<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) January 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 January 18, 1994 The Chase Manhattan Corporation issued a news
release announcing its earnings for the quarter ended December 31,
1993. 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 January 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: January 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 January 18, 1994
<PAGE> 1
EXHIBIT 99
January 18, 1994
Press Contact: Steve Rautenberg (212) 552-4505
Investor Contact: William Maletz (212) 552-5329
CHASE REPORTS FOURTH QUARTER 1993 RECORD EARNINGS,
UP 85% TO $313 MILLION
The Chase Manhattan Corporation today reported record consolidated net
income for the fourth quarter of 1993 of $313 million ($1.53 per share), up 85%
from the $169 million ($.87 per share) reported for the fourth quarter of 1992.
For the full year of 1993, Chase reported consolidated net income of $966
million ($4.79 per share), up 51% from the $639 million ($3.46 per share)
reported for the full year of 1992.
Thomas G. Labrecque, Chase Chairman said, "Chase made great progress in 1993
through an outstanding effort by our employees. With aggressive action
programs, we substantially improved our asset quality, including significant
reductions in our real estate and cross-border exposures. We also strengthened
our capital base to support the growth of our core businesses."
Highlights for the fourth quarter of 1993 included the following.
EARNINGS
- Profitability ratios were strong. Return on assets was 1.18% and return
on common equity was 17.9%.
- The expense to revenue ratio, excluding ORE expenses, improved to 58%.
- The net interest margin was 4.33%.
- Trading revenues were $167 million, up 46% from fourth quarter 1992.
- The provision for possible credit losses declined to $195 million, $110
million less than the fourth quarter of 1992.
ASSET QUALITY
- Within nine months, Chase liquidated almost 80% of the assets held for
accelerated disposition, reducing the carrying value to $222 million. The
<PAGE> 2
fourth quarter reduction was $500 million which included a successful bulk
sale auction and repayments. The remaining domestic commercial real
estate assets were reduced during the fourth quarter by $699 million to
$4.0 billion. These actions resulted in fourth quarter net pre-tax gains
of $108 million, which included $215 million of gains from assets held for
accelerated disposition, less $107 million of ORE valuation losses and
expenses.
- Chase's cross-border exposure, principally to refinancing countries, was
reduced by approximately $1.3 billion through sales, charge-offs and
valuations to market. These transactions resulted in fourth quarter net
pre-tax losses of $10 million, and net loan charge-offs of $484 million,
which effectively eliminated the reserve applicable to refinancing
countries.
- Total nonaccrual loans were reduced by 47% to $1.1 billion, or less than
1.8% of total loans, resulting in a ratio of reserves to nonaccrual loans
of 135% at December 31, 1993.
CAPITAL
- Tier 1 and total capital ratios improved to 8.4% and 13.2%, respectively.
OTHER ITEMS
- Charges for business-related investments, which included leasehold write-
offs and other costs associated with updating and expanding dealer trading
activities, particularly in Europe, and costs associated with data center
consolidations and enhanced information systems totaled $45 million.
- On December 31, 1993, Chase adopted SFAS No. 115 entitled, "Accounting for
Certain Investments in Debt and Equity Securities," which resulted in a
net positive impact of $264 million on total stockholders' equity.
- The adoption of SFAS No. 112 entitled, "Employers' Accounting for
Postemployment Benefits," resulted in a charge of $10 million.
Chase President, Arthur F. Ryan added, "Our strong fourth quarter results
reflect the continuing success of our business strategies. The accelerated
liquidation of uneconomic assets frees up resources for investment to achieve
future growth and enhanced productivity. Our improved financial position has
already expanded our market opportunities as is particularly evident in our
trading results."
<PAGE> 3
NET INTEREST REVENUE - TAXABLE EQUIVALENT BASIS
Net interest revenue, on a taxable equivalent basis, was $1,008 million for the
fourth quarter of 1993, up $42 million, or 4%, from $966 million for the fourth
quarter of 1992. Included in the fourth quarter of 1993 net interest revenue
was $21 million from the sale of Argentine past due interest bonds. The fourth
quarter of 1993 net interest margin was 4.33%, compared with 4.31% reported for
the fourth quarter of 1992. Average interest-earning assets for the fourth
quarter of 1993 were $92.4 billion, compared with $89.1 billion for the fourth
quarter of 1992. Average loans decreased to $62.4 billion for the fourth
quarter of 1993 from the $63.1 billion level reported for the fourth quarter
of 1992.
