|
|
|
|
|
|
|
|
|
|
|
|
|
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF THE REPORT: JANUARY 21, 1998 COMMISSION FILE NUMBER 1-5805
THE CHASE MANHATTAN CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 13-2624428
(STATE OR OTHER JURISDICTION (I.R.S. EMPLOYER
OF INCORPORATION) IDENTIFICATION NO.)
270 PARK AVENUE, NEW YORK, NY 10017
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (212) 270-6000
<PAGE> 2
ITEM 5. OTHER EVENTS
The Chase Manhattan Corporation ("Chase") reported on January 20, 1998
diluted operating earnings per share of $8.35 for 1997, compared with $7.27 in
1996. Operating earnings for the year increased 9% to $3.85 billion from $3.52
billion in 1996. Net income, which includes merger-related restructuring costs
and special items, rose to $3.71 billion in 1997 from $2.46 billion in 1996.
Diluted operating earnings per share in the fourth quarter of 1997 were
$1.89, compared with $1.88 in the comparable 1996 quarter. Operating earnings in
the fourth quarter were $850 million, 6% lower than in the comparable 1996
quarter, primarily due to lower trading results. Net income in the fourth
quarter was $874 million, 5% higher than in the comparable 1996 quarter.
In connection with reporting its 1997 full year and fourth quarter
results, management disclosed its estimates of Chase's cross-border exposures to
certain Asian countries as of December 31, 1997. Management also announced new
financial performance goals for Chase for over the next several years, as
follows: (1) an average return on common equity of 18% or higher; (2) growth in
operating revenues accelerating to 10% per annum, and (3) growth in operating
earnings per share in the double digits.
A copy of the Chase's earnings press release is attached as an exhibit
hereto. Also attached as an exhibit hereto is the information relating to
Chase's estimates of its cross-border exposures. This Current Report on Form 8-K
contains statements that are forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are subject to risks
and uncertainties and Chase's actual results may differ materially from those
set forth in such forward-looking statements. Factors that would affect the
prospects of Chase's business are discussed in its Annual Report to Stockholders
on Form 10-K for the year ended December 31, 1996.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
The following exhibits are filed with this Report:
Exhibit Number Description
99.1 Press Release - 1997 Fourth Quarter Earnings.
99.2 Information Relating to Estimates of Cross-Border
Exposures
<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)
Dated January 21, 1998 by /s/ JOSEPH L. SCLAFANI
----------------- ----------------------------
Joseph L. Sclafani
Controller
[Principal Accounting Officer]
<PAGE> 4
EXHIBIT INDEX
Page at
Exhibit Number Description Which Located
- ------------- ----------- -------------
99.1 Press Release - 1997 Fourth Quarter Earnings. 5
99.2 Information Relating to Estimates of Cross-Border 22
Exposures
<PAGE> 1
EXHIBIT 99.1
[CHASE LETTERHEAD]
The Chase Manhattan Corporation
270 Park Avenue
New York, NY 10017-2070 NEWS RELEASE
Investor Contact: John Borden Press Contacts: Kathleen Baum
212-270-7318 212-270-5089
John Stefans
For Immediate Release 212-270-7438
CHASE OPERATING EARNINGS PER SHARE RISE 15 PERCENT IN 1997
New York, January 20, 1998 -- The Chase Manhattan Corporation
(NYSE:CMB) today reported diluted operating earnings per share of $8.35 for
1997, compared with $7.27 in 1996. Operating earnings for the year increased
nine percent to $3.85 billion from $3.52 billion in 1996. Net income, which
includes merger-related restructuring costs and special items, rose to $3.71
billion in 1997 from $2.46 billion in 1996.
1997 FINANCIAL HIGHLIGHTS
- Operating earnings per share increased 15 percent for the full year.
- Return on common stockholders' equity rose to 19.5 percent from 18.4
percent.
- Total managed revenues increased eight percent to $17.67 billion.
- The efficiency ratio improved to 55 percent from 57 percent.
"It was another great year for Chase, underscoring the strength of our
balanced mix of businesses," said Walter V. Shipley, chairman and chief
executive officer. "Despite difficult market conditions in the fourth quarter,
revenue growth continued to accelerate, with eight of Chase's eleven businesses
growing at double-digit levels."
Fourth quarter financial summary
Diluted operating earnings per share in the fourth quarter of 1997 were
$1.89, compared with $1.88 in the same 1996 quarter. Operating earnings were
$850 million, six percent lower than in the same 1996 quarter, primarily due to
lower trading results. Net income was $874 million, five percent higher than in
the same 1996 quarter.
(More)
<PAGE> 2
2
Return on common stockholders' equity was 16.5 percent in the fourth
quarter of 1997 compared with 18.1 percent in the same 1996 quarter. Total
managed revenues rose five percent to $4.29 billion, from $4.10 billion in the
same 1996 quarter. The efficiency ratio was 57 percent in the the fourth quarter
of 1997 and 56 percent in the prior year quarter.
LINE-OF-BUSINESS RESULTS
Results have been restated to reflect the corporation's new
organizational structure. Chase's Global Services businesses are now reported as
Chase Technology Solutions. Middle Market Banking and Chase Bank of Texas,
formerly Texas Commerce Bank, are now included in Global Banking although
consumer- and global services-related results for Chase Bank of Texas are
reported as part of those businesses.
Global Banking
Net income from Global Banking in 1997 rose 11 percent to $2.47
billion. Return on common equity was 22 percent. For the full year, Global
Banking revenues grew six percent.
Net income from Chase's global markets businesses rose 18 percent in
1997 to $955 million. Revenues rose 11 percent for the full year, reflecting
higher treasury results and trading revenues. Total trading revenues for the
corporation rose four percent to $2.04 billion for the full year. Fourth quarter
total trading revenues were $127 million, as losses in emerging markets
securities offset strong foreign exchange revenues.
Net income from global investment banking and corporate lending was
$741 million in 1997. Investment banking activity accelerated throughout the
year, producing record corporate finance and loan syndication fees for the
corporation. These fees rose 20 percent to $1.14 billion for the full year and
by 68 percent in the fourth quarter. Results for 1997 reflect significant market
share gains in high yield and investment grade underwriting, and in mergers and
acquisitions advisory activities. Revenues from corporate lending declined nine
percent to $1.47 billion.
