<PAGE>
[BANK ONE CORPORATION Press Release Letterhead] Exhibit 99(a)
FOR IMMEDIATE RELEASE
---------------------
BANK ONE REPORTS FOURTH QUARTER LOSS OF 44 CENTS PER SHARE
. BUILDS LOAN LOSS RESERVE TO 2.36% OF TOTAL LOANS
. MAINTAINS STRONG TIER 1 CAPITAL RATIO OF 7.3% AND
INCREASES TANGIBLE EQUITY TO MANAGED ASSETS RATIO TO 5.5%
CHICAGO, January 17, 2001 - BANK ONE CORPORATION (NYSE: ONE) today announced a
2000 fourth quarter loss of $512 million, or $0.44 per diluted share. This
compares with net income in the year-ago quarter of $411 million, or $0.36 per
diluted share.
For full-year 2000, the net loss was $511 million, or $0.45 per diluted share,
compared with net income of $3.479 billion, or $2.95 per diluted share, in the
prior year.
"These short-term results are absolutely unacceptable to our shareholders - and
to Bank One management," said James Dimon, chairman and chief executive officer.
"But we remain dedicated to making decisions that are in the best long-term
interest of our customers, employees and shareholders.
"The fourth quarter results reflect the decisive actions we have taken as the
result of our ongoing intensive review of businesses, systems, operations and
the balance sheet as well as the deterioration of the economy and credit
quality. We have dramatically increased our loan loss reserve, reduced expenses
by more than $500 million annually, assembled an excellent management team and
rededicated our efforts to serve customers and reward shareholders.
"These actions bring us into 2001 with a strong balance sheet and capital
position, an improved operating margin, a significantly stronger management
team, improving customer service and solid core businesses," Dimon said.
Significant actions during the fourth quarter included:
. A $1.0 billion pretax increase in the allowance for loan losses,
increasing the period-end loan loss reserve ratio to 2.36% from 1.75% at
September 30, 2000.
. A $200 million pretax charge for occupancy and fixed asset decisions.
. A $225 million pretax increase in the reserve for auto lease residual
losses.
. A $100 million pretax charge for miscellaneous balance sheet adjustments
and operational errors.
. A $50 million pretax charge for incremental severance.
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<PAGE>
PROGRESS AT BANK ONE
Significant progress made this year includes:
Creating Financial Discipline
-----------------------------
. Ending the year with a strong loan loss reserve ratio of 2.36% and Tier
1 Capital ratio of 7.3%.
. Reducing the common stock dividend 50% in the third quarter.
. Implementing an aggressive waste-reduction program that will lower the
expense base by an annualized $500 million while still providing for
significant investments in technology and customer service.
. Issuing $1.9 billion of new regulatory capital in the third quarter and
ending the year with a strong Tier 1 capital ratio of 7.3%.
. Reducing headcount 5,800, or 7%, over the course of the year.
. Strengthening internal management reporting, including the creation of
hundreds of detailed income statements that will foster well-informed
decisions.
Infrastructure improvements
---------------------------
. Deciding in the second quarter to collapse the 20 domestic bank charters
to three and convert the seven demand deposit systems into one.
. Progressing on the Texas/Louisiana system conversion project, which is
targeted to be completed in the third quarter of 2001.
. Improving the commercial customer profitability system, including
capital allocations and customer / product profitability analysis that
will improve decision making in the Commercial Bank.
. Increasing to 14,500 the total number of Internet-enabled banking
platform PCs, enabling more effective customer marketing and service
within the banking centers.
Management team building
------------------------
. Significantly strengthening of the management team including the fourth
quarter hiring of Philip Heasley, a highly respected and experienced
executive, to head First USA.
. Substantially changing compensation philosophies throughout the Company
by decreasing entitlement benefits and increasing pay-for-performance
incentives.
"The substantial progress made this year on a number of fronts is crucial as we
face a weakening economy with a possibility of further deterioration," Dimon
said. "Our franchise is sound and the highest priority is to strengthen this
company to become a top performer in all types of environments. So, we
significantly fortified the balance sheet, sharpened our financial discipline
and built a strong management team."
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<PAGE>
LINE OF BUSINESS DISCUSSION
Highlights - Net Income (Loss) by Line of Business
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
($ millions) % change vs.
4Q99 3Q00 4Q00 4Q99 3Q00
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Retail $ 236 $ 251 $ (17) NM% NM%
Commercial banking 199 172 (385) NM NM
First USA 206 177 134 (35) (24)
Investment management 86 86 82 (5) (5)
Corporate investments 88 52 (15) NM NM
Corporate / unallocated 89 (157) (311) NM (98)
---- ---- ----
Total business segment results 904 581 (512) NM NM
Merger-related items and
significant items (493) -- -- NM NM
---- ---- ----
Total Corporation $ 411 $ 581 $(512) NM NM
NM = not meaningful
--------------------------------------------------------------------------------
</TABLE>
Retail
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Income Statement ($ millions)
Balance Sheet ($ billions) % change vs.
4Q99 3Q00 4Q00 4Q99 3Q00
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net interest income (1) $1,118 $1,236 $1,227 10% (1)%
Provision for credit losses 116 207 364 NM 76
Noninterest income 339 326 81 (76) (75)
Noninterest expense 995 959 977 (2) 2
Net income (loss) 236 251 (17) NM NM
Return on equity 20% 17% (1)%
Efficiency ratio 68 61 75
Loans - average $ 68.8 $ 74.7 $ 76.7 11 3
Assets - average 74.9 78.8 81.0 8 3
Deposits - average 87.6 87.9 88.0 -- --
Common equity - average 4.6 5.9 5.9 28 --
NM = not meaningful
(1) Fully taxable equivalent basis
--------------------------------------------------------------------------------
</TABLE>
Retail reported a net loss of $17 million, compared to net income of $236
million in the year-ago quarter. This loss reflected significant increases in
the provision for credit losses and in writedowns of auto lease residual values,
partially offset by an increase in net interest income and a decline in
noninterest expense.
Net interest income of $1.227 billion increased $109 million, or 10%, from the
year-ago quarter. This increase was driven by wider deposit spreads and an 11%
increase in average loans outstanding partially offset by loan margin
compression and a shift in deposit product mix toward certificates of deposit.
Loan growth was concentrated in home equity loans, which increased 32% from a
year-ago and 9% from the third quarter. Excluding the impact of the sale
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<PAGE>
of the consumer finance business in the first quarter of 2000, net interest
income increased 12% and average loans increased 15% from the year-ago quarter.
Provision expense was $364 million, up $248 million from the year-ago quarter.
The current quarter included $204 million of the Company's increase in the
allowance for loan losses. This increase reflected the significant loan growth
and a 61% increase in 90 day delinquent consumer loans from the prior year and
34% from the third quarter.
Noninterest income declined $258 million, or 76%, from the year-ago quarter,
reflecting the impact of higher auto lease residual writedowns and lower asset
sale gains. The negative impact of auto lease residuals, including the $225
million reserve increase, totaled $262 million in the current quarter, compared
with $114 million in the year-ago quarter. Of the $114 million in the year-ago-
quarter, $34 million was reflected in Retail's results.
Noninterest expense decreased $18 million, or 2%, from the year-ago quarter.
This decrease reflected the positive impacts from waste reduction initiatives,
reduced incentive compensation and the sale of the consumer finance business.
These benefits were primarily offset by occupancy related writedowns and
incremental severance-related expenses in the current quarter.
Commercial Banking
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Income Statement ($ millions)
Balance Sheet ($ billions) % change vs.
4Q99 3Q00 4Q00 4Q99 3Q00
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net interest income (1) $ 672 $ 685 $ 674 -- % (2)%
Provision for credit losses 113 225 1,078 NM NM
Noninterest income 316 378 353 12 (7)
Noninterest expense 582 566 557 (4) (2)
Net income (loss) 199 172 (385) NM NM
Return on equity 14% 10% (23)%
Efficiency ratio 59 53 54
Loans - average $ 78.0 $ 83.4 $ 83.1 7 --
Assets - average 109.9 111.0 109.3 (1) (2)
Deposits - average 38.9 39.2 38.2 (2) (3)
Common equity - average 5.6 6.7 6.8 21 1
NM = not meaningful
(1) Fully taxable equivalent basis
--------------------------------------------------------------------------------
</TABLE>
Commercial Banking reported a net loss of $385 million driven by a significant
increase in credit losses as reflected in the higher credit provision.
Net interest income of $674 million was essentially unchanged from the year-ago
quarter but down 2% from the prior quarter, reflecting a lower level of loans,
the cost of carrying a higher level of non-performing assets and the effect of
lower deposits.
The provision for credit losses was $1.078 billion, an increase of $965 million
from the year-ago quarter and $853 million from the prior quarter, reflecting
continued deterioration in the commercial portfolio across several industries
and leveraged acquisition finance transactions.
-4-
<PAGE>
The current quarter included $820 million of the Company's increase in the
allowance for loan losses. At December 31, 2000, commercial non-performing loans
as a percent of total commercial loans were 1.87%, up from 1.10% a year ago.
Annualized net charge-offs were 1.24% of average commercial loans in the
quarter, up from 0.33% in the year-earlier period.
Noninterest income of $353 million improved $37 million, or 12%, from the year-
ago quarter. Lending-related fees were up $16 million, reflecting a moderately
higher level of loan commitment fees and the amortization of swap-related fees.
Treasury management services (TMS) revenue increased $19 million, reflecting
growth in commercial credit cards and corporate sweep accounts, as well as
overall solid volume growth. Capital markets revenue improved $12 million,
reflecting healthy syndicated and asset backed finance activities partially
offset by continued weak bond trading. The $25 million decrease from the prior
quarter resulted from strong capital markets performance in the third quarter.
Noninterest expense declined 4% from the year-earlier period, reflecting a
reduction in incentive compensation, partially offset by incremental severance-
related expense and small increases across several noninterest expense
categories.
First USA
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Income Statement ($ millions)
Balance Sheet ($ billions) % change vs.
4Q99 3Q00 4Q00 4Q99 3Q00
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net interest income (1) $1,570 $1,442 $1,417 (10)% (2)%
Provision for credit losses 933 853 880 (6) 3
Noninterest income 419 324 311 (26) (4)
Noninterest expense 754 633 637 (16) 1
Net income (loss) 206 177 134 (35) (24)
Return on outstandings (pretax) 1.7% 1.7% 1.3%
Return on equity 14 12 9
Efficiency ratio 38 36 37
Managed net charge-off ratio 6.52 5.03 5.41
Loans - average $ 68.7 $ 65.9 $ 65.6 (5) --
Assets - average 74.9 69.2 68.6 (8) (1)
Common equity - average 6.0 6.1 6.1 2 --
NM = not meaningful
(1) Fully taxable equivalent basis
--------------------------------------------------------------------------------
</TABLE>
First USA reported net income of $134 million, a decrease of $72 million, or
35%, from the year-ago quarter. This reflected a 13% decline in revenue,
partially offset by lower expenses and provision for credit losses. Fourth
quarter results represented a 1.3% pretax return on outstandings, down from 1.7%
in the year-ago and prior quarter.
Net interest income of $1.417 billion decreased $153 million, or 10%, from the
year-ago quarter and was down slightly from the third quarter. The decline was
driven primarily by lower fee revenue, lower average outstandings and a narrower
spread.
-5-
<PAGE>
Average managed outstandings for the fourth quarter were $65.6 billion, down 5%
from the year-ago period and little changed from the third quarter average.