For the full year of 1993, net interest revenue, on a taxable equivalent basis,
was $3,892 million, up $289 million, or 8%, from $3,603 million for the full
year of 1992. The net interest margin was 4.33% for full year 1993, compared
with 4.09% for the full year of 1992. Excluding $163 million of revenue
realized in 1993 from the sales of both Brazilian and Argentine past due
interest bonds, the net interest margin would have been 4.15% for
full year 1993. Average interest-earning assets for the full year of 1993 were
$89.9 billion, compared with $88.1 billion for full year 1992. For full year
1993, average loans decreased to $61.5 billion from the $64.6 billion level
reported for the full year of 1992.
TRADING REVENUE
For the fourth quarter of 1993, total trading revenue of $167 million was $53
million, or 46%, higher than the fourth quarter of 1992. This increase was
primarily the result of strong customer demand across geographic regions for
derivative products as well as emerging markets securities. Total trading
revenue for full year 1993 increased by $248 million, or 53%, from the level
reported for the full year of 1992.
<TABLE>
<CAPTION>
Fourth Quarter Full Year
($ in millions) 1993 1992 1993 1992
<S> <C> <C> <C> <C>
Trading Revenue:
Foreign Exchange $ 75 $ 82 $ 356 $ 327
Trading Account 92 32 360 141
Total Trading Revenue $167 $114 $ 716 $ 468
</TABLE>
FEES AND COMMISSIONS
Fees and commissions for the fourth quarter of 1993 were $401 million, down $16
million from the same period in 1992, primarily due to a decline in consumer
banking fees which reflected $33 million of charges resulting from accelerated
write downs of mortgage servicing assets. Such write downs in the fourth
quarter
<PAGE> 4
of 1993 continue to reflect an industry-wide high level of mortgage refinancing
activity that started to abate during the quarter.
Fee revenue from trust and fiduciary activities for the fourth quarter of 1993
increased 19% over the same period in 1992, reflecting continued growth in
client assets.
<TABLE>
<CAPTION>
Fourth Quarter Full Year
($ in millions) 1993 1992* 1993 1992*
<S> <C> <C> <C> <C>
Fees and Commissions:
Consumer Banking $110 $145 $ 457 $ 549
Trust and Fiduciary 124 104 465 407
Investment Banking 53 62 194 200
Other 114 106 446 426
Total Fees and Commissions $401 $417 $1,562 $1,582
<FN>
* Prior periods restated to conform to current year presentation.
</TABLE>
OTHER REVENUE
Other revenue for the fourth quarter of 1993 was $309 million, up $269 million
from the same period in 1992. For the full year of 1993, other revenue was $671
million, or $372 million higher than the $299 million reported for the full year
of 1992.
During the fourth quarter of 1993, Chase continued to reduce its domestic
commercial real estate exposure, particularly the accelerated disposition
portfolio, through sales, including the bulk sale auction of several portfolios,
repayments, and valuation write downs. Other revenue for the fourth quarter of
1993 included $215 million of net gains from assets held for accelerated
disposition.
In addition, the reduction in cross-border exposure resulted in $10 million of
net losses, which reflected net losses of $31 million in other revenue and
interest revenue of $21 million.
As in prior quarters, other revenue also included gains from the disposition of
corporate finance-related equity investments. For the fourth quarter of 1993,
$110 million of such gains were recognized, compared with $32 million for the
fourth quarter of 1992.
OPERATING EXPENSES
Total operating expenses were $1,199 million for the fourth quarter of 1993 and
$1,019 million for the fourth quarter of 1992. Compared with the same period in
1992, operating expenses for the fourth quarter of 1993 included: $9 million
<PAGE> 5
applicable to the acquisition of Troy and Nichols; $10 million due to the
adoption of SFAS 106; $10 million resulting from the adoption of SFAS
112; and increased compensation accruals related to higher earnings. In
addition, fourth quarter 1993 operating expenses included $107 million of ORE
valuation losses and expenses, including valuation losses related to ORE
transactions expected to close in 1994. This compared with $36 million of ORE
costs for the fourth quarter of 1992. Fourth quarter 1993 operating expenses
also included $45 million of charges for business-related investments,
including the costs associated with expanding dealer trading activities.
