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 Report: October 20, 1999 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
1
<PAGE>
Item 5. Other Events
- --------------------
The Chase Manhattan Corporation ("Chase") announced on October 20, 1999
operating diluted earnings per share of $1.37 in the third quarter of 1999, up
67 percent from $0.82 per share in the third quarter of 1998. Reported diluted
earnings per share were $1.37 in the 1999 third quarter, up 46 percent from
$0.94 in the third quarter of 1998. For the first nine months of 1999 operating
diluted earnings per share were $4.25, up from $3.20 per share for the first
nine months of 1998, and reported diluted earnings per share were $4.30, up from
$2.93 per share for the first nine months of 1998. Operating results (revenues,
expenses and earnings) exclude the impact of credit card securitizations,
restructuring costs and special items.
A copy of Chase's earnings press release is attached as an exhibit hereto. That
press release may contain statements that are forward looking within the meaning
of the Private Securities Litigation 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. Reference is made to Chase's
reports filed with the Securities and Exchange Commission, in particular Chase's
Annual Report on Form 10-K for the year ended December 31, 1998, for a
discussion of factors that may cause such differences to occur.
2
<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
The following exhibit is filed with this report:
Exhibit Number Description
99.1 Press Release - 1999 Third Quarter Earnings.
3
<PAGE>
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 October 20, 1999 by /s/JOSEPH L. SCLAFANI
- ------------------ ----------------------------------
Joseph L. Sclafani
Executive Vice President and Controller
[Principal Accounting Officer]
4
<PAGE>
EXHIBIT INDEX
Exhibit Number Description Page at Which Located
99.1 Press Release - 1999 Third
Quarter Earnings 6
5
<PAGE>
{Chase Letterhead}
News Release
Chase Reports 67 Percent Increase In
Third Quarter Operating Earnings Per Share to $1.37 *
New York, October 20, 1999 -- The Chase Manhattan Corporation (NYSE:CMB) today
announced earnings per share on an operating basis of $1.37 in the third quarter
of 1999, up 67 percent from $0.82 in the 1998 third quarter. Earnings in the
third quarter of 1999 were $1.2 billion, up 61 percent from the prior-year
quarter. Earnings per share for the first nine months of 1999 were $4.25, up 33
percent from $3.20 for the same period of the prior year. Earnings in the first
nine months of 1999 were $3.7 billion, up 29 percent from the first nine months
of 1998.
On a reported basis, earnings per share were $1.37 in the third quarter of 1999,
up 46 percent from $0.94 in the third quarter of 1998. Net income in the third
quarter of 1999 was $1.2 billion, up 42 percent from the prior-year quarter.
Earnings per share for the first nine months of 1999 were $4.30, up 47 percent
from the same period of the prior year. Net income in the first nine months of
1999 was $3.8 billion, up 42 percent from the corresponding period of the prior
year. Reported earnings in all periods include any nonrecurring items.
Third Quarter Financial Highlights
- - Operating revenues of $5.4 billion, up 26 percent
- - Operating earnings per share of $1.37, up 67 percent
- - Return on average common stockholders' equity of 22 percent, with
Shareholder Value Added (SVA) of $539 million
- - Common stock repurchases of $780 million, on a net basis, with a Tier 1
capital ratio of 8.2 percent
"This is another strong quarter, with each of our major business lines - Global
Banking, Global Services, and National Consumer Services - producing income
growth of 25 percent or more and return on equity in excess of 20 percent," said
William B. Harrison, Jr., president and chief executive officer. "These earnings
continue to demonstrate Chase's disciplined approach to managing capital and
making investments that propel future growth. Those investments are ongoing, and
in particular our Chase.com initiatives and our announced acquisition of
Hambrecht & Quist will accelerate our ability to take advantage of the
significant growth opportunities that we see in the Chase franchise."
*All earnings per share numbers are on a diluted basis.
----------------------------------
Press contacts: Jim Finn 212-270-7438
John Meyers 212-270-7454
Investor contact: John Borden 212-270-7318
<PAGE>
<TABLE>
<CAPTION>
Line of Business Results
- ------------------------------------------- ------------------------------------------ ----------------------------------------
GLOBAL BANK Third Quarter Nine Months
- ------------------------------------------- ------------------------------------------ ----------------------------------------
<S> <C> <C> <C> <C> <C>
(dollars in millions) 1999 O(U)1998 O(U) 2Q1999 1999 O(U) 1998
---- -------- ----------- ---- ---------
Operating Revenues $2,234 61% (12)% $7,179 $1,415 25%
Cash Operating Earnings 674 124 (25) 2,371 641 37
Shareholder Value Added 247 N/M (48) 1,117 595 114
Cash Return on Common Equity 20.7% 1,110bp (770)bp 24.9% 610bp --
- ------------------------------------------- ----------- ------------- ---------------- ------------- -------------- -----------
</TABLE>
Cash operating earnings in the Global Bank were $674 million in the 1999 third
quarter, compared with $301 million in the prior-year quarter, and $893 million
in the 1999 second quarter. Operating revenues of $2.23 billion in the third
quarter of 1999 were 61 percent higher than in the 1998 third quarter and
compared with $2.55 billion in the 1999 second quarter. Cash operating earnings
in the 1999 third quarter were more than double the amount in the same quarter
of the prior year, but less than the 1999 second quarter when the company
benefited from unusually high market-sensitive revenues. Shareholder value added
in the 1999 third quarter was $247 million, compared with shareholder value
added of negative $104 million in the 1998 third quarter, and shareholder value
added of $478 million in the 1999 second quarter. For the first nine months of
the year, shareholder value added increased to $1.12 billion, compared with $522
million for the same period of the prior year.
- - Total trading revenues were $679 million, compared with $76 million in the
prior-year quarter and $733 million in the 1999 second quarter. Results
reflect strong performance across the full range of trading products,
tempered by a decline in overall market activity from the second quarter.
- - Investment banking fees were $486 million in the 1999 third quarter,
compared with $322 million in the prior-year quarter. Results reflect
market share gains in loan syndications, mergers and acquisitions advisory,
and corporate bond underwriting. The 1999 third quarter is the second
highest quarter ever; year-to-date 1999 results are up 24 percent over the
same nine month period of 1998.
- - Private equity-related gains in the 1999 third quarter were $377 million,
compared with $60 million in the prior-year quarter and $513 million in the
1999 second quarter. Results include gains on investments in companies that
had initial public offerings and on sales of companies in the
telecommunications and internet marketplace.