Net income from Chase Capital Partners rose three percent to $409
million in 1997. Equity-related investment revenues for the corporation were
$806 million in 1997, including revenues of $220 million in the fourth quarter,
a 28 percent increase over the prior year.
Net income for Chase Bank of Texas increased by eight percent to $291
million in 1997, with both fee-based business and loan and deposit volumes
rising. Revenues rose by eight percent for the full year and by 10 percent in
the fourth quarter.
<PAGE> 3
3
Net income from middle market banking was $211 million in 1997, an 11
percent increase over the previous year, reflecting higher deposit volume,
increased corporate finance activity and productivity gains.
Net income from global asset management and private banking rose 24
percent to $143 million in 1997. Revenues for the full year rose by 11 percent,
driven by growth in assets under management as well as increased investment
advisory activities. In the fourth quarter, revenues rose 14 percent.
Chase Technology Solutions
As announced in December 1997, in order to establish a fully integrated
transaction processing platform, Chase has combined its global services
businesses, information technology and operations and electronic commerce
initiatives into a new group called Chase Technology Solutions.
Net income for global services within Chase Technology Solutions rose
37 percent to $395 million in 1997, reflecting an 11 percent rise in revenues as
well as productivity gains. Return on common equity for the year was 37 percent.
In the fourth quarter, net income rose 46 percent, with revenues rising 17
percent. Expenses related to information technology and operations and
electronic commerce initiatives have been allocated to the businesses they
support.
National Consumer Services
Net income from National Consumer Services rose nine percent to $1.04
billion in 1997. Return on common equity was 21 percent. Revenues increased 10
percent for the full year and 12 percent in the fourth quarter. Fourth quarter
net income rose 23 percent.
Net income from credit cards was $325 million in 1997, a six percent
decline from the prior year reflecting higher charge-offs and marketing
investments. Credit card revenues increased 15 percent to $3.35 billion in 1997,
reflecting growth throughout the year in both co-branded offerings and core
products. Net income was $104 million in the fourth quarter, 37 percent higher
than the year-ago period. Average managed domestic receivables increased 20
percent to $29.38 billion in the 1997 fourth quarter and include Chase's
acquisition of substantially all of The Bank of New York's credit card
portfolio, which closed on November 24, 1997. The credit card charge-off rate
continued to decline from second and third quarter 1997 levels.
Net income from mortgage banking was $180 million in 1997, a 70 percent
increase from the prior year, reflecting higher revenues and productivity gains
from re-engineering initiatives. For the full year, revenues rose 14 percent to
$741 million. Fourth quarter 1997 revenues rose 10 percent to $175 million.
<PAGE> 4
4
Net income from national consumer finance was $123 million, a 10
percent decline from the prior year, reflecting the impact of the joint venture
formed with Sallie Mae in the fourth quarter of 1996, which is accounted for on
an equity basis. Revenues increased eight percent to $649 million in 1997.
Revenues in the fourth quarter grew by 11 percent.
Net income from payments and investments was $395 million in 1997, a 13
percent increase from 1996, reflecting higher deposit volumes, increased
investment sales and greater Chase banking card usage. Results for the year also
reflect ongoing productivity initiatives. Revenues rose three percent for the
full year and five percent in the fourth quarter.
FINANCIAL INFORMATION
Total noninterest operating expenses were $9.73 billion in 1997, a five
percent increase from 1996, and reflected $635 million of incremental merger
savings, offset by higher investment spending and increased incentives related
to higher revenues. In the fourth quarter of 1997, total noninterest operating
expenses rose seven percent to $2.47 billion, reflecting $115 million in
incremental merger savings.
Asset Quality
The provision for credit losses in 1997 was $804 million, compared with
$897 million in 1996. The provision for credit losses was $205 million in 1997
fourth quarter, compared with $182 million in fourth quarter of 1996.
Total managed consumer net charge-offs for the full year were $1.783
billion, of which $807 million related to assets retained on the balance sheet,
compared with $1.362 billion, of which $824 million related to assets retained
on the balance sheet, in 1996. In the fourth quarter of 1997, total managed
consumer net charge-offs were $472 million, of which $212 million were related
to assets retained on the balance sheet.
Managed domestic credit card net charge-offs for the full year were
5.66 percent of average managed receivables, compared with 4.87 percent in 1996.
Managed domestic credit card net charge-offs in the fourth quarter were 5.45
percent of average managed receivables, compared with 5.11 percent in the same
1996 quarter.
Total domestic commercial net recoveries were $15 million in 1997,
compared with net charge-offs of $100 million in 1996. In the fourth quarter of
1997, total domestic commercial net recoveries were $24 million compared with
net recoveries of $22 million in the same 1996 quarter.
Nonperforming assets, at December 31, 1997 were $1.018 billion,
compared with $1.036 billion on September 30, 1997 and $ 1.151 billion on
December 31, 1996.
<PAGE> 5
5
Other Information
Fourth quarter 1997 operating revenues and earnings exclude a $58
million special gain ($37 million after-tax) resulting from the sale of Chase's
remaining 20 percent stake in CIT.
Merger-related restructuring costs of $192 million for the full year
and $20 million for the 1997 fourth quarter are also excluded from operating
earnings.
At December 31, 1997, Chase's estimated Tier 1 and total risk-based
capital ratios were 7.9 percent and 11.7 percent, respectively, and its leverage
ratio was 6.0 percent.
# # #
CHASE'S NEWS RELEASES AND QUARTERLY FINANCIAL RESULTS ARE AVAILABLE ON THE
INTERNET AT WWW.CHASE.COM.