For the full year of 1993, operating expenses (excluding the first quarter of
1993 provision for ORE held for accelerated disposition) were $4,202 million,
compared with $3,868 million for the full year of 1992. Compared with the full
year of 1992, operating expenses for full year 1993 included: an additional
$91 million of ORE expenses; $41 million of expenses related to SFAS 106;
$10 million of expenses related to SFAS 112; $19 million due to the Troy and
Nichols acquisition; and increased performance related compensation accruals.
In addition, full year 1993 operating expenses included $45 million of charges
for various business-related investments.
INCOME TAXES
The provision for income taxes was $172 million for the fourth quarter of 1993,
representing an effective tax rate of 35%. For the fourth quarter of 1992, the
provision for income taxes was $35 million. The increased tax provision was due
primarily to a higher level of pre-tax income. In addition, fourth quarter 1992
income tax expense reflected the utilization of $37 million of tax benefits
carried forward from prior periods.
PROVISION FOR POSSIBLE CREDIT LOSSES AND NET LOAN CHARGE-OFFS
For the fourth quarter of 1993, the provision for possible credit losses was
$195 million, or $20 million lower than the third quarter of 1993 and $110
million lower than the fourth quarter of 1992.
Net loan charge-offs, excluding refinancing countries, were $195 million for
fourth quarter 1993, down $106 million from the fourth quarter of 1992. For the
fourth quarter of 1993, domestic commercial real estate net loan charge-offs
declined $85 million and domestic consumer net loan charge-offs declined $9
million from the fourth quarter of 1992.
For the fourth quarter of 1993, net loan charge-offs applicable to refinancing
countries were $484 million, which were related to the reduction in cross-border
exposure.
<PAGE> 6
<TABLE>
<CAPTION>
Provision For Possible Credit Losses & Net Loan Charge-Offs *
4th Qtr. 3rd Qtr. 4th Qtr. Full Year
($ in millions) 1993 1993 1992 1993 1992
<S> <C> <C> <C> <C> <C>
PROVISION FOR POSSIBLE
CREDIT LOSSES $ 195 $ 215 $ 305 $ 995 $1,220
NET LOAN CHARGE-OFFS:
Domestic
- - Consumer $ 100 $ 97 $ 109 $ 395 $ 464
- - Commercial Real Estate 54 58 139 277 453
- - Commercial & Other 35 47 52 165 215
Total Domestic 189 202 300 837 1,132
International
- - Refinancing Countries 484 1 53 476 68
- - Other 6 13 1 24 66
Total International 490 14 54 500 134
Total Net Loan Charge-Offs $ 679 $ 216 $ 354 $1,337 $1,266
<FN>
* 1993 amounts exclude accelerated disposition portfolio.
</TABLE>
The provision for possible credit losses for the full year of 1993, excluding
the accelerated disposition portfolio, was $995 million, compared with $1,220
million for the full year of 1992. Excluding refinancing countries, net loan
charge-offs for full year 1993 were $861 million, down $337 million from the
full year of 1992.
<TABLE>
<CAPTION>
RESERVE FOR POSSIBLE CREDIT LOSSES *
Dec. 31, Sept. 30, Dec. 31,
($ in millions) 1993 1993 1992
<S> <C> <C> <C>
RESERVE FOR POSSIBLE
CREDIT LOSSES $1,425 $1,916 $1,913
- - As a % of Total Loans 2.36% 3.06% 3.06%
- - As a % of Nonaccrual Loans 135% 96% 49%
<FN>
* 1993 amounts exclude accelerated disposition portfolio.
</TABLE>
During the fourth quarter of 1993, Chase reduced its cross-border exposure, by
approximately $1.3 billion. In addition, $1.0 billion was transferred to the
investment securities available for sale portfolio, in accordance with SFAS
115, and $.4 billion was transferred to the trading account.
