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 (Date of earliest event reported): October 17, 1995
Citicorp
(Exact name of registrant as specified in charter)
Delaware 1-5738 13-2614988
(State or other jurisdiction (IRS Employer
of incorporation) (Commission File Number) Identification Number)
399 Park Avenue, New York, New York 10043
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (212) 559-1000
Not Applicable
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
CITICORP REPORTS 10% PRETAX EARNINGS GAIN
LED BY CONSUMER BUSINESS
KEY RESULTS
($ MILLIONS, EXCEPT PER-SHARE)
THIRD QUARTER NINE MONTHS
1995 1994 CHANGE 1995 1994 CHANGE
------- ------- ------ ------- ------- ------
TOTAL ADJUSTED
REVENUE ......... $ 4,983 $ 4,568 9% $14,571 $12,931 13%
EARNINGS BEFORE
INCOME TAXES .... 1,388 1,259 10 4,145 3,380 23
NET INCOME ......... 877 894 (2) 2,559 2,324 10
NET INCOME PER SHARE
(FULLY DILUTED) . 1.62 1.67 (3) 4.72 4.33 9
RETURN ON TOTAL
EQUITY .......... 17.9% 22.0% 18.2% 20.6%
On October 17,1995 Citicorp reported net income of $877 million in the 1995
third quarter, 2% lower than in the same 1994 quarter, when there was a higher
level of tax benefits. Earnings before income taxes were 10% higher in the 1995
third quarter than in the comparable year-ago quarter.
"The global franchise continued to generate strong revenue growth, while
operating expenses held to second quarter levels," commented John S. Reed,
Chairman. "Our consumer business, with quarterly earnings exceeding $500 million
for the first time, showed continuing franchise momentum around the world."
"Importantly, return on equity for both the quarter and nine months was
maintained at 18%," Mr. Reed added.
<PAGE>
The results in the third quarter reflected the following factors, all
compared with the same 1994 quarter:
* Operating margin (revenue adjusted primarily for the effect of credit
card securitizations, less adjusted expense) of $2.2 billion rose 11%,
and the expense/revenue ratio improved to 56.7%. The effect of
translating various currencies into the U.S. dollar increased revenue
by 1% and operating expense by approximately 2%.
* The $415 million rise in revenue included a 9% increase in the global
consumer business, led by credit cards and branch-based banking
services, and a 4% increase in the global finance businesses, led by
trading and transaction banking.
* The 6% increase in operating expense beyond the 2% from currency
translation resulted chiefly from spending related to ongoing business
expansion and performance-based compensation.
* Consumer credit costs of $633 million increased by $89 million,
reflecting primarily volume growth in the U.S. card portfolio as well
as the effects of continued economic weakness that began earlier in
the year in major Latin American markets.
Commercial credit costs, including real estate, increased by $21 million to
$61 million.
Citicorp, continuing the $3 billion stock repurchase program announced in
June 1995, repurchased 11.4 million common shares in the third quarter for $750
million. Since the program started, 12.3 million common shares have been
repurchased for $800 million.
Reserves, which totaled $5.3 billion, were built by $75 million in the
quarter. Total capital at September 30, 1995 amounted to $27.3 billion -- with
the Tier 1 ratio estimated to be 8.4%, slightly above the target range -- and
common equity as a percentage of total assets was 6.3%.
<PAGE>
GLOBAL CONSUMER BUSINESS
($ MILLIONS) THIRD QUARTER NINE MONTHS
1995 1994 CHANGE 1995 1994 CHANGE
---- ---- ------ ---- ---- ------
TOTAL ADJUSTED
REVENUE ................ $3,128 2,863 9% $9,077 $8,376 8%
TOTAL OPERATING
EXPENSE ................ 1,679 1,564 7 5,006 4,556 10
OPERATING MARGIN .......... 1,449 1,299 12 4,071 3,820 7
CREDIT COSTS .............. 633 544 16 1,785 1,743 2
NET INCOME ................ 522 475 10 1,426 1,308 9
Global consumer revenue grew by $265 million, consisting of an increase of
$152 million, or 7%, from the developed economies and $113 million, or 17%, from
the emerging markets. Revenue advances were led by expansion in card receivable
volumes and branch-based banking.
Expenses were 7% higher than in the same 1994 quarter but were kept
slightly below 1995 second quarter levels, even with continuing programs to
support delivery to more customers of the array of products and services that
constitute the distinctive Citibank experience.
The 10% earnings improvement, led by branch banking worldwide and cards in
the Asia Pacific region, reflected increases in the emerging markets of $33
million, or 20%, to $201 million and in the developed countries of $14 million,
or 5%, to $321 million. In the 1995 nine-month period, earnings from the global
consumer business rose 9%, to $1.4 billion, from the same 1994 period.
At 56 million, the number of cards worldwide was 9% higher than in the same
1994 quarter, led by growth in the United States and the Asia Pacific region.
Charge volume on Citicorp-issued cards in Asia Pacific was up 41% and on U.S.
bankcards up 23%. Managed card receivables grew by 19% in U.S. bankcards, 40% in
Asia Pacific, and 44% in Europe. Asia Pacific experienced a record level of card
applications in the quarter.
The U.S. bankcard business continued to expand its position in the
category, behind programs initiated last year. Managed receivables increased
$6.7 billion to $42.1 billion, and total accounts 3.0 million to 24.8 million
from September 30, 1994. Total charge volume increased by $4.1 billion to $22.1
billion.
<PAGE>
The program continued in the quarter to bring Citibank branches to the
model standard that provides a consistent Citibank look and experience around
the world. The conversion of existing offices and the opening of new ones
included opening the first model branch in Japan. At the end of the quarter
there were 384 model branches, comprising 32% of the total 1,200 consumer
branches.