<PAGE> 6
UNAUDITED
THE CHASE MANHATTAN CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(IN MILLIONS, EXCEPT PER SHARE AND RATIO DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED FOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31,
-------------------------- -------------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
EARNINGS:
Operating Income (a) $ 850 $ 901 $ 3,849 $ 3,516
Nonrecurring Items (After-Tax) (a) 37 -- (20) 70
Restructuring Costs (After-Tax) (a) (13) (65) (121) (1,125)
---------- ---------- ---------- ----------
Net Income $ 874 $ 836 $ 3,708 $ 2,461
========== ========== ========== ==========
Net Income Applicable to Common Stock $ 839 $ 781 $ 3,526 $ 2,242
========== ========== ========== ==========
INCOME PER COMMON SHARE:
Basic:
Operating Income $ 1.93 $ 1.93 $ 8.64 $ 7.55
Net Income $ 1.99 $ 1.78 $ 8.30 $ 5.13
Diluted:
Operating Income $ 1.89 $ 1.88 $ 8.35 $ 7.27
Net Income $ 1.94 $ 1.74 $ 8.03 $ 4.94
PER COMMON SHARE:
Book Value at December 31, $ 47.51 $ 42.58 $ 47.51 $ 42.58
Market Value at December 31, $ 109.50 $ 89.38 $ 109.50 $ 89.38
Common Stock Dividends Declared (b) $ 0.62 $ 0.56 $ 2.48 $ 2.24
COMMON SHARES OUTSTANDING:
Basic Average Common Shares 421.3 438.0 424.6 436.8
Average Common Shares Assuming Dilution 432.2 448.8 439.2 453.4
Common Shares at Period End 421.0 430.8 421.0 430.8
PERFORMANCE RATIOS: (AVERAGE BALANCES) (c)
Operating Income:
Return on Assets 0.90% 1.08% 1.08% 1.09%
Return on Common Stockholders' Equity 16.53% 18.12% 19.48% 18.35%
Return on Total Stockholders' Equity 15.84% 16.89% 18.29% 17.06%
Net Income:
Return on Assets 0.92% 1.00% 1.04% 0.77%
Return on Common Stockholders' Equity 17.02% 16.73% 18.73% 12.48%
Return on Total Stockholders' Equity 16.28% 15.67% 17.62% 11.94%
Efficiency Ratio (d) 61% 59% 58% 59%
Efficiency Ratio - Excluding Securitizations (d) 57% 56% 55% 57%
CAPITAL RATIOS AT DECEMBER 31:
Common Stockholders' Equity to Assets 5.5% 5.5%
Total Stockholders' Equity to Assets 5.9% 6.2%
Tier 1 Leverage 6.0%(e) 6.8%
Risk-Based Capital:
Tier 1 (4.0% required) 7.9%(e) * 8.2%
Total (8.0% required) 11.7%(e) * 11.8%
FULL-TIME EQUIVALENT EMPLOYEES AT DECEMBER 31, 69,033 67,785
</TABLE>
(a) See Operating Income Reconciliation on the following page.
(b) The Corporation increased its quarterly common stock dividend to $0.62 per
share, from $0.56 per share, in the first quarter of 1997.
(c) Performance ratios for three months ended December 31, 1997 and 1996 are
based on annualized amounts.
(d) Excludes restructuring costs, foreclosed property expense and nonrecurring
items.
(e) In the third quarter of 1997, the Corporation adopted the Federal Reserve
Board's new guidelines for calculating market risk-adjusted capital. The
risk-based capital and leverage ratios now include the assets and
off-balance sheet financial instruments of the Corporation's securities
subsidiary, Chase Securities Inc., as well as the Corporation's investment
in this subsidiary. Prior period ratios have not been restated.
* Estimated
<PAGE> 7
UNAUDITED
THE CHASE MANHATTAN CORPORATION AND SUBSIDIARIES
OPERATING INCOME RECONCILIATION
(IN MILLIONS)
<TABLE>
<CAPTION>
SUMMARY OF RESULTS FOR THE
THREE MONTHS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------
1997 1996
----------------------------------------- ---------------------------------------
RESTRUCTURING RESTRUCTURING
COSTS AND COSTS AND
OPERATING NONRECURRING AS OPERATING NONRECURRING AS
EARNINGS ITEMS REPORTED EARNINGS ITEMS REPORTED
-------- ----- -------- -------- ----- --------
<S> <C> <C> <C> <C> <C> <C>
EARNINGS:
Net Interest Income $2,079 $-- $2,079 $2,041 $ -- $2,041
Noninterest Revenue 1,947 58(c) 2,005 1,897 -- 1,897
------ --- ------ ------ ----- ------
Total Operating Revenue 4,026 58 4,084 3,938 -- 3,938
Operating Expense 2,467 -- 2,467 2,304 -- 2,304
Credit Costs (a) 208 -- 208 181 -- 181
------ --- ------ ------ ----- ------
Income Before Restructuring Costs 1,351 58 1,409 1,453 -- 1,453
Restructuring Costs (b) -- 20 20 -- 104 104
------ --- ------ ------ ----- ------
Income (Loss) After Restructuring Costs 1,351 38 1,389 1,453 (104) 1,349
Tax Expense (Benefit) 501 14 515 552 (39) 513
------ --- ------ ------ ----- ------
NET INCOME (LOSS) $ 850 $24 $ 874 $ 901 $ (65) $ 836
====== === ====== ====== ===== ======
INCOME PER COMMON SHARE:
Basic $ 1.93 $ 1.99 $ 1.93 $ 1.78
Diluted $ 1.89 $ 1.94 $ 1.88 $ 1.74
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF RESULTS FOR THE
FULL YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------------------
1997 1996
----------------------------------------- ---------------------------------------
RESTRUCTURING RESTRUCTURING
COSTS AND COSTS AND
OPERATING NONRECURRING AS OPERATING NONRECURRING AS
EARNINGS ITEMS REPORTED EARNINGS ITEMS REPORTED
-------- ----- -------- -------- ----- --------
<S> <C> <C> <C> <C> <C> <C>
EARNINGS:
Net Interest Income $ 8,158 $ -- $ 8,158 $ 8,168 $ 54(e) $ 8,222
Noninterest Revenue 8,523 102(c) 8,625 7,690 (60)(f) 7,630
------- ----- ------- ------- ------- -------
Total Operating Revenue 16,681 102 16,783 15,858 (6) 15,852
Operating Expense 9,730 135(d) 9,865 9,306 40(g) 9,346
Credit Costs (a) 816 -- 816 881 -- 881
------- ----- ------- ------- ------- -------
Income (Loss) Before Restructuring Costs 6,135 (33) 6,102 5,671 (46) 5,625
Restructuring Costs (b) -- 192 192 -- 1,814 1,814
------- ----- ------- ------- ------- -------
Income (Loss) After Restructuring Costs 6,135 (225) 5,910 5,671 (1,860) 3,811
Tax Expense (Benefit) 2,286 (84) 2,202 2,155 (805)(h) 1,350
------- ----- ------- ------- ------- -------
NET INCOME (LOSS) $ 3,849 $(141) $ 3,708 $ 3,516 $(1,055) $ 2,461
======= ===== ======= ======= ======= =======
INCOME PER COMMON SHARE:
Basic $ 8.64 $ 8.30 $ 7.55 $ 5.13
Diluted $ 8.35 $ 8.03 $ 7.27 $ 4.94
</TABLE>
(a) Credit Costs include the Provision for Credit Losses and Foreclosed
Property Expense.