<PAGE> 7
NONACCRUAL OUTSTANDINGS AND ORE *
The distribution of nonaccrual outstandings based on the domicile of obligors
was as follows:
<TABLE>
<CAPTION>
Dec. 31, Sept. 30, Dec. 31,
($ in millions) 1993 1993 1992
<S> <C> <C> <C>
Domestic:
Commercial Real Estate Loans $ 475 $ 705 $ 2,057
Other Loans 407 503 732
Subtotal 882 1,208 2,789
International:
Refinancing Countries Loans 74** 668 997
Other Loans 98 129 156
Subtotal 172 797 1,153
Total $ 1,054 $ 2,005 $ 3,942
Total Nonaccrual Outstandings
as a % of Gross Assets 1.02% 1.96% 4.03%
Total ORE *** $ 905 $ 966 $ 1,147
<FN>
* 1993 amounts exclude accelerated disposition portfolio.
** After transfer of $.4 billion to trading account.
*** Includes insubstance foreclosures of $766 million at December 31, 1993,
$793 million at September 30, 1993 and $668 million at December 31, 1992.
</TABLE>
DOMESTIC COMMERCIAL REAL ESTATE ASSETS *
Domestic commercial real estate assets declined approximately $.7 billion from
$4.7 billion at September 30, 1993 to $4.0 billion at December 31, 1993.
Contributing to this decline was approximately $531 million of net repayments
and sales of outstanding assets, including $10 million of interest applied to
principal, and $168 million of charge-offs and valuation losses.
<TABLE>
<CAPTION>
Domestic Commercial Real Estate Assets
Dec. 31, Sept. 30, Dec. 31,
($ in millions) 1993 1993 1992
<S> <C> <C> <C>
Loans:
Performing $2,594 $3,005 $4,687
Nonaccrual 475 705 2,057
Total Loans 3,069 3,710 6,744
ORE 895 953 1,137
Total $3,964 $4,663 $7,881
<FN>
* 1993 amounts exclude accelerated disposition portfolio.
</TABLE>
<PAGE> 8
DOMESTIC COMMERCIAL REAL ESTATE ASSETS - ACCELERATED DISPOSITION PORTFOLIO
During the fourth quarter of 1993, the carrying value of domestic commercial
real estate assets held for accelerated disposition was reduced by
approximately 70% to $222 million primarily through sales and repayments.
Net gains of $215 million were included in other revenue for the fourth
quarter of 1993. At December 31, 1993, the carrying value of the assets held
for accelerated disposition was 38% of their aggregate contractual amount.
<TABLE>
<CAPTION>
Assets Held For Accelerated Disposition
Dec. 31, Sept. 30,
($ in millions) 1993 1993
<S> <C> <C>
Loans $ 151 $ 513
ORE 71 209
Total $ 222 $ 722
</TABLE>
Since taking the disposition action at March 31, 1993, Chase has reduced
assets held for accelerated disposition by approximately 80% through
December 31, 1993.
CAPITAL
Tier I and total risk-based capital ratios increased to 8.4% and 13.2%,
respectively, at December 31, 1993, primarily as a result of increased retained
earnings. The tier I leverage ratio increased to 7.8% at December 31, 1993.
Although Chase adopted SFAS 115 on December 31, 1993, which resulted in an
increase to stockholders' equity of $264 million, the risk-based capital ratios
and tier I leverage ratio do not reflect this increase.
In addition, on January 1, 1994, Chase adopted FASB Interpretation 39 (FIN
39), entitled, "Offsetting of Amounts Related to Certain Contracts." If Chase
had adopted FIN 39 during the fourth quarter of 1993, total assets and
total liabilities would each have been increased by approximately $10 billion.
The asset-based ratios, including the tier I leverage ratio would have been
lower, although net income and the risk-based capital ratios would not have
been affected.