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------- ---------------------------------------- ----------------------------------------
GLOBAL SERVICES Third Quarter Nine Months
- ---------------------------------------------- ---------------------------------------- ----------------------------------------
<S> <C> <C> <C> <C> <C>
(dollars in millions) 1999 O(U)1998 O(U) 2Q1999 1999 O(U)1998
---- -------- ----------- ---- --------
Operating Revenues $801 13% 3% $2,308 $249 12%
Cash Operating Earnings 150 25 8 397 48 14
Shareholder Value Added 55 4 17 116 (34) (23)
Cash Return on Common Equity 20.7% (310)bp 100bp 18.5% (460)bp --
- ---------------------------------------------- ---------- ------------ ---------------- -------------- ------------- -----------
</TABLE>
Cash operating earnings for Global Services in the 1999 third quarter were $150
million, up 25 percent over the prior-year quarter, and up eight percent over
the 1999 second quarter. Operating revenues were $801 million, up 13 percent
over the 1998 third quarter, reflecting the benefit of acquisitions completed in
1998, offset partially by a decline in excess deposit balances in cash
management services. Shareholder value added of $55 million increased four
percent over the prior year quarter and 17 percent over the 1999 second quarter.
<TABLE>
<CAPTION>
- ---------------------------------------------- ---------------------------------------- ----------------------------------------
NATIONAL CONSUMER SERVICES Third Quarter Nine Months
- ---------------------------------------------- ---------------------------------------- ----------------------------------------
<S> <C> <C> <C> <C> <C>
(dollars in millions) 1999 O(U)1998 O(U)2Q1999 1999 O(U)1998
---- -------- ---------- ---- --------
Operating Revenues $2,498 9% 2% $7,343 $658 10%
Cash Operating Earnings 435 25 4 1,251 227 22
Shareholder Value Added 173 101 5 481 235 96
Cash Return on Common Equity 21.8% 440bp 20bp 21.3% 400bp --
- ---------------------------------------------- ----------- ------------ --------------- --------------- ------------ -----------
</TABLE>
Cash operating earnings for National Consumer Services in the 1999 third quarter
rose 25 percent from the 1998 third quarter to $435 million. Operating revenues
of $2.50 billion rose nine percent over the 1998 third quarter. Shareholder
value added increased to $173 million in the 1999 third quarter compared with
$86 million in the 1998 third quarter and rose to $481 million for the first
nine months.
- - Operating revenues from cardmember services were $1,003 million, a
three percent increase from third quarter 1998 levels, and cash
operating earnings rose 36 percent. These results reflect increased card
usage, the impact of pricing initiatives that were implemented in late 1998
and significantly improved credit quality.
- - Home finance revenues increased to $307 million, a 17 percent increase from
third quarter 1998, and cash operating earnings rose 18 percent, primarily
as a result of growth in originations and servicing levels.
- - Regional consumer banking revenues were $611 million, up nine percent over
the prior-year third quarter, and cash operating earnings rose 11 percent.
Results reflect higher deposit balances coupled with growth in consumer
banking fees.
- - Revenues from diversified consumer services were $262 million, up 13
percent over the 1998 third quarter. Cash operating earnings reflect growth
in managed assets in auto finance and higher levels of customer investment
activity, offset partially by higher expenses due to increased business
volumes.
- - Middle Market revenues were $252 million, up four percent from third
quarter 1998. Cash operating earnings increased 15 percent over the prior
year quarter. These results reflect growth in loan volume along with
improved credit quality and disciplined expense management.
<PAGE>
Additional Financial Information
- - Total operating noninterest expenses were $2.98 billion in the third
quarter of 1999, 14 percent above the same 1998 quarter. In the first nine
months of 1999 expenses were $8.88 billion, 12 percent above the same
period of the prior year. Both increases were driven primarily by incentive
costs tied to higher market-sensitive revenues and on-going
technology-related investments. Third quarter 1999 expenses remained
relatively flat compared with second quarter 1999.
- - On a managed basis, including securitizations, credit costs were $642
million in the third quarter of 1999, up from $637 million in the second
quarter of 1999 and $566 million in the third quarter of 1998.
Nonperforming assets at September 30, 1999 were $2.02 billion, compared
with $1.63 billion at June 30, 1999 and $1.53 billion at September 30,
1998, driven by an increase in foreign commercial nonperforming loans.
Commercial net charge-offs in the third quarter of 1999 were $102 million,
compared to $86 million in the second quarter of 1999 and $92 million in
the third quarter of 1998. The company has reclassified net charge-offs of
$108 million in the 1998 third quarter as a charge against trading revenues
related to risk management instruments.
- - Total assets at September 30, 1999 were $371 billion compared with $357
billion at June 30, 1999 and $356 billion at September 30, 1998. Estimated
risk-weighted assets increased to $296 billion from $292 billion at June
30, 1999, and from $285 billion one year ago. The company repurchased
approximately $780 million, net, in common stock during the quarter. At
September 30, 1999, the estimated Tier 1 capital ratio was 8.2 percent.
- - Operating results (revenues, expenses and earnings) exclude the impact of
credit card securitizations, restructuring costs and special items. There
were no special items in the third quarter of 1999. The 1998 third quarter
included interest income from prior years' tax refunds of $123 million
(after-tax) and costs incurred for accelerated vesting of stock-based
incentive awards of $24 million (after-tax). Special items in the 1999
second quarter included a $61 million (after-tax) gain on the sale of One
New York Plaza, a $46 million (after-tax) gain on the sale of branches in
Beaumont, Texas, and a $65 million (after-tax) special contribution to The
Chase Manhattan Foundation.
- - On September 28, 1999, the company announced its agreement to acquire
Hambrecht & Quist Group (H&Q) for $50 per share in cash or $1.35 billion.
On October 19, 1999, H&Q announced that earnings for the fiscal year ended
September 30, 1999, are expected to be $4.45 per share. H&Q is one of the
leading providers of investment banking services to companies in the
highest growth sectors of the global economy, where media,
telecommunications, information technology and the Internet converge. The
acquisition is expected to be completed by December 31, 1999.