(b) Reflects pre-tax merger-related restructuring charge of $1,650 million,
which was recorded on March 31, 1996. Merger-related expenses that did not
qualify for immediate recognition have been recognized as incurred under
an existing accounting pronouncement.
(c) Includes $58 million gain on the sale of the Corporation's remaining
interest in CIT in the fourth quarter and $44 million gain on the sale of
a partially-owned foreign investment in the first quarter.
(d) Costs incurred for the accelerated vesting of stock-based incentive
awards.
(e) Receipt of interest related to Federal and State tax audit settlements.
(f) Loss on sale of a building in Japan.
(g) Costs incurred in combining the Corporation's foreign retirement plans.
(h) Includes tax benefits related to the restructuring charge as well as
aggregate tax benefits and refunds.
<PAGE> 8
UNAUDITED
THE CHASE MANHATTAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(IN MILLIONS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
-------------------------------------
DEC. 31, SEPT. 30, DEC. 31,
1997 1997 1996
------- ------ -------
<S> <C> <C> <C>
INTEREST INCOME
Loans $ 3,361 $3,271 $ 3,048
Securities 851 720 767
Trading Assets 707 732 615
Federal Funds Sold and Securities Purchased Under Resale Agreements 728 623 571
Deposits with Banks 156 149 97
------- ------ -------
Total Interest Income 5,803 5,495 5,098
------- ------ -------
INTEREST EXPENSE
Deposits 1,764 1,714 1,520
Short-Term and Other Borrowings 1,640 1,451 1,304
Long-Term Debt 320 284 233
------- ------ -------
Total Interest Expense 3,724 3,449 3,057
------- ------ -------
NET INTEREST INCOME 2,079 2,046 2,041
Provision for Credit Losses 205 190 182
------- ------ -------
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 1,874 1,856 1,859
------- ------ -------
NONINTEREST REVENUE
Corporate Finance and Syndication Fees 369 308 219
Trust, Custody and Investment Management Fees 338 338 294
Credit Card Revenue 353 304 320
Service Charges on Deposit Accounts 96 94 98
Fees for Other Financial Services 421 411 377
Trading Revenue (78) 505 286
Securities Gains 123 58 25
Revenue from Equity-Related Investments 220 243 172
Other Revenue 163 102 106
------- ------ -------
Total Noninterest Revenue 2,005 2,363 1,897
------- ------ -------
NONINTEREST EXPENSE
Salaries 1,072 1,292 1,070
Employee Benefits 192 206 185
Occupancy Expense 193 194 192
Equipment Expense 217 192 180
Foreclosed Property Expense 3 6 (1)
Other Expense 793 700 677
------- ------ -------
Total Noninterest Expense Before Restructuring Charge 2,470 2,590 2,303
Restructuring Charge and Expenses 20 71 104
------- ------ -------
Total Noninterest Expense 2,490 2,661 2,407
------- ------ -------
INCOME BEFORE INCOME TAX EXPENSE 1,389 1,558 1,349
Income Tax Expense 515 576 513
------- ------ -------
NET INCOME $ 874 $ 982 $ 836
======= ====== =======
NET INCOME APPLICABLE TO COMMON STOCK $ 839 $ 941 $ 781
======= ====== =======
NET INCOME PER COMMON SHARE:
Basic $ 1.99 $ 2.23 $ 1.78
======= ====== =======
Diluted $ 1.94 $ 2.16 $ 1.74
======= ====== =======
</TABLE>
Certain amounts have been reclassified to conform to current presentation.
<PAGE> 9
UNAUDITED
THE CHASE MANHATTAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(IN MILLIONS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
DECEMBER 31,
-----------------------
1997 1996
------- --------
<S> <C> <C>
INTEREST INCOME
Loans $12,826 $ 12,359
Securities 3,028 2,862
Trading Assets 2,770 1,898
Federal Funds Sold and Securities Purchased Under Resale Agreements 2,607 2,135
Deposits with Banks 525 537
------- --------
Total Interest Income 21,756 19,791
------- --------
INTEREST EXPENSE
Deposits 6,561 6,038
Short-Term and Other Borrowings 5,903 4,630
Long-Term Debt 1,134 901
------- --------
Total Interest Expense 13,598 11,569
------- --------
NET INTEREST INCOME 8,158 8,222
Provision for Credit Losses 804 897
------- --------
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 7,354 7,325
------- --------
NONINTEREST REVENUE
Corporate Finance and Syndication Fees 1,136 950
Trust, Custody and Investment Management Fees 1,307 1,176
Credit Card Revenue 1,183 1,063
Service Charges on Deposit Accounts 376 394
Fees for Other Financial Services 1,607 1,529
Trading Revenue 1,323 1,371
Securities Gains 312 135
Revenue from Equity-Related Investments 806 726
Other Revenue 575 286
------- --------
Total Noninterest Revenue 8,625 7,630
------- --------
NONINTEREST EXPENSE
Salaries 4,598 4,232
Employee Benefits 839 926
Occupancy Expense 767 824
Equipment Expense 792 724
Foreclosed Property Expense 12 (16)
Other Expense 2,869 2,640
------- --------
Total Noninterest Expense Before Restructuring Charge 9,877 9,330
Restructuring Charge and Expenses 192 1,814
------- --------
Total Noninterest Expense 10,069 11,144
------- --------
INCOME BEFORE INCOME TAX EXPENSE 5,910 3,811
Income Tax Expense 2,202 1,350
------- --------
NET INCOME $ 3,708 $ 2,461
======= ========
NET INCOME APPLICABLE TO COMMON STOCK $ 3,526 $ 2,242
======= ========
NET INCOME PER COMMON SHARE:
Basic $ 8.30 $ 5.13
======= ========
Diluted $ 8.03 $ 4.94
======= ========
</TABLE>
Certain amounts have been reclassified to conform to current presentation.