Customer response to the Citibank offerings was strong in the quarter,
particularly in enrollments to use electronic banking through ATMs, Citiphone or
direct computer access.
The overall consumer loss rate of 2.02% of managed loans remained at the
low end of a normal loss range, up slightly from 1.98% in the 1995 second
quarter and 1.90% in the 1994 third quarter, as losses increased in Latin
America and card receivables grew as a proportion of the consumer credit
portfolio. The worldwide cards loss rate of 3.78% compared with 3.76% in the
1995 second quarter and 3.59% in the 1994 third quarter. The U.S. managed credit
card loss rate of 3.72% improved slightly from the 3.74% in the 1995 second
quarter, but was up from 3.57% in last year's third quarter. The loss rate in
branch banking worldwide was 1.14%, essentially unchanged, chiefly because
improvement in the U.S. branch business, particularly mortgages, was offset by
losses in Latin America.
Assets under management in private banking rose to $85.4 billion, an
increase of 8% from a year earlier.
In the quarter, Citicorp broadened the market for securities backed by U.S.
card receivables by issuing the first such security in the Japanese market.
<PAGE>
GLOBAL FINANCE BUSINESSES
($ MILLIONS) THIRD QUARTER NINE MONTHS
1995 1994 CHANGE 1995 1994 CHANGE
---- ---- ------ ---- ---- ------
TOTAL ADJUSTED
REVENUE $1,543 $1,477 4% $4,698 $3,934 19%
TOTAL OPERATING
EXPENSE 994 911 9 2,930 2,544 15
OPERATING MARGIN 549 566 (3) 1,768 1,390 27
CREDIT COSTS
(RECOVERIES) 36 (60) NM 23 (126) NM
NET INCOME 351 431 (19) 1,224 973 26
Net income of $351 million from global finance worldwide businesses was
down $80 million from the 1994 third quarter, although nine-month earnings of
$1.2 billion were up $251 million. Revenue, rising 4% in the quarter, reflected
primarily increases in trading revenues -- which benefited from an active
customer environment -- as well as transaction banking services and other
nontrading business in emerging markets, and venture capital results. The total
of foreign exchange and trading revenue increased by $132 million, but net
interest revenue related to trading declined by $77 million. Expense increases
reflected continued investment in processing efficiencies, principally related
to transaction banking services.
Global finance activities in the developed markets earned $133 million in
the quarter, which was down $42 million from the 1994 third quarter, and earned
$497 million in the nine months, which was up $126 million. Revenues increased
8% from the 1994 third quarter, led by trading and venture capital, partially
offset by lower fees (although the pipeline of deals remains strong) and the
effect of business restructurings aimed at improving overall returns. Credit
costs of $20 million compared with a positive $71 million in the 1994 third
quarter. Average assets in the quarter of $86 billion were reduced $9 billion
from the 1995 second quarter and $14 billion from the same 1994 quarter, largely
from a lower level of trading-related assets.
In emerging markets, global finance net income of $218 million was down $38
million from the year-earlier quarter (when Brazilian earnings benefited from an
unusually favorable rate environment and the release of a revenue-related tax
reserve). In the nine months net income from emerging markets was $727 million,
up $125 million. Revenue was flat compared with the 1994 third quarter, as
growth from continued business momentum, particularly from multinational clients
and transaction banking services, was offset by lower trading-related revenues,
due in part to decreasing volatility in Latin American markets through the
quarter. Credit costs at $16 million remained modest in the quarter.
<PAGE>
In the quarter, Citibank opened a corporate business branch in South Africa
and a representative office in Romania. The People's Republic of China has given
approval for Citibank to reopen branch operations in Beijing, which is scheduled
for October 31. In Turkey Citibank set up a brokerage house to expand capital
markets services to customers in that country. The capital markets unit
completed its first global equity underwriting in multiple markets, for a
Chilean supermarket company, Santa Isabel, S.A.
In the United States, the electronic benefits transfer business added two
more states as clients, bringing to seven the number of states for which it
provides disbursement services to benefits recipients.
OTHER
North America Commercial Real Estate reported a loss of $6 million in the
1995 third quarter, compared with a loss of $86 million in the same 1994
quarter, with the improvement resulting from substantially lower credit costs.
Total commercial cash-basis loans and Other Real Estate Owned (OREO) of
$2.6 billion at September 30, 1995, including $1.8 billion related to North
America Commercial Real Estate, were down substantially from $4.3 billion a year
earlier.
The cross-border refinancing portfolio reported net income of $43 million,
compared with $45 million in the year-earlier quarter.
Corporate items reported a net loss of $33 million, compared with net
income of $29 million in the same 1994 quarter. The key factor in these results
was a significantly lower level of tax benefits.
<PAGE>
INCOME TAXES
The effective tax rate was 37% in the 1995 third quarter, which benefited
by $30 million reflecting a reduction of the deferred tax valuation allowance
from a reassessment of the expected level and mix of future earnings. This
compared with 29% in the same 1994 quarter, which included recognition of $124
million of tax benefits related to current operations. The effective tax rates
on current operations for the nine-month periods were 39% in 1995 and 34% in
1994.
CAPITAL AND RESERVES
In the third quarter, as in the first and second quarters, an additional
$75 million above net credit write-offs was provided to reserves, bringing the
credit loss reserve on the balance sheet to $5.3 billion at September 30, 1995,
up from $5.1 billion at September 30, 1994.
Total regulatory capital at September 30, 1995 was $27.3 billion, estimated
to be 12.3% of risk-adjusted assets. The Tier 1 capital ratio was estimated to
be 8.4%, which compares with 7.5% at September 30, 1994 and 8.4% at June 30,
1995.
