<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 17, 1995
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 17, 1995 The Chase Manhattan Corporation issued a news
release announcing its earnings for the quarter ended December 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 January 17, 1995.
<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 17, 1995 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 17, 1995
<PAGE> 1
Exhibit 99
January 17, 1995
Press Contact: Steve Rautenberg (212) 552-4505
Investor Contact: William Maletz (212) 552-5329
CHASE REPORTS EARNINGS OF $1,205 MILLION FOR FULL YEAR 1994,
$229 MILLION FOR FOURTH QUARTER 1994
The Chase Manhattan Corporation today reported record full year
1994 net income of $1,205 million ($5.87 per share), up 25% from the
$966 million ($4.79 per share) reported for full year 1993. The return
on average common equity for 1994 was 15.8%, up from the 14.6% reported
for 1993. The return on average assets was 1.01%, compared with .94%
for 1993.
Thomas G. Labrecque, Chairman said, "For 1994, Chase reported record
earnings, despite the volatility in the global trading markets as well
as increasing competition in all of our core business activities. We
continued to enhance our franchise through acquisitions and competitive
strategies. Our asset quality improvements increased our earnings, and
we consistently exceeded our capital ratio targets. These improvements
were reflected in the rating upgrades that Chase received during the
year from a number of major rating agencies."
For the fourth quarter of 1994, Chase reported net income of $229
million ($1.10 per share), down 27% from the $313 million ($1.53 per
share) reported for the fourth quarter of 1993.
"While the fourth quarter was extremely challenging given the difficult
trading environment", Tom Labrecque added, "we are pleased with the
progress of our business base, particularly the strong growth of fee
<PAGE> 2
revenue. Additionally, expense management remains a key priority as we
continue to invest in our future, as well as exit and restructure
certain businesses."
Highlights for the fourth quarter of 1994 included the following.
- Fees and commissions were up 23% from fourth quarter 1993, including
consumer banking - up 52% and investment banking - up 36%.
- Total trading revenue was $32 million, down $136 million from fourth
quarter 1993, reflecting the overall adverse global market
conditions, including the negative effects related to the Mexican
peso devaluation.
- Other revenue included a gain of approximately $30 million after-
taxes from the previously announced sale of Chase Florida.
- The Voluntary Retirement Program offered in the fourth quarter
resulted in a charge of $65 million after-taxes.
- Operating expenses also included $32 million after-taxes for
productivity initiatives related to certain domestic and overseas
businesses.
- Deferred federal income tax benefits of $70 million were recognized
during the quarter.
- The provision for possible credit losses declined to $90 million,
down $105 million from fourth quarter 1993.
- Nonaccrual loans continued to decline, resulting in a ratio of
reserves to nonaccrual loans of 214% at year-end 1994.
Chase completed the common stock repurchase program announced in June
with the repurchase of 4.5 million shares during the fourth quarter of
1994. This had a minimal favorable impact on the earnings per share
amount.
<PAGE> 3
NET INTEREST REVENUE - TAXABLE EQUIVALENT BASIS
Net interest revenue, on a taxable equivalent basis, was $911 million
for the fourth quarter of 1994, down $97 million from $1,008 million for
the fourth quarter of 1993, which included $21 million from the sale of
Argentine PDI bonds. Net interest margin was 3.68%, compared with 4.33%
reported for the fourth quarter of 1993. Average interest-earning
assets increased to $98.1 billion from the $92.4 billion level reported
for the fourth quarter of 1993. Average loans were $61.2 billion,
compared with $62.4 billion for the fourth quarter of 1993.
For 1994, net interest revenue, on a taxable equivalent basis, was
$3,714 million, compared with $3,892 million for 1993, which included
$163 million of interest revenue from Brazil and Argentine PDI bonds.
The net interest margin was 3.89% for 1994, compared with 4.33% (4.15%
excluding the PDI bonds) for 1993. Average interest-earning assets for
1994 were $95.5 billion, compared with $89.9 billion for 1993. In 1994,
average loans were $60.8 billion, compared with $61.5 billion reported
for 1993.