<PAGE> 10
UNAUDITED
THE CHASE MANHATTAN CORPORATION AND SUBSIDIARIES
NONINTEREST REVENUE DETAIL
(IN MILLIONS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED FOR THE YEAR ENDED
----------------------------------- ---------------------
DEC. 31, SEPT. 30, DEC. 31, DECEMBER 31,
1997 1997 1996 1997 1996
----- ---- -------- ------ -------
<S> <C> <C> <C> <C> <C>
FEES FOR OTHER FINANCIAL SERVICES:
Fees in Lieu of Compensating Balances $ 78 $ 81 $ 72 $ 314 $ 295
Commissions on Letters of Credit and Acceptances 83 78 78 307 330
Mortgage Servicing Fees 54 59 45 231 204
Loan Commitment Fees 34 30 28 120 120
Other Fees 172 163 154 635 580
----- ---- ----- ------ -------
Total $ 421 $411 $ 377 $1,607 $ 1,529
===== ==== ===== ====== =======
TRADING-RELATED REVENUE: (a)
Interest Rate Contracts $ 167 $159 $ 85 $ 726 $ 535
Foreign Exchange Revenue 231 228 103 803 444
Debt Instruments and Other (271) 291 266 509 977
----- ---- ----- ------ -------
Total $ 127 $678 $ 454 $2,038 $ 1,956
===== ==== ===== ====== =======
OTHER REVENUE:
Residential Mortgage Origination/Sales Activities $ 32 $ 37 $ 22 $ 130 $ 63
Net Losses on Disposition of Available-for-Sale Loans -- -- (15) -- (80)
Gains on Sales of Partially-owned Investments 58 -- -- 102 --
Loss on Sale of a Building in Japan -- -- -- -- (60)
All Other Revenue 73 65 99 343 363
----- ---- ----- ------ -------
Total $ 163 $102 $ 106 $ 575 $ 286
===== ==== ===== ====== =======
</TABLE>
(a) Includes net interest income attributable to trading activities. Certain
amounts have been reclassified to conform to current presentation.
- --------------------------------------------------------------------------------
THE CHASE MANHATTAN CORPORATION AND SUBSIDIARIES
NONINTEREST EXPENSE DETAIL
(IN MILLIONS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED FOR THE YEAR ENDED
------------------------------ --------------------
DEC. 31, SEPT. 30, DEC. 31, DECEMBER 31,
1997 1997 1996 1997 1996
---- ---- ---- ------ ------
<S> <C> <C> <C> <C> <C>
OTHER EXPENSE:
Professional Services $167 $139 $133 $ 575 $ 530
Marketing Expense 115 90 110 415 346
Telecommunications 82 77 77 307 326
Amortization of Intangibles 49 41 42 172 169
Minority Interest (a) 16 19 18 74 54
All Other 364 334 297 1,326 1,215
---- ---- ---- ------ ------
Total $793 $700 $677 $2,869 $2,640
==== ==== ==== ====== ======
</TABLE>
(a) Includes minority interest related to the Series A Preferred Shares of $11
million in each quarter of 1997, and $13 million in the fourth quarter of
1996.
<PAGE> 11
UNAUDITED
THE CHASE MANHATTAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(IN MILLIONS)
<TABLE>
<CAPTION>
DECEMBER 31,
1997 1996
--------- ---------
<S> <C> <C>
ASSETS
Cash and Due from Banks $ 15,704 $ 14,605
Deposits with Banks 2,886 8,344
Federal Funds Sold and Securities
Purchased Under Resale Agreements 30,928 28,966
Trading Assets:
Debt and Equity Instruments 34,641 30,377
Risk Management Instruments 37,752 29,579
Securities:
Available-for-Sale 49,755 44,691
Held-to-Maturity 2,983 3,855
Loans (Net of Allowance for Loan Losses of $3,624 in 1997 and $3,549 in 1996) 164,830 151,543
Premises and Equipment 3,780 3,642
Due from Customers on Acceptances 1,719 2,276
Accrued Interest Receivable 3,359 3,020
Other Assets 17,184 15,201
--------- ---------
TOTAL ASSETS $ 365,521 $ 336,099
========= =========
LIABILITIES
Deposits:
Domestic:
Noninterest-Bearing $ 46,603 $ 42,726
Interest-Bearing 71,576 67,186
Foreign:
Noninterest-Bearing 3,205 4,331
Interest-Bearing 72,304 66,678
--------- ---------
Total Deposits 193,688 180,921
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 56,126 53,868
Commercial Paper 4,744 4,500
Other Borrowed Funds 6,861 9,231
Acceptances Outstanding 1,719 2,276
Trading Liabilities 52,438 38,136
Accounts Payable, Accrued Expenses and Other Liabilities 12,526 12,309
Long-Term Debt 13,387 12,714
Guaranteed Preferred Beneficial Interests in Corporation's
Junior Subordinated Deferrable Interest Debentures 1,740 600
--------- ---------
TOTAL LIABILITIES 343,229 314,555
--------- ---------
PREFERRED STOCK OF SUBSIDIARY 550 550
--------- ---------
STOCKHOLDERS' EQUITY
Preferred Stock 1,740 2,650
Common Stock 441 441
Capital Surplus 10,360 10,459
Retained Earnings 11,103 8,627
Net Unrealized Gain (Loss) on Securities Available-for-Sale, Net of Taxes 95 (288)
Treasury Stock, at Cost (1,997) (895)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 21,742 20,994
--------- ---------
TOTAL LIABILITIES, PREFERRED STOCK OF SUBSIDIARY
AND STOCKHOLDERS' EQUITY $ 365,521 $ 336,099
========= =========
</TABLE>
<PAGE> 12
UNAUDITED
THE CHASE MANHATTAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES
IN STOCKHOLDERS' EQUITY
(IN MILLIONS)
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
DECEMBER 31,
-------------------------
1997 1996
-------- --------
<S> <C> <C>
PREFERRED STOCK:
Balance at Beginning of Year $ 2,650 $ 2,650
Redemption of Stock (910) --
-------- --------
Balance at End of Year $ 1,740 $ 2,650
-------- --------
COMMON STOCK:
Balance at Beginning of Year $ 441 $ 458
Retirement of Treasury Stock -- (20)
Issuance of Common Stock -- 3
-------- --------
Balance at End of Year $ 441 $ 441
-------- --------
CAPITAL SURPLUS:
Balance at Beginning of Year $ 10,459 $ 11,075
Retirement of Treasury Stock -- (433)
Shares Issued for Employee Stock-Based
Awards and Certain Related Tax Benefits (99) (183)
-------- --------
Balance at End of Year $ 10,360 $ 10,459
-------- --------
RETAINED EARNINGS:
Balance at Beginning of Year $ 8,627 $ 7,997
Net Income 3,708 2,461
Retirement of Treasury Stock -- (557)
Cash Dividends Declared:
Preferred Stock (182) (219)
Common Stock (1,050) (1,061)(a)
Accumulated Translation Adjustment -- 6
-------- --------
Balance at End of Year $ 11,103 $ 8,627
-------- --------
NET UNREALIZED GAIN (LOSS) ON SECURITIES AVAILABLE-FOR-SALE:
Balance at Beginning of Year $ (288) $ (237)
Net Change in Fair Value of Securities Available-for-Sale,
Net of Taxes 383 (51)
-------- --------
Balance at End of Year $ 95 $ (288)
-------- --------
COMMON STOCK IN TREASURY, AT COST:
Balance at Beginning of Year $ (895) $ (1,107)
Retirement of Treasury Stock -- 1,010
Purchase of Treasury Stock (2,169) (2,037)
Reissuance of Treasury Stock 1,067 1,239
-------- --------
Balance at End of Year $ (1,997) $ (895)
-------- --------
TOTAL STOCKHOLDERS' EQUITY $ 21,742 $ 20,994
======== ========
</TABLE>
(a) Includes fourth quarter 1995 common stock dividends of $80 million
declared and paid by old Chase in the 1996 first quarter.