Citicorp on October 12 notified holders of its Conversion Preferred Stock,
Series 15 (commonly called PERCS) that it will redeem the shares remaining after
two redemptions earlier in the year, one in the second and the other in the
third quarter. Upon completion of the redemption on November 13, Citicorp will
have issued approximately 27.5 million shares of common stock for the redemption
of the PERCS, which had been issued in October 1992 to raise approximately $1.1
billion of Tier 1 capital. In addition, in the 1995 third quarter Citicorp
issued approximately 10.6 million common shares for the conversion of 3.9
million depositary shares, or 29%, of its Conversion Preferred Stock, Series 13.
Tables detailing key financial data, an analysis of operating margin, pretax
earnings, business results and credit indicators follow, along with financial
statements. Further details concerning the financial results will be available
in November in Citicorp's Form 10-Q.
<PAGE>
Page 8 - Citicorp Third Quarter 1995 results - 10/17/95
KEY RATIOS & OTHER CONSOLIDATED FINANCIAL DATA
Third Quarter Nine Months
1995 1994 1995 1994
------ ------ ------ ------
NET INCOME ($M):
Before Cumulative Effect
of Accounting Change..... $ 877 $ 894 $2,559 $2,380
After Cumulative Effect
of Accounting Change(A).. 877 894 2,559 2,324
NET INCOME PER COMMON SHARE:
On Common & Common
Equivalent Shares
Before Cumulative Effect
of Accounting Change..... $ 1.79 $ 1.87 $ 5.29 $ 4.95
After Cumulative Effect
of Accounting Change(A).. 1.79 1.87 5.29 4.82
Assuming Full Dilution
Before Cumulative Effect
of Accounting Change..... $ 1.62 $ 1.67 $ 4.72 $ 4.44
After Cumulative Effect
of Accounting Change(A).. 1.62 1.67 4.72 4.33
COMMON STOCKHOLDERS' EQUITY
PER SHARE................. $37.99 $32.43
CLOSING STOCK PRICE
AT QUARTER END............ $70.75 $42.50
PROFITABILITY RATIOS (Annualized):
Return on Total Assets:
Before Accounting Change.. 1.31% 1.34% 1.27% 1.23%
After Accounting Change(A) 1.31 1.34 1.27 1.21
Return on Common
Stockholders' Equity:
Before Accounting Change.. 20.1% 26.5% 20.9% 25.2%
After Accounting Change(A) 20.1 26.5 20.9 24.7
Return on Total
Stockholders' Equity:
Before Accounting Change.. 17.9% 22.0% 18.2% 20.9%
After Accounting Change(A) 17.9 22.0 18.2 20.6
CAPITAL:
Tier 1 ($B)............... $ 18.6 $ 16.0
Tier 1 & 2 ($B)(B)........ 27.3 25.4
Tier 1 Ratio(B)........... 8.4% 7.5%
Tier 1 & 2 Ratio(B)....... 12.3 11.9
Common Equity as a
% of Total Assets....... 6.3% 5.0%
Total Equity as a
% of Total Assets....... 7.6% 6.7%
DIVIDENDS DECLARED ($M):
Common.................. $ 127 $ 59 $ 365 $ 117
Preferred............... 83 89 271 267
(A) The 1994 results reflect the cumulative effect of adopting
SFAS No. 112, "Employers' Accounting for Postemployment
Benefits," as of January 1, 1994.
(B) 1995 Estimated.
<PAGE>
Page 9 - Citicorp Third Quarter 1995 results - 10/17/95
OPERATING MARGIN
($ Millions)
Third Quarter Nine Months
1995 1994 1995 1994
------ ------ ------ ------
Total Revenue ........... $4,757 $4,325 $13,889 $12,236
Effect of Credit Card
Securitization.......... 219 213 667 745
Net Cost to Carry(A)..... 7 30 15 90
Capital Building
Transactions............ - - - (140)
----- ----- ------ ------
Adjusted Revenue......... 4,983 4,568 14,571 12,931
----- ----- ------ ------
Total Operating Expense.. 2,793 2,630 8,284 7,533
Net OREO Costs (B)....... 33 (5) 46 (14)
----- ----- ------ ------
Adjusted Operating
Expense................. 2,826 2,625 8,330 7,519
----- ----- ------ ------
Operating Margin......... 2,157 1,943 6,241 5,412
Consumer Credit
Costs (C)............... 633 544 1,785 1,743
Commercial Credit
Costs (D)............... 61 40 86 173
----- ----- ------ ------
Operating Margin
Less Credit Costs....... 1,463 1,359 4,370 3,496
Additional Provision:
- -Consumer(E)............. 50 50 150 150
- -Commercial(E)........... 25 50 75 150
- -Refinancing Portfolio... - - - (44)
Capital Building
Transactions............ - - - 140
----- ----- ------ ------
Income Before Taxes and
Cumulative Effect of
Accounting Change...... $1,388 $1,259 $ 4,145 $ 3,380
===== ===== ====== ======
(A) Principally the net cost to carry commercial cash-basis loans and Other Real
Estate Owned (OREO).
(B) Principally writedowns, gains and losses on sales, and direct revenue and
expense related to commercial OREO.
(C) Principally consumer net credit write-offs adjusted for the effect of credit
card receivables securitization.
(D) Includes commercial net credit write-offs, net cost to carry, and net OREO
costs.
(E) Represents provision for credit losses in excess of net write-offs.