First USA opened 821,000 new accounts during the quarter, a 13% increase from
the third quarter, and had 51.7 million cards issued at year end. Overall,
year-over-year attrition on mature vintage balances continued to improve and is
now at or near industry averages.
The managed provision for credit losses of $880 million was down $53 million
from the year-ago quarter, reflecting a $232 million reduction in managed
charge-offs. The managed charge-off rate declined to 5.41% from 6.52% in the
year-ago period. The prior-year period charge-offs included $183 million from
the early adoption of the Federal Financial Institutions Examination Council's
(FFIEC) revised consumer credit guidelines. Excluding the FFIEC impact, the
year-ago charge-off rate was 5.45%. As expected, the provision for credit
losses was up $27 million from the prior quarter, reflecting increased managed
charge-offs resulting from increased bankruptcies and the continued maturing of
the portfolio. The managed 30-day and 90-day delinquency rates were 4.51% and
2.02%, respectively, down from 4.57% and 2.13%, respectively, in the year-ago
quarter. Delinquency rates were up from the prior quarter, reflecting normal
seasonality.
Noninterest income of $311 million declined $108 million, or 26%, from the prior
year. The decline resulted primarily from increased revenue sharing payments to
partnership and affinity groups as emphasis on these customer groups has caused
a shift in portfolio mix. The prior-year quarter also included several
nonrecurring items. Noninterest income was comparable with the third quarter.
Noninterest expense declined $117 million, or 16%, from the prior year,
reflecting the positive impact of waste reduction initiatives, such as lower
headcount and improved operating efficiency. Headcount declined 23% from a year
ago to approximately 10,900 and the efficiency ratio improved while measures of
customer service quality also continued to improve. The decline also reflected
the second quarter sale of the international operations, lower processing costs
due to the decrease in portfolio size and a decrease related to a change in the
methodology of allocating internal costs. The change in allocation methodology
was implemented in the third quarter and better reflects the actual cost of
services provided. These benefits were primarily offset by miscellaneous
balance sheet adjustment charges, occupancy writedowns, and incremental
severance-related expenses in the current quarter.
-6-
<PAGE>
Investment Management
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
Income Statement ($ millions)
Balance Sheet ($ billions) % change vs.
4Q99 3Q00 4Q00 4Q99 3Q00
---------- ----------- ------------ ---------- -----------
<S> <C> <C> <C> <C> <C>
Net interest income (1) $ 91 $ 104 $ 104 14% --%
Provision for credit losses 1 2 7 NM NM
Noninterest income 297 286 300 1 5
Noninterest expense 261 252 268 3 6
Net income (loss) 86 86 82 (5) (5)
Return on equity 38% 36% 33%
Efficiency ratio 67 65 66
Loans - average $ 6.0 $ 6.6 $ 6.8 13 3
Assets - average 7.4 7.6 7.8 5 3
Deposits - average 8.9 8.2 8.5 (4) 4
Common equity - average 0.9 0.9 1.0 11 11
Assets under management - eop 128.9 134.6 131.2 2 (3)
NM = not meaningful
(1) Fully taxable equivalent basis
---------------------------------------------------------------------------------------------
</TABLE>
Investment Management reported net income of $82 million, a decline of $4
million from both the year-ago and prior quarters.
Net interest income of $104 million increased $13 million, or 14%, from the
year-ago period. Higher spread income associated with the 13% increase in
average loans was partially offset by the effect of a 4% decrease in average
deposits.
Noninterest income increased 1% from the year-ago period, driven by an increase
in fees related to assets under management. Also, $16 million of fees
associated with the in-house administration of the One Group(R) mutual funds are
now recorded as revenue with a corresponding increase in expense. Prior to this
quarter, administrative fees and expenses were incurred by a third-party
administrator. Partially offsetting these increases, insurance fees declined
due to lower credit life volume, and Private Client Services fees were down due
to reduced estate and tax preparation fees.
Noninterest expense increased 3% from the year-ago period. Excluding the
expenses associated with the administration of the One Group(R) funds,
noninterest expense declined 3% from the year-ago quarter and was unchanged from
the prior quarter. A reduction in incentive compensation offset incremental
severance-related expense and small increases in various noninterest expense
categories.
Period-end assets under management increased to $131.2 billion, or 2%, from the
year-earlier period and fell 3% from the prior period, reflecting equity market
declines. One Group(R) mutual fund assets under management increased to $70.4
billion in the fourth quarter, while other assets under management declined to
$60.8 billion, reflecting the on-going effort to convert select individually
managed assets to One Group(R) funds. One Group(R) fund performance continues to
-7-
<PAGE>
remain strong, with 97% of funds rated three stars or higher by Morningstar.
Average assets under management were essentially unchanged from the prior
quarter.
Corporate Investments
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
Income Statement ($ millions)
Balance Sheet ($ billions) % change vs.
4Q99 3Q00 4Q00 4Q99 3Q00
----------- ----------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C>
Net interest income (1) $ 36 $ 18 $ 24 (33)% 33%
Provision for credit losses -- -- -- -- --
Noninterest income 97 52 (76) NM NM
Noninterest expense 33 25 7 (79) (72)
Net income (loss) 88 52 (15) NM NM
Return on equity 35% 17% (5)%
Efficiency ratio 25 36 NM
Loans - average $3.4 $3.6 $3.7 9 3
Assets - average 7.9 8.7 9.0 14 3
Common equity - average 1.0 1.2 1.2 20 --
NM = not meaningful
(1) Fully taxable equivalent basis
------------------------------------------------------------------------------------------------
</TABLE>
Corporate Investments reported a net loss of $15 million in the current quarter,
compared with net income of $88 million in the year-ago quarter. Tax-oriented
strategies continued to provide stable core performance in the current quarter
and consistent with the year-ago and prior quarters. However, on a collective
basis, all other investment strategies suffered losses in the fourth quarter due
to the difficult capital markets environment.
Net interest income of $24 million declined $12 million from the year-ago
quarter, reflecting the sale of Banc One Capital Funding, which resulted in a
gain of $4 million, as well as continued growth in noninterest-bearing
investments.
Noninterest income declined $173 million from the year-ago quarter and $128
million from the prior quarter, reflecting valuation declines in venture capital
and private equity compared to gains in both the year-ago and prior quarters.
Also contributing to the decline were lower hedge fund gains and an impairment
recognition in the current quarter on the collateralized debt portfolio due to
high yield bond market conditions.
Noninterest expense declined $26 million from the year-ago quarter and $18
million from the prior quarter, reflecting the sale of Banc One Capital Funding
and a $9 million reduction in incentive compensation commensurate with the lower
revenue.
-8-
<PAGE>
Corporate / Unallocated
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
Income Statement ($ millions)
Balance Sheet ($ billions) % change vs.
4Q99 3Q00 4Q00 4Q99 3Q00
---------- ---------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C>
Net interest income (1) $ 8 $(140) $(127) NM % 9%
Provision for credit losses (44) -- -- NM NM
Noninterest income 111 36 28 (75) (22)
Noninterest expense 47 157 401 NM NM
Net income (loss) 89 (157) (311) NM (98)
Assets - average $36.3 $40.6 $38.1 5 (6)
Deposits - average 20.8 22.9 28.4 37 24
Common equity - average 1.7 (1.9) (1.8) NM 5
NM = not meaningful
(1) Fully taxable equivalent basis
-------------------------------------------------------------------------------------------------
</TABLE>
Corporate / Unallocated reported a net loss of $311 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 $127
million. Net interest income for this line of business represents the earnings
on the corporate investment securities portfolio, the impact of interest rate
risk held at the corporate level 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 position change.
The appropriate lines of business recorded all provision expense for the current
quarter. The negative $44 million provision expense for the year-ago quarter
represented a decrease to the reserves not specifically allocated to the lines
of business.
Noninterest expense in the quarter included $316 million of significant items,
of which $174 million was for occupancy-related decisions and $133 million for
miscellaneous balance sheet and operational adjustments. Excluding these items,
remaining noninterest expense represents unallocated support costs that vary
from quarter to quarter.
CREDIT QUALITY
Nonperforming assets, which include nonperforming commercial loans, other real
estate owned and consumer loans 90 days past due, were $2.573 billion at the end
of the fourth quarter, up $437 million from September 30, 2000. Commercial
nonperforming assets increased $285 million with consumer up $152 million. The
ratio of nonperforming assets to related assets was 1.48% at December 31, 2000,
up from 1.21% at September 30, 2000.
Total managed net charge-offs in the fourth quarter were $1.309 billion, or
2.22% of total average managed loans, up from $1.091 billion, or 1.86%, in the
third quarter. Total managed net charge-offs in the year-ago quarter were
$1.446 billion, or 2.57% of total average managed loans, and reflected the early
adoption of the FFIEC new consumer credit guidelines. Excluding
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<PAGE>
the FFIEC impact, total managed net charge-offs in the year-ago quarter were
$1.120 billion, or 1.99%.
The credit card managed net charge-off ratio was 5.41% in the fourth quarter, up
from 5.03% in the third quarter, but comparable to 5.45% in the year-ago quarter
adjusted to exclude the FFIEC implementation impact.
Commercial net charge-offs across all lines of business in the 2000 fourth
quarter were 1.10%, up from 0.46% in the third quarter and 0.30% in the year-ago
quarter.
The managed provision for credit losses in the fourth quarter was $2.329
billion, compared to $1.288 billion in the third quarter. The reported
provision for credit losses in the fourth quarter was $1.507 billion, compared
to $516 million in the third quarter, and exceeded net charge-offs by $1.020
billion.
At December 31, 2000, the allowance for credit losses was $4.110 billion, up
$1.020 billion from the end of the prior quarter. This represented 2.36% of
period-end loans and 166% of nonperforming loans, up from 1.75% and 153%,
respectively, at September 30, 2000.
CREDIT MANAGEMENT
The Company continues to analyze all of its credit exposure at an increasingly
granular level. Due to this review, the Company has:
. Given more weight to recent history when estimating expected default rates.
. Increased the loss assumptions from default across most risk categories.
. Increased the likelihood of draw downs against unfunded commitments upon
default.
. Stress-tested the portfolio based upon long-term, as well as more recent,
trends.
These reviews have led to substantial strengthening of loan loss reserves and
some earlier recognition of nonperforming assets and charge-offs. The Company
will continue its focus on reviewing and analyzing credit.
CAPITAL MANAGEMENT
The tangible common equity to tangible managed assets ratio was 5.5% at December
31, 2000, up from 5.4% at September 30, 2000. Tier 1 and Total capital ratios
were 7.3% and 10.8% at quarter end, respectively, compared with 7.5% and 10.9%,
at September 30, 2000. Capital ratios remain very strong and exceed the well-
capitalized regulatory guidelines.
BANK ONE CORPORATION is the nation's fourth largest bank holding company, with
assets of more than $260 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.
-10-
<PAGE>
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 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
The merger-related charges and the effect of certain identified transactions in
1999 and the second quarter of 2000 were not attributed to any line of business.
For analytical purposes, these items were not considered a part of core business
activities.
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.
Analyst Meeting, Conference Call and Webcast Information
An analyst meeting and conference call discussing the quarter's results will be
held at 8:30 a.m. (EST) today at the St. Regis Hotel in New York City. To
participate in the conference call, phone 800-946-0712 (domestic) or 719-457-
2642 (international); the access code is 717208. The conference call audio and
slides will also be Webcast on the Internet at www.bankone.com. A playback of
---------------
this conference call will be available after 12:00 p.m. today through Friday,
January 26 by calling 888-203-1112 (domestic) or 719-457-0820 (international);
the access code is 717208.