<PAGE> 13
UNAUDITED
THE CHASE MANHATTAN CORPORATION AND SUBSIDIARIES
CREDIT RELATED INFORMATION
(IN MILLIONS)
<TABLE>
<CAPTION>
LOANS OUTSTANDING NONPERFORMING ASSETS
-------------------- --------------------
DECEMBER 31, DECEMBER 31,
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Domestic Commercial:
Commercial Real Estate $ 5,030 $ 5,934 $ 75 $ 156
Other Commercial 44,583 40,282 259 446
-------- -------- -------- --------
Total Commercial Loans 49,613 46,216 334 602
-------- -------- -------- --------
Domestic Consumer:
Residential Mortgage 38,680 36,621 340 249
Credit Card 15,631 12,157 -- --
-------- -------- -------- --------
Other Consumer 21,786 20,306 38 35
-------- -------- -------- --------
Total Consumer Loans 76,097 69,084 378 284
-------- -------- -------- --------
Total Domestic Loans 125,710 115,300 712 886
Foreign 42,744 39,792 196 135
-------- -------- -------- --------
Total Loans $168,454 $155,092 908 1,021
-------- -------- -------- --------
Assets Acquired as
Loan Satisfactions 110 130
-------- --------
Total Nonperforming Assets $ 1,018 $ 1,151
======== ========
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED FOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31,
--------------- ---------------
1997 1996 1997 1996
----- ----- ----- -----
<S> <C> <C> <C> <C>
Net Charge-Offs:
Domestic Commercial:
Commercial Real Estate $ (14) $ (18) $ (37) $ 14
Other Commercial (10) (4) 22 86
----- ----- ----- -----
Total Commercial (24) (22) (15) 100
----- ----- ----- -----
Domestic Consumer:
Residential Mortgage 11 8 32 30
Credit Card 140 156 543 618
Other Consumer 61 48 232 176
----- ----- ----- -----
Total Consumer 212 212 807 824
----- ----- ----- -----
Total Domestic Net Charge-offs 188 190 792 924
Foreign 17 (8) 12 (27)
----- ----- ----- -----
Subtotal Net Charge-offs 205 182 804 897
Charge Related to Conforming Credit Card Charge-off Policies -- -- -- 102
----- ----- ----- -----
Total Net Charge-offs $ 205 $ 182 $ 804 $ 999
===== ===== ===== =====
</TABLE>
<PAGE> 14
UNAUDITED
THE CHASE MANHATTAN CORPORATION AND SUBSIDIARIES
CREDIT CARD RELATED INFORMATION
(IN MILLIONS, EXCEPT RATIOS)
<TABLE>
<CAPTION>
AS OF OR FOR THE AS OF OR FOR THE
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------------- -----------------------
1997 1996 1997 1996
--------- -------- ------- --------
<S> <C> <C> <C> <C>
MANAGED CREDIT CARD PORTFOLIO:
Average Managed Credit Card Receivables $29,375 $24,382 $26,848 $23,709
Past Due 90 Days & Over and Accruing $ 633 $ 564 $ 633 $ 564
As a Percentage of Average Credit Card Receivables 2.15% 2.31% 2.36% 2.38%
Net Charge-offs (a) $ 400 $ 311 $ 1,519 $ 1,156
As a Percentage of Average Credit Card Receivables 5.45% 5.11% 5.66% 4.87%
(a) Excludes charges related to conforming credit
card charge-off policies.
</TABLE>
<TABLE>
<CAPTION>
FAVORABLE (UNFAVORABLE) IMPACT OF CREDIT CARD THREE MONTHS ENDED FOR THE YEAR ENDED
SECURITIZATIONS ON REPORTED CONSOLIDATED DECEMBER 31, DECEMBER 31,
----------------------- -----------------------
STATEMENT OF INCOME LINE ITEMS: 1997 1996 1997 1996
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Interest Income $ (340) $ (275) $(1,253) $ (914)
Provision for Credit Losses 263 161 993 570
Credit Card Revenue 81 101 233 318
Other Revenue (4) 13 27 26
------- ------- ------- -------
Pre-tax Income Impact of Securitizations $ -- $ -- $ -- $ --
======= ======= ======= =======
</TABLE>
Certain amounts have been reclassified in prior periods.
