<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 18, 1994
THE CHASE MANHATTAN CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-5945 13-2633613
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1 Chase Manhattan Plaza, 10081
New York, New York (Zip Code)
(Address of principal executive offices)
(212) 552-2222
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
<PAGE> 2
Item 5. Other Events
On April 18, 1994 The Chase Manhattan Corporation issued a news
release announcing its earnings for the quarter ended March 31,
1994. A copy of the news release is attached hereto as Exhibit 99
and is incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
Exhibit 99: News Release dated April 18, 1994.
<PAGE> 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE CHASE MANHATTAN CORPORATION
(Registrant)
DATE: April 18, 1994 By: /s/LESTER J. STEPHENS, JR.
Lester J. Stephens, Jr.
(Senior Vice President and Controller)
<PAGE> 4
EXHIBIT INDEX
Exhibit No. Document
99 News Release Dated April 18, 1994
<PAGE> 1
Exhibit 99
April 18, 1994
Press Contact: Steve Rautenberg (212) 552-4505
Investor Contact: William Maletz (212) 552-5329
CHASE REPORTS RECORD EARNINGS FOR FIRST QUARTER 1994,
UP 138% TO $364 MILLION
The Chase Manhattan Corporation today reported record first quarter
1994 net income of $364 million ($1.80 per share), up 138% from the $153
million ($.74 per share) reported for the first quarter of 1993.
Thomas G. Labrecque, Chase Chairman said, "We are very pleased with our
results for this quarter. They represent a continuation of the solid
earnings momentum we have established with our strengthened financial
position and sharpened strategic focus. Our ability to report record
earnings, despite the volatility in global markets, reflects the strength
and diversity of our customer base and product capability."
Highlights for the first quarter of 1994:
- strong profitability measures: return on assets and return on common
equity increased to 1.28% and 20.2%, respectively;
- a net interest margin of 4.17%;
- growth in fees and commissions: up 22% over the same period last year,
with increases in all categories;
- trading revenue of $179 million, a level consistent with prior
quarters;
- significant equity gains realized in our merchant banking activities;
- provision for possible credit losses of $160 million, down for the
fourth consecutive quarter.
<PAGE> 2
NET INTEREST REVENUE - TAXABLE EQUIVALENT BASIS
Net interest revenue, on a taxable equivalent basis, was $958 million for
the first quarter of 1994, compared with $1,056 million for the first
quarter of 1993. Excluding first quarter 1993 interest revenue of $142
million from the sale of Brazilian past due interest bonds, net interest
revenue for the first quarter of 1994 increased by $44 million, or 5%, from
the same period last year. Net interest margin was 4.17%, compared with
4.94% (4.28% excluding Brazil PDI bonds) reported for the first quarter of
1993. Average interest-earning assets were $93.1 billion, compared with
$86.7 billion for the same period last year. Average loans decreased to
$61.3 billion for the current quarter from the $62.1 billion level reported
for the first quarter of 1993, primarily due to the reductions in
commercial real estate and refinancing countries loans, which were
partially offset by increases in consumer loans.
<TABLE>
<CAPTION>
TRADING REVENUE
First Quarter
($ in millions) 1994 1993
<S> <C> <C>
Trading Revenue:
Foreign Exchange $ 85 $103
Trading Account 94 72
Total Trading Revenue $179 $175
</TABLE>
Total trading revenue was $179 million, slightly higher than the revenue
reported for the same period last year. Chase experienced generally good
customer demand for derivative products and foreign exchange transactions.
In addition, substantial revenue was realized in the earlier part of the
quarter from reducing emerging markets trading positions, partially offset
by the effects of the decline in market values during the latter part of
the quarter.