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.
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###
<TABLE>
<S> <C> <C> <C>
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
</TABLE>
-11-
<PAGE>
<TABLE>
<CAPTION>
BANK ONE CORPORATION and Subsidiaries
Summary of Selected Financial Information
($ millions, except per share amounts) Three Months Ended
------------------------------------------------------------
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
2000 2000 2000 2000 1999
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Income Statement Data:
---------------------
Net interest income (FTE) $ 2,247 $ 2,242 $ 2,257 $ 2,228 $ 2,221
Provision for credit losses 1,507 516 1,013 362 416
Noninterest income 1,247 1,734 288 1,821 1,782
Noninterest expense 2,847 2,593 3,507 2,661 3,030
Net income (loss) (512) 581 (1,269) 689 411
Per Common Share Data:
---------------------
Net income (loss):
Basic $ (0.44) $ 0.50 $ (1.11) $ 0.60 $ 0.36
Diluted (1) (0.44) 0.50 (1.11) 0.60 0.36
Cash dividends declared 0.21 0.21 0.42 0.42 0.42
Book value 15.90 16.47 16.12 17.43 17.34
Balance Sheet Data:
------------------
Loans:
Managed 236,492 237,505 $ 234,412 $ 229,673 $ 229,196
Reported 174,251 176,419 172,591 168,078 163,877
Deposits 167,077 164,130 163,169 164,643 162,278
Long-term debt (2) 40,911 42,641 39,093 38,753 35,435
Total assets:
Managed 309,096 324,780 316,011 317,176 315,064
Reported 269,300 283,373 272,709 273,008 269,425
Common stockholders' equity 18,445 19,042 18,630 20,081 19,900
Total stockholders' equity 18,635 19,232 18,820 20,271 20,090
Credit Quality Ratios:
---------------------
Net charge-offs to average loans 1.11% 0.74% 0.75% 0.64% 0.95%
Allowance for credit losses to period end loans 2.36 1.75 1.73 1.39 1.39
Nonperforming assets to related assets 1.48 1.21 1.03 0.99 1.02
Financial Performance Ratios:
----------------------------
Return (loss) on average assets (0.75)% 0.85% (1.87) 1.03% 0.62%
Return (loss) on average common equity (10.7) 12.2 (26.0) 13.9 8.2
Net interest margin:
Managed 4.65 4.66 4.80 4.91 4.98
Reported 3.67 3.68 3.77 3.78 3.79
Efficiency ratio:
Managed 66.0 54.6 103.8 53.7 62.1
Reported 81.5 65.2 137.8 65.7 75.7
Capital Ratios:
--------------
Regulatory leverage 7.3% 7.5% 7.0% 7.7% 7.7%
Risk-based capital:
Tier 1 7.3 7.5 7.2 7.7 7.7
Total 10.8 10.9 10.3 10.6 10.7
Common equity/managed assets 6.0 5.9 5.9 6.3 6.3
Tangible common equity/tangible managed assets 5.5 5.4 5.4 5.7 5.7
Common Stock Data:
-----------------
Average shares outstanding (millions):
Basic 1,158 1,156 1,153 1,149 1,147
Diluted (1) 1,158 1,167 1,153 1,155 1,154
Stock price, quarter-end $ 36.62 $ 38.06 $ 26.56 $ 34.38 $ 32.00
</TABLE>
(1) Common equivalent shares have been excluded from the computation of diluted
loss per share in the second and fourth quarters of 2000 as the effect
would be antidilutive.
(2) Includes trust preferred capital securities.
1
<PAGE>
<TABLE>
<CAPTION>
BANK ONE CORPORATION and Subsidiaries
Consolidated Statements of Income
($ millions, except per share amounts) Three Months Ended
----------------------------------------------------
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
2000 2000 2000 2000 1999
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest income $ 5,174 $ 5,185 $ 4,966 $ 4,753 $ 4,548
Interest expense 2,960 2,977 2,745 2,560 2,360
----------------------------------------------------
Net interest income 2,214 2,208 2,221 2,193 2,188
Provision for credit losses 1,507 516 1,013 362 416
----------------------------------------------------
Net interest income after provision for credit losses 707 1,692 1,208 1,831 1,772
----------------------------------------------------
Noninterest Income:
Trading profits (losses) 15 58 (3) 64 17
Equity securities gains (losses) (41) 31 60 143 100
Investment securities gains (losses) (45) 16 (414) 15 2
----------------------------------------------------
Market-driven revenue (losses) (71) 105 (357) 222 119
Credit card revenue 575 669 477 578 714
Fiduciary and investment management fees 192 196 200 195 216
Service charges and commissions 738 702 694 713 701
----------------------------------------------------
Fee-based revenue 1,505 1,567 1,371 1,486 1,631
Other income (loss) (187) 62 (726) 113 32
----------------------------------------------------
Total noninterest income 1,247 1,734 288 1,821 1,782
----------------------------------------------------
Noninterest Expense:
Salaries and employee benefits 1,052 1,106 1,132 1,098 1,081
Net occupancy and equipment expense 358 207 223 222 244
Depreciation and amortization 189 143 439 163 186
Outside service fees and processing 405 344 375 408 459
Marketing and development 203 200 245 226 230
Communication and transportation 235 187 207 212 216
Other expense 452 408 657 351 425
----------------------------------------------------
Total noninterest expense before merger-related
and restructuring charges 2,894 2,595 3,278 2,680 2,841
Merger-related and restructuring charges (47) (2) 229 (19) 189
----------------------------------------------------
Total noninterest expense 2,847 2,593 3,507 2,661 3,030
Income (loss) before income taxes (893) 833 (2,011) 991 524
Applicable income taxes (benefit) (381) 252 (742) 302 113
----------------------------------------------------
Net income (loss) $ (512) $ 581 $ (1,269) $ 689 $ 411
====================================================
Net income (loss) attributable to common stockholders' equity $ (515) $ 578 $ (1,272) $ 686 $ 408
====================================================
Earnings (loss) per share:
Basic $ (0.44) $ 0.50 $ (1.11) $ 0.60 $ 0.36
Diluted (1) $ (0.44) $ 0.50 $ (1.11) $ 0.60 $ 0.36
Average common shares outstanding (millions):
Basic 1,158 1,156 1,153 1,149 1,147
Diluted (1) 1,158 1,167 1,153 1,155 1,154
</TABLE>
(1) Common equivalent shares have been excluded from the computation of diluted
loss per share in the second and fourth quarters of 2000 as the effect
would be antidilutive.
2
<PAGE>
<TABLE>
<CAPTION>
BANK ONE CORPORATION and Subsidiaries
Consolidated Statements of Income
($ millions, except per share amounts) Twelve Months Ended
-------------------------------
December 31
2000 1999
-------------------------------
<S> <C> <C>
Interest income $ 20,078 $ 17,294
Interest expense 11,242 8,273
-------------------------------
Net interest income 8,836 9,021
Provision for credit losses 3,398 1,249
-------------------------------
Net interest income after provision for credit losses 5,438 7,772
-------------------------------
Noninterest Income:
Trading profits 134 147
Equity securities gains 193 415
Investment securities gains (losses) (428) 94
-------------------------------
Market-driven revenue (losses) (101) 656
Credit card revenue 2,299 3,413
Fiduciary and investment management fees 783 793
Service charges and commissions 2,847 2,785
-------------------------------
Fee-based revenue 5,929 6,991
Other income (loss) (738) 1,045
-------------------------------
Total noninterest income 5,090 8,692
-------------------------------
Noninterest Expense:
Salaries and employee benefits 4,388 4,271
Net occupancy and equipment expense 1,010 910
Depreciation and amortization 934 697
Outside service fees and processing 1,532 1,743
Marketing and development 874 1,188
Communication and transportation 841 829
Other expense 1,868 1,298
-------------------------------
Total noninterest expense before merger-related
and restructuring charges 11,447 10,936
Merger-related and restructuring charges 161 554
-------------------------------
Total noninterest expense 11,608 11,490
-------------------------------
Income (loss) before income taxes (1,080) 4,974
Applicable income taxes (benefit) (569) 1,495
-------------------------------
Net income (loss) $ (511) $ 3,479
===============================
Net income (loss) attributable to common
stockholders' equity $ (523) $ 3,467
===============================
Earnings (loss) per share:
Basic $ (0.45) $ 2.97
Diluted (1) $ (0.45) $ 2.95
Average common shares outstanding (millions):
Basic 1,154 1,168
Diluted (1) 1,154 1,178
</TABLE>
(1) Common equivalent shares have been excluded from the computation of diluted
loss per share for the year ended December 31, 2000 as the effect would be
antidilutive.