<TABLE>
<CAPTION>
FEES AND COMMISSIONS
Fourth Quarter Full Year
($ in millions) 1994 1993 1994 1993
<S> <C> <C> <C> <C>
Consumer Banking $167 $110 $ 638 $ 457
Trust and Fiduciary 145 124 567 465
Investment Banking 72 53 233 194
Other 108 114 438 446
Total Fees and Commissions $492 $401 $1,876 $1,562
</TABLE>
Fees and commissions were $492 million for the fourth quarter of 1994,
up 23% over the fourth quarter of 1993. Total consumer banking fees,
including credit card and mortgage banking fees, increased 52% over the
fourth quarter of 1993, reflecting increased servicing fees from a
higher volume of mortgage servicing assets and the absence of
accelerated write downs of such assets in 1994. Trust and fiduciary fee
revenue increased 17% over fourth quarter 1993, primarily due to
increased customer transaction volumes in the Global Securities Services
business. Investment banking fee revenue from global corporate finance
activities increased 36% over the fourth quarter of 1993. This increase
reflected improved
<PAGE> 4
transaction volumes, particularly in loan
syndications, mergers and acquisitions, and project finance.
For 1994, fees and commissions were $1,876 million, up 20%, reflecting
increases in all major categories of fee revenue.
<TABLE>
<CAPTION>
TRADING REVENUE
Fourth Quarter Full Year
($ in millions) 1994 1993 1994 1993
<S> <C> <C> <C> <C>
Foreign Exchange $ 67 $ 75 $280 $356
Trading Account (35) 93 271 360
Total Trading Revenue $ 32 $168 $551 $716
</TABLE>
Total trading revenue for the fourth quarter of 1994 was $32 million,
down significantly from the $188 million reported for the third quarter
of 1994 and $168 million for the fourth quarter of 1993. The decline in
trading revenue was attributable to several factors, the most
significant of which was the overall weakness in global markets during
the fourth quarter. In addition, the devaluation of the Mexican peso on
December 20,1994, and the subsequent deterioration in the emerging
markets generally, resulted in a decline in trading revenue. Trading
revenue was also adversely impacted by the continued weakness in
derivative markets in general and the failure by a few counterparties to
fully perform on their obligations. Partially offsetting the overall
decline in trading revenue from fourth quarter 1993 was an increase in
net interest revenue related to trading account assets of approximately
$20 million.
Total trading revenue for 1994 was $551 million, down from the $716
million reported for 1993, reflecting the generally unsettled global
market conditions prevailing in 1994, particularly in the fourth
quarter.
<PAGE> 5
<TABLE>
<CAPTION>
OTHER REVENUE
Fourth Quarter Full Year
($ in millions) 1994 1993 1994 1993
<S> <C> <C> <C> <C>
Corporate Finance-Related
Investment Gains $ 50 $110 $215 $259
Accelerated Disposition
Portfolio Gains 21 215 104 291
Investment Securities Gains 11 12 105 47
Other 66 (28) 202 74
Total Other Revenue $148 $309 $626 $671
</TABLE>
Total other revenue for the fourth quarter of 1994 was $148 million,
compared with $309 million for fourth quarter 1993, due principally to
the absence of significant gains from the accelerated disposition
portfolio. At December 31, 1994, there were no remaining assets in the
accelerated disposition portfolio.
Other revenue for the fourth quarter of 1994 included a gain of $31
million from the sale of mortgage servicing rights and a gain of
approximately $30 million from the sale of the retail deposit-taking
business of Chase Florida. During the fourth quarter of 1993, the
reduction in Chase's cross-border exposure resulted in $10 million
of net losses, which was reflected as net losses of $31 million in
other revenue and interest revenue of $21 million.
Total other revenue for 1994 totaled $626 million, compared with $671
million for 1993.
OPERATING EXPENSES
Total operating expenses were $1,275 million for the fourth quarter of
1994 and $1,199 million for the fourth quarter of 1993. Operating
expenses for fourth quarter 1994 included $105 million ($65 million
after-taxes) related to the Voluntary Retirement Program offered during
the fourth quarter, which was accepted by approximately 1,200 employees.
Also included in fourth quarter 1994 operating expenses were $52
million ($32 million after-taxes) for productivity initiatives, such as
exiting from certain consumer activities overseas, regionalizing foreign
operations and streamlining domestic infrastructure. Management
estimates that these actions will reduce Chase's future annual expense
base by approximately $100 million.
<PAGE> 6
For fourth quarter 1993, operating expenses included $45 million for
business-related investments, including the costs associated with
expanding dealer trading activities and enhanced information systems.
Compared with the same period of 1993, operating expenses for fourth
quarter 1994 reflected higher performance related compensation expenses
as well as increased costs of marketing programs in support of our
businesses, particularly credit card, regional banking and global
capital markets. In addition, operating expenses for fourth quarter
1994 included approximately $30 million from the recent acquisition of
American Residential Holding Co.