<PAGE> 3
<TABLE>
<CAPTION>
FEES AND COMMISSIONS
First Quarter
($ in millions) 1994 1993
<S> <C> <C>
Fees and Commissions:
Consumer Banking $144 $117
Trust and Fiduciary 142 107
Investment Banking 47 38
Other 113 105
Total Fees and Commissions $446 $367
</TABLE>
Fees and commissions were $446 million for the first quarter of 1994, up
22%, reflecting increases in all categories of fee revenue. Total consumer
banking fees, including credit card and mortgage banking fees, increased
23% over the same period last year. Mortgage banking fees for the first
quarter of 1993 were unfavorably impacted by $34 million from the
accelerated write down of mortgage servicing assets, compared with no such
writedowns in the first quarter of 1994.
Fee revenue from trust and fiduciary activities increased 33% due to
increased transaction volume and continued growth in trust and custody
assets in both the Transaction and Information Services and Global Private
Banking units. Investment banking fee revenue from global corporate
finance activities increased 24% over the same period last year due to
improved transaction volume.
<TABLE>
<CAPTION>
OTHER REVENUE
First Quarter
($ in millions) 1994 1993
<S> <C> <C>
Other Revenue:
Corporate Finance-Related
Equity Investment Gains $ 84 $ 76
Accelerated Disposition
Portfolio Gains 53 -
Investment Securities Gains 79 6
Other 12 34
Total Other Revenue $228 $116
</TABLE>
During the first quarter of 1994, corporate finance-related equity gains
resulted from several significant merchant banking transactions, continuing
the strong pace of last year. Further liquidation of real estate assets
held for accelerated disposition and sales of Brady bonds in the investment
securities available for sale portfolio yielded gains of $53 million and
$71 million, respectively.
<PAGE> 4
OPERATING EXPENSES
Total operating expenses were $1,057 million for the first quarter of 1994
and $1,301 million for the first quarter of 1993, which included a $318
million provision for ORE held for accelerated disposition. Operating
expenses for the first quarter of 1994 included $8 million applicable to
the second quarter 1993 acquisition of Troy and Nichols and $37 million of
ORE valuation losses and expenses. First quarter 1993 ORE expenses were
$38 million. In addition, first quarter 1994 operating expenses reflected
the cost of funding business growth opportunities, particularly in Chase's
global trading and capital markets activities, global securities servicing
and national consumer products. The expense to revenue ratio, excluding
ORE expenses, improved to 56%.
INCOME TAXES
The provision for income taxes was $223 million representing an effective
tax rate of 38%. For the first quarter of 1993, Chase recorded a net
income tax benefit of $174 million. Excluding the tax benefits applicable
to the special provisions for the accelerated disposition portfolio,
Chase's first quarter 1993 tax provision would have been approximately $137
million. In addition, Chase adopted SFAS 109 in the first quarter of 1993,
resulting in a $500 million net benefit reflected as a cumulative effect of
a change in accounting principle.
<PAGE> 5
PROVISION FOR POSSIBLE CREDIT LOSSES AND NET LOAN CHARGE-OFFS
The provision for possible credit losses was $160 million, or $35 million
lower than the fourth quarter of 1993 and $200 million lower than the first
quarter of 1993, excluding the accelerated disposition portfolio.
Net loan charge-offs were $156 million, down $64 million from the first
quarter of 1993. Domestic commercial real estate net loan charge-offs
declined $40 million and domestic consumer net loan charge-offs declined $9
million from the first quarter of 1993.
<TABLE>
<CAPTION>
Provision For Possible Credit Losses & Net Loan Charge-Offs*
1st Qtr. 4th Qtr. 1st Qtr.
($ in millions) 1994 1993 1993
<S> <C> <C> <C>
PROVISION FOR POSSIBLE
CREDIT LOSSES $ 160 $ 195 $ 360
NET LOAN CHARGE-OFFS:
Domestic
- - Consumer $ 94 $ 100 $ 103
- - Commercial Real Estate 51 54 91
- - Commercial & Other 11 35 28
Total Domestic 156 189 222
Total International** - 490 (2)
Total Net Loan
Charge-Offs $ 156 $ 679 $ 220
<FN>
* amounts exclude accelerated disposition portfolio.