3
<PAGE>
<TABLE>
<CAPTION>
BANK ONE CORPORATION and Subsidiaries
Consolidated Balance Sheets
($ millions)
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
2000 2000 2000 2000 1999
---------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Cash and due from banks $ 17,291 $ 15,388 $ 16,470 $ 15,267 $ 16,076
Interest bearing due from banks 5,210 9,919 7,649 8,105 6,645
Federal funds sold and securities under resale agreements 4,737 12,666 10,592 10,998 9,782
Trading assets 2,788 7,140 10,681 5,587 7,952
Derivative product assets 2,322 3,492 3,278 3,207 3,372
Investment securities 50,561 45,262 38,288 47,459 47,912
Loans:
Commercial 100,460 102,819 101,813 98,099 96,352
Consumer 69,047 68,802 66,306 65,087 63,488
Credit Card 4,744 4,798 4,472 4,892 4,037
-----------------------------------------------------------
Total loans 174,251 176,419 172,591 168,078 163,877
Allowance for credit losses (4,110) (3,090) (2,983) (2,338) (2,285)
-----------------------------------------------------------
Loans, net 170,141 173,329 169,608 165,740 161,592
Other assets:
Bank premises and equipment, net 2,894 2,976 3,073 3,266 3,317
Other 13,356 13,201 13,070 13,379 12,777
-----------------------------------------------------------
Total other assets 16,250 16,177 16,143 16,645 16,094
-----------------------------------------------------------
Total assets $269,300 $283,373 $272,709 $273,008 $269,425
===========================================================
Liabilities
Deposits:
Demand $ 30,738 $ 28,424 $ 29,055 $ 29,923 $ 31,194
Savings 63,414 62,456 63,722 65,292 64,435
Time 47,958 46,945 43,170 40,263 36,877
Foreign offices 24,967 26,305 27,222 29,165 29,772
-----------------------------------------------------------
Total deposits 167,077 164,130 163,169 164,643 162,278
Federal funds purchased and repurchase agreements 12,120 23,983 17,610 18,451 18,720
Other short-term borrowings 18,003 19,800 21,827 18,261 21,211
Long-term debt 38,428 40,152 37,515 37,175 33,857
Guaranteed preferred beneficial interest in the
Corporation's junior subordinated debt 2,483 2,489 1,578 1,578 1,578
Derivative product liabilities 2,212 3,149 3,201 3,100 3,332
Other liabilities 10,342 10,438 8,989 9,529 8,359
-----------------------------------------------------------
Total liabilities 250,665 264,141 253,889 252,737 249,335
-----------------------------------------------------------
Stockholders' Equity
Preferred stock 190 190 190 190 190
Common stock 12 12 12 12 12
Surplus 10,487 10,584 10,605 10,679 10,799
Retained earnings 9,060 9,819 9,484 11,242 11,037
Accumulated other adjustments to stockholders' equity (5) (71) (135) (358) (263)
Deferred compensation (121) (157) (156) (165) (118)
Treasury stock (988) (1,145) (1,180) (1,329) (1,567)
-----------------------------------------------------------
Total stockholders' equity 18,635 19,232 18,820 20,271 20,090
-----------------------------------------------------------
Total liabilities and stockholders' equity $269,300 $283,373 $272,709 $273,008 $269,425
===========================================================
Common Shares -- period-end (millions):
Issued 1,181 1,181 1,181 1,181 1,182
Treasury shares 21 25 26 29 35
-----------------------------------------------------------
Outstanding 1,160 1,156 1,155 1,152 1,147
===========================================================
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
BANK ONE CORPORATION and Subsidiaries
Average Balance Sheet, Yields, & Rates - Managed Basis (1)
($ millions) Three Months Ended
-----------------------------------------------------------------------------------------
Dec 31, 2000 Sep 30, 2000 Jun 30, 2000
-----------------------------------------------------------------------------------------
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
---------- -------- ------- ---------- ------- ------- ---------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Short-term investments $ 16,272 $ 272 6.65% $ 18,673 $ 306 6.52% $ 17,356 $ 276 6.40%
Trading assets (2) 6,140 101 6.54 8,252 138 6.65 6,442 100 6.24
Investment securities: (2)
U.S. government and federal agency 14,765 228 6.14 12,163 212 6.93 15,074 260 6.94
States and political subdivisions 1,283 25 7.75 1,308 25 7.60 1,398 27 7.77
Other 9,227 141 6.08 10,571 143 5.38 12,516 167 5.37
---------------- ------------------ ------------------
Total investment securities 25,275 394 6.20 24,042 380 6.29 28,988 454 6.30
Loans: (2) (3)
Commercial 101,439 2,147 8.42 101,224 2,196 8.63 100,146 2,097 8.42
Consumer 69,238 1,594 9.16 67,331 1,544 9.12 65,527 1,455 8.93
Credit Card 65,631 2,479 15.03 65,849 2,508 15.15 66,148 2,485 15.11
---------------- ------------------ ------------------
Total loans, net 236,308 6,220 10.47 234,404 6,248 10.60 231,821 6,037 10.47
------ ------ ------
Total earning assets 283,995 $6,987 9.79 285,371 $7,072 9.86 284,607 $6,867 9.70
====== ====== ======
Allowance for credit losses (3,499) (3,036) (2,531)
Other assets - nonearning 33,319 33,534 34,528
-------- -------- --------
Total assets $313,815 $315,869 $316,604
======== ======== ========
Liabilities and Stockholders' Equity
Deposits -- interest-bearing:
Savings $ 15,543 $ 57 1.46 $ 16,287 $ 62 1.51 16,973 60 1.42
Money market 47,084 429 3.62 47,080 419 3.54 48,450 410 3.40
Time 47,480 759 6.36 45,906 728 6.31 41,946 609 5.84
Foreign offices 25,950 397 6.09 26,228 410 6.22 28,848 408 5.69
---------------- ------------------ ------------------
Total deposits -- interest-bearing 136,057 1,642 4.80 135,501 1,619 4.75 136,217 1,487 4.39
Federal funds purchased and securities
under repurchase agreements 18,564 284 6.09 19,331 311 6.40 18,632 281 6.07
Other short-term borrowings 58,295 1,000 6.82 61,788 1,068 6.88 63,029 1,033 6.59
Long-term debt 41,395 742 7.13 41,018 728 7.06 38,642 670 6.97
---------------- ------------------ ------------------
Total interest-bearing liabilities 254,311 $3,668 5.74 257,638 $3,726 5.75 256,520 $3,471 5.44
====== ====== ======
Demand deposits 27,194 26,456 27,692
Other liabilities 12,943 12,706 12,503
Preferred stock 190 190 190
Common stockholders' equity 19,177 18,879 19,699
-------- -------- --------
Total liabilities and equity $313,815 $315,869 $316,604
======== ======== ========
Interest income/earning assets $6,987 9.79% $7,072 9.86% $6,867 9.70%
Interest expense/earning assets 3,668 5.14 3,726 5.20 3,471 4.90
-------------- -------------- --------------
Net interest margin $3,319 4.65% $3,346 4.66% $3,396 4.80%
============== ============== ==============
</TABLE>
(1) Managed data adjusted for credit card securitization activity.
(2) Includes tax-equivalent adjustments based on a 35% federal income tax rate.
(3) Nonperforming loans are included in balances used to determine the average
rate.
5
<PAGE>
<TABLE>
<CAPTION>
BANK ONE CORPORATION and Subsidiaries
Average Balance Sheet, Yields, & Rates - Managed Basis (1)
($ millions) Three Months Ended
---------------------------------------------------------
Mar 31, 2000 Dec 31, 1999
---------------------------------------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
-------- ------- ------- ---------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Assets
Short-term investments $ 15,451 $ 226 5.88% $ 15,985 $ 215 5.34%
Trading assets (2) 6,909 100 5.82 6,614 99 5.94
Investment securities: (2)
U.S. government and federal agency 15,641 258 6.63 15,046 257 6.78
States and political subdivisions 1,483 28 7.59 1,646 30 7.23
Other 12,482 165 5.32 14,666 188 5.09
------------------ ------------------
Total investment securities 29,606 451 6.13 31,358 475 6.01
Loans: (2) (3)
Commercial 97,973 1,941 7.97 93,491 1,862 7.90
Consumer 65,118 1,493 9.22 62,577 1,334 8.46
Credit Card 67,095 2,499 14.98 68,678 2,570 14.85
------------------ ------------------
Total loans, net 230,186 5,933 10.37 224,746 5,766 10.18
------ ------
Total earning assets 282,152 $6,710 9.56 278,703 $6,555 9.33
====== ======
Allowance for credit losses (2,367) (2,294)
Other assets - nonearning 33,772 34,939
-------- --------
Total assets $313,557 $311,348
======== ========
Liabilities and Stockholders' Equity
Deposits -- interest-bearing:
Savings $ 16,942 $ 61 1.45 $ 18,955 $ 70 1.47
Money market 47,606 400 3.38 46,066 379 3.26
Time 38,818 550 5.70 36,083 481 5.29
Foreign offices 29,443 378 5.16 27,292 338 4.91
------------------ ------------------
Total deposits -- interest-bearing 132,809 1,389 4.21 128,396 1,268 3.92
Federal funds purchased and securities
under repurchase agreements 19,316 266 5.54 19,126 245 5.08
Other short-term borrowings 64,751 1,003 6.23 65,873 995 5.99
Long-term debt 36,484 607 6.69 35,672 550 6.12
------------------ ------------------
Total interest-bearing liabilities 253,360 $3,265 5.18 249,067 $3,058 4.87
====== ======
Demand deposits 27,921 29,223
Other liabilities 12,305 13,051
Preferred stock 190 190
Common stockholders' equity 19,781 19,817
-------- --------
Total liabilities and equity $313,557 $311,348
======== ========
Interest income/earning assets $6,710 9.56% $6,555 9.33%
Interest expense/earning assets 3,265 4.65 3,058 4.35
-------------- --------------
Net interest margin $3,445 4.91% $3,497 4.98%
============== ==============
</TABLE>
(1) Managed data adjusted for credit card securitization activity.
(2) Includes tax-equivalent adjustments based on a 35% federal income tax rate.
(3) Nonperforming loans are included in balances used to determine the average
rate.
6
<PAGE>
<TABLE>
<CAPTION>
BANK ONE CORPORATION and Subsidiaries
Average Balance Sheet, Yields, & Rates - Managed Basis (1)
($ millions) Twelve Months Ended Dec 31
-------------------------------------------------------------------------------
2000 1999
------------------------------------- -----------------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
------------- ----------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Short-term investments $ 16,941 $ 1,080 6.38% $ 13,976 $ 678 4.85%
Trading assets (2) 6,937 439 6.33 6,128 332 5.42
Investment securities: (2)
U.S. government and federal agency 14,406 958 6.65 15,228 1,008 6.62
States and political subdivisions 1,367 105 7.68 1,835 135 7.36
Other 11,192 616 5.50 13,468 658 4.89
---------------------- -------------------
Total investment securities 26,965 1,679 6.23 30,531 1,801 5.90
Loans: (2) (3)
Commercial 100,202 8,381 8.36 90,182 6,812 7.55
Consumer 66,812 6,086 9.11 59,440 5,142 8.65
Credit card (2) 66,178 9,971 15.07 68,980 10,529 15.26
---------------------- -------------------
Total loans, net 233,192 24,438 10.48 218,602 22,483 10.28
------- -------
Total earning assets 284,035 $27,636 9.73 269,237 $25,294 9.39
======= =======
Allowance for credit losses (2,860) (2,290)
Other assets - nonearning 33,786 35,242
-------- --------
Total assets $314,961 $302,189
======== ========
Liabilities and Stockholders' Equity
Deposits -- interest-bearing:
Savings $ 16,433 $ 240 1.46 $ 19,866 $ 310 1.56
Money market 47,552 1,658 3.49 44,730 1,445 3.23
Time 43,555 2,646 6.08 35,202 1,784 5.07
Foreign offices 27,609 1,593 5.77 24,157 1,112 4.60
---------------------- -------------------
Total deposits -- interest-bearing 135,149 6,137 4.54 123,955 4,651 3.75
Federal funds purchased and securities
under repurchase agreements 18,961 1,142 6.02 19,711 935 4.74
Other short-term borrowings 61,955 4,104 6.62 63,555 3,506 5.52
Long-term debt 39,395 2,747 6.97 29,367 1,745 5.94
---------------------- -------------------
Total interest-bearing liabilities 255,460 $14,130 5.53 236,588 $10,837 4.58
======= =======
Demand deposits 27,313 31,229
Other liabilities 12,616 13,918
Preferred stock 190 190
Common stockholders' equity 19,382 20,264
-------- --------
Total liabilities and equity $314,961 $302,189
======== ========
Interest income/earning assets $27,636 9.73% $25,294 9.39%
Interest expense/earning assets 14,130 4.97 10,837 4.02
----------------- -------------------
Net interest margin $13,506 4.76% $14,457 5.37%
================= ===================
</TABLE>
(1) Managed data adjusted for credit card securitization activity.
(2) Includes tax-equivalent adjustments based on a 35% federal income tax rate.
(3) Nonperforming loans are included in balances used to determine the average
rate.