Chase's news releases and quarterly financial results are available on the
Internet at www.Chase.com
<PAGE>
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
SUMMARY OF SELECTED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)
% %
As of or for the period ended Third Quarter Over/(Under) Nine Months Over/(Under)
------------------------- --------------------------
---------- -----------
1999 1998 1998 1999 1998 1998
---------- ----------- --------- ----------- ------------ ---------
OPERATING BASIS (a)
<S> <C> <C> <C> <C> <C> <C>
Operating Revenue $ 5,429 $ 4,325 26% $ 16,538 $ 14,269 16%
Operating Noninterest Expense 2,975 2,614 14% 8,880 7,942 12%
Credit Costs (b) 642 566 13% 1,934 1,798 8%
Operating Earnings $ 1,187 $ 738 61% $ 3,711 $ 2,870 29%
Operating Earnings Per Common Share:
Basic $ 1.42 $ 0.84 69% $ 4.39 $ 3.29 33%
Diluted 1.37 0.82 67% 4.25 3.20 33%
Cash Operating Earnings $ 1,257 $ 801 57% $ 3,930 $ 3,058 29%
Cash Operating Earnings Per Common Share - Diluted 1.46 0.89 64% 4.50 3.42 32%
Shareholder Value Added (SVA) 539 68 693% 1,736 936 85%
Operating Performance Ratios:
Return on Average Managed Assets (c) 1.23 % 0.77 % 1.30 % 0.99 %
Return on Average Common Equity (c) 21.7 13.1 22.2 17.8
Common Dividend Payout Ratio 29 42 28 33
Efficiency Ratio (d) 55 60 53 55
Selected Balance Sheet Items at Period End: (e)
Managed Loans $ 191,486 $185,544 3%
Total Managed Assets 389,072 375,422 4%
- ---------------------------------------------------------------------------------------------------------------------------------
AS REPORTED BASIS
Revenue $ 5,191 $ 4,218 23% $ 15,951 $ 13,596 17%
Noninterest Expense (Excluding Restructuring Costs) 2,981 2,647 13% 8,994 7,981 13%
Restructuring Costs - - - - 529 NM
Provision for Loan Losses 398 272 46% 1,167 932 25%
Net Income $ 1,187 $ 837 42% $ 3,753 $ 2,636 42%
Net Income Per Common Share:
Basic $ 1.42 $ 0.96 48% $ 4.44 $ 3.02 47%
Diluted 1.37 0.94 46% 4.30 2.93 47%
Cash Dividends Declared 0.41 0.36 14% 1.23 1.08 14%
Share Price at Period End 75.38 43.13 75%
Book Value at Period End 26.01 26.24 (1%)
Common Shares Outstanding:
Average Common Shares:
Basic 821.6 848.3 (3%) 832.6 847.4 (2%)
Diluted 849.7 871.1 (2%) 860.9 871.2 (1%)
Common Shares at Period End 823.2 845.5 (3%)
Performance Ratios:
Return on Average Total Assets (c) 1.29 % 0.92 % 1.38 % 0.95 %
Return on Average Common Equity (c) 21.7 14.9 22.5 16.3
Selected Balance Sheet Items at Period End:
Loans $ 173,458 $166,572 4%
Total Assets 371,044 356,450 4%
Deposits 219,623 200,319 10%
Total Stockholders' Equity 22,341 23,218 (4%)
Capital Ratios:
Tier I Capital Ratio 8.2 %(f) 8.3 %
Total Capital Ratio 11.8 (f) 12.1
Tier I Leverage 6.7 (f) 6.6
Full-Time Equivalent Employees 73,018 71,344 2%
(a) Excludes the impact of credit card securitizations, restructuring costs and
special items. For a reconciliation of Reported Results as shown on the
Consolidated Statement of Income to results on an Operating Basis, see page 10.
(b) Includes provision for loan losses, foreclosed property expense and credit
costs related to the securitized credit card portfolio.
(c) Based on annualized amounts.
(d) Noninterest expense as a percentage of the total of net interest income and
noninterest revenue (excluding restructuring costs,foreclosed property expense,
special items and costs associated with the REIT).
(e) Excludes the impact of credit card securitizations.
(f) Estimated
Certain amounts throughout the financial tables have been reclassified to
conform to the current presentation.
NM - Not meaningful
Unaudited
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
Lines of Business Results
(in millions, except ratios)
Global Bank National Consumer Services Global Services Total (a)
----------- -------------------------- --------------- --------------
Third Quarter 1999 1999 1999 1999
Over/(Under) 1998 Over/(Under) 1998 Over/(Under) 1998 Over/(Under) 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenue $ 2,234 $ 844 61% $ 2,498 $ 203 9% $ 801 $ 91 13% $ 5,429 $ 1,104 26%
Operating Earnings 663 372 128 399 92 30 134 19 17 1,187 449 61
Cash Operating Earnings 674 373 124 435 87 25 150 30 25 1,257 456 57
Average Common Equity 12,707 719 6 7,802 51 1 2,827 860 44 21,328 (353) (2)
Average Managed Assets (b) 231,811(12,896) (5) 129,561 10,789 9 15,462 3,981 35 382,094 802 -
Shareholder Value Added (SVA) 247 351 NM 173 87 101 55 2 4 539 471 693
Cash Return on Common Equity 20.7% 1,110bp 21.8% 440bp 20.7% (310)bp 23.0% 870bp
Cash Efficiency Ratio 49 (1,700) 50 (100) 71 (100) 53 (600)
GLOBAL BANK
KEY FINANCIAL MEASURES
Third Quarter 1999 Over/(Under) 1998
-------------------------------------- -------------------------------------
Operating Cash Cash Operating Cash Cash
Revenues Operating Efficiency Revenues Operating Efficiency
Earnings Ratio Earnings Ratio
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Global Markets $ 922 $ 280 54% 64% 359% (2,600)bp
Global Investment Banking 402 94 61 100 571 (3,100)
Corporate Lending 398 144 27 (1) 2 (100)
Chase Capital Partners 294 165 13 NM NM NM
Global Private Bank 229 49 63 8 7 -
Other Global Banking (11) (58) NM NM NM NM
----------- ----------
Totals $ 2,234 $ 674 49% 61% 124% (1,700)bp
=========== ==========
NATIONAL CONSUMER SERVICES
KEY FINANCIAL MEASURES
Third Quarter 1999 Over/(Under) 1998
------------------------------------------ ------------------------------------------
Operating Cash Cash Operating Cash Cash
Revenues Operating Efficiency Revenues Operating Efficiency
Earnings Ratio Earnings Ratio
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Chase Cardmember Services $ 1,003 $ 133 35% 3% 36% (100)bp
Regional Consumer Banking 611 103 70 9 11 (100)
Chase Home Finance 307 73 55 17 18 (100)
Diversified Consumer Services 262 36 57 13 - 400
Middle Markets 252 63 53 4 15 (200)
Other NCS 63 27 NM NM NM NM
============ ============
Totals $ 2,498 $ 435 50% 9% 25% (100)bp
============ ============
Note: SVA is Chase's primary measure of business unit performance. SVA represents operating earnings excluding the amortization
of goodwill and certain intangibles (i.e., cash operating earnings), less preferred dividends and an explicit charge for
allocated capital. Additionally, organizational changes within each of Chase's three major franchises are reflected in the
lines of business results. The Middle Markets business, which previously reported into the Global Bank franchise, now
reports into the National Consumer franchise. The Global Asset Management and Mutual Funds business, which previously was
in Corporate, now reports into the Global Bank franchise. Prior periods have been restated.
(a) Total column includes Chase.com and the effects remaining at the Corporate level after the implementation of
management accounting policies.
(b) Excludes the impact of credit card securitizations.