Operating expenses for the fourth quarter of 1994 were favorably
impacted by $28 million in net ORE revenue, compared with $107 million
of net ORE expenses for the same period in 1993.
For 1994, other operating expenses were $4,472 million, compared with
$4,202 million (excluding first quarter 1993 provision for ORE held for
accelerated disposition) for full year 1993. The expense to revenue
ratio for 1994 was 66%.
INCOME TAXES
For the fourth quarter of 1994, an income tax benefit of $18 million was
recorded, reflecting a $70 million reduction of the deferred federal
income tax valuation allowance. This compared with a tax provision of
$173 million for the fourth quarter of 1993.
For 1994, the provision for income taxes was $565 million, compared with
$265 million for 1993. Excluding the tax benefits applicable to the
special provision for the accelerated disposition portfolio, Chase's tax
provision for 1993 would have been approximately $575 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> 7
PROVISION FOR POSSIBLE CREDIT LOSSES AND NET LOAN CHARGE-OFFS
The provision for possible credit losses was $90 million, or $10 million
lower than the third quarter of 1994 and $105 million lower than the
fourth quarter of 1993.
Net loan charge-offs were $95 million, down $584 million from the fourth
quarter of 1993, which included $484 million of net loan charge-offs
applicable to refinancing countries related to the reduction in cross-
border exposure.
<TABLE>
<CAPTION>
Provision For Possible Credit Losses & Net Loan Charge-Offs*
4th Qtr. 3rd Qtr. 4th Qtr. Full Year
($ in millions) 1994 1994 1993 1994 1993
<S> <C> <C> <C> <C> <C>
PROVISION FOR POSSIBLE
CREDIT LOSSES $ 90 $ 100 $ 195 $500 $ 995
NET LOAN CHARGE-OFFS:
Domestic
- - Consumer $ 96 $ 90 $ 100 $370 $ 394
- - Commercial Real Estate 2 21 54 125 277
- - Commercial & Other (3) 6 35 19 166
Total Domestic 95 117 189 514 837
Total International** - 2 490 3 500
Total Net Loan
Charge-Offs $ 95 $ 119 $ 679 $517 $1,337
<FN>
* Amounts exclude accelerated disposition portfolio.
** Includes refinancing countries net loan charge-offs.
</TABLE>
The provision for possible credit losses for 1994 was $500 million,
compared with $995 million (excluding the accelerated disposition
portfolio) for 1993. Net loan charge-offs for the year were $517
million, down $820 million from 1993.
<TABLE>
<CAPTION>
RESERVE FOR POSSIBLE CREDIT LOSSES
Dec. 31, Sept. 30, Dec. 31,
($ in millions) 1994 1994 1993
<S> <C> <C> <C>
RESERVE FOR POSSIBLE
CREDIT LOSSES 1,414 $1,416 $1,425
- - As a % of Total Loans 2.24% 2.31% 2.36%
- - As a % of Nonaccrual Loans 214% 202% 135%
</TABLE>
<PAGE> 8
NONACCRUAL OUTSTANDINGS AND ORE
Total nonperforming assets declined $294 million, or 24%, during the
fourth quarter of 1994.
The distribution of nonaccrual outstandings based on the domicile of
obligors was as follows:
<TABLE>
<CAPTION>
Dec. 31, Sept. 30, Dec.31,
($ in millions) 1994 1994 1993
<S> <C> <C> <C>
Domestic:
- - Commercial Real Estate $ 266 $ 271 $ 475
- - Other Loans 244 281 407
Total Domestic 510 552 882
International:
- - Refinancing Countries 54 55 74
- - Other Loans 96 94 98
Total International 150 149 172
Total Nonaccrual Outstandings $ 660 $ 701 $1,054
Total ORE * $ 257 $ 510 $ 905
<FN>
* Includes in-substance foreclosures of $220 million at December 31,
1994, $418 million at September 30, 1994, and $766 million at
December 31, 1993.
</TABLE>
DOMESTIC COMMERCIAL REAL ESTATE ASSETS
Chase continues to reduce its exposure to real estate. During the
fourth quarter of 1994, domestic commercial real estate assets
decreased $390 million to $2.3 billion at December 31, 1994.
Contributing to this decline were approximately $370 million of net
repayments and sales of outstanding assets and $20 million of charge-
offs.