<PAGE> 9
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
SELECTED AVERAGE BALANCES
Fourth Qtr. Full Year
($ in billions) 1993 1992 1993 1992
<S> <C> <C> <C> <C>
Loans:
Domestic Offices $ 43.5 $ 45.2 $ 42.9 $ 46.8
Overseas Offices 18.9 17.9 18.6 17.8
Total Loans $ 62.4 $ 63.1 $ 61.5 $ 64.6
Interest-Earning Assets $ 92.4 $ 89.1 $ 89.9 $ 88.1
Total Assets $105.6 $101.5 $102.7 $100.4
Deposits:
Domestic Offices $ 42.1 $ 41.6 $ 41.7 $ 41.9
Overseas Offices 30.4 26.6 28.9 26.3
Total Deposits $ 72.5 $ 68.2 $ 70.6 $ 68.2
Common Stockholders' Equity $ 6.3 $ 4.9 $ 5.7 $ 4.6
Total Stockholders' Equity $ 7.7 $ 6.4 $ 7.2 $ 5.9
</TABLE>
<PAGE> 10
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
FINANCIAL HIGHLIGHTS AND SELECTED STATISTICAL DATA
($ in millions,
except per share data) FOURTH QUARTER FULL YEAR
1993 1992 1993 1992
<S> <C> <C> <C> <C>
NET INCOME $ 313 $ 169 $ 966 $ 639
PER COMMON SHARE
- - Net Income $ 1.53 $ .87 $ 4.79 $ 3.46
- - Book Value (period-end) $36.48 $32.25
- - Closing Stock Price
(period-end) $33.88 $28.50
PROFITABILITY RATIOS
- - Return on Average Common
Stockholders' Equity 17.9% 11.0% 14.6% 11.1%
- - Return on Average Assets 1.18% .66% .94% .64%
NET INTEREST REVENUE
(Fully Taxable Basis) $1,008 $ 966 $3,892 $3,603
- - Net Interest Margin 4.33% 4.31% 4.33% 4.09%
CAPITAL RATIOS (period-end)
- - Common Stockholders' Equity 6.58% 5.25%
- - Total Stockholders' Equity 7.95% 6.79%
- - Risk-Based Capital
- Tier I Capital 8.44% 6.76%
- Total Capital 13.22% 11.12%
- - Tier I Leverage 7.81% 6.66%
</TABLE>
<PAGE> 11
<TABLE>
<CAPTION>
The Chase Manhattan Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF CONDITION
December 31,
--------------------
($ in millions) 1993 1992
- -------------------------------------------------------------------------------
<S> <C> <C>
Assets
Cash and Due from Banks $ 6,068 $ 5,008
Interest-Bearing Deposits Placed with Banks 5,309 5,722
Federal Funds Sold and Securities Purchased Under Resale
Agreements 6,586 4,191
Trading Account Assets 6,933 4,805
Investment Securities:
Held to Maturity 1,384 1,431
Available for Sale Carried at Fair Value 7,690 -
At Lower of Cost or Market - 4,749
- -------------------------------------------------------------------------------
Total Investment Securities 9,074 6,180
Loans 60,493 62,558
Less: Reserve for Possible Credit Losses 1,425 1,913
- -------------------------------------------------------------------------------
Loans, Net 59,068 60,645
Assets Held for Accelerated Disposition 222 -
Customers' Liability on Acceptances 689 608
Accrued Interest Receivable 871 976
Premises and Equipment 1,782 1,858
Other Assets 5,501 5,869
- -------------------------------------------------------------------------------
Total Assets $102,103 $ 95,862
===============================================================================
Liabilities, Redeemable Preferred Stock and Stockholders' Equity
Deposits:
Domestic Offices:
Noninterest-Bearing $ 14,217 $ 12,398
Interest-Bearing 27,648 28,663
Overseas Offices:
Noninterest-Bearing 2,473 1,718
Interest-Bearing 27,171 24,445
- -------------------------------------------------------------------------------
Total Deposits 71,509 67,224
Federal Funds Purchased and Securities Sold Under
Repurchase Agreements 7,890 6,961
Commercial Paper 1,465 1,145
Other Short-Term Borrowings 1,813 1,774
Acceptances Outstanding 696 619
Accrued Interest Payable 416 578
Accounts Payable, Accrued Expenses and Other Liabilities 4,551 4,084
Intermediate- and Long-Term Debt 5,641 6,913
- -------------------------------------------------------------------------------
Total Liabilities 93,981 89,298
- -------------------------------------------------------------------------------
Redeemable Preferred Stock - 53
Stockholders' Equity:
Nonredeemable Preferred Stock(Without Par Value,51,439,738 1,400 1,477
and 49,539,738 Shares Outstanding,Respectively)
Common Stock :
<C> <C>
1993 1992
------------ -----------
Par Value $2.00 $2.00
Authorized Shares 500,000,000 500,000,000
Outstanding Shares 184,290,491 156,096,382 368 312
Surplus 3,922 3,174
Net Unrealized Gains on Investment Securities -
Available for Sale 264 -
Foreign Exchange Translation Adjustments 12 13
Retained Earnings 2,156 1,535