7
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Average Balance Sheet, Yields, & Rates - Reported Basis
<TABLE>
<CAPTION>
($ millions) Three Months Ended
------------------------------------------------------------------------------------------
Dec 31, 2000 Sep 30, 2000 Jun 30, 2000 Jun 30, 2000
------------------------------------------------------------------------------------------
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
--------- --------- -------- --------- --------- -------- --------- --------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Short-term investments $ 16,272 $ 272 6.65% $ 18,673 $ 306 6.52% $ 17,356 $ 276 6.40%
Trading assets (1) 6,140 101 6.54 8,252 138 6.65 6,442 100 6.24
Investment securities: (1)
U.S. government and federal agency 14,765 228 6.14 12,163 212 6.93 15,074 260 6.94
States and political subdivisions 1,283 25 7.75 1,308 25 7.60 1,398 27 7.77
Other 29,485 620 8.37 28,861 603 8.31 29,813 575 7.76
--------------------- --------------------- --------- -------
Total investment securities 45,533 873 7.63 42,332 840 7.89 46,285 862 7.49
Loans: (1) (2)
Commercial 101,439 2,147 8.42 101,224 2,196 8.63 100,146 2,097 8.42
Consumer 69,238 1,594 9.16 67,331 1,544 9.12 65,527 1,455 8.93
Credit Card 4,911 220 17.82 4,704 195 16.49 5,070 212 16.82
--------------------- --------------------- --------- -------
Total loans, net 175,588 3,961 8.97 173,259 3,935 9.04 170,743 3,764 8.87
---------- --------- -------
Total earning assets 243,533 $ 5,207 8.51 242,516 $ 5,219 8.56 240,826 $5,002 8.35
========== ========= =======
Allowance for credit losses (3,499) (3,036) (2,531)
Other assets - nonearning 33,319 33,534 34,528
--------- --------- ---------
Total assets $273,353 $273,014 $272,823
========= ========= =========
Liabilities and Stockholders' Equity
Deposits -- interest-bearing:
Savings $ 15,543 $ 57 1.46 $ 16,287 $ 62 1.51 $ 16,973 $ 60 1.42
Money market 47,084 429 3.62 47,080 419 3.54 48,450 410 3.40
Time 47,480 759 6.36 45,906 728 6.31 41,946 609 5.84
Foreign offices 25,950 397 6.09 26,228 410 6.22 28,848 408 5.69
--------- ---------- --------- --------- --------- -------
Total deposits -- interest-bearing 136,057 1,642 4.80 135,501 1,619 4.75 136,217
Federal funds purchased and securities 1,487 4.39
under repurchase agreements 18,564 284 6.09 19,331 311 6.40 18,632
Other short-term borrowings 17,833 292 6.51 18,933 319 6.70 19,248 281 6.07
Long-term debt 41,395 742 7.13 41,018 728 7.06 38,642 307 6.41
--------- ---------- --------- 670 6.97
-------
Total interest-bearing liabilities 213,849 $ 2,960 5.51 214,783 $ 2,977 5.51 212,739 $2,745 5.19
========== ========= =======
Demand deposits 27,194 26,456 27,692
Other liabilities 12,943 12,706 12,503
Preferred stock 190 190 190
Common stockholders' equity 19,177 18,879 19,699
--------- --------- ---------
Total liabilities and equity $273,353 $273,014 $272,823
========= ========= =========
Interest income/earning assets $ 5,207 8.51% $ 5,219 8.56% $5,002 8.35%
Interest expense/earning assets 2,960 4.84 2,977 4.88 2,745 4.58
------------ ----- ----------------- --------------
Net interest margin $ 2,247 3.67% $ 2,242 3.68% $2,257 3.77%
============ ===== ================= ==============
</TABLE>
(1) Includes tax-equivalent adjustments based on a 35% federal income tax rate.
(2) Nonperforming loans are included in balances used to determine the average
rate.
8
<PAGE>
<TABLE>
<CAPTION>
BANK ONE CORPORATION and Subsidiaries
Average Balance Sheet, Yields, & Rates - Reported Basis
($ millions) Three Months Ended
------------------------------------------------------------------
Mar 31, 2000 Dec 31, 1999
------------------------------------------------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
-------------- ---------- --------- ---------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Assets
Short-term investments $ 15,451 $ 226 5.88% $ 15,985 $ 215 5.34%
Trading assets (1) 6,909 100 5.82 6,614 99 5.94
Investment securities: (1)
U.S. government and federal agency 15,641 258 6.63 15,046 257 6.78
States and political subdivisions 1,483 28 7.59 1,646 30 7.23
Other 30,406 564 7.46 32,495 600 7.33
-------------------------- -------------------
Total investment securities 47,530 850 7.19 49,187 887 7.15
Loans: (1) (2)
Commercial 97,973 1,941 7.97 93,491 1,862 7.90
Consumer 65,118 1,493 9.22 62,577 1,334 8.46
Credit Card 4,332 178 16.53 4,526 184 16.13
-------------------------- -------------------
Total loans, net 167,423 3,612 8.68 160,594 3,380 8.35
---------- -------
Total earning assets 237,313 $4,788 8.11 232,380 $4,581 7.82
========== =======
Allowance for credit losses (2,367) (2,294)
Other assets - nonearning 33,772 34,939
--------------- ---------
Total assets $268,718 $265,025
=============== =========
Liabilities and Stockholders' Equity
Deposits -- interest-bearing:
Savings $ 16,942 $ 61 1.45 $ 18,955 $ 70 1.47
Money market 47,606 400 3.38 46,066 379 3.26
Time 38,818 550 5.70 36,083 481 5.29
Foreign offices 29,443 378 5.16 27,292 338 4.91
----------------------------- -------------------
Total deposits -- interest-bearing: 132,809 1,389 4.21 128,396 1,268 3.92
Federal funds purchased and securities
under repurchase agreements 19,316 266 5.54 19,126 245 5.08
Other short-term borrowings 19,912 298 6.02 19,550 297 6.03
Long-term debt 36,484 607 6.69 35,672 550 6.12
----------------------------- -------------------
Total interest-bearing liabilities 208,521 $2,560 4.94 202,744 $2,360 4.62
========== =======
Demand deposits 27,921 29,223
Other liabilities 12,305 13,051
Preferred stock 190 190
Common stockholders' equity 19,781 19,817
--------------- ---------
Total liabilities and equity $268,718 $265,025
=============== =========
Interest income/earning assets $4,788 8.11% $4,581 7.82%
Interest expense/earning assets 2,560 4.33 2,360 4.03
-------------------- ---------------
Net interest margin $2,228 3.78% $2,221 3.79%
==================== ===============
</TABLE>
(1) Includes tax-equivalent adjustments based on a 35% federal income tax rate.
(2) Nonperforming loans are included in balances used to determine the average
rate.
9
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Average Balance Sheet, Yields, & Rates - Reported Basis
($ millions)
<TABLE>
<CAPTION>
Twelve Months Ended December 31
------------------------------------------------------------------------
2000 1999
------------------------------------- ------------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
------------ ----------- --------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Assets
Short-term investments $ 16,941 $ 1,080 6.38% $ 13,976 $ 678 4.85%
Trading assets (1) 6,937 439 6.33 6,128 332 5.42
Investment securities: (1)
U.S. government and federal agency 14,406 958 6.65 15,228 1,008 6.62
States and political subdivisions 1,367 105 7.68 1,835 135 7.36
Other (1) 29,639 2,362 7.97 29,517 2,169 7.35
-------------------------- --------------------
Total investment securities 45,412 3,425 7.54 46,580 3,312 7.11
Loans: (1) (2)
Commercial 100,202 8,381 8.36 90,182 6,812 7.55
Consumer 66,812 6,086 9.11 59,440 5,142 8.65
Credit card 4,754 805 16.93 7,233 1,139 15.75
-------------------------- --------------------
Total loans, net 171,768 15,272 8.89 156,855 13,093 8.35
----------- --------- --------
Total earning assets 241,058 $20,216 8.39 223,539 $17,415 7.79
=========== ========
Allowance for credit losses (2,860) (2,290)
Other assets - nonearning 33,786 35,242
------------ ---------
Total assets $271,984 $256,491
============ =========
Liabilities and Stockholders' Equity
Deposits -- interest-bearing:
Savings $ 16,433 $ 240 1.46 $ 19,866 $ 310 1.56
Money market 47,552 1,658 3.49 44,730 1,445 3.23
Time 43,555 2,646 6.08 35,202 1,784 5.07
Foreign offices 27,609 1,593 5.77 24,157 1,112 4.60
-------------------------- --------------------
Total deposits -- interest-bearing 135,149 6,137 4.54 123,955 4,651 3.75
Federal funds purchased and securities
under repurchase agreements 18,961 1,142 6.02 19,711 935 4.74
Other short-term borrowings 18,978 1,216 6.41 17,857 942 5.28
Long-term debt 39,395 2,747 6.97 29,367 1,745 5.94
-------------------------- --------------------
Total interest-bearing liabilities 212,483 $11,242 5.29 190,890 $ 8,273 4.33
=========== ========
Demand deposits 27,313 31,229
Other liabilities 12,616 13,918
Preferred stock 190 190
Common stockholders' equity 19,382 20,264
------------ ---------
Total liabilities and equity $271,984 $256,491
============ =========
Interest income/earning assets $20,216 8.39% $17,415 7.79%
Interest expense/earning assets 11,242 4.67 8,273 3.70
---------------------- ----------------
Net interest margin $ 8,974 3.72% $ 9,142 4.09%
====================== ================
</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>
<TABLE>
<CAPTION>
BANK ONE CORPORATION and Subsidiaries
Credit Quality
($ millions) Three Months Ended
-------------------------------------------------
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
2000 2000 2000 2000 1999
-------------------------------------------------
<S> <C> <C> <C> <C> <C>
Provision for credit losses $1,507 $ 516 $1,013 $ 362 $ 416
Gross charge-offs $ 558 $ 388 $ 383 $ 338 $ 468
Recoveries 71 69 64 72 85
-------------------------------------------------
Net charge-offs $ 487 $ 319 $ 319 $ 266 $ 383
=================================================
Net charge-offs:
Commercial $ 280 $ 116 $ 117 $ 84 $ 71
Consumer 142 147 135 123 256
Credit card 65 56 67 59 56
-------------------------------------------------
Total net charge-offs $ 487 $ 319 $ 319 $ 266 $ 383
Credit card net charge-offs -- managed $ 887 $ 828 $ 900 $ 969 $1,119
Total net charge-offs -- managed $1,309 $1,091 $1,152 $1,176 $1,446
Net charge-off ratios:
Commercial 1.10% 0.46% 0.47% 0.34% 0.30%
Consumer 0.82 0.87 0.82 0.76 1.64
Credit card 5.29 4.76 5.29 5.45 4.95
Total net charge-off ratio 1.11 0.74 0.75 0.64 0.95
Credit card net charge-off ratio-- managed 5.41 5.03 5.44 5.78 6.52
Total net charge-off ratio -- managed 2.22 1.86 1.99 2.04 2.57
Allowance for credit losses -- period-end $4,110 $3,090 $2,983 $2,338 $2,285
Nonperforming assets -- period-end:
Nonperforming loans:
Commercial $1,761 $1,464 $1,250 $1,093 $1,053
Consumer 714 562 440 471 506
-------------------------------------------------
Total 2,475 2,026 1,690 1,564 1,559
Other, including other real estate owned 98 110 94 97 106
-------------------------------------------------
Total nonperforming assets $2,573 $2,136 $1,784 $1,661 $1,665
=================================================
Allowance to period end loans 2.36% 1.75% 1.73% 1.39% 1.39%
Allowance to nonperforming loans 166 153 177 149 147
Nonperforming assets to related assets 1.48 1.21 1.03 0.99 1.02
Credit card delinquency rate - managed:
30+ days 4.51% 4.14% 3.83% 4.08% 4.57%
90+ days 2.02% 1.79% 1.69% 1.91% 2.13%
</TABLE>
11
<PAGE>
BANK ONE CORPORATION and Subsidiaries
Capital and Related Information
($ millions, except per-share amounts)
<TABLE>
<CAPTION>
Three Months Ended
------------------------------------------------------------
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
Capital Ratios: 2000 2000 2000 2000 1999
-------------- ------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Regulatory leverage 7.3% 7.5% 7.0% 7.7% 7.7%
Tier 1 7.3 7.5 7.2 7.7 7.7
Total 10.8 10.9 10.3 10.6 10.7
Common equity/managed assets 6.0 5.9 5.9 6.3 6.3
Tangible common equity/tangible managed assets 5.5 5.4 5.4 5.7 5.7
Book value of common equity per share $ 15.90 $ 16.47 $ 16.12 $ 17.43 $ 17.34
Tier 1 capital $ 19,824 $ 20,433 $ 19,121 $ 20,573 $ 20,247
Tier 2 capital 9,316 9,119 8,350 7,899 7,967
-----------------------------------------------------------
Total capital $ 29,140 $ 29,552 $ 27,471 $ 28,472 $ 28,214
===========================================================
Total risk weighted assets $270,182 $272,095 $266,937 $268,339 $263,169
===========================================================
Intangible Assets:
-----------------
Goodwill $ 858 $ 876 $ 894 $ 916 $ 934
Other nonqualifying intangibles 375 405 436 637 669
-----------------------------------------------------------
Subtotal 1,233 1,281 1,330 1,553 1,603
Qualifying intangibles 214 235 256 555 583
-----------------------------------------------------------
Total $ 1,447 $ 1,516 $ 1,586 $ 2,108 $ 2,186
===========================================================
Managed Income Statement Statistics (1)
($ millions)
Net interest income -- FTE $ 3,319 $ 3,346 $ 3,396 $ 3,445 $ 3,497
Provision for credit losses 2,329 1,288 1,846 1,272 1,296
Credit card revenue 325 337 171 271 318
Other noninterest income 672 1,065 (189) 1,243 1,068
Noninterest expense 2,847 2,593 3,507 2,661 3,030
Net income (loss) (512) 581 (1,269) 689 411
</TABLE>
(1) Adjusted for credit card securitization activity.