**1993 includes refinancing countries net loan charge-offs.
</TABLE>
<TABLE>
<CAPTION>
RESERVE FOR POSSIBLE CREDIT LOSSES
March 31, Dec. 31, March 31,
($ in millions) 1994 1993 1993
<S> <C> <C> <C>
RESERVE FOR POSSIBLE
CREDIT LOSSES $1,429 $1,425 $1,912
- - As a % of Total Loans 2.32% 2.36% 3.21%
- - As a % of Nonaccrual Loans 134% 135% 67%
</TABLE>
<PAGE> 6
NONACCRUAL OUTSTANDINGS AND ORE
The distribution of nonaccrual outstandings based on the domicile of
obligors was as follows:
<TABLE>
<CAPTION>
March 31, Dec. 31, March 31,
($ in millions) 1994 1993 1993
<S> <C> <C> <C>
Domestic:
- - Commercial Real Estate $ 469 $ 475 $1,061
- - Other Loans 399 407 646
Total Domestic 868 882 1,707
International:
- - Refinancing Countries 69 74 996
- - Other Loans 131 98 153
Total International 200 172 1,149
Total Nonaccrual Outstandings $1,068 $1,054 $2,856
Total ORE * $ 819 $ 905 $ 748
<FN>
* Includes insubstance foreclosures of $692 million at March 31,
1994, $766 million at December 31, 1993 and $588 million at March
31, 1993.
</TABLE>
Following a large decrease in total nonaccrual outstandings and ORE assets
of approximately $1 billion during the fourth quarter of 1993, such
balances declined $72 million during the first quarter of 1994.
DOMESTIC COMMERCIAL REAL ESTATE ASSETS
Domestic commercial real estate assets declined $343 million from
$4.0 billion at December 31, 1993 to $3.7 billion at March 31, 1994.
Contributing to this decline was approximately $234 million of net
repayments and sales of outstanding assets, including $8 million of
interest applied to principal, and $109 million of charge-offs and
valuation losses.
<TABLE>
<CAPTION>
Domestic Commercial Real Estate Assets
March 31, Dec. 31, March 31,
($ in millions) 1994 1993 1993
<S> <C> <C> <C>
Loans:
Performing $2,372 $2,624 $3,513
Nonaccrual 469 475 1,061
Total Loans 2,841 3,099 4,574
ORE 810 895 738
Total $3,651 $3,994 $5,312
</TABLE>
<PAGE> 7
In addition, the continued liquidation of assets held for accelerated
disposition during the first quarter of 1994, through repayments and
sales, reduced the carrying value of such assets to $121 million and
resulted in pre-tax gains of $53 million.
Chase has entered into an agreement to sell several portfolios of its ORE
assets and of its accelerated disposition portfolio with aggregate carrying
values of approximately $100 million and $60 million, respectively. This
transaction is expected to close during the second quarter of 1994 and is
expected to result in a gain.
SUBSEQUENT EVENT
On April 15, 1994, pursuant to the Brazilian restructuring, Chase
exchanged its eligible Brazilian loans for Brazilian Brady bonds.
The exchange is expected to have a positive impact on Chase's financial
condition, beginning in the second quarter.