<PAGE>
Page 10 - Citicorp Third Quarter 1995 results - 10/17/95
BUSINESS FOCUS
Net Income (Loss)
($ Millions)
Third Quarter Nine Months
1995 1994(A) 1995 1994(A)
------ ------ ------ ------
Global Consumer:
North America, Europe
and Japan............ $ 321 $ 307 $ 847 $ 810
Emerging Markets....... 201 168 579 498
----- ----- ----- -----
Total Global Consumer... 522 475 1,426 1,308
----- ----- ----- -----
Global Finance:
North America, Europe
and Japan............ 133 175 497 371
Emerging Markets....... 218 256 727 602
----- ----- ----- -----
Total Global Finance.... 351 431 1,224 973
----- ----- ----- -----
Core Businesses......... 873 906 2,650 2,281
----- ----- ----- -----
North America Commercial
Real Estate........... (6) (86) (18) (233)
Cross-Border Refinancing
Portfolio............. 43 45 143 148
Corporate Items(B)...... (33) 29 (216) 184
----- ----- ----- -----
877 894 2,559 2,380
Cumulative Effect of
Accounting Change(C).. - - - (56)
----- ----- ----- -----
Total Citicorp.......... $ 877 $ 894 $2,559 $ 2,324
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) See Corporate Items section for details.
(C) The 1994 results reflect the cumulative effect of adopting SFAS No. 112,
"Employers' Accounting for Postemployment Benefits," as of January 1, 1994.
<PAGE>
Page 11 - Citicorp Third Quarter 1995 results - 10/17/95
GLOBAL CONSUMER
($ Millions) Third Quarter % Nine Months %
1995 1994(A)Chg 1995 1994(A)Chg
------ ------ --- ------ ------ ---
Total Revenue......... $2,906 $2,647 10 $8,400 $7,625 10
----- ----- ----- -----
Total Operating Expense 1,675 1,577 6 5,011 4,594 9
----- ----- ----- -----
Provision For
Credit Losses ....... 465 365 27 1,253 1,104 13
----- ----- ----- -----
Income Before Taxes... 766 705 9 2,136 1,927 11
Income Taxes.......... 244 230 6 710 619 15
----- ----- ----- -----
Net Income............ $ 522 $ 475 10 $1,426 $1,308 9
===== ===== ===== =====
Average Assets ($B)... $ 121 $ 107 13 $ 119 $ 104 14
Return on Assets...... 1.71% 1.76% - 1.60% 1.68% -
OTHER DATA:
North America, Europe
and Japan:
Net Income............ $ 321 $ 307 5 $ 847 $ 810 5
Average Assets($B).... 86 77 12 85 75 13
Return on Assets...... 1.48% 1.58% - 1.33% 1.44% -
Emerging Markets:
Net Income............ $ 201 $ 168 20 $ 579 $ 498 16
Average Assets($B).... 35 30 17 34 29 17
Return on Assets...... 2.28% 2.22% - 2.28% 2.30% -
Adjusted for Credit-
Related Items:
Total Revenue(B):
North America,
Europe and Japan.. $2,354 $2,202 7 $6,836 $6,487 5
Emerging Markets... 774 661 17 2,241 1,889 19
----- ----- ----- -----
Total Global Consumer $3,128 $2,863 9 $9,077 $8,376 8
===== ===== ===== =====
Other Operating
Expense(C):
North America,
Europe and Japan.. $1,253 $1,189 5 $3,764 $3,500 8
Emerging Markets... 426 375 14 1,242 1,056 18
----- ----- ----- -----
Total Global Consumer $1,679 $1,564 7 $5,006 $4,556 10
===== ===== ===== =====
Credit Costs (D):
North America,
Europe and Japan.. $ 548 $ 499 10 $1,594 $1,620 (2)
Emerging Markets... 85 45 89 191 123 55
----- ----- ----- -----
Total Global Consumer $ 633 $ 544 16 $1,785 $1,743 2
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) Adjusted principally for the effect of credit card
receivables securitization.
(C) Excludes writedowns, gains and losses on sales, and direct revenue and
expense related to OREO for certain real estate lending activities.
(D) Principally net credit write-offs adjusted for the effect of credit card
receivables securitization. Includes U.S. credit card net credit losses for
both held and securitized receivables of $384 million and $1,087 million for
the 1995 third quarter and year-to-date, respectively, and $310 million and
$1,035 million for the comparable periods of 1994.
<PAGE>
Page 12 - Citicorp Third Quarter 1995 results - 10/17/95
GLOBAL FINANCE
($ Millions) Third Quarter % Nine Months %
1995 1994(A) Chg 1995 1994(A) Chg
------ ------ --- ------ ------ ---
Total Revenue......... $1,548 $1,474 5 $4,714 $3,919 20
----- ----- ----- -----
Total Operating
Expense.............. 986 889 11 2,912 2,481 17
----- ----- ----- -----
Provision For
Credit Losses ....... 74 (28) NM 132 (41) NM
----- ----- ----- -----
Income Before Taxes... 488 613 (20) 1,670 1,479 13
Income Taxes.......... 137 182 (25) 446 506 (12)
----- ----- ----- -----
Net Income............ $ 351 $ 431 (19) $1,224 $ 973 26
===== ===== ===== =====
Average Assets ($B)... $ 133 $ 144 (8) $ 138 $ 138 -
Return on Assets...... 1.05% 1.19% - 1.19% 0.94% -
OTHER DATA:
North America, Europe
and Japan:
Net Income............ $ 133 $ 175 (24) $ 497 $ 371 34
Average Assets($B).... 86 100 (14) 92 96 (4)
Return on Assets...... 0.61% 0.69% - 0.72% 0.52% -
Emerging Markets:
Net Income............ $ 218 $ 256 (15) $ 727 $ 602 21
Average Assets($B).... 47 44 7 46 42 10
Return on Assets...... 1.84% 2.31% - 2.11% 1.92% -
Adjusted for Credit-
Related Items:
Total Revenue(B):
North America,
Europe and Japan.. $ 881 $ 813 8 $2,690 $2,213 22
Emerging Markets... 662 664 - 2,008 1,721 17
----- ----- ----- -----
Total Global Finance. $1,543 $1,477 4 $4,698 $3,934 19
===== ===== ===== =====
Other Operating
Expense(C):
North America,
Europe and Japan.. $ 653 $ 608 7 $1,930 $1,697 14
Emerging Markets... 341 303 13 1,000 847 18
----- ----- ----- -----
Total Global Finance. $ 994 $ 911 9 $2,930 $2,544 15
===== ===== ===== =====
Credit Costs (D):
North America,
Europe and Japan.. $ 20 $ (71) NM $ (10) $ (132) 92
Emerging Markets... 16 11 45 33 6 NM
----- ----- ----- -----
Total Global Finance. $ 36 $ (60) NM $ 23 $ (126) NM
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) Adjusted for the net cost to carry cash-basis loans
and OREO.