- -------------------------------------------------------------------------------
Total Stockholders' Equity 8,122 6,511
- -------------------------------------------------------------------------------
Total Liabilities, Redeemable Preferred Stock
and Stockholders' Equity $102,103 $ 95,862
===============================================================================
</TABLE>
<PAGE> 12
<TABLE>
<CAPTION>
The Chase Manhattan Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
Quarter Ended Year Ended
December 31, December 31,
-------------------------------
($ in millions, except per share data) 1993 1992 1993 1992
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest Revenue
Interest and Fees on Loans $1,479 $1,488 $5,795 $6,280
Interest on Deposits Placed with Banks 164 206 717 759
Interest and Dividends on Investment
Securities:
Held to Maturity 41 161 168 579
Available for Sale 133 - 517 -
Interest on Federal Funds Sold and Securities
Purchased Under Resale Agreements 245 223 1,029 771
Interest on Trading Account Assets 91 87 242 316
- ----------------------------------------------------------------------------
Total Interest Revenue 2,153 2,165 8,468 8,705
- ----------------------------------------------------------------------------
Interest Expense
Deposits 468 570 2,014 2,935
Federal Funds Purchased and Securities Sold
Under Repurchase Agreements 127 171 570 585
Commercial Paper 11 10 46 40
Other Short-Term Borrowings 460 342 1,484 952
Intermediate- and Long-Term Debt 85 115 491 629
- ----------------------------------------------------------------------------
Total Interest Expense 1,151 1,208 4,605 5,141
- ----------------------------------------------------------------------------
Net Interest Revenue 1,002 957 3,863 3,564
Provision for Possible Credit Losses 195 305 995 1,220
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 807 652 2,302 2,344
- ----------------------------------------------------------------------------
Noninterest Revenue
Fees and Commissions 401 417 1,562 1,582
Foreign Exchange Trading Revenue 75 82 356 327
Trading Account Revenue 92 32 360 141
Investment Securities Gains 12 (1) 47 13
Other Revenue 297 41 624 286
- ----------------------------------------------------------------------------
Total Noninterest Revenue 877 571 2,949 2,349
- ----------------------------------------------------------------------------
Other Operating Expenses
Salaries and Employee Benefits:
Salaries 420 389 1,590 1,505
Employee Benefits 129 92 487 411
- ----------------------------------------------------------------------------
549 481 2,077 1,916
Net Occupancy 114 105 404 383
Equipment Rentals, Depreciation
and Maintenance 85 80 298 285
Provision for Other Real Estate Held for
Accelerated Disposition - - 318 -
Other Expenses 451 353 1,423 1,284
- ----------------------------------------------------------------------------
Total Other Operating Expenses 1,199 1,019 4,520 3,868
- ----------------------------------------------------------------------------
Income Before Taxes 485 204 731 825
Applicable Income Taxes 172 35 265 186
- ----------------------------------------------------------------------------
Net Income Before Cumulative Effect of
Change in Accounting Principle $ 313 $ 169 $ 466 $ 639
Cumulative Effect of Change in Accounting
Principle - Adoption of SFAS 109 - - 500 -
- ----------------------------------------------------------------------------
Net Income $ 313 $ 169 $ 966 $ 639
============================================================================
Net Income Applicable to Common Stock $ 282 $ 136 $ 826 $ 515
============================================================================
Average Common Shares Outstanding (in
millions) 184.8 155.3 172.3 148.7
Primary Earnings Per Common Share,
Before Cumulative Effect of Change
in Accounting Principle, Based on
Average Shares Outstanding $ 1.53 $ 0.87 $ 1.89 $ 3.46
Cumulative Effect of Change in Accounting
Principle - Adoption of SFAS 109 - - 2.90 -
Primary Earnings Per Common Share $ 1.53 $ 0.87 $ 4.79 $ 3.46
Cash Dividends Declared Per Common Share $ 0.30 $ 0.30 $ 1.20 $ 1.20
============================================================================
</TABLE>
<PAGE> 13
<TABLE>
<CAPTION>
The Chase Manhattan Corporation and Subsidiaries