NM - Not meaningful
bp - basis points
Unaudited
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
Lines of Business Results
(in millions, except ratios)
Global Bank National Consumer Services Global Services Total (a)
----------------- -------------------------- ---------------------- -------------------------
Nine Months 1999 1999 1999 1999
Over/(Under) 1998 Over/(Under) 1998 Over/(Under) 1998 Over/(Under) 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenue $ 7,179 $ 1,415 25% $ 7,343 $ 658 10% $ 2,308 $ 249 12% $16,538 $ 2,269 16%
Operating Earnings 2,338 639 38 1,131 232 26 351 17 5 3,711 841 29
Cash Operating Earnings 2,371 641 37 1,251 227 22 397 48 14 3,930 872 29
Average Common Equity 12,588 598 5 7,726 (1) - 2,821 840 42 21,997 998 5
Average Managed Assets (b) 232,104 (20,986) (8) 127,119 9,130 8 15,576 3,206 26 381,904 (7,520) (2)
Shareholder Value Added (SVA) 1,117 595 114 481 235 96 116 (34) (23) 1,736 800 85
Cash Return on Common Equity 24.9% 610bp 21.3% 400bp 18.5% (460)bp 23.6% 460bp
Cash Efficiency Ratio 45 (500) 50 - 73 100 52 (200)
GLOBAL BANK
KEY FINANCIAL MEASURES
Nine Months 1999 Over/(Under) 1998
-------------------------------------- -------------------------------------
Operating Cash Cash Operating Cash Cash
Revenues Operating Efficiency Revenues Operating Efficiency
Earnings Ratio Earnings Ratio
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Global Markets $ 3,192 $ 1,097 47% 34% 73% (1,100)bp
Global Investment Banking 1,096 232 66 15 13 200
Corporate Lending 1,164 418 27 1 7 (100)
Chase Capital Partners 1,058 608 10 82 95 (600)
Global Private Bank 661 133 65 4 (5) 300
Other Global Bank 8 (117) NM NM NM NM
----------- ----------
Totals $ 7,179 $ 2,371 45% 25% 37% (500)bp
=========== ==========
NATIONAL CONSUMER SERVICES
KEY FINANCIAL MEASURES
Nine Months 1999 Over/(Under) 1998
----------------------------------------- ----------------------------------------
Operating Cash Cash Operating Cash Cash
Revenues Operating Efficiency Revenues Operating Efficiency
Earnings Ratio Earnings Ratio
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Chase Cardmember Services $ 3,020 $ 383 35% 5% 17% - bp
Regional Consumer Banking 1,779 304 70 9 18 (300)
Chase Home Finance 870 205 56 16 15 100
Diversified Consumer Services 845 148 52 29 80 (300)
Middle Markets 729 172 55 2 6 -
Other NCS 100 39 NM NM NM NM
=========== ===========
Totals $ 7,343 $ 1,251 50% 10% 22% - bp
=========== ===========
Note: SVA is Chase's primary measure of business unit performance. SVA represents operating earnings excluding the
amortization of goodwill and certain intangibles (i.e., cash operating earnings), less preferred dividends and an
explicit charge for allocated capital. Additionally, organizational changes within each of Chase's three major
franchises are reflected in the lines of business results. The Middle Markets business, which previously reported into
the Global Bank franchise, now reports into the National Consumer franchise. The Global Asset Management and Mutual
Funds business, which previously was in Corporate, now reports into the Global Bank franchise. Prior periods have been
restated.
(a) Total column includes Chase.com and the effects remaining at the Corporate level after the implementation of management
accounting policies.
(b) Excludes the impact of credit card securitizations.
NM - Not meaningful
bp - basis points
Unaudited
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share data)
% %
Third Quarter Over/(Under) Nine Months Over/(Under)
---------------------- -------------------------
--------- --------- ----------- ----------
1999 1998 1998 1999 1998 1998
--------- --------- --------- ----------- ---------- ---------
INTEREST INCOME
<S> <C> <C> <C> <C> <C> <C>
Loans $ 3,288 $ 3,287 $ 9,662 $ 10,008
Securities 762 874 2,344 2,652
Trading Assets 399 604 1,228 1,996
Federal Funds Sold and Securities Purchased
Under Resale Agreements 352 517 1,122 1,742
Deposits with Banks 195 150 540 450
--------- --------- ----------- ----------
Total Interest Income 4,996 5,432 14,896 16,848
--------- --------- ----------- ----------
INTEREST EXPENSE
Deposits 1,650 1,524 4,806 5,123
Short-Term and Other Borrowings 870 1,378 2,635 4,365
Long-Term Debt 306 324 936 954
--------- --------- ----------- ----------
--------- --------- ----------- ----------
Total Interest Expense 2,826 3,226 8,377 10,442
--------- --------- ----------- ----------
NET INTEREST INCOME 2,170 2,206 (2%) 6,519 6,406 2%
Provision for Loan Losses 398 272 46% 1,167 932 25%
--------- --------- ----------- ----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,772 1,934 (8%) 5,352 5,474 (2%)
--------- --------- ----------- ----------
NONINTEREST REVENUE
Investment Banking Fees 486 322 51% 1,388 1,121 24%
Trust, Custody and Investment Management Fees 457 398 15% 1,332 1,129 18%
Credit Card Revenue 441 381 16% 1,258 1,046 20%
Fees for Other Financial Services 637 522 22% 1,777 1,541 15%
Trading Revenue 462 (69) NM 1,606 722 122%
Securities Gains (1) 261 NM 160 442 (64%)
Private Equity Gains 377 60 528% 1,215 723 68%
Other Revenue 162 137 18% 696 466 49%
--------- --------- ----------- ----------
Total Noninterest Revenue 3,021 2,012 50% 9,432 7,190 31%
--------- --------- ----------- ----------
NONINTEREST EXPENSE
Salaries 1,417 1,205 18% 4,217 3,729 13%
Employee Benefits 238 221 8% 731 660 11%
Occupancy Expense 218 198 10% 642 578 11%
Equipment Expense 255 219 16% 737 640 15%
Other Expense 853 804 6% 2,667 2,374 12%
--------- --------- ----------- ----------
Total Noninterest Expense Before Restructuring Costs 2,981 2,647 13% 8,994 7,981 13%
Restructuring Costs -- -- -- -- 529 NM
--------- --------- ----------- ----------
--------- --------- ----------- ----------
Total Noninterest Expense 2,981 2,647 13% 8,994 8,510 6%
--------- --------- ----------- ----------
INCOME BEFORE INCOME TAX EXPENSE 1,812 1,299 39% 5,790 4,154 39%
Income Tax Expense 625 462 35% 2,037 1,518 34%
--------- --------- ----------- ----------
========= ========= =========== ==========
NET INCOME $ 1,187 $ 837 42% $ 3,753 $ 2,636 42%
========= ========= =========== ==========
========= ========= =========== ==========
NET INCOME APPLICABLE TO COMMON STOCK $ 1,168 $ 815 43% $ 3,698 $ 2,556 45%
========= ========= =========== ==========
NET INCOME PER COMMON SHARE:
Basic $ 1.42 $ 0.96 48% $ 4.44 $ 3.02 47%
Diluted $ 1.37 $ 0.94 46% $ 4.30 $ 2.93 47%
</TABLE>
NM - Not meaningful
Unaudited
<PAGE>
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
NONINTEREST REVENUE AND NONINTEREST EXPENSE DETAIL
(in millions)
% %
Third Quarter Over/(Under) Nine Months Over/(Under)