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
SELECTED AVERAGE BALANCES
First Quarter
($ in billions) 1994 1993
<S> <C> <C>
Loans:
Domestic Offices $ 44.2 $ 44.1
Overseas Offices 17.1 18.0
Total Loans $ 61.3 $ 62.1
Interest-Earnings Assets $ 93.1 $ 86.7
Total Assets $115.9 $ 99.7
Deposits:
Domestic Offices $ 41.4 $ 41.3
Overseas Offices 31.1 26.9
Total Deposits $ 72.5 $ 68.2
Common Stockholders' Equity $ 6.7 $ 5.1
Total Stockholders' Equity $ 8.1 $ 6.7
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
FINANCIAL HIGHLIGHTS AND SELECTED STATISTICAL DATA
($ in millions
except per share data) FIRST QUARTER
1994 1993
<S> <C> <C>
NET INCOME $ 364 $ 153
PER COMMON SHARE
- - Net Income
- Primary $1.80 $ .74
- Fully diluted $1.79 $ .73
- - Book Value (period-end) $36.55 $32.61 $32.61
- - Closing Stock Price
(period-end) $32.25 $34.88
PROFITABILITY RATIOS
- - Return on Average Common
Stockholders' Equity 20.2% 9.3%
- - Return on Average Assets 1.28% .62%
NET INTEREST REVENUE
(Fully Taxable Basis) $958 $1,056
Net Interest Margin 4.17% 4.94%
</TABLE>
<TABLE>
<CAPTION>
March 31, Dec. 31, March 31,
1994 1993 1993
CAPITAL RATIOS
<S> <C> <C> <C>
- - Common Stockholders' Equity 6.00%* 6.58% 5.46%
- - Total Stockholders' Equity 7.24%* 7.95% 7.21%
- - Risk-Based Capital
- Tier I Capital 8.43% 8.44% 7.10%
- Total Capital 12.94% 13.22% 11.60%
- - Tier I Leverage 7.28%* 7.81% 6.90%
<FN>
* The common and total equity ratios and the Tier 1 leverage ratio
decreased 59bp, 71bp and 72bp, respectively, from the adoption of FASB
Interpretation No. 39 at January 1, 1994. Chase's Trading Account
Assets and Liabilities increased approximately $10 billion as a result
of such adoption.
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
The Chase Manhattan Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF CONDITION
March 31,
--------------------
($ in millions) 1994 1993
- -------------------------------------------------------------------------------
<S> <C> <C>
Assets
Cash and Due from Banks $ 4,483 $ 4,825
Interest-Bearing Deposits Placed with Banks 5,054 5,512
Federal Funds Sold and Securities Purchased Under Resale 6,556 5,221
Agreements
Trading Account Assets 18,247 3,754
Investment Securities:
Held to Maturity 1,345 1,446
Available for Sale Carried at Fair Value 6,415 -
At Lower of Cost or Market - 4,925
- -------------------------------------------------------------------------------
Total Investment Securities 7,760 6,371
Loans 61,635 59,474
Less: Reserve for Possible Credit Losses 1,429 1,912
- -------------------------------------------------------------------------------
Loans, Net 60,206 57,562
Assets Held for Accelerated Disposition 121 1,024
Customers' Liability on Acceptances 705 763
Accrued Interest Receivable 917 891
Premises and Equipment 1,791 1,897
Other Assets 6,752 6,251
- -------------------------------------------------------------------------------
Total Assets $112,592 $ 94,071
===============================================================================
Liabilities, Redeemable Preferred Stock and Stockholders' Equity
Deposits:
Domestic Offices:
Noninterest-Bearing $ 11,429 $ 11,111
Interest-Bearing 26,288 27,935
Overseas Offices:
Noninterest-Bearing 2,882 2,022
Interest-Bearing 28,027 23,685
- -------------------------------------------------------------------------------
Total Deposits 68,626 64,753
Federal Funds Purchased and Securities Sold Under
Repurchase Agreements 8,345 5,736
Commercial Paper 1,499 1,333
Other Short-Term Borrowings 2,892 2,151
Trading Account Liabilities 11,263 -
Acceptances Outstanding 715 768
Accrued Interest Payable 441 562
Accounts Payable, Accrued Expenses and Other Liabilities 5,148 5,239
Intermediate- and Long-Term Debt 5,509 6,689
- -------------------------------------------------------------------------------
Total Liabilities 104,438 87,231
- -------------------------------------------------------------------------------
Redeemable Preferred Stock - 53
Stockholders' Equity:
Nonredeemable Preferred Stock(Without Par Value,51,439,738 1,399 1,649
and 56,439,738 Shares Outstanding,Respectively)
Common Stock :
<C> <C>