<PAGE> 15
UNAUDITED
THE CHASE MANHATTAN CORPORATION AND SUBSIDIARIES
CONDENSED AVERAGE CONSOLIDATED BALANCE SHEET, INTEREST AND RATES
(TAXABLE-EQUIVALENT INTEREST AND RATES; IN MILLIONS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
DECEMBER 31, 1997 DECEMBER 31, 1996
-------------------------------------- ------------------------------------
AVERAGE RATE AVERAGE RATE
BALANCE INTEREST (ANNUALIZED) BALANCE INTEREST (ANNUALIZED)
----------- --------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Liquid Interest-Earning Assets $ 82,894 $ 1,592 7.62% $ 71,724 $ 1,282 7.11%
Securities 51,130 855 6.64% 47,103 772 6.52%
Loans 168,804 3,362 7.90% 149,665 3,053 8.11%
---------- --------- --------- --------
Total Interest-Earning Assets 302,828 5,809 7.61% 268,492 5,107 7.57%
Total Noninterest-Earning Assets 73,628 62,924
---------- ---------
Total Assets $ 376,456 $ 331,416
========== =========
LIABILITIES
Total Interest-Bearing Deposits $ 142,326 1,764 4.92% $ 130,453 1,520 4.64%
Total Short-Term and Other Borrowings 99,709 1,640 6.53% 82,024 1,304 6.32%
Long-Term Debt 15,131 320 8.40% 12,901 233 7.16%
----------- -------- --------- ------
Total Interest-Bearing Liabilities 257,166 3,724 5.74% 225,378 3,057 5.40%
-------- --------
Noninterest-Bearing Deposits 44,338 40,787
Other Noninterest-Bearing Liabilities 53,106 43,479
----------- ---------
Total Liabilities 354,610 309,644
----------- ---------
PREFERRED STOCK OF SUBSIDIARY 550 550
----------- ---------
STOCKHOLDERS' EQUITY
Preferred Stock 1,740 2,650
Common Stockholders' Equity 19,556 18,572
----------- ---------
Total Stockholders' Equity 21,296 21,222
----------- ---------
Total Liabilities and Stockholders' Equity $ 376,456 $ 331,416
========== =========
INTEREST RATE SPREAD 1.87% 2.17%
===== =====
NET INTEREST INCOME AND NET YIELD
ON INTEREST-EARNING ASSETS $ 2,085 2.73% $ 2,050 3.04%
========== ===== ======== =====
NET INTEREST INCOME AND NET YIELD
ON INTEREST-EARNING ASSETS -
MANAGED BASIS (a) $ 2,425 3.02% $ 2,325 3.26%
========== ===== ======== =====
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, 1997 DECEMBER 31, 1996
-------------------------------------- ---------------------------------------
AVERAGE AVERAGE
BALANCE INTEREST RATE BALANCE INTEREST RATE
---------- -------- ------ ---------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Liquid Interest-Earning Assets $ 80,600 $ 5,903 7.32% $ 67,239 $ 4,569 6.80%
Securities 46,043 3,045 6.61% 43,712 2,882 6.59%
Loans 159,932 12,833 8.02% 149,996 12,373 8.25%
---------- -------- ---------- --------
Total Interest-Earning Assets 286,575 21,781 7.60% 260,947 19,824 7.60%
Total Noninterest-Earning Assets 69,771 60,293
---------- ----------
Total Assets $ 356,346 $ 321,240
========== ==========
LIABILITIES
Total Interest-Bearing Deposits $ 137,095 6,561 4.79% $ 130,022 6,038 4.64%
Total Short-Term and Other Borrowings 91,735 5,903 6.43% 76,549 4,630 6.05%
Long-Term Debt 14,315 1,134 7.92% 12,811 901 7.03%
----------- -------- ---------- --------
Total Interest-Bearing Liabilities 243,145 13,598 5.59% 219,382 11,569 5.27%
-------- --------
Noninterest-Bearing Deposits 42,067 39,562
Other Noninterest-Bearing Liabilities 49,544 41,523
----------- ----------
Total Liabilities 334,756 300,467
----------- ----------
PREFERRED STOCK OF SUBSIDIARY 550 158
----------- ----------
STOCKHOLDERS' EQUITY
Preferred Stock 2,212 2,650
Common Stockholders' Equity 18,828 17,965
----------- ----------
Total Stockholders' Equity 21,040 20,615
----------- ----------
Total Liabilities and Stockholders' Equity $ 356,346 $ 321,240
=========== ==========
INTEREST RATE SPREAD 2.01% 2.33%
===== =====
NET INTEREST INCOME AND NET YIELD
ON INTEREST-EARNING ASSETS $ 8,183 2.86% $ 8,255 3.16%
======== ===== ======== =====
NET INTEREST INCOME AND NET YIELD
ON INTEREST-EARNING ASSETS -
MANAGED BASIS (a) $ 9,436 3.13% $ 9,169 3.36%
======== ===== ======== =====
(a) Excludes the impact of the
credit card securitizations.
</TABLE>
<PAGE> 16
UNAUDITED
THE CHASE MANHATTAN CORPORATION and Subsidiaries
Lines of Business Results
(in millions, except ratios)
<TABLE>
<CAPTION>
National Consumer
Three Months Ended Global Bank Services (a) Global Services (a) Total (b)
------------------- ------------------- ------------------- -------------------
December 31, 1997 1996 1997 1996 1997 1996 1997 1996
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Managed Revenues $ 1,799 $ 1,858 $ 1,927 $ 1,715 $ 613 $ 526 $ 4,288 $ 4,097
Operating Net Income 433 484 274 222 104 71 850 901
Average Common Equity 11,020 10,508 4,962 4,485 987 1,104 19,556 18,572
Average Assets 269,030 236,326 105,825 93,194 12,976 11,505 376,456 331,416
Return on Common Equity (ROCE) 14.9% 17.2% 21.2% 18.5% 41.2% 24.6% 16.5% 18.1%
Efficiency Ratio (Managed) 55% 54% 52% 58% 74% 79% 57% 56%
</TABLE>
GLOBAL BANK
KEY FINANCIAL MEASURES
<TABLE>
<CAPTION>
Three Months Ended
December 31, 1997 1996
--------------------------------- ------------------------------------
Net Efficiency Net Efficiency
Revenue Income ROCE Ratio Revenue Income ROCE Ratio
------- ------ ---- ---------- ------- ------ ---- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Corporate Finance $335 N/A N/A N/A $ 167 N/A N/A N/A
Corporate Lending 365 N/A N/A N/A 402 N/A N/A N/A
Global Investment Banking
and Corporate Lending $700 $ 226 22.1% 39% $ 569 $ 157 15.8% 45%
Global Markets 370 60 8.6 72 682 210 35.5 53
Chase Capital Partners 207 117 29.8 10 174 97 33.5 10
Global Asset Management
and Private Banking 200 37 34.9 69 175 26 21.7 75
Middle Market 207 49 23.1 51 206 48 17.8 51
Chase Bank of Texas N.A 335 71 19.0 63 305 65 18.2 64
Terminal Businesses (c) 2 (13) NM NM (66) (60) NM NM
</TABLE>
NATIONAL CONSUMER SERVICES
KEY FINANCIAL MEASURES
<TABLE>
<CAPTION>
Three Months Ended
December 31, 1997 1996
-------------------------------------- -------------------------------------
Net Efficiency Net Efficiency
Revenue Income ROCE Ratio Revenue Income ROCE Ratio
------- ------ ---- ---------- ------- ------ ---- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Credit Cards (e) $922 $104 20.4% 39% $780 $76 19.0% 45%
Retail Payments and
Investments (a,d) 648 99 27.3 72 620 83 22.9 75
Mortgage Banking 175 37 13.9 62 159 22 6.2 70
National Consumer Finance 168 35 27.7 39 152 36 31.1 39
</TABLE>
(a) Includes product revenue and expenses from Chase Bank of Texas, N.A.
which is eliminated at total Global Bank.