-------------------- -----------------------
--------- --------- --------- ----------
NONINTEREST REVENUE 1999 1998 1998 1999 1998 1998
--------- --------- ---------- --------- ---------- ----------
Fees for Other Financial Services:
<S> <C> <C> <C> <C> <C> <C>
Service Charges on Deposit Accounts $ 104 $ 92 13% $ 289 $ 275 5%
Fees in Lieu of Compensating Balances 106 85 25% 287 256 12%
Mortgage Servicing Fees 96 43 123% 238 149 60%
Commissions on Letters of Credit and Acceptances 69 72 (4%) 207 218 (5%)
Brokerage and Investment Services 43 35 23% 136 102 33%
Insurance Fees (a) 44 40 10% 124 103 20%
Loan Commitment Fees 44 31 42% 111 101 10%
Other Fees 131 124 6% 385 337 14%
--------- --------- --------- ----------
========= ========= ========= ==========
Total $ 637 $ 522 22% $1,777 $1,541 15%
========= ========= ========= ==========
Trading-Related Revenue: (b)
Interest Rate Contracts $ 223 $ 66 238% $ 805 $ 292 176%
Foreign Exchange Spot and Option Contracts 199 250 (20%) 616 796 (23%)
Equities and Commodities 129 19 579% 303 124 144%
Debt Instruments and Other 128 (259) NM 525 51 929%
--------- --------- --------- ----------
Total $ 679 $ 76 793% $2,249 $1,263 78%
========= ========= ========= ==========
Other Revenue:
Residential Mortgage Origination/Sales Activities $ 95 $ 105 (10%) $ 275 $ 241 14%
Gains on Sales of a Nonstrategic Building and Branches -- -- -- 166 (c) -- NM
All Other Revenue 67 32 109% 255 225 13%
--------- --------- --------- ----------
========= ========= ========= ==========
Total $ 162 $ 137 18% $ 696 $ 466 49%
========= ========= ========= ==========
- ----------------------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
Other Expense:
Professional Services $ 170 $ 180 (6%) $ 510 $ 483 6%
Marketing Expense 128 108 19% 356 306 16%
Telecommunications 96 90 7% 284 258 10%
Amortization of Intangibles 70 63 11% 219 188 16%
Travel and Entertainment 54 58 (7%) 163 177 (8%)
Minority Interest (d) 12 12 -- 37 36 3%
Foreclosed Property Expense 6 (4) NM 14 2 600%
Special Contribution to the Foundation -- -- -- 100 (e) -- NM
All Other 317 297 7% 984 924 6%
--------- --------- --------- ----------
========= ========= ========= ==========
Total $ 853 $ 804 6% $2,667 $2,374 12%
========= ========= ========= ==========
(a) Insurance amounts exclude certain insurance fees related to credit cards and mortgage products, which are included in those
revenue captions.
(b) Charge-offs for risk management instruments are included in trading revenue. All prior periods have been restated.
Trading-related revenue includes net interest income attributable to trading activities.
(c) Includes a $95 million gain on the sale of One New York Plaza and a $71 million gain on the sale of branches in Beaumont,
Texas, both in the 1999 second quarter.
(d) Includes REIT minority interest of $11 million in each quarter and $33 million in each nine month period.
(e) Represents a $100 million special contribution to The Chase Manhattan Foundation in the 1999 second quarter.
NM - Not meaningful
Unaudited
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
OPERATING INCOME RECONCILIATION
(in millions, except per share data)
THIRD QUARTER 1999 THIRD QUARTER 1998
----------------------------------------- -----------------------------------------
REPORTED CREDIT SPECIAL OPERATING REPORTED CREDIT SPECIAL OPERATING
RESULTS CARD ITEMS BASIS RESULTS CARD ITEMS BASIS
(a) (b) (c) (a) (b) (c)
--------- -------- -------- --------- -------- -------- -------- ---------
EARNINGS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Market-Sensitive Revenue $ 1,541 $ - $ - $ 1,541 $ 719 $ - $ - $ 719
Less Market-Sensitive Revenue 3,650 238 - 3,888 3,499 298 (191) 3,606
--------- -------- -------- --------- -------- -------- -------- ---------
Total Revenue 5,191 238 - 5,429 4,218 298 (191) 4,325
Noninterest Expense 2,975 - - 2,975 2,651 - (37) 2,614
--------- -------- -------- --------- -------- -------- -------- ---------
Operating Margin 2,216 238 - 2,454 1,567 298 (154) 1,711
Credit Costs 404 238 - 642 268 298 - 566
--------- -------- -------- --------- -------- -------- -------- ---------
Income Before Income Tax Expense 1,812 - - 1,812 1,299 - (154) 1,145
Income Tax Expense 625 - - 625 462 - (55) 407
--------- -------- -------- --------- -------- -------- -------- ---------
========= ======== ======== ========= ======== ======== ======== =========
Net Income $ 1,187 $ - $ - $ 1,187 $ 837 $ - $ (99) $ 738
========= ======== ======== ========= ======== ======== ======== =========
NET INCOME PER COMMON SHARE
Basic $ 1.42 $ 1.42 $ 0.96 $ 0.84
Diluted $ 1.37 $ 1.37 $ 0.94 $ 0.82
- ----------------------------------------------------------------------------------------------------------------------------
NINE MONTHS 1999 NINE MONTHS 1998
----------------------------------------- -----------------------------------------
REPORTED CREDIT SPECIAL OPERATING REPORTED CREDIT SPECIAL OPERATING
RESULTS CARD ITEMS BASIS RESULTS CARD ITEMS BASIS
(a) (b) (c) (a) (b) (c)
--------- -------- -------- --------- -------- -------- -------- ---------
EARNINGS
Market-Sensitive Revenue $ 5,012 $ - $ - $ 5,012 $ 3,549 $ - $ - $ 3,549
Less Market-Sensitive Revenue 10,939 753 (166) 11,526 10,047 864 (191) 10,720
--------- -------- -------- --------- -------- -------- -------- ---------
Total Revenue 15,951 753 (166) 16,538 13,596 864 (191) 14,269
Noninterest Expense 8,980 - (100) 8,880 7,979 - (37) 7,942
--------- -------- -------- --------- -------- -------- -------- ---------
Operating Margin 6,971 753 (66) 7,658 5,617 864 (154) 6,327
Credit Costs 1,181 753 - 1,934 934 864 - 1,798
--------- -------- -------- --------- -------- -------- -------- ---------
Income Before Restructuring Costs 5,790 - (66) 5,724 4,683 - (154) 4,529
Restructuring Costs - - - - 529 - (529) -
--------- -------- -------- --------- -------- -------- -------- ---------
Income Before Income Tax Expense 5,790 - (66) 5,724 4,154 - 375 4,529
Income Tax Expense 2,037 - (24) 2,013 1,518 - 141 1,659
--------- -------- -------- --------- -------- -------- -------- ---------
========= ======== ======== ========= ======== ======== ======== =========
Net Income $ 3,753 $ - $ (42) $ 3,711 $ 2,636 $ - $ 234 $ 2,870
========= ======== ======== ========= ======== ======== ======== =========
NET INCOME PER COMMON SHARE
Basic $ 4.44 $ 4.39 $ 3.02 $ 3.29
Diluted $ 4.30 $ 4.25 $ 2.93 $ 3.20
Note: Charge-offs and provisions for risk management instruments, included in credit costs prior to 1999, are now netted against
trading revenue. All prior periods have been restated.