<TABLE>
<CAPTION>
Domestic Commercial Real Estate Assets
Dec. 31, Sept. 30, Dec. 31,
($ in millions) 1994 1994 1993
<S> <C> <C> <C>
Loans:
Performing $1,789 $1,923 $2,624
Nonaccrual 266 271 475
Total Loans 2,055 2,194 3,099
ORE 251 502 895
Total $2,306 $2,696 $3,994
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
SELECTED AVERAGE BALANCES
Fourth Quarter Full Year
($ in billions) 1994 1993 1994 1993
<S> <C> <C> <C> <C>
Loans:
Domestic Offices $ 45.0 $ 43.5 $ 44.0 $42.9
Overseas Offices 16.2 18.9 16.8 18.6
Total Loans $ 61.2 $ 62.4 $ 60.8 $61.5
Interest-Earnings Assets $ 98.1 $ 92.4 $ 95.5 $89.9
Total Assets $120.9 $105.6 $118.8 $102.7
Deposits:
Noninterest-Bearing $ 15.6 $ 16.6 $ 15.9 $ 15.6
Interest-Bearing 56.1 55.9 56.1 55.1
Total Deposits $ 71.7 $ 72.5 $ 72.0 $ 70.7
Common Stockholders' Equity $ 6.9 $ 6.3 $ 6.8 $ 5.7
Total Stockholders' Equity $ 8.3 $ 7.7 $ 8.3 $ 7.2
</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
1994 1993 1994 1993
<S> <C> <C> <C> <C>
NET INCOME $ 229 $ 313 $1,205 $ 966
PER COMMON SHARE
- Net Income
- Primary $1.10 $1.53 $5.87 $4.79
- Fully diluted $1.10 $1.52 $5.84 $4.78
- Book Value (period-end) $39.28 $36.48
Closing Stock Price $34.38 $33.88
(period-end)
PROFITABILITY RATIOS
- Return on Average Common
Stockholders' Equity 11.3% 17.9% 15.8% 14.6%
- Return on Average Assets(a) .75% 1.18% 1.01% .94%
NET INTEREST REVENUE
(Fully Taxable Basis) $ 911 $1,008 $3,714 $3,892
- Net Interest Margin 3.68% 4.33% 3.89% 4.33%
</TABLE>
<TABLE>
<CAPTION>
Dec. 31, Dec. 31,
1994(a) 1993
<S> <C> <C>
CAPITAL RATIOS
- - Common Stockholders' Equity 6.10% 6.58%
- - Total Stockholders' Equity 7.33% 7.95%
- - Risk-Based Capital
- Tier 1 Capital 8.30% 8.44%
- Total Capital 12.78% 13.22%
- - Tier 1 Leverage 7.37% 7.81%
<FN>
(a)On January 1, 1994, Chase adopted FASB Interpretation No. 39. As a
result of such adoption, Chase's Trading Account Assets and
Liabilities increased approximately $8 billion at December 31, 1994.
This had the effect of decreasing the return on average assets
ratios, the common and total equity ratios, and the Tier 1 leverage
ratio.
</TABLE>
<PAGE> 11
<TABLE>
<CAPTION>
The Chase Manhattan Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF CONDITION
December 31,
------------------
($ in millions) 1994 1993
- -----------------------------------------------------------------------------
<S> <C> <C>
Assets
Cash and Due from Banks $ 4,713 $ 6,068
Interest-Bearing Deposits Placed with Banks 6,791 5,309
Federal Funds Sold and Securities Purchased Under Resale
Agreements 7,280 6,586
Trading Account Assets 15,109 6,933
Investment Securities:
Held to Maturity 2,084 1,384
Available for Sale Carried at Fair Value 5,135 7,690
- -----------------------------------------------------------------------------
Total Investment Securities 7,219 9,074
Loans 63,038 60,493
Less: Reserve for Possible Credit Losses 1,414 1,425
- -----------------------------------------------------------------------------
Loans, Net 61,624 59,068
Assets Held for Accelerated Disposition - 222
Customers' Liability on Acceptances 520 689
Accrued Interest Receivable 1,276 871
Premises and Equipment 1,895 1,782
Other Assets 7,611 5,501
- -----------------------------------------------------------------------------
Total Assets $114,038 $102,103
=============================================================================
Liabilities and Stockholders' Equity
Deposits:
Noninterest-Bearing $ 14,310 16,690
Interest-Bearing 55,646 54,819
- -----------------------------------------------------------------------------
Total Deposits 69,956 71,509
Federal Funds Purchased and Securities Sold Under
Repurchase Agreements 9,312 7,890
Commercial Paper 1,766 1,465
Other Short-Term Borrowings 2,884 1,813
Trading Account Liabilities 9,664 -
Acceptances Outstanding 525 696
Accrued Interest Payable 651 416
Accounts Payable, Accrued Expenses and Other Liabilities 5,851 4,551
Intermediate- and Long-Term Debt 5,070 5,641
- -----------------------------------------------------------------------------
Total Liabilities 105,679 93,981
- -----------------------------------------------------------------------------
Stockholders' Equity:
Nonredeemable Preferred Stock(Without Par Value, 1,400 1,399
56,000,000 and 51,439,738 Shares Outstanding,Respectively)