1994 1993
------------ ------------
Par Value $2.00 $2.00
Authorized Shares 500,000,000 500,000,000
Outstanding Shares 184,797,798 157,535,548 370 315
Surplus 3,935 3,205
Net Unrealized Gains on Investment Securities - 10 -
Available for Sale
Retained Earnings 2,440 1,618
- -------------------------------------------------------------------------------
Total Stockholders' Equity 8,154 6,787
- -------------------------------------------------------------------------------
Total Liabilities, Redeemable Preferred Stock
and Stockholders' Equity $112,592 $ 94,071
===============================================================================
</TABLE>
<PAGE> 10
<TABLE>
<CAPTION>
The Chase Manhattan Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
Quarter Ended
March 31,
----------------
($ in millions, except per share data) 1994 1993
- ----------------------------------------------------------------------------
<S> <C> <C>
Interest Revenue
Interest and Fees on Loans $1,301 $1,528
Interest on Deposits Placed with Banks 130 148
Interest and Dividends on Investment
Securities:
Held to Maturity 41 42
Available for Sale 165 -
At Lower of Cost or Market - 133
Interest on Federal Funds Sold and Securities
Purchased Under Resale Agreements 326 258
Interest on Trading Account Assets 119 52
- ----------------------------------------------------------------------------
Total Interest Revenue 2,082 2,161
- ----------------------------------------------------------------------------
Interest Expense
Deposits 525 539
Federal Funds Purchased and Securities Sold
Under Repurchase Agreements 124 138
Commercial Paper 13 10
Other Short-Term Borrowings 393 275
Intermediate- and Long-Term Debt 76 151
- ----------------------------------------------------------------------------
Total Interest Expense 1,131 1,113
- ----------------------------------------------------------------------------
Net Interest Revenue 951 1,048
Provision for Possible Credit Losses 160 360
Provision for Loans Held for
Accelerated Disposition - 566
- ----------------------------------------------------------------------------
Net Interest Revenue After Provision for
Possible Credit Losses and Provision for
Loans Held for Accelerated Disposition 791 122
- ----------------------------------------------------------------------------
Noninterest Revenue
Fees and Commissions 446 367
Foreign Exchange Trading Revenue 85 103
Trading Account Revenue 94 72
Investment Securities Gains 79 6
Other Revenue 149 110
- ----------------------------------------------------------------------------
Total Noninterest Revenue 853 658
- ----------------------------------------------------------------------------
Other Operating Expenses
Salaries and Employee Benefits:
Salaries 415 377
Employee Benefits 129 125
- ----------------------------------------------------------------------------
544 502
Net Occupancy 100 106
Equipment Rentals, Depreciation
and Maintenance 71 71
Provision for Other Real Estate Held for
Accelerated Disposition - 318
Other Expenses 342 304
- ----------------------------------------------------------------------------
Total Other Operating Expenses 1,057 1,301
- ----------------------------------------------------------------------------
Income (Loss) Before Taxes 587 (521)
Applicable Income Taxes (Benefits) 223 (174)
- ----------------------------------------------------------------------------
Income (Loss) Before Cumulative Effect of
Change in Accounting Principle $ 364 $ (347)
Cumulative Effect of Change in Accounting
Principle - Adoption of SFAS 109 - 500
- ----------------------------------------------------------------------------
Net Income $ 364 $ 153
============================================================================
Net Income Applicable to Common Stock $ 332 $ 117
============================================================================
Average Common Shares Outstanding (in
millions) 184.6 157.6
Primary Earnings (Loss) Per Common Share,
Before Cumulative Effect of Change
in Accounting Principle, Based on
Average Shares Outstanding $ 1.80 $(2.43)
Cumulative Effect of Change in Accounting