(a) Represent results as reported in Chase's financial statements, except that revenues are categorized between market-sensitive
and less market-sensitive revenues, foreclosed property expense is reclassified from noninterest expense to credit costs, and
restructuring costs have been separately displayed. Market-sensitive revenue includes investment banking fees, trading-related
revenue (including trading-related net interest income), securities gains and private equity gains.
(b) This column excludes the impact of credit card securitizations.
(c) Includes restructuring costs and special items. The 1999 nine months results included $166 million in gains from sales of
nonstrategic assets, of which $95 million was from the sale of One New York Plaza and $71 million was from the sale of branches
in Beaumont, Texas, and a special contribution of $100 million. The 1998 third quarter and nine months included interest income
from prior years' tax refunds of $191 million and costs incurred for accelerated vesting of stock-based incentive awards of $37
million. The 1998 nine months also included a $510 million charge taken in connection with initiatives to streamline support
functions, and merger-related restructuring costs of $19 million.
Unaudited
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
CONSOLIDATED BALANCE SHEET
(in millions)
%
September 30, Over/(Under)
----------------------------------
1999 1998 1998
-------------- --------------- --------------
ASSETS
<S> <C> <C> <C>
Cash and Due from Banks $ 16,490 $ 14,585 13%
Deposits with Banks 5,856 3,877 51%
Federal Funds Sold and Securities
Purchased Under Resale Agreements 28,368 23,591 20%
Trading Assets:
Debt and Equity Instruments 26,069 28,491 (9%)
Risk Management Instruments 31,123 33,313 (7%)
Securities 55,113 57,465 (4%)
Loans (Net of Allowance for Loan Losses of $3,555 in 1999
and $3,554 in 1998) 169,903 163,018 4%
Other Assets 38,122 32,110 19%
-------------- ---------------
TOTAL ASSETS $ 371,044 $ 356,450 4%
============== ===============
LIABILITIES
Deposits:
Domestic:
Noninterest-Bearing $ 49,722 $ 46,231 8%
Interest-Bearing 78,993 76,115 4%
Foreign:
Noninterest-Bearing 6,363 3,877 64%
Interest-Bearing 84,545 74,096 14%
-------------- ---------------
Total Deposits 219,623 200,319 10%
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 43,879 43,156 2%
Commercial Paper 5,996 4,239 41%
Other Borrowed Funds 7,046 7,761 (9%)
Trading Liabilities 37,084 44,491 (17%)
Accounts Payable, Accrued Expenses and Other Liabilities, Including
the Allowance for Credit Losses of $170 in 1999 and 1998 15,343 16,312 (6%)
Long-Term Debt 16,644 14,216 17%
Guaranteed Preferred Beneficial Interests in Corporation's
Junior Subordinated Deferrable Interest Debentures 2,538 2,188 16%
-------------- ---------------
TOTAL LIABILITIES 348,153 332,682 5%
-------------- ---------------
PREFERRED STOCK OF SUBSIDIARY 550 550 --
-------------- ---------------
STOCKHOLDERS' EQUITY
Preferred Stock 928 1,028 (10%)
Common Stock 882 882 --
Capital Surplus 9,635 9,852 (2%)
Retained Earnings 16,210 12,722 27%
Accumulated Other Comprehensive Income (Loss) (1,038) 701 NM
Treasury Stock, at Cost (4,276) (1,967) 117%
-------------- ---------------
TOTAL STOCKHOLDERS' EQUITY 22,341 23,218 (4%)
-------------- ---------------
TOTAL LIABILITIES, PREFERRED STOCK OF SUBSIDIARY
AND STOCKHOLDERS' EQUITY $ 371,044 $ 356,450 4%
============== ===============
NM - Not meaningful
Unaudited
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
CONSOLIDATED STATEMENT OF CHANGES
IN STOCKHOLDERS' EQUITY
(in millions)
Nine Months
----------------------------------
------------ -------------
1999 1998
------------ -------------
Preferred Stock
<S> <C> <C>
Balance at Beginning of Year $ 1,028 $ 1,740
Issuance of Stock - 200
Redemption of Stock (100) (912)
------------ -------------
Balance at End of Period $ 928 $ 1,028
------------ -------------
Common Stock
Balance at Beginning of Year $ 882 $ 441
Issuance of Common Stock for a Two-for-One Stock Split - 441
------------ -------------
Balance at End of Period $ 882 $ 882
------------ -------------
Capital Surplus
Balance at Beginning of Year $ 9,836 $ 10,360
Issuance of Common Stock for a Two-for-One Stock Split - (441)
Shares Issued and Commitments to Issue Common Stock
for Employee Stock-Based Awards and Related Tax Effects (201) (67)
------------ -------------
Balance at End of Period $ 9,635 $ 9,852
------------ -------------
Retained Earnings
Balance at Beginning of Year $ 13,544 $ 11,086
Net Income 3,753 2,636
Cash Dividends Declared:
Preferred Stock (55) (80)
Common Stock (1,032) (920)
------------ -------------
Balance at End of Period $ 16,210 $ 12,722
------------ -------------
Accumulated Other Comprehensive Income (Loss)
Balance at Beginning of Year $ 392 $ 112
Other Comprehensive Income (Loss) (1,430) 589
------------ -------------
Balance at End of Period $(1,038) $ 701
------------ -------------
Treasury Stock, at Cost
Balance at Beginning of Year $(1,844) $(1,997)
Purchase of Treasury Stock (4,172) (1,038)
Reissuance of Treasury Stock 1,740 1,068
------------ -------------
Balance at End of Period $(4,276) $(1,967)
------------ -------------
