated
---------------------
Net interest income FTE $ (140) $ (75) $ (115) $ 8 $ 21 $ 37 $ 42 $ (161) N/M $ (65) -87%
Provision 0 0 0 (44) 0 (14) (49) 0 N/M 0 N/M
Noninterest income 36 10 118 111 110 105 107 (74) -67% 26 N/M
Noninterest expense 157 51 78 47 17 18 (5) 140 N/M 106 N/M
------- ------- -------- ------ ------ ------ -------- ------ ------
Pretax income (FTE) (261) (116) (75) 116 114 138 203 (375) N/M (145) N/M
Taxes & FTE adj (104) (46) (39) 27 25 39 56 (129) N/M (58) N/M
------- ------- -------- ------ ------ ------ -------- ------ ------
Net Income - adjusted (157) (70) (36) 89 89 99 147 (246) N/M (87) N/M
Significant items 0 (660) 0 0 0 0 0 0 0% 660 N/M
------- ------- -------- ------ ------ ------ -------- ------ ----- ------
Net income - reported (157) (730) (36) 89 89 99 147 (246) N/M 573 N/M
Assets - avg 40.6 42.0 35.3 36.3 34.1 32.8 32.3 6.5 19% (1.4) -3%
Deposits - avg 22.9 20.5 22.1 20.8 20.2 17.0 16.0 2.7 13% 2.4 12%
Common equity - avg (1.9) (1.1) 0.0 1.7 1.8 2.4 2.2 (3.7) N/M (0.8) N/M
Supplemental Information:
-------------------------
Headcount *** 11,112 11,377 N/A N/A N/A N/A N/A N/A N/A (265) -2%
*** Full-time
Net Income by LOB
Retail $ 251 $ 247 $ 236 $ 236 $ 268 $ 290 $ 247 $ (17) -6% $ 4 2%
Commercial Banking 172 214 200 199 198 203 188 (26) -13% (42) -20%
First USA 177 113 67 206 288 339 302 (111) -39% 64 57%
Investment Management 86 79 81 86 82 91 58 4 5% 7 9%
Corporate Investments 52 61 141 88 89 90 104 (37) -42% (9) -15%
Corporate/Unallocated (157) (70) (36) 89 89 99 147 (246) N/M (87) N/M
------- ------- -------- ------ ------ ------ -------- ------ ------
Total Adjusted 581 644 689 904 1,014 1,112 1,046 (433) -43% (63) -10%
1999 = merger related
2000 = significant items 0 (1,913) 0 (493) (89) (120) 105 89 N/M 1,913 N/M
------- ------- -------- ------ ------ ------ -------- ------- ------
Total Corporation - reported 581 (1,269) 689 411 925 992 1,151 (344) -37% 1,850 N/M
Adj. Net Income by LOB %
Retail 43.2% 38.4% 34.3% 26.1% 26.4% 26.1% 23.6%
Commercial Banking 29.6% 33.2% 29.0% 22.0% 19.5% 18.3% 18.0%
First USA 30.5% 17.5% 9.7% 22.8% 28.4% 30.5% 28.9%
Investment Management 14.8% 12.3% 11.8% 9.5% 8.1% 8.2% 5.5%
Corporate Investments 9.0% 9.5% 20.5% 9.7% 8.8% 8.1% 9.9%
Corporate/Unallocated -27.1% -10.9% -5.3% 9.9% 8.8% 8.8% 14.1%
Total Adjusted 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
</TABLE>
* 2Q00 adjusted for one-time items; FUSA on managed basis.
See 3/17/00 Form 10-K for definitions and methodologies.