Common Stock ($2.00 Par Value):
<C> <C>
1994 1993
------------ ------------
Number of Shares:
Authorized 500,000,000 500,000,000
Issued 185,674,178 184,290,491
Outstanding 177,174,178 184,290,491 371 369
Surplus 3,949 3,922
Net Unrealized Gains (Losses) on Investment Securities -
Available for Sale (35) 264
Retained Earnings 2,980 2,168
- -----------------------------------------------------------------------------
Total 8,665 8,122
Less: Treasury Stock at Cost (8,500,000 Shares) 306 -
- -----------------------------------------------------------------------------
Total Stockholders' Equity 8,359 8,122
- -----------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $114,038 $102,103
=============================================================================
</TABLE>
<PAGE> 12
<TABLE>
<CAPTION>
The Chase Manhattan Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
Quarter Ended 12 Months Ended
December 31, December 31,
-------------------------------
($ in millions, except per share data) 1994 1993 1994 1993
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest Revenue
Interest and Fees on Loans $1,341 $1,479 $5,270 $5,795
Interest on Deposits Placed with Banks 133 164 498 717
Interest and Dividends on Investment
Securities:
Held to Maturity 32 42 144 168
Available for Sale 92 133 525 517
Interest on Federal Funds Sold and Securities
Purchased Under Resale Agreements 228 245 1,277 1,029
Interest on Trading Account Assets 121 92 420 242
- ----------------------------------------------------------------------------
Total Interest Revenue 1,947 2,155 8,134 8,468
- ----------------------------------------------------------------------------
Interest Expense
Deposits 609 469 2,326 2,014
Federal Funds Purchased and Securities Sold
Under Repurchase Agreements 256 127 759 570
Commercial Paper 23 11 68 46
Other Short-Term Borrowings 72 460 980 1,484
Intermediate- and Long-Term Debt 83 86 312 491
- ----------------------------------------------------------------------------
Total Interest Expense 1,043 1,153 4,445 4,605
- ----------------------------------------------------------------------------
Net Interest Revenue 904 1,002 3,689 3,863
Provision for Possible Credit Losses 90 195 500 995
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 814 807 3,189 2,302
- ----------------------------------------------------------------------------
Other Operating Revenue
Fees and Commissions 492 401 1,876 1,562
Foreign Exchange Trading Revenue 67 75 280 356
Trading Account Revenue (35) 93 271 360
Investment Securities Gains 11 12 105 47
Other Revenue 137 297 521 624
- ----------------------------------------------------------------------------
Total Other Operating Revenue 672 878 3,053 2,949
- ----------------------------------------------------------------------------
Other Operating Expenses
Salaries and Employee Benefits:
Salaries 475 417 1,773 1,590
Employee Benefits 281 130 649 487
- ----------------------------------------------------------------------------
756 547 2,422 2,077
Net Occupancy 98 112 395 404
Equipment Rentals, Depreciation
and Maintenance 85 85 307 298
Provision for Other Real Estate Held for
Accelerated Disposition - - - 318
Other Expenses 336 455 1,348 1,423
- ----------------------------------------------------------------------------
Total Other Operating Expenses 1,275 1,199 4,472 4,520
- ----------------------------------------------------------------------------
Income Before Taxes 211 486 1,770 731
Applicable Income Taxes (Benefits) (18) 173 565 265
- ----------------------------------------------------------------------------
Income Before Cumulative Effect of
Change in Accounting Principle $ 229 $ 313 $1,205 $ 466
Cumulative Effect of Change in Accounting
Principle - Adoption of SFAS 109 - - - 500
- ----------------------------------------------------------------------------
Net Income $ 229 $ 313 $1,205 $ 966
============================================================================
Net Income Applicable to Common Stock $ 198 $ 282 $1,078 $ 826
============================================================================
Average Common Shares Outstanding (in
millions) 179.8 184.8 183.6 172.3
Primary Earnings Per Common Share,
Before Cumulative Effect of Change
in Accounting Principle, Based on