12
<PAGE>
BANK ONE CORPORATION LINE OF BUSINESS DETAIL*
<TABLE>
<CAPTION>
Income Statement ($ millions) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
Balance Sheet ($ billions) 2000 2000 2000 2000 1999 1999 1999 1999
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Retail (incld. Wingspan)
-------------------------
Net interest income FTE $ 1,227 $ 1,236 $ 1,205 $ 1,236 $ 1,118 $ 1,100 $ 1,082 $ 1,079
Provision 364 207 121 167 116 83 83 133
Noninterest income 81 326 330 306 339 395 408 399
Noninterest expense 977 959 1,024 1,002 995 1,000 962 976
------- ------- ------- ------- ------- ------- ------- -------
Pretax income (FTE) (33) 396 390 373 346 412 445 369
Taxes & FTE adj (16) 145 143 137 110 144 155 122
------- ------- ------- ------- ------- ------- ------- -------
Net Income - adjusted (17) 251 247 236 236 268 290 247
Significant items 0 0 (328) 0 0 0 0 0
------- ------- ------- ------- ------- ------- ------- -------
Net income - reported (17) 251 (81) 236 236 268 290 247
Return on equity ** -1% 17% 17% 18% 20% 23% 25% 22%
Efficiency ratio ** 75% 61% 67% 65% 68% 67% 65% 66%
** Net income - adjusted
Loans - avg $ 76.7 $ 74.7 $ 73.6 $ 73.1 $ 68.8 $ 66.9 $ 64.9 $ 63.9
Assets - avg 81.0 78.8 77.9 79.6 74.9 73.4 71.4 70.4
Deposits - avg 88.0 87.9 89.4 88.3 87.6 88.5 89.2 90.9
Common equity - avg 5.9 5.9 5.9 5.3 4.6 4.7 4.6 4.5
Supplemental Information:
-------------------------
Headcount - full-time 35,759 35,979 36,700 N/A N/A N/A N/A N/A
Loans
-------
Commercial loans - avg $ 11.6 $ 11.8 $ 11.8 $ 11.5 $ 11.6 $ 10.9 $ 10.8 $ 10.5
Home equity loans - avg 30.8 28.3 26.3 25.5 23.4 20.6 18.9 17.5
Indirect auto loans/leases - avg 24.2 24.0 24.4 24.3 24.0 23.5 23.2 22.9
Other personal loans - avg 10.1 10.6 11.1 11.8 9.8 11.9 12.0 13.0
Total loans - avg $ 76.7 74.7 73.6 73.1 68.8 66.9 64.9 63.9
Distribution
---------------
# Banking centers 1,810 1,818 1,832 1,839 1,854 1,884 1,919 1,955
# ATMs 6,055 6,377 6,530 6,651 6,824 7,088 7,372 8,007
# on-line customers (000s) 918 825 690 590 488 440 326 306
Investments
-------------
IMG sales volume ($ millions) $ 899 $ 1,028 $ 1,105 $ 1,193 $ 959 $ 969 $ 1,223 $ 926
<CAPTION>
Three Months Ended Dec 31, 2000
------------------------------------
Income Statement ($ millions) Chg Prior Yr. Chg. Prior Qtr
Balance Sheet ($ billions) Amt % Amt %
--- - --- -
<S> <C> <C> <C> <C>
Retail (incld. Wingspan)
-------------------------
Net interest income FTE $ 109 10% $ (9) -1%
Provision 248 NM 157 76%
Noninterest income (258) -76% (245) -75%
Noninterest expense (18) -2% 18 2%
----- -----
Pretax income (FTE) (379) NM (429) NM
Taxes & FTE adj (126) NM (161) NM
----- -----
Net Income - adjusted (253) NM (268) NM
Significant items 0 NM 0 NM
----- -----
Net income - reported (253) NM (268) NM
Return on equity ** -21% -18%
Efficiency ratio ** 7% 14%
** Net income - adjusted
Loans - avg $ 7.9 11% $ 2.0 3%
Assets - avg 6.1 8% 2.2 3%
Deposits - avg 0.4 0% 0.1 0%
Common equity - avg 1.3 28% 0.0 0%
Supplemental Information:
-------------------------
Headcount - full-time NM NM (220) -1%
Loans
-------
Commercial loans - avg $ - 0% $(0.2) -2%
Home equity loans - avg 7.4 32% 2.5 9%
Indirect auto loans/leases - avg 0.2 1% 0.2 1%
Other personal loans - avg 0.3 3% (0.5) -5%
Total loans - avg $ 7.9 11% $ 2.0 3%
Distribution
---------------
# Banking centers (44) -2% (8) -0%
# ATMs (769) -11% (322) -5%
# on-line customers (000s) 430 88% 93 11%
Investments
-------------
IMG sales volume ($ millions) $ (60) -6% $(129) -13%
NOTE: Certain balance sheet breakdowns (i.e., loans, deposits) are based on
line-of-business definitions and as a result would not necessarily agree
to consolidated financial information, which is based on a regulatory
reporting definitional framework
</TABLE>
*2Q00 adjusted for one-time items; FUSA on managed basis.
See 3/17/00 Form 10-K for definitions and methodologies.
13
<PAGE>
BANK ONE CORPORATION LINE OF BUSINESS DETAIL*
<TABLE>
<CAPTION>
Income Statement ($ millions) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
Balance Sheet ($ billions) 2000 2000 2000 2000 1999 1999 1999 1999
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Commercial Banking
-----------------------
Net interest income FTE $ 674 $ 685 $ 694 $ 664 $ 672 $ 636 $ 628 $ 602
Provision 1,078 225 150 132 113 109 108 105
Noninterest income 353 378 356 354 316 285 329 351
Noninterest expense 557 566 563 570 582 507 538 568
------- ------- ------- ------- ------- ------- ------- -------
Pretax income (FTE) (608) 272 337 316 293 305 311 280
Taxes & FTE adj (223) 100 123 116 94 107 108 92
------- ------- ------- ------- ------- ------- ------- -------
Net Income - adjusted (385) 172 214 200 199 198 203 188
Significant items 0 0 (427) 0 0 0 0 0
------- ------- ------- ------- ------- ------- ------- -------
Net income - reported (385) 172 (213) 200 199 198 203 188
Return on equity ** -23% 10% 13% 13% 14% 14% 14% 13%
Efficiency ratio ** 54% 53% 54% 56% 59% 55% 56% 60%
** Net income - adjusted
Loans - avg $ 83.1 $ 83.4 $ 82.1 $ 80.4 $ 78.0 $ 74.9 $ 73.0 $ 71.5
Assets - avg 109.3 111.0 110.2 110.2 109.9 104.4 104.4 104.9
Deposits - avg 38.2 39.2 40.9 39.2 38.9 37.3 37.4 37.2
Common equity - avg 6.8 6.7 6.7 6.2 5.6 5.7 5.8 5.7
Supplemental Information:
-------------------------
Headcount - full-time 16,605 16,551 16,394 N/A N/A N/A N/A N/A
Comm'l Banking Credit Quality
-----------------------------
Charge-offs - % 1.24% 0.52% 0.54% 0.42% 0.33% 0.50% 0.41% 0.34%
Nonperforming loans - $ mill. $ 1,523 $ 1,243 $ 1,010 $ 888 $ 871 $ 841 $ 859 $ 850
Nonperforming loans - % 1.87% 1.47% 1.21% 1.11% 1.10% 1.14% 1.21% 1.23%
Middle Market
-------------
Loans and Leases - avg $ 33.1 $ 32.6 $ 32.0 $ 31.0 $ 29.9 $ 29.5 $ 29.2 $ 30.0
Credit Quality
Charge-offs - % 0.74% 0.40% 0.11% 0.31% 0.21% 0.22% 0.16% 0.13%
Nonperforming loans - $ mill. $ 458 $ 455 $ 280 $ 295 $ 293 $ 314 $ 293 $ 364
Nonperforming loans - % 1.37% 1.37% 0.86% 0.93% 0.93% 1.04% 0.97% 1.26%
Deposits - avg $ 17.1 $ 17.8 $ 18.8 $ 18.7 $ 18.8 $ 18.8 $ 18.6 $ 18.6
Corporate Banking
-----------------
Loans and Leases - avg $ 50.1 $ 50.9 $ 50.1 $ 49.4 $ 48.1 $ 45.3 $ 43.8 $ 41.5
Credit Quality
Charge-offs - % 1.57% 0.60% 0.81% 0.49% 0.41% 0.68% 0.57% 0.49%
Nonperforming loans - $ mill. $ 1,065 $ 788 $ 730 $ 593 $ 578 $ 527 $ 566 $ 487
Nonperforming loans - % 2.22% 1.54% 1.44% 1.22% 1.12% 1.20% 1.39% 1.21%
Deposits - avg $ 21.1 $ 21.4 $ 22.1 $ 20.5 $ 20.1 $ 18.6 $ 18.8 $ 18.7
Syndications
------------
Lead Arranger Deals:
Volume ($ billions) $ 15.4 $ 16.6 $ 16.5 $ 9.6 $ 16.2 $ 13.2 $ 9.6 $ 8.9
Number of transactions 54 60 60 35 66 42 41 41
League table standing - rank 4 4 4 5 4 4 5 5
League table standing - mkt share 6% 5% 5% 5% 7% 5% 3% 5%
<CAPTION>
Three Months Ended Dec 31, 2000
------------------------------------
Income Statement ($ millions) Chg Prior Yr. Chg. Prior Qtr
Balance Sheet ($ billions) Amt % Amt %
--------- ------
<S> <C> <C> <C>
Commercial Banking
------------------
Net interest income FTE $ 2 0% $ (11) -2%
Provision 965 NM 853 NM
Noninterest income 37 12% (25) -7%
Noninterest expense (25) -4% (9) -2%
-------- -----
Pretax income (FTE) (901) NM (880) NM
Taxes & FTE adj (317) NM (323) NM
-------- -----
Net Income - adjusted (584) NM (557) NM
Significant items 0 NM 0 NM
-------- -----
Net income - reported (584) NM (557) NM
Return on equity ** -37% -33%
Efficiency ratio ** -5% 1%
** Net income - adjusted
Loans - avg $ 5.1 7% $ (0.3) 0%
Assets - avg (0.6) -1% (1.7) -2%
Deposits - avg (0.7) -2% (1.0) -3%
Common equity - avg 1.2 21% 0.1 1%
Supplemental Information:
------------------------
Headcount - full-time NM NM 54 0%
Comm'l Banking Credit Quality
---------------------------
Charge-offs - % 0.91% 0.72%
Nonperforming loans - $ m $ 652 75% $ 280 23%
Nonperforming loans - % 0.77% 0.40%
Middle Market
-------------
Loans and Leases - avg $ 3.2 11% $ 0.5 2%
Credit Quality
Charge-offs - % 0.53% 0.34%
Nonperforming loans - $ m $ 165 56% $ 3 1%
Nonperforming loans - % 0.44% 0.00%
Deposits - avg $ (1.7) -9% $ (0.7) -4%
Corporate Banking
-----------------
Loans and Leases - avg $ 2.0 4% $ (0.8) -2%
Credit Quality
Charge-offs - % 1.16% 0.97%
Nonperforming loans - $ m $ 487 84% $ 277 35%
Nonperforming loans - % 1.10% 0.68%
Deposits - avg $ 1.0 5% $ (0.3) -1%
Syndications
------------
Lead Arranger Deals:
Volume ($ billions) $ (0.8) -5% $ (1.2) -7%
Number of transactions (12) -18% (6) -10%
League table standing - 0 0% 0 0%
League table standing - -1% 1%
</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.