SUMMARY OF CHANGES IN STOCKHOLDERS' EQUITY
Year Ended
December 31,
---------------
($ in millions) 1993 1992
- ----------------------------------------------------------------------------
<S> <C> <C>
Balance at Beginning of Period $6,511 $5,324
Additions:
Net Income 966 639
Shares Issued Pursuant to:
Nonredeemable Preferred Stock Offering 173 560
Common Stock Offering 746 -
Dividend Reinvestment and Stock Purchase Plan 56 259
Floating Rate Subordinated Notes Due 1996 - 35
Exercise of Common Stock Equity Contracts - 132
Exercise of Stock Options 16 8
Net Unrealized Gains on Investment Securities -
Available for Sale (Net of Deferred Taxes OF $174) 264 -
Foreign Exchange Translation Adjustments (1) 3
- ----------------------------------------------------------------------------
8,731 6,960
Deductions:
Cash Dividends:
Redeemable Preferred Stock 3 4
Nonredeemable Preferred Stock 137 120
Common Stock 204 177
Redemption of Preferred Stock 250 125
Issuance and Redemption Costs of Preferred Stock 6 24
Other, Net 9 (1)
- ----------------------------------------------------------------------------
Balance at End of Period $8,122 $6,511
============================================================================
</TABLE>
<PAGE> 14
<TABLE>
<CAPTION>
The Chase Manhattan Bank, N.A. and Subsidiaries
CONSOLIDATED STATEMENT OF CONDITION
December 31,
-----------------
($ in millions) 1993 1992 *
- -------------------------------------------------------------------------------
<S> <C> <C>
Assets
Cash and Due from Banks $ 5,772 $ 4,697
Interest-Bearing Deposits Placed with Banks 5,431 5,813
Federal Funds Sold and Securities Purchased Under Resale
Agreements 4,439 3,865
Trading Account Assets 6,309 4,177
Investment Securities:
Held to Maturity 657 703
Available for Sale Carried at Fair Value 6,766 -
At Lower of Cost or Market - 3,889
- -------------------------------------------------------------------------------
Total Investment Securities 7,423 4,592
Loans 48,109 49,261
Less: Reserve for Possible Credit Losses 1,085 1,547
- -------------------------------------------------------------------------------
Loans, Net 47,024 47,714
Assets Held for Accelerated Disposition 219 -
Customers' Liability on Acceptances 689 608
Accrued Interest Receivable 566 639
Premises and Equipment 1,617 1,690
Other Assets 4,514 4,207
- -------------------------------------------------------------------------------
Total Assets $84,003 $78,002
===============================================================================
Liabilities and Stockholder's Equity
Deposits:
Domestic Offices:
Noninterest-Bearing $13,740 $11,701
Interest-Bearing 22,225 21,809
Overseas Offices:
Noninterest-Bearing 2,473 1,718
Interest-Bearing 27,171 24,955
- -------------------------------------------------------------------------------
Total Deposits 65,609 60,183
Federal Funds Purchased and Securities Sold Under
Repurchase Agreements 3,534 4,008
Other Short-Term Borrowings 1,253 1,216
Acceptances Outstanding 696 614
Accrued Interest Payable 347 503
Accounts Payable, Accrued Expenses and Other Liabilities 3,088 2,764
Intermediate- and Long-Term Debt 3,032 3,425
- -------------------------------------------------------------------------------
Total Liabilities 77,559 72,713
- -------------------------------------------------------------------------------
Stockholder's Equity:
Capital Stock:
<C> <C>
1993 1992 *
----------- -----------
Par Value $15.00 $15.00
Authorized Shares 81,744,445 81,744,445
Outstanding Shares 60,699,597 60,220,121 910 903
Surplus 4,383 3,983
Net Unrealized Gains on Investment Securities -
Available for Sale 187 -
Foreign Exchange Translation Adjustments 12 13
Undivided Profits 952 390
- -------------------------------------------------------------------------------
Total Stockholder's Equity 6,444 5,289
- -------------------------------------------------------------------------------
Total Liabilities and Stockholder's Equity $84,003 $78,002
===============================================================================
<FN>
Member Federal Deposit Insurance Corporation
* As Restated for The Merger of Chase Lincoln First Bank, N.A. into
The Chase Manhattan Bank, N.A. on January 1, 1993.
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