(C) Excludes writedowns, gains and losses on sales, and direct revenue and
expense related to OREO.
(D) Includes net write-offs (recoveries), the net cost to carry cash-basis loans
and OREO, as well as net OREO costs.
NM Not meaningful,as percentage exceeds 100%.
<PAGE>
Page 13 - Citicorp Third Quarter 1995 results - 10/17/95
NORTH AMERICA COMMERCIAL REAL ESTATE
($ Millions)
Third Quarter % Nine Months %
1995 1994(A) Chg 1995 1994(A) Chg
------ ------ --- ------ ------ ---
Total Revenue......... $ 39 $ 10 NM $ 118 $ 56 NM
----- ----- ----- -----
Total Operating
Expense.............. 10 49 (80) 61 146 (58)
----- ----- ----- -----
Provision For
Credit Losses........ 37 99 (63) 75 306 (75)
----- ----- ----- -----
Loss Before Taxes..... (8) (138) 94 (18) (396) 95
Income Tax Benefit.... (2) (52) 96 - (163) NM
----- ----- ----- -----
Net Loss.............. $ (6) $ (86) 93 $ (18) $ (233) 92
===== ===== ===== =====
OTHER DATA:
Average Assets ($B)... $ 5 $ 8 (38) $ 5 $ 9 (44)
Adjusted for Credit-
Related Items:
Total Revenue(B).... $ 48 $ 34 41 $ 139 $ 125 11
Total Operating
Expense(C)......... 31 35 (11) 94 107 (12)
Credit Costs(D)..... 25 100 (75) 63 301 (79)
(A) Reclassified to conform to current quarter's presentation.
(B) Adjusted for the net cost to carry cash-basis loans
and OREO.
(C) Excludes writedowns, gains and losses on sales, and direct revenue and
expense related to OREO.
(D) Includes net write-offs, the net cost to carry cash-basis loans and OREO, as
well as net OREO costs.
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 14 - Citicorp Third Quarter 1995 results - 10/17/95
CROSS-BORDER REFINANCING PORTFOLIO
($ Millions)
Third Quarter % Nine Months %
1995 1994(A) Chg 1995 1994(A) Chg
------ ------ --- ------ ------ ---
Total Revenue......... $ 55 $ 53 4 $ 178 $ 135 32
----- ----- ----- -----
Total Operating
Expense.............. 4 4 - 12 12 -
----- ----- ----- -----
Provision For
Credit Losses........ - - - - (46) NM
----- ----- ----- -----
Income Before Taxes... 51 49 4 166 169 (2)
Income Taxes.......... 8 4 NM 23 21 10
----- ----- ----- -----
Net Income ........... $ 43 $ 45 (4) $ 143 $ 148 (3)
===== ===== ===== =====
OTHER DATA:
Average Assets ($B)... $ 3 $ 3 - $ 3 $ 3 -
CORPORATE ITEMS
($ Millions)
Third Quarter % Nine Months %
1995 1994(A) Chg 1995 1994(A) Chg
----- ------ --- ----- ------ ---
Total Revenue......... $ 209 $ 141 48 $ 479 $ 501 (4)
----- ----- ----- -----
Total Operating
Expense.............. 118 111 6 288 300 (4)
----- ----- ----- -----
Income Before Taxes... 91 30 NM 191 201 (5)
Income Taxes.......... 124 1 NM 407 17 NM
----- ----- ----- -----
Net (Loss) Income (B). $ (33) $ 29 NM $ (216) $ 184 NM
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) Corporate Items includes net after-tax gains from capital
building transactions of $88 million ($140 million before taxes) for the
nine months of 1994. Additionally, Corporate Items includes the offset
created by attributing income taxes to business activities on a local tax
basis. Third quarter and nine months ended 1995 includes $30 million in
deferred tax benefits compared to $124 million and $344 million in the
respective 1994 periods.
NM Not meaningful, as percentage equals or exceeds 100%.