14
<PAGE>
BANK ONE CORPORATION LINE OF BUSINESS DETAIL*
<TABLE>
<CAPTION>
Income Statement ($ millions) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
Balance Sheet ($ billions) 2000 2000 2000 2000 1999 1999 1999 1999
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
First USA
--------------------------------
Net interest income FTE $ 1,417 $ 1,442 $ 1,451 $ 1,525 $ 1,570 $ 1,733 $ 1,781 $ 1,797
Provision 880 853 900 969 933 922 898 840
FAS 125 gains (23) (22) (30) (41) (26) 12 50 25
** Excludes charges in exess of ** **
normal run rate
Other noninterest income 334 345 337 305 445 398 405 323
------- ------- ------- ------- ------- ------- ------- -------
Noninterest income 311 324 307 264 419 410 455 348
Noninterest expense 637 633 679 715 754 778 818 854
------- ------- ------- ------- ------- ------- ------- -------
Pretax income (FTE) 211 280 179 105 302 443 520 451
Taxes & FTE adj 77 103 66 38 96 155 181 149
------- ------- ------- ------- ------- ------- ------- -------
Net Income - adjusted 134 177 113 67 206 288 339 302
Significant items 0 0 (492) 0 0 0 0 0
------- ------- ------- ------- ------- ------- ------- -------
Net income - reported 134 177 (379) 67 206 288 339 302
Return on O/S (ROO) pretax *** 1.3% 1.7% 1.1% 0.6% 1.7% 2.5% 3.0% 2.7%
Return on equity *** 9% 12% 7% 4% 14% 19% 23% 20%
Efficiency ratio *** 37% 36% 39% 40% 38% 36% 37% 40%
*** Net income - adjusted
Loans - avg $ 65.6 $ 65.9 $ 66.1 $ 67.1 $ 68.7 $ 69.2 $ 68.9 $ 69.1
Assets - avg 68.6 69.2 70.6 72.8 74.9 75.0 75.0 74.8
Common equity - avg 6.1 6.1 6.1 6.2 6.0 6.1 6.0 6.0
Supplemental Information:
-------------------------
Headcount - full-time 10,901 10,856 11,009 N/A N/A N/A N/A N/A
% of Avg. Outstandings *
------------------------
Net interest income FTE 8.59% 8.71% 8.83% 9.14% 9.07% 9.94% 10.37% 10.55%
Provision 5.34% 5.15% 5.44% 5.78% 5.39% 5.33% 5.23% 4.93%
Noninterest income 1.89% 1.96% 1.87% 1.58% 2.42% 2.35% 2.65% 2.04%
Noninterest expense 3.86% 3.82% 4.13% 4.29% 4.35% 4.46% 4.76% 5.01%
Pretax income FTE 1.28% 1.69% 1.09% 0.63% 1.74% 2.54% 3.03% 2.65%
Net income 0.81% 1.07% 0.69% 0.40% 1.19% 1.65% 1.97% 1.77%
Credit card loans - eop
-----------------------
Owned credit card loans $ 4.7 $ 4.8 $ 4.5 $ 4.9 $ 4.0 $ 6.0 $ 8.1 $ 9.4
Seller's interest in credit cards 22.4 19.7 18.5 17.4 19.7 16.6 14.5 14.7
------- ------- ------- ------- ------- ------- ------- -------
Loans on balance sheet 27.2 24.5 23.0 22.3 23.7 22.6 22.6 24.1
Securitized credit card loans 39.8 41.4 43.3 44.2 45.7 47.4 46.9 44.3
------- ------- ------- ------- ------- ------- ------- -------
Managed credit card loans $ 67.0 $ 65.9 $ 66.3 $ 66.5 $ 69.4 $ 70.0 $ 69.5 $ 68.4
Credit Quality
--------------
Managed charge-offs-$ $ 887 $ 828 $ 900 $ 969 $ 1,119 $ 921 $ 905 $ 845
Managed charge-offs-ratio 5.41% 5.03% 5.44% 5.78% 6.52% 5.33% 5.25% 4.89%
Delinquency ratio - 30+ days 4.51% 4.14% 3.83% 4.08% 4.57% 4.74% 4.30% 4.51%
Delinquency ratio - 90+ days 2.02% 1.79% 1.69% 1.91% 2.13% 2.07% 1.96% 2.06%
Charge volume ($ bill) $ 37.1 $ 34.6 $ 36.8 $ 34.0 $ 37.5 $ 36.1 $ 35.6 $ 33.5
New accounts opened (000s) 821 727 826 950 1,076 1,835 2,287 2,910
Cards issued (000s) 51,693 53,650 54,648 56,378 64,191 64,523 65,620 64,863
<CAPTION>
Three Months Ended Dec 31, 2000
-------------------------------------------------------
Income Statement ($ millions) Chg Prior Yr. Chg. Prior Qtr
Balance Sheet ($ billions) Amt % Amt %
--- --- --- ---
<S> <C> <C> <C> <C>
First USA
------------------------------
Net interest income FTE $ (153) -10% $ (25) -2%
Provision (53) -6% 27 3%
FAS 125 gains 3 12% (1) -5%
** Excludes charges in exess of
normal run rate
Other noninterest income (111) -25% (11) -3%
-------- ------
Noninterest income (108) -26% (13) -4%
Noninterest expense (117) -16% 4 1%
-------- ------
Pretax income (FTE) (91) -30% (68) -25%
Taxes & FTE adj (19) -20% (26) -25%
-------- ------
Net Income - adjusted (72) -35% (43) -24%
Significant items 0 NM 0 NM
-------- ------
Net income - reported (72) -35% (43) -24%
Return on O/S (ROO) pretax *** -0.5% -0.4%
Return on equity *** -5% -3%
Efficiency ratio *** -1% 1%
*** Net income - adjusted
Loans - avg $ (3.1) -5% $ (0.3) 0%
Assets - avg (6.3) -8% (0.6) -1%
Common equity - avg 0.1 2% 0.0 0%
Supplemental Information:
-------------------------
Headcount - full-time NM NM 45 0%
% of Avg. Outstandings *
------------------------
Net interest income FTE -0.48% -0.12%
Provision -0.05% 0.19%
Noninterest income -0.53% -0.07%
Noninterest expense -0.49% 0.04%
Pretax income FTE -0.46% -0.41%
Net income -0.38% -0.26%
Credit card loans - eop
-----------------------
Owned credit card loans $ 0.7 17% $ (0.1) -2%
Seller's interest in credit cards 2.7 14% 2.7 14%
-------- ------
Loans on balance sheet 3.5 15% 2.7 11%
Securitized credit card loans (5.9) -13% (1.6) -4%
-------- ------
Managed credit card loans $ (2.4) -3% $ 1.1 2%
Credit Quality
--------------
Managed charge-offs-$ $ (232) -21% $ 59 7%
Managed charge-offs-ratio -1.11% 0.38 %
Delinquency ratio - 30+ days -0.06% 0.37 %
Delinquency ratio - 90+ days -0.11% 0.23 %
Charge volume ($ bill) $ (0.4) -1% $ 2.5 7%
New accounts opened (000s) (255) -24% 94 13%
Cards issued (000s) (12,498) -19% (1,967) -4%
</TABLE>
*2000 adjusted for one-time items; FUSA on managed basis.
See 3/17/00 Form 10-K for definitions and methodologies.