Principle - Adoption of SFAS 109 - 3.17
Primary Earnings Per Common Share $ 1.80 $ 0.74
Cash Dividends Declared Per Common Share $ 0.33 $ 0.30
============================================================================
</TABLE>
<PAGE> 11
<TABLE>
<CAPTION>
The Chase Manhattan Corporation and Subsidiaries
SUMMARY OF CHANGES IN STOCKHOLDERS' EQUITY
Quarter Ended
March 31,
---------------
($ in millions) 1994 1993
- ----------------------------------------------------------------------------
<S> <C> <C>
Balance at Beginning of Period $8,122 $6,511
Additions:
Net Income 364 153
Shares Issued Pursuant to:
Nonredeemable Preferred Stock Offering - 172
Dividend Reinvestment and Stock Purchase Plan 7 33
Exercise of Stock Options 7 7
Net Unrealized Losses on Investment Securities -
Available for Sale (Net of Deferred Tax
Benefits of $175) (254) -
- ----------------------------------------------------------------------------
8,246 6,876
Deductions:
Cash Dividends:
Redeemable Preferred Stock - 1
Nonredeemable Preferred Stock 31 35
Common Stock 61 47
Other - 6
- ----------------------------------------------------------------------------
Balance at End of Period $8,154 $6,787
============================================================================
</TABLE>
<PAGE> 12
<TABLE>
<CAPTION>
The Chase Manhattan Bank, N.A. and Subsidiaries
CONSOLIDATED STATEMENT OF CONDITION
March 31,
-----------------
($ in millions) 1994 1993
- -------------------------------------------------------------------------------
<S> <C> <C>
Assets
Cash and Due from Banks $ 4,236 $ 4,501
Interest-Bearing Deposits Placed with Banks 5,173 5,673
Federal Funds Sold and Securities Purchased Under Resale 3,999 3,778
Agreements
Trading Account Assets 15,524 2,936
Investment Securities:
Held to Maturity 706 696
Available for Sale Carried at Fair Value 5,707 -
At Lower of Cost or Market - 4,144
- -------------------------------------------------------------------------------
Total Investment Securities 6,413 4,840
Loans 50,083 46,962
Less: Reserve for Possible Credit Losses 1,099 1,547
- -------------------------------------------------------------------------------
Loans, Net 48,984 45,415
Assets Held for Accelerated Disposition 120 867
Customers' Liability on Acceptances 705 763
Accrued Interest Receivable 603 566
Premises and Equipment 1,626 1,723
Other Assets 5,770 4,387
- -------------------------------------------------------------------------------
Total Assets $93,153 $75,449
===============================================================================
Liabilities and Stockholder's Equity
Deposits:
Domestic Offices:
Noninterest-Bearing $11,005 $10,433
Interest-Bearing 20,065 21,141
Overseas Offices:
Noninterest-Bearing 2,882 2,022
Interest-Bearing 29,494 24,191
- -------------------------------------------------------------------------------
Total Deposits 63,446 57,787
Federal Funds Purchased and Securities Sold Under 2,519 2,014
Repurchase Agreements
Other Short-Term Borrowings 2,156 1,496
Trading Account Liabilities 10,215 -
Acceptances Outstanding 715 768
Accrued Interest Payable 374 470
Accounts Payable, Accrued Expenses and Other Liabilities 4,267 3,542
Intermediate- and Long-Term Debt 3,038 3,677
- -------------------------------------------------------------------------------
Total Liabilities 86,730 69,754
- -------------------------------------------------------------------------------
Stockholder's Equity:
Capital Stock:
<C> <C>
1994 1993
--------------- --------------
Par Value $15.00 $15.00
Authorized Shares 81,744,445 81,744,445
Outstanding Shares 60,794,266 60,355,949 912 905
Surplus 4,391 4,290
Net Unrealized Losses on Investment Securities - (27) -
Available for Sale
Undivided Profits 1,147 500
- -------------------------------------------------------------------------------
Total Stockholder's Equity 6,423 5,695
- -------------------------------------------------------------------------------
Total Liabilities and Stockholder's Equity $93,153 $75,449
===============================================================================
Member Federal Deposit Insurance Corporation
</TABLE>