<PAGE>
Page 15 - Citicorp Third Quarter 1995 results - 10/17/95
ASSET QUALITY
COMMERCIAL CASH-BASIS LOANS AND OREO
($ Millions) 3Q 2Q 1Q 4Q 3Q
1995 1995 1995 1994 1994
------ ------ ------ ------ ------
Comm'l Cash-Basis Loans:
Collateral-Dependent
(At lower of cost or
collateral value).... $ 899 $1,040 $1,329 $1,347 $ 1,993
Other................. 751 582 654 666 736
----- ----- ----- ----- ------
Comm'l Cash-Basis Loans
(excluding Refinancing) 1,650 1,622 1,983 2,013 2,729
Cross-Border
Refinancing.......... 24 30 58 104 140
----- ----- ----- ----- ------
Total Commercial
Cash-Basis Loans...... 1,674 1,652 2,041 2,117 2,869
Commercial OREO........ 960 1,054 1,014 958 1,427
----- ----- ----- ----- ------
Total Commercial
Cash-Basis Loans & OREO $2,634 $2,706 $3,055 $3,075 $ 4,296
===== ===== ===== ===== ======
ALLOWANCE FOR CREDIT LOSSES
3Q 2Q 1Q 4Q 3Q
1995 1995 1995 1994 1994
------ ------ ------ ----- -----
Global Consumer........ $1,931 $1,923 $1,897 $1,834 $ 1,790
Commercial............. 3,410 3,385 3,373 3,321 3,270
----- ----- ----- ----- ------
Total.................. $5,341 $5,308 $5,270 $5,155 $ 5,060
===== ===== ===== ===== ======
Reserve for Global Consumer
Sold Portfolios....... $ 473 $ 467 $ 450 $ 422 $ 467
ALLOWANCE AS A PERCENTAGE
OF TOTAL LOANS
3Q 2Q 1Q 4Q 3Q
1995 1995 1995 1994 1994
------ ------ ------ ----- ------
Global Consumer........ 1.88% 1.91% 1.93% 1.90% 1.97%
Commercial............. 5.89 5.90 5.79 5.95 5.90
Total.................. 3.32% 3.36% 3.37% 3.38% 3.46%
ADDITIONAL DATA
3Q 2Q 1Q 4Q 3Q
1995 1995 1995 1994 1994
Commercial Allowance ------ ----- ------ ------ ------
as a % of Total Commercial
Cash-Basis Loans...... 204% 205% 165% 157% 114%
Commercial Allowance
as a % of Non-Collateral-
Dependent Commercial
Cash-Basis Loans...... 440% 553% 474% 431% 373%
Commercial Renegotiated
Loans................. $ 395 $ 385 $ 338 $ 718 $ 524
Consumer Cash-Basis:
Loans................ $2,665 $2,697 $2,693 $2,604 $ 2,772
Assets Pending
Disposition (At lower
of cost or collateral
value).............. $ 195 $ 195 $ 209 $ 195 $ 163
Consumer OREO ......... $ 561 $ 545 $ 601 $ 569 $ 565
<PAGE>
Page 16 - Citicorp Third Quarter 1995 results - 10/17/95
DETAILS OF CREDIT LOSS EXPERIENCE
($ Millions)
3Q 2Q 1Q 4Q 3Q
1995 1995 1995 1994 1994
------ ------ ------ ------ ------
NET WRITE-OFFS
(RECOVERIES):
Global Consumer ...... $ 415 $ 379 $ 309 $ 399 $ 315
North America
Commercial
Real Estate......... 37 22 16 51 62
Global Finance........ 49 17 (9) 28 (41)
----- ----- ----- ----- -----
Total Commercial
(excluding
Refinancing)........ 86 39 7 79 21
----- ----- ----- ----- -----
Cross-Border
Refinancing.......... - 13 (23) (20) (19)
----- ----- ----- ----- -----
Total................. $ 501 $ 431 $ 293 $ 458 $ 317
===== ===== ===== ===== =====
3Q 2Q 1Q 4Q 3Q
1995 1995 1995 1994 1994
------ ----- ----- ----- -----
PROVISION FOR
CREDIT LOSSES:
Global Consumer....... $ 465 $ 429 $ 359 $ 449 $ 365
North America
Commercial
Real Estate......... 37 22 16 88 99
Global Finance........ 74 42 16 41 (28)
----- ----- ----- ----- -----
Total Commercial
(excluding
Refinancing)........ 111 64 32 129 71
----- ----- ----- ----- -----
Cross-Border
Refinancing.......... - - - (20) -
----- ----- ----- ----- -----
Total................. $ 576 $ 493 $ 391 $ 558 $ 436
===== ===== ===== ===== =====
3Q 2Q 1Q 4Q 3Q
1995 1995 1995 1994 1994
------ ----- ----- ----- -----
COMMERCIAL NET OREO
WRITEDOWNS(GAINS
ON SALES):
North America
Commercial
Real Estate......... $ (6)$ 9 $ 10 $ 7 $ 24
Global Finance........ (8) (10) (1) (14) (9)
----- ----- ----- ----- -----
Total................. $ (14)$ (1) $ 9 $ (7) $ 15
===== ===== ===== ===== =====
<PAGE>
Page 17 - Citicorp Third Quarter 1995 results - 10/17/95
CONSOLIDATED STATEMENT OF INCOME CITICORP and Subsidiaries
(In Millions of Dollars,
Except Per Share Amounts)
Third Quarter % Nine Months %
1995 1994 Chg 1995 1994 Chg
------ ------ --- ------ ------ ---
Interest Revenue..... $5,795 $5,057 15 $17,105 $18,411 (7)
Interest Expense..... 3,197 2,711 18 9,714 11,822 (18)
----- ----- ------ ------
Net Interest Revenue.. 2,598 2,346 11 7,391 6,589 12
----- ----- ------ ------
Fees & Commissions... 1,268 1,280 (1) 3,793 3,778 -
Trading Account...... 182 105 73 363 129 NM
Foreign Exchange..... 250 182 37 878 388 NM