Total Stockholders' Equity $ 22,341 $ 23,218
============ =============
- ------------------------------------------------------------------------------------------------------------------------------
Comprehensive Income
Net Income $ 3,753 $ 2,636
Other Comprehensive Income (Loss) (1,430) 589
------------ -------------
Comprehensive Income $ 2,323 $ 3,225
============ =============
Unaudited
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
CREDIT RELATED INFORMATION
(in millions, except ratios)
% %
Credit-Related Assets Over/(Under) Nonperforming Assets Over/(Under)
--------------------------- -------------------------
September 30, 1999 1998 1998 1999 1998 1998
- -------------------------------------------- ------------ ------------ ---------- ----------- ----------- ----------
CONSUMER LOANS
Domestic Consumer:
<S> <C> <C> <C> <C> <C> <C> <C>
1-4 Family Residential Mortgages $ 42,134 $ 39,250 7% $ 308 $ 343 (10%)
Credit Card - Reported 14,246 12,472 14% -- -- --
Credit Card Securitizations (a) 18,028 18,972 (5%) -- -- --
------------ ------------ ----------- -----------
Credit Card - Managed 32,274 31,444 3% -- -- --
Auto Financings 18,429 14,694 25% 73 46 59%
Other Consumer 6,536 8,786 (26%) 5 8 (38%)
------------ ------------ ----------- -----------
Total Domestic Consumer 99,373 94,174 6% 386 397 (3%)
Total Foreign Consumer 2,822 2,976 (5%) 30 21 43%
------------ ------------ ----------- -----------
Total Consumer Loans 102,195 97,150 5% 416 418 --
------------ ------------ ----------- -----------
COMMERCIAL LOANS
Domestic Commercial:
Commercial and Industrial 51,994 48,011 8% 458 353 30%
Commercial Real Estate 3,363 5,071 (34%) 50 53 (6%)
------------ ------------ ----------- -----------
Total Domestic Commercial 55,357 53,082 4% 508 406 25%
Total Foreign Commercial 33,934 35,312 (4%) 950 559 70%
------------ ------------ ----------- -----------
Total Commercial Loans 89,291 88,394 1% 1,458 965 51%
------------ ------------ ----------- -----------
Derivative and FX Contracts 31,408 33,547 (6%) 36 19 89%
------------ ------------ ----------- -----------
Total Commercial Credit-Related 120,699 121,941 (1%) 1,494 984 52%
------------ ------------ ----------- -----------
Total Managed Credit-Related $ 222,894 $ 219,091 2% 1,910 1,402 36%
============ ============ ----------- -----------
Assets Acquired as Loan Satisfactions 105 131 (20%)
----------- -----------
Total Nonperforming Assets $ 2,015 $ 1,533 31%
=========== ===========
- --------------------------------------------------------------------------------------------------------------------------------
% %
Third Quarter Over/(Under) Nine Months Over/(Under)
--------------- --------------
Net Charge-Offs 1999 1998 1998 1999 1998 1998
- -------------------------------------------- ------------ ------------ ---------- ----------- ----------- ----------
CONSUMER LOANS
Domestic Consumer:
1-4 Family Residential Mortgages $ 9 $ 6 50% $ 19 $ 22 (14%)
Credit Card - Reported 207 187 11% 641 550 17%
Credit Card Securitizations (a) 238 298 (20%) 753 864 (13%)
------------ ------------ ----------- -----------
Credit Card - Managed 445 485 (8%) 1,394 1,414 (1%)
Auto Financings 19 17 12% 57 58 (2%)
Other Consumer 49 39 26% 144 123 17%
------------ ------------ ----------- -----------
Total Domestic Consumer 522 547 (5%) 1,614 1,617 --
Total Foreign Consumer 9 6 50% 27 14 93%
------------ ------------ ----------- -----------
Total Consumer Loans 531 553 (4%) 1,641 1,631 1%
------------ ------------ ----------- -----------
COMMERCIAL LOANS
Domestic Commercial:
Commercial and Industrial 68 (59) NM 145 (77) NM
Commercial Real Estate (2) (3) NM (13) (9) NM
------------ ------------ ----------- -----------
Total Domestic Commercial 66 (62) NM 132 (86) NM
Total Foreign Commercial 36 154 (77%) 143 326 (56%)
------------ ------------ ----------- -----------
Total Commercial Loans 102 92 11% 275 240 15%
------------ ------------ ----------- -----------
Total Managed Net Charge-offs (b) $ 633 $ 645 (2%) $ 1,916 $ 1,871 2%
============ ============ =========== ===========
(a) Represents the portion of Chase's credit card receivables that have been securitized.
(b) Excludes charge-offs for risk management instruments of $108 million in the third quarter of 1998 and $130 million for the
first nine months of 1998, which are netted against trading revenues.
NM - Not meaningful
Unaudited
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
CREDIT RELATED INFORMATION (Continued)
As of or For The As of or For The
Three Months Ended Nine Months Ended
MANAGED CREDIT CARD PORTFOLIO * September 30, September 30,
------------------------------------------------
(in millions, except ratios) 1999 1998 1999 1998
- -------------------------------------------------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Average Credit Card Receivables $32,869 $31,607 $32,510 $31,991
Past Due 90 Days or More and Accruing $ 591 $ 675 $ 591 $ 675
As a Percentage of Average Credit Card Receivables 1.80% 2.14% 1.82% 2.11%
Net Charge-offs $ 454 $ 489 $ 1,416 $ 1,425
As a Percentage of Average Credit Card Receivables 5.53% 6.19% 5.81% 5.94%
* Includes domestic and international credit card activity.