15
<PAGE>
BANK ONE CORPORATION LINE OF BUSINESS DETAIL *
<TABLE>
<CAPTION>
Income Statement ($ millions) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
Balance Sheet ($ billions) 2000 2000 2000 2000 1999 1999 1999 1999
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Management
-----------------------
Net interest income FTE $ 104 $ 104 $ 101 $ 100 $ 91 $ 93 $ 99 $ 93
Provision 7 2 2 2 1 1 0 0
Noninterest income 300 286 288 287 297 285 295 302
Noninterest expense 268 252 263 257 261 251 255 308
------- ------- ------- ------- ------- ------- ------- -------
Pretax income (FTE) 129 136 124 128 126 126 139 87
Taxes & FTE adj 47 50 45 47 40 44 48 29
------- ------- ------- ------- ------- ------- ------- -------
Net Income - adjusted 82 86 79 81 86 82 91 58
Significant items 0 0 (6) 0 0 0 0 0
------- ------- ------- ------- ------- ------- ------- -------
Net income - reported 82 86 73 81 86 82 91 58
Return on equity ** 33% 36% 35% 36% 38% 41% 41% 26%
Efficiency ratio ** 66% 65% 68% 66% 67% 66% 65% 78%
** Net income - adjusted
Loans - avg $ 6.8 $ 6.6 $ 6.5 $ 6.4 $ 6.0 $ 5.8 $ 5.7 $ 5.4
Assets - avg 7.8 7.6 7.5 7.7 7.4 7.1 7.1 6.9
Deposits - avg 8.5 8.2 8.6 8.7 8.9 8.6 8.7 8.9
Common equity - avg 1.0 0.9 0.9 0.9 0.9 0.8 0.9 0.9
Supplemental Information:
-------------------------
Headcount - full-time 6,562 6,583 6,645 N/A N/A N/A N/A N/A
Assets Under Management
-----------------------
Mutual Funds - EOP $ 70.4 $ 69.5 $ 67.4 $ 66.9 $ 64.4 $ 58.3 $ 59.6 $ 57.5
Other - EOP 60.8 65.1 63.8 63.7 64.5 64.9 67.4 67.3
------- ------- ------- ------- ------- ------- ------- -------
Total AUM - EOP $ 131.2 $ 134.6 $ 131.2 $ 130.6 $ 128.9 $ 123.2 $ 127.0 $ 124.8
Morningstar Rankings
--------------------
% of 4 & 5 ranked funds 62% 55% 62% 59% 54% 65% 61% 69%
% of 3+ ranked funds 97% 93% 90% 90% 84% 85% 88% 85%
Retail Brokerage
----------------
Mutual fund & annuities sales $ 925 $ 1,012 $ 1,103 $ 1,182 $ 941 $ 957 $ 1,181 $ 893
# of accounts (000s) 384 379 370 362 349 351 N/A N/A
Mkt value cust. assts-eop ($ bill) $ 23.1 $ 24.1 $ 23.6 $ 24.0 $ 23.4 N/A N/A N/A
Wealth Management
-----------------
Loans - avg $ 6.6 $ 6.5 $ 6.4 $ 6.2 $ 5.8 $ 5.6 $ 5.3 $ 5.1
Deposits - avg 7.0 6.8 7.2 7.1 7.2 7.1 7.2 7.2
# of Wealth Advisors 585 616 654 661 749 758 809 852
<CAPTION>
Three Months Ended Dec 31, 2000
-------------------------------------------
Income Statement ($ millions) Chg Prior Yr. Chg. Prior Qtr
Balance Sheet ($ billions) Amt % Amt %
--- - --- -
<S> <C> <C> <C> <C>
Investment Management
-----------------------
Net interest income FTE $ 13 14% $ - 0%
Provision 6 NM 5 NM
Noninterest income 3 1% 14 5%
Noninterest expense 7 3% 16 6%
-------- --------
Pretax income (FTE) 3 2% (7) -5%
Taxes & FTE adj 7 18% (3) -6%
-------- --------
Net Income - adjusted (4) -5% (4) -5%
Significant items 0 NM 0 NM
Net income - reported (4) -5% (4) -5%
Return on equity ** -5% -3%
Efficiency ratio ** -1% 1%
** Net income - adjusted
Loans - avg $ 0.8 13% $ 0.2 3%
Assets - avg 0.4 5% 0.2 3%
Deposits - avg (0.4) -4% 0.3 4%
Common equity - avg 0.1 11% 0.1 11%
Supplemental Information:
-------------------------
Headcount - full-time NM NM (21) 0%
Assets Under Management
-----------------------
Mutual Funds - EOP $ 6.0 9% $ 0.9 1%
Other - EOP (3.7) -6% (4.3) -7%
-------- --------
Total AUM - EOP $ 2.3 2% $ (3.4) -3%
Morningstar Rankings
--------------------
% of 4 & 5 ranked funds 8% 7%
% of 3+ ranked funds 13% 4%
Retail Brokerage
----------------
Mutual fund & annuities sales $ (16) -2% $ (87) -9%
# of accounts (000s) 35 10% 5 1%
Mkt value cust. assts-eop ($ bill) $ (0.3) -1% $ (1.0) -4%
Wealth Management
-----------------
Loans - avg $ 0.8 14% $ 0.1 2%
Deposits - avg (0.2) -3% 0.2 -3%
# of Wealth Advisors (164) -22% (31) -5%
</TABLE>
*2000 adjusted for one-time items; FUSA on managed basis.
See 3/17/00 Form 10-K for definitions and methodologies.
16
<PAGE>
BANK ONE CORPORATION LINE OF BUSINESS DETAIL*
<TABLE>
<CAPTION>
Income Statement ($ millions) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
Balance Sheet ($ billions) 2000 2000 2000 2000 1999 1999 1999 1999
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Corporate Investments
-----------------------------
Net interest income FTE $ 24 $ 18 $ 30 $ 35 $ 36 $ 41 $ 48 $ 50
Provision 0 0 1 1 0 0 0 0
Noninterest income (76) 52 52 185 97 97 97 116
Noninterest expense 7 25 31 39 33 30 34 37
------- ------- ------- ------- ------- ------- ------- -------
Pretax income (FTE) (59) 45 50 180 100 108 111 129
Taxes & FTE adj (44) (7) (11) 39 12 19 21 25
------- ------- ------- ------- ------- ------- ------- -------
Net Income - adjusted (15) 52 61 141 88 89 90 104
Significant items 0 0 0 0 0 0 0 0
------- ------- ------- ------- ------- ------- ------- -------
Net income - reported (15) 52 61 141 88 89 90 104
Return on equity ** -5% 17% 20% 47% 35% 35% 36% 42%
Efficiency ratio ** NM 36% 38% 18% 25% 22% 23% 22%
** Net income - adjusted
Loans - avg $ 3.7 $ 3.6 $ 3.5 $ 3.4 $ 3.4 $ 3.5 $ 3.4 $ 3.5
Assets - avg 9.0 8.7 8.4 8.0 7.9 7.6 7.5 8.0
Common equity - avg 1.2 1.2 1.2 1.2 1.0 1.0 1.0 1.0
Supplemental Information:
-----------------------------
Headcount - full-time 200 210 318 N/A N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended Dec. 31, 2000
---------------------------------------------
Income Statement ($ millions) Chg Prior Yr. Chg. Prior Qtr
Balance Sheet ($ billions) Amt. % Amt. %
-------- ----- -------- -----
<S> <C> <C> <C> <C>
Corporate Investments
-----------------------------
Net interest income FTE $ (12) -33% $ 6 34%
Provision 0 NM 0 NM
Noninterest income (173) NM (128) NM
Noninterest expense (26) -79% (18) -72%
-------- --------
Pretax income (FTE) (159) NM (104) NM
Taxes & FTE adj (56) NM (37) NM
-------- --------
Net Income - adjusted (103) NM (67) NM
Significant items 0 NM 0 NM
-------- --------
Net income - reported (103) NM (67) NM
Return on equity ** -40% -22 %
Efficiency ratio ** NM NM
** Net income - adjusted
Loans - avg $ 0.3 9% $ 0.1 3%
Assets - avg 1.1 14% 0.3 3%
Common equity - avg 0.2 20% 0.0 0%
Supplemental Information:
-----------------------------
Headcount - full-time NM NM (10) -5%
</TABLE>
*2000 adjusted for one-time items; FUSA on managed basis.
See 3/17/00 Form 10-K for definitions and methodologies.
17
<PAGE>
BANK ONE CORPORATION LINE OF BUSINESS DETAIL.
<TABLE>
<CAPTION>
Income Statement ($ millions) Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
Balance Sheet ($ billions) 2000 2000 2000 2000 1999 1999 1999 1999
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Corporate/Unallocated
----------------------------------
Net interest income FTE $ (127) $ (140) $ (75) $ (115) $ 8 $ 21 $ 37 $ 42
Provision 0 0 0 0 (44) 0 (14) (49)
Noninterest income 28 36 10 118 111 110 105 107
Noninterest expense 401 157 51 78 47 17 18 (5)
------- ------- ------- ------- ------- ------- ------- -------
Pretax income (FTE) (500) (261) (116) (75) 116 114 138 203
Taxes & FTE adj (189) (104) (46) (39) 27 25 39 56
------- ------- ------- ------- ------- ------- ------- -------
Net Income - adjusted (311) (157) (70) (36) 89 89 99 147
Significant items 0 0 (660) 0 0 0 0 0
------- ------- ------- ------- ------- ------- ------- -------
Net income - reported (311) (157) (730) (36) 89 89 99 147
Assets - avg 38.1 40.6 42.0 35.3 36.3 34.1 32.8 32.3
Deposits - avg 28.4 22.9 20.5 22.1 20.8 20.2 17.0 16.0
Common equity - avg (1.8) (1.9) (1.1) 0.0 1.7 1.8 2.4 2.2
Supplemental Information:
------------------------------------
Headcount - full-time 10,751 11,112 11,377 N/A N/A N/A N/A N/A
Net Income by LOB
Retail $ (17) $ 251 $ 247 $ 236 $ 236 $ 268 $ 290 $ 247
Commercial Banking (385) 172 214 200 199 198 203 188
First USA 134 177 113 67 206 288 339 302
Investment Management 82 86 79 81 86 82 91 58
Corporate Investments (15) 52 61 141 88 89 90 104
Corporate/Unallocated (311) (157) (70) (36) 89 89 99 147
------- ------- ------- ------- ------- ------- ------- -------
Total Adjusted (512) 581 644 689 904 1,014 1,112 1,046
1999 = merger related
2000 = significant items 0 0 (1,913) 0 (493) (89) (120) 105
------- ------- ------- ------- ------- ------- ------- -------
Total Corporation - reported (512) 581 (1,269) 689 411 925 992 1,151
Supplemental Information:
-------------------------
Headcount - full-time 80,778 81,291 82,443 N/A N/A N/A N/A N/A
Adj. Net Income by LOB %
Retail 3.3% 43.2% 38.4% 34.3% 26.1% 26.4% 26.1% 23.6%
Commercial Banking 75.2% 29.6% 33.2% 29.0% 22.0% 19.5% 18.3% 18.0%
First USA -26.2% 30.5% 17.5% 9.7% 22.8% 28.4% 30.5% 28.9%
Investment Management -16.0% 14.8% 12.3% 11.8% 9.5% 8.1% 8.2% 5.5%
Corporate Investments 2.9% 9.0% 9.5% 20.5% 9.7% 8.8% 8.1% 9.9%
Corporate/Unallocated 60.8% -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% 100.0%
<CAPTION>
Three Months Ended Dec 31, 2000
---------------------------------------------
Income Statement ($ millions) Chg Prior Yr. Chg. PriorQtr
Balance Sheet ($ billions) Amt % Amt %
--- - --- -
<S> <C> <C> <C> <C>
Corporate/Unallocated
----------------------------------
Net interest income FTE $ (135) NM $ 13 8%
Provision 44 NM 0 NM
Noninterest income (83) -75% (8) -22%
Noninterest expense 354 NM 224 NM
-------- --------
Pretax income (FTE) (616) NM (239) -92%
Taxes & FTE adj (216) NM (85) -82%
-------- --------
Net Income - adjusted (400) NM (154) -98%
Significant items 0 NM 0 NM
-------- --------
Net income - reported (400) NM (154) -88%
Assets - avg 1.8 5% (2.5) -6%
Deposits - avg 7.6 37% 5.5 24%
Common equity - avg (3.5) NM 0.1 5%
Supplemental Information:
-------------------------
Headcount - full-time NM NM (361) NM
Net Income by LOB
Retail $ (253) NM $ (268) NM
Commercial Banking (584) NM (557) NM
First USA (72) -35% (43) -24%
Investment Management (4) -5% (4) -4%
Corporate Investments (103) NM (67) NM
Corporate/Unallocated (400) NM (154) -98%
-------- --------
Total Adjusted (1,416) NM (1,093) NM
1999 = merger related
2000 = significant items 493 100% 0 #DIV/0!
-------- --------
Total Corporation - reported (923) -225% (1,093) -188%
Supplemental Information:
-------------------------
Headcount - full-time NM NM (513) -1%
Adj. Net Income by LOB %
Retail
Commercial Banking
First USA
Investment Management
Corporate Investments
Corporate/Unallocated
Total Adjusted
</TABLE>
*2Q00 adjusted for one-time items; FUSA on managed basis.
See 3/17/00 Form 10-K for definitions and methodologies.
18