Securities Trans..... 21 5 NM 65 178 (63)
Other Revenue........ 438 407 8 1,399 1,174 19
----- ----- ------ ------
Total Fees, Commissions
and Other Revenue.... 2,159 1,979 9 6,498 5,647 15
----- ----- ------ ------
TOTAL REVENUE......... 4,757 4,325 10 13,889 12,236 14
----- ----- ------ ------
PROVISION FOR
CREDIT LOSSES........ 576 436 32 1,460 1,323 10
----- ----- ------ ------
Operating Expense:
Salaries............ 1,122 1,050 7 3,321 2,978 12
Employee Benefits... 338 284 19 979 852 15
Net Premises &
Equipment Expense.. 433 396 9 1,260 1,156 9
Other Expense....... 900 900 - 2,724 2,547 7
----- ----- ------ ------
TOTAL OPERATING
EXPENSE.............. 2,793 2,630 6 8,284 7,533 10
----- ----- ------ ------
INCOME BEFORE TAXES
AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGE. 1,388 1,259 10 4,145 3,380 23
Income Taxes......... 511 365 40 1,586 1,000 59
----- ----- ------ ------
INCOME BEF. CUMULATIVE
EFFECT OF ACCTG CHANGE 877 894 (2) 2,559 2,380 8
Cumulative Effect of
Accounting Change(A). - - - - (56) NM
----- ----- ------ ------
NET INCOME............ $ 877 $ 894 (2) $ 2,559 $ 2,324 10
===== ===== ====== ======
INCOME APPLICABLE
TO COMMON STOCK...... $ 798 $ 804 (1) $ 2,290 $ 2,060 11
===== ===== ====== ======
EARNINGS PER SHARE:
On Common & Common Equiv. Shs
Income Before Cumulative
Eff. of Acctg Chg... $ 1.79 $ 1.87 $ 5.29 $ 4.95
Income After Cumulative
Eff. of Acctg Chg (A) $ 1.79 $ 1.87 $ 5.29 $ 4.82
Assuming Full Dilution
Income Before Cumulative
Eff. of Acctg Chg... $ 1.62 $ 1.67 $ 4.72 $ 4.44
Income After Cumulative
Eff. of Acctg Chg (A) $ 1.62 $ 1.67 $ 4.72 $ 4.33
(A)The 1994 results reflect the cumulative effect of adopting
SFAS No. 112, "Employers' Accounting for Postemployment
Benefits," as of January 1, 1994.
NM Not meaningful, as percentage equals or exceeds 100%.
<PAGE>
Page 18 - Citicorp Third Quarter 1995 results - 10/17/95
CONSOLIDATED BALANCE SHEET CITICORP and Subsidiaries
(In Millions of Dollars)
Sept. 30 Dec. 31 %
1995 1994 Chg
------- ------- ---
ASSETS
Cash and Due from Banks......... $ 5,719 $ 6,470 (12)
Deposits at Interest with Banks. 8,158 6,862 19
Securities:
Held to Maturity............... 4,966 5,092 (2)
Available for Sale............. 13,941 13,602 2
Venture Capital................ 1,813 2,009 (10)
Trading Account Assets.......... 35,682 38,875 (8)
Federal Funds Sold &
Securities Purchased
Under Resale Agreements........ 9,765 6,995 40
Loans, Net of Unearned Income
Consumer....................... 102,834 96,600 6
Commercial..................... 57,861 55,820 4
------- -------
Total Loans, Net............ 160,695 152,420 5
Allowance for Credit Losses..... (5,341) (5,155) (4)
Customers' Acceptance Liability. 1,649 1,420 16
Premises & Equipment, Net....... 4,310 4,062 6
Interest & Fees Receivable...... 2,912 2,654 10
Other Assets.................... 13,267 15,183 (13)
------- -------
Total........................... $257,536 $250,489 3
======= =======
LIABILITIES
Non-Int. Deposits (in the U.S.). $ 12,199 $ 13,648 (11)
Int. Deposits (in the U.S.)..... 36,754 35,699 3
Non-Int. Deposits (Outside the
U.S.).......................... 8,049 7,212 12
Int. Deposits(Outside the U.S.). 106,825 99,167 8
------- -------
Total Deposits.............. 163,827 155,726 5
Trading Account Liabilities..... 21,485 22,382 (4)
Purchased Funds &
Other Borrowings............... 17,255 20,907 (17)
Acceptances Outstanding......... 1,660 1,440 15
Accrued Taxes & Other Expenses.. 5,740 5,493 4
Other Liabilities............... 9,118 8,878 3
Long-Term Debt.................. 17,619 16,497 7
Subordinated Capital Notes...... 1,337 1,397 (4)
STOCKHOLDERS' EQUITY
Preferred Stock
(Without Par Value)............ 3,348 4,187 (20)
Common Stock (Par value $1.00).. 454 421 8
Surplus......................... 5,394 4,194 29
Retained Earnings .............. 11,484 9,561 20
Net Unrealized Gains -
Securities Available for Sale.. 319 278 15
Foreign Currency Translation.... (427) (471) 9
Common Stock in Treasury,
at Cost(A)..................... (1,077) (401) NM
------- -------
Total Stockholders' Equity.. 19,495 17,769 10
------- -------
Total........................... $257,536 $250,489 3
======= =======
(A) Primarily reflects the repurchase of 12.3 million common shares at a cost
of $800 million during the nine months of 1995.