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SELECTED COUNTRY EXPOSURE (a)
(in billions)
At September 30, 1999 At Dec. 31, 1998
----------------------------------------------------------------------- ----------------------
Country Country
Gross Net Related Net Related
Local Less Cross- Resale Cross- Resale
Lending- Trading- Country Local Border Agree- Border Agree-
LATIN AMERICA Related (b) Related (c) Assets Funding Exposure (a)ments (a) Exposure ments
- -------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Brazil $ 1.1 $ 0.3 $ 1.0 $ (0.6) $ 1.8 $ 1.2 $ 2.3 $ 0.9
Argentina 1.9 0.2 0.3 (0.3) 2.1 0.7 2.3 0.5
Mexico 1.0 0.7 0.4 (0.4) 1.7 0.4 1.8 0.4
Chile 0.8 - 0.1 (0.1) 0.8 - 0.9 -
Colombia 0.7 - - - 0.7 - 0.8 -
Venezuela 0.3 - - - 0.3 0.2 0.4 -
All Other Latin America (d) 0.4 0.5 0.7 (0.7) 0.9 - 1.0 -
------------ ----------- -------- ----------- ---------- ----------- ---------- ----------
Total Latin America $ 6.2 $ 1.7 $ 2.5 $ (2.1) $ 8.3 $ 2.5 $ 9.5 $ 1.8
------------ ----------- -------- ----------- ---------- ----------- ---------- ----------
ASIAN IMF COUNTRIES
- -------------------------
South Korea $ 0.6 $ 0.3 $ 0.9 $ (0.4) $ 1.4 $ - $ 2.4 $ -
Indonesia 0.9 0.1 0.1 (0.1) 1.0 - 1.2 -
Thailand 0.2 0.1 0.8 (0.4) 0.7 - 0.9 -
------------ ----------- -------- ----------- ---------- ----------- ---------- ----------
Subtotal 1.7 0.5 1.8 (0.9) 3.1 - 4.5 -
OTHER EMERGING ASIA
- -------------------------
Hong Kong 0.6 0.1 4.9 (4.9) 0.7 - 0.8 -
Singapore 0.7 0.1 0.1 (0.1) 0.8 - 0.8 -
Philippines 0.2 0.1 0.2 (0.1) 0.4 0.1 0.6 -
Malaysia 0.2 0.1 0.5 (0.1) 0.7 - 0.6 -
China 0.3 0.1 0.2 (0.1) 0.5 - 0.6 -
All Other Asia 0.3 0.1 0.2 (0.2) 0.4 - 0.5 -
------------ ----------- -------- ----------- ---------- ----------- ---------- ----------
Total Asia excluding
Japan, Australia
and New Zealand $ 4.0 $ 1.1 $ 7.9 $ (6.4) $ 6.6 $ 0.1 $ 8.4 $ -
------------ ----------- -------- ----------- ---------- ----------- ---------- ----------
Japan $ 3.0 $ 1.8 $ 2.1 $ (2.1) $ 4.8 $ 1.0 $ 5.2 $ 1.7
Australia 0.6 0.7 2.7 (2.0) 2.0 - 1.9 -
New Zealand 0.1 0.3 - - 0.4 0.1 0.6 -
------------ ----------- -------- ----------- ---------- ----------- ---------- ----------
Total Japan, Australia
and New Zealand $ 3.7 $ 2.8 $ 4.8 $ (4.1) $ 7.2 $ 1.1 $ 7.7 $ 1.7
------------ ----------- -------- ----------- ---------- ----------- ---------- ----------
(a) Estimated cross-border disclosure is based on the Federal Financial Institutions Examination Council ("FFIEC") guidelines
governing the determination of cross-border risk. Under FFIEC guidelines, resale agreements are reported by the country of the
issuer of the underlying security. Chase, however, does not consider the cross-border risk of resale agreements to depend upon the
country of the issuer of the underlying security and, as a result, has presented these amounts separately in the above table.
(b) Includes loans and accrued interest, interest-bearing deposits with banks, acceptances, other monetary assets, issued letters
of credit and undrawn commitments to extend credit.
(c) Includes cross-border trading debt and equity instruments and the mark-to-market exposure of foreign exchange and derivative
contracts. The amounts associated with foreign exchange and derivative contracts are presented after taking into account the impact
of legally enforceable master netting agreements.
(d) Excludes Bermuda and Cayman Islands.
Unaudited
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE CHASE MANHATTAN CORPORATION
Condensed Average Consolidated Balance Sheet, Interest and Rates
(Taxable-Equivalent Interest and Rates; in millions)
Third Quarter 1999 Third Quarter 1998
------------------------------------ -------------------------------------
Average Rate Average Rate
Balance Interest (Annualized) Balance Interest (Annualized)
ASSETS
<S> <C> <C> <C> <C> <C> <C>
Liquid Interest-Earning Assets $ 63,983 $ 946 5.86% $ 63,853 $ 1,271 7.89%
Securities 53,016 767 5.74% 56,897 879 6.13%
Loans 173,246 3,289 7.53% 166,134 3,288 7.86%
Total Interest-Earning Assets 290,245 5,002 6.84% 286,884 5,438 7.52%
Noninterest-Earning Assets 74,600 75,981
Total Assets $364,845 $362,865
LIABILITIES
Interest-Bearing Deposits $160,820 1,650 4.07% $150,787 1,524 (b) 4.01%
Short-Term and Long-Term Debt 90,399 1,176 5.16% 90,976 1,702 7.42%
Total Interest-Bearing Liabilities 251,219 2,826 4.46% 241,763 3,226 5.29%
Noninterest-Bearing Deposits 48,636 45,684
Other Noninterest-Bearing Liabilities 42,086 52,021
Total Liabilities 341,941 339,468
PREFERRED STOCK OF SUBSIDIARY 550 550
STOCKHOLDERS' EQUITY
Preferred Stock 1,026 1,166
Common Stockholders' Equity 21,328 21,681
Total Stockholders' Equity 22,354 22,847
Total Liabilities, Preferred Stock of Subsidiary
and Stockholders' Equity $364,845 $362,865
INTEREST RATE SPREAD 2.38% 2.23%
NET INTEREST INCOME AND NET YIELD
ON INTEREST-EARNING ASSETS $ 2,176 2.97% $ 2,212 3.06%
NET INTEREST INCOME AND NET YIELD
ON INTEREST-EARNING ASSETS (a) $ 2,508 3.24% $ 2,586 3.36% (b)
- ---------------------------------------------------------------------------------------------------------------------------
Nine Months 1999 Nine Months 1998
------------------------------------ -------------------------------------
Average Rate Average Rate
Balance Interest (Annualized) Balance Interest (Annualized)
ASSETS
Liquid Interest-Earning Assets $ 61,997 $ 2,890 6.23% $ 71,187 $ 4,188 7.86%
Securities 54,948 2,355 5.73% 56,511 2,668 6.31%
Loans 173,078 9,666 7.47% 168,128 10,012 7.96%
Total Interest-Earning Assets 290,023 14,911 6.87% 295,826 16,868 7.62%
Noninterest-Earning Assets 74,246 75,623
Total Assets $364,269 $371,449
LIABILITIES
Interest-Bearing Deposits $160,809 4,806 4.00% $151,240 5,123 (b) 4.53%
Short-Term and Long-Term Debt 89,729 3,571 5.32% 100,300 5,319 7.09%
Total Interest-Bearing Liabilities 250,538 8,377 4.47% 251,540 10,442 5.55%
Noninterest-Bearing Deposits 48,091 45,340
Other Noninterest-Bearing Liabilities 42,066 51,655
Total Liabilities 340,695 348,535
PREFERRED STOCK OF SUBSIDIARY 550 550
STOCKHOLDERS' EQUITY
Preferred Stock 1,027 1,365
Common Stockholders' Equity 21,997 20,999
Total Stockholders' Equity 23,024 22,364
Total Liabilities, Preferred Stock of Subsidiary
and Stockholders' Equity $364,269 $371,449
INTEREST RATE SPREAD 2.40% 2.07%
NET INTEREST INCOME AND NET YIELD
ON INTEREST-EARNING ASSETS $ 6,534 3.01% $ 6,426 2.90%
NET INTEREST INCOME AND NET YIELD
ON INTEREST-EARNING ASSETS (a) $ 7,534 3.27% $ 7,519 3.20% (b)
(a) Excludes the impact of the credit card securitizations.
(b) Includes $191 million pre-tax income for prior years' tax refunds. Excluding this amount, the net yield on interest-earning
assets would be 3.11% for the 1998 third quarter and 3.12% for the 1998 first nine months.
Unaudited
</TABLE>