Average Shares Outstanding $ 1.10 $ 1.53 $ 5.87 $ 1.89
Cumulative Effect of Change in Accounting
Principle - Adoption of SFAS 109 - - - 2.90
Primary Earnings Per Common Share $ 1.10 $ 1.53 $ 5.87 $ 4.79
Cash Dividends Declared Per Common Share $ 0.40 $ 0.30 $ 1.46 $ 1.20
============================================================================
</TABLE>
<PAGE> 13
<TABLE>
<CAPTION>
The Chase Manhattan Corporation and Subsidiaries
SUMMARY OF CHANGES IN STOCKHOLDERS' EQUITY
12 Months Ended
December 31,
---------------
($ in millions) 1994 1993
- ----------------------------------------------------------------------------
<S> <C> <C>
Balance at Beginning of Period $8,122 $6,511
Additions:
Net Income 1,205 966
Shares Issued Pursuant to:
Nonredeemable Preferred Stock Offering 228 172
Dividend Reinvestment and Stock Purchase Plan 18 56
Common Stock Offering - 746
Exercise of Stock Options 18 16
Net Unrealized Gains (Losses) on Investment
Securities - Available for Sale (Net of Deferred
Taxes (Benefits) of ($204) and $174, respectively) (299) 264
- ----------------------------------------------------------------------------
9,292 8,731
Deductions:
Cash Dividends:
Redeemable Preferred Stock - 3
Nonredeemable Preferred Stock 127 138
Common Stock 266 204
Redemption of Nonredeemable Preferred Stock 227 250
Treasury Stock 306 -
Other 7 14
- ----------------------------------------------------------------------------
Balance at End of Period $8,359 $8,122
============================================================================
</TABLE>
<PAGE> 14
<TABLE>
<CAPTION>
The Chase Manhattan Bank, N.A. and Subsidiaries
CONSOLIDATED STATEMENT OF CONDITION
December 31,
-----------------
($ in millions) 1994 1993
- -------------------------------------------------------------------------------
<S> <C> <C>
Assets
Cash and Due from Banks $ 4,518 $ 5,772
Interest-Bearing Deposits Placed with Banks 7,002 5,431
Federal Funds Sold and Securities Purchased Under Resale
Agreements 3,824 4,439
Trading Account Assets 13,088 6,309
Investment Securities:
Held to Maturity 1,760 657
Available for Sale Carried at Fair Value 4,502 6,766
- -------------------------------------------------------------------------------
Total Investment Securities 6,262 7,423
Loans 50,607 48,109
Less: Reserve for Possible Credit Losses 1,092 1,085
- -------------------------------------------------------------------------------
Loans, Net 49,515 47,024
Assets Held for Accelerated Disposition - 219
Customers' Liability on Acceptances 520 689
Accrued Interest Receivable 966 566
Premises and Equipment 1,759 1,617
Other Assets 6,525 4,514
- -------------------------------------------------------------------------------
Total Assets $93,979 $84,003
===============================================================================
Liabilities and Stockholder's Equity
Deposits:
Noninterest-Bearing $13,968 16,213
Interest-Bearing 51,533 49,396
- -------------------------------------------------------------------------------
Total Deposits 65,501 65,609
Federal Funds Purchased and Securities Sold Under 2,580 3,534
Repurchase Agreements
Other Short-Term Borrowings 2,308 1,253
Trading Account Liabilities 8,066 -
Acceptances Outstanding 525 696
Accrued Interest Payable 574 347
Accounts Payable, Accrued Expenses and Other Liabilities 4,620 3,088
Intermediate- and Long-Term Debt 2,803 3,032
- -------------------------------------------------------------------------------
Total Liabilities 86,977 77,559
- -------------------------------------------------------------------------------
Stockholder's Equity:
Capital Stock ($15 Par Value):
<C> <C>
1994 1993
--------------- --------------
Number of Shares:
Authorized 81,744,445 81,744,445
Outstanding 61,038,415 60,699,597 916 910
Surplus 4,656 4,383
Net Unrealized Gains (Losses) on Investment Securities - (65) 187
Available for Sale
Undivided Profits 1,495 964
- -------------------------------------------------------------------------------
Total Stockholder's Equity 7,002 6,444
- -------------------------------------------------------------------------------
Total Liabilities and Stockholder's Equity $93,979 $84,003
===============================================================================
Member Federal Deposit Insurance Corporation
</TABLE>