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 19 - Citicorp Third Quarter 1995 results - 10/17/95
ADDITIONAL FINANCIAL DATA
3Q 2Q 1Q 4Q 3Q
1995 1995 1995 1994 1994
------ ------ ------ ------ ------
NET INTEREST
REVENUE(A)
Net Interest
Revenue($M)....... $ 2,606 $ 2,476 $ 2,333 $ 2,328 $ 2,352
Net Interest
Margin............ 4.67% 4.42% 4.23% 4.21% 4.37%
ADJUSTED TO EXCLUDE
THE EFFECT OF CREDIT
CARD SECURITIZATION:
Net Interest
Revenue($M)....... $ 3,114 $ 2,973 $ 2,801 $ 2,798 $ 2,862
Net Interest
Margin............ 5.04% 4.80% 4.61% 4.61% 4.80%
CONSOLIDATED AVERAGE
BALANCES
3Q 2Q 1Q 4Q 3Q
1995 1995 1995 1994 1994
------ ------ ------ ------ ------
Loans ($B):
Consumer.......... $ 101 $ 99 $ 96 $ 93 $ 87
Commercial........ 56 57 56 56 56
------ ------ ------ ------ ------
Total Average
Loans ($B)........ $ 157 $ 156 $ 152 $ 149 $ 143
====== ====== ====== ====== ======
Total Average
Assets($B)........ $ 266 $ 273 $ 269 $ 267 $ 265
Avg. Interest
Earning
Assets($B)........ $ 221 $ 225 $ 224 $ 219 $ 214
Common
Stockholders'
Equity ($M)....... $15,716 $14,568 $13,653 $13,003 $12,023
Preferred
Equity ($M)....... 3,717 4,326 4,262 4,187 4,116
------ ------ ------ ------ ------
Total Average
Stockholders'
Equity ($M)....... $19,433 $18,894 $17,915 $17,190 $16,139
====== ====== ====== ====== ======
(A) Taxable Equivalent Basis.
<PAGE>
Page 20 - Citicorp Third Quarter 1995 results - 10/17/95
EARNINGS PER SHARE DATA
(Before Cumulative Effect
of Accounting Change in 1994)
Third Quarter Nine Months
1995 1994 1995 1994
------- ------- ------- -------
On Common and Common
Equivalent Shares(A):
Earnings($ Millions).... $ 809 $ 827 $ 2,348 $ 2,186
Shares (in thousands)(B) 450,716 442,361 443,941 441,859
Earnings Per Share...... $ 1.79 $ 1.87 $ 5.29 $ 4.95
Assuming Full Dilution(C):
Earnings($ Millions).... $ 840 $ 861 $ 2,447 $ 2,288
Shares (in thousands)(B) 518,049 515,407 518,144 515,141
Earnings Per Share...... $ 1.62 $ 1.67 $ 4.72 $ 4.44
COMMON SHARES OUTSTANDING
(In Thousands)
End-Of-Period............ 425,062 393,654
(A) For earnings per share on common and common equivalent shares, dividends on
Conversion Preferred Stock, Series 15 are added back to income applicable to
common stock, and the number of shares issuable on conversion are added back
to weighted-average shares outstanding. Also added to shares outstanding are
other common equivalent shares and book value shares issuable under certain
benefit plans.
(B) Total shares in the third quarter of 1995 reflect 6.6 million average shares
repurchased under the repurchase program.
(C) For earnings per share assuming full dilution, the dividends on Conversion
Preferred Stock, Series 15 are added back to income applicable to common
stock, and the number of shares issuable on conversion are added to
weighted-average shares outstanding. Additionally, dividends on Convertible
Preferred Stock, Series 12 and 13 are also added back to income applicable
to common stock, and the shares issuable on conversion are added to shares
outstanding. The number of common equivalent and book value shares are
calculated on a fully diluted basis as well.
<PAGE>
Page 21 - Citicorp Third Quarter 1995 results - 10/17/95
OTHER REVENUE
($ Millions)
Third Quarter Nine Months
1995 1994(A) 1995 1994(A)
------ ------ ------ ------
Securitized Credit
Card Receivables......... $ 274 $ 251 $ 734 $ 695
Venture Captial........... 89 48 362 152
Affiliate Earnings........ 50 45 157 162
Mortgage Pass-Through
Securitizaion Activity... 4 (13) 11 (60)
Foreign Currency Translation
(Losses) Gains........... (3) (9) 2 (2)
Net Asset Gains and
Other Items.............. 24 85 133 227
------ ------ ------ ------
Total..................... $ 438 $ 407 $ 1,399 $ 1,174
====== ====== ====== ======
TRADING-RELATED REVENUE
($ Millions)
Third Quarter Nine Months
1995 1994 1995 1994
------ ------ ------ ------
By Income Statement Line:
Trading and
Foreign Exchange........ $ 432 $ 287 $ 1,241 $ 517
Other (Primarily NIR).... 126 203 265 521
------ ------ ------ ------
Total.................... $ 558 $ 490 $ 1,506 $ 1,038
====== ====== ====== ======
By Trading Activity:
Foreign Exchange......... $ 294 $ 183 $ 862 $ 495
Derivative............... 137 166 356 336
Fixed Income............. 46 46 55 (21)
Other.................... 81 95 233 228
------ ------ ------ ------
Total.................... $ 558 $ 490 $ 1,506 $ 1,038
====== ====== ====== ======
By Business Sector:
Developed Markets........ $ 317 $ 226 $ 816 $ 470
Emerging Markets......... 181 217 508 430
------ ------ ------ ------
Total Global Finance...... 498 443 1,324 900
Global Consumer and Other. 60 47 182 138
------ ------ ------ ------
Total..................... $ 558 $ 490 $ 1,506 $ 1,038
====== ====== ====== ======
(A) Reclassified to conform to current quarter's presentation.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report and amendment to be signed on its
behalf by the undersigned thereunto duly authorized.
CITICORP
(Registrant)
By:/s/ Thomas E. Jones
-----------------------------
Thomas E. Jones