(b) Total column includes Corporate results.
(c) Represents discontinued portfolios, primarily the remaining refinancing
country debt and commercial real estate problem asset and nonperforming
portfolio.
(d) Insurance products managed within Retail Payments and Investments, but
included for reporting purposes in Credit Cards, Mortgage Banking, and
National Consumer Finance, generated revenues of $29 million and $26
million in 1997 and 1996, respectively.
(e) Includes business results of International Consumer.
NM - Not meaningful
<PAGE> 17
UNAUDITED
THE CHASE MANHATTAN CORPORATION and Subsidiaries
Lines of Business Results
(in millions, except ratios)
<TABLE>
<CAPTION>
National Consumer
For The Year Ended Global Bank Services (a) Global Services (a) Total (b)
-------------------- -------------------- -------------------- --------------------
December 31, 1997 1996 1997 1996 1997 1996 1997 1996
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Managed Revenues $ 8,358 $ 7,877 $ 7,341 $ 6,650 $ 2,308 $ 2,071 $ 17,674 $ 16,428
Operating Net Income 2,472 2,219 1,039 949 395 289 3,849 3,516
Average Common Equity 10,592 10,511 4,761 4,461 1,049 1,105 18,828 17,965
Average Assets 256,095 230,397 100,308 91,417 11,889 9,620 356,346 321,240
Return on Common Equity (ROCE) 22.4% 19.9% 20.9% 20.1% 36.7% 24.9% 19.5% 18.4%
Efficiency Ratio (Managed) 48% 50% 52% 56% 73% 78% 55% 57%
</TABLE>
GLOBAL BANK
KEY FINANCIAL MEASURES
<TABLE>
<CAPTION>
For The Year Ended
December 31, 1997 1996
--------------------------------------------- ----------------------------------------------
Net Efficiency Net Efficiency
Revenue Income ROCE Ratio Revenue Income ROCE Ratio
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Corporate Finance $ 1,020 N/A N/A N/A $ 834 N/A N/A N/A
Corporate Lending 1,465 N/A N/A N/A 1,608 N/A N/A N/A
Global Investment Banking
and Corporate Lending $ 2,485 $ 741 18.7% 42% $ 2,442 $ 736 18.7% 40%
Global Markets 2,954 955 39.9 50 2,667 807 34.2 54
Chase Capital Partners 738 409 31.1 12 703 397 35.8 9
Global Asset Management
and Private Banking 751 143 32.4 68 674 115 23.9 70
Middle Market 839 211 22.0 49 826 190 17.6 52
Chase Bank of Texas N.A 1,328 291 19.5 61 1,230 269 19.0 63
Terminal Businesses (c) 45 (38) NM NM (36) (100) NM NM
</TABLE>
NATIONAL CONSUMER SERVICES
KEY FINANCIAL MEASURES
<TABLE>
<CAPTION>
For The Year Ended
December 31, 1997 1996
---------------------------------------- ----------------------------------------
Net Efficiency Net Efficiency
Revenue Income ROCE Ratio Revenue Income ROCE Ratio
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Credit Cards (e) $3,345 $ 325 18.3% 39% $2,917 $ 344 21.8% 42%
Retail Payments and
Investments (a,d) 2,551 395 27.2 71 2,472 349 24.4 74
Mortgage Banking 741 180 15.6 56 652 106 7.9 67
National Consumer Finance 649 123 25.7 40 599 137 29.8 42
</TABLE>
(a) Includes product revenue and expenses from Chase Bank of Texas, N.A.
which is eliminated at total Global Bank.
(b) Total column includes Corporate results.
(c) Represents discontinued portfolios, primarily the remaining refinancing
country debt and commercial real estate problem asset and nonperforming
portfolio.
(d) Insurance products managed within Retail Payments and Investments, but
included for reporting purposes in Credit Cards, Mortgage Banking, and
National Consumer Finance, generated revenues of $102 million and $81
million in 1997 and 1996, respectively.
(e) Includes business results of International Consumer.
NM - Not meaningful
<PAGE> 1
EXHIBIT 99.2
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
KEY ASIAN COUNTRY EXPOSURE
- ----------------------------------------------------------------------------
CROSS-BORDER BASIS (DECEMBER 31, 1997 ESTIMATES)
($ IN BILLIONS)
Trading Foreign Total
Outstandings(*) Assets Exchange Derivatives Cross-Border
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Korea $3.1 $0.3 $1.7 $0.3 $5.4
Indonesia 1.7 0.1 0.3 0.4 2.5
Thailand 1.2 0.1 0.3 0.3 1.9
Hong Kong 2.8 0.1 0.2 0.3 3.4
Singapore 1.3 -- 0.6 -- 1.9
Malaysia 0.8 -- 0.1 -- 0.9
China 0.6 0.1 -- 0.1 0.8
Philippines 0.8 -- -- -- 0.8
Taiwan 0.8 -- -- -- 0.8
India 0.2 0.1 -- -- 0.3
</TABLE>
* Includes loans and accrued interest, interest-bearing deposits with banks,
acceptances, issued L/C's, irrevocable legal commitments and other monetary
assets
<PAGE> 2
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
Total Cross-Border Assets vs. Total Managed Assets*
December 31, 1997 Estimates
Total Cross-Border Assets Total Managed Assets
- ------------------------- ----------------------------------
<S> <C> <S> <C>
Asia 25% Cross-Border Assets - Asia 7%
Europe/Canada 54 Cross-Border Assets - Other 21
Latin America 14 Domestic Consumer-Managed 24
Eastern Europe 5 Local Funded &
Other 2 Other Assets 48
--- ---
Total 100% 100%
=== ===
</TABLE>
- --------------
* Balance sheet - related assets
|
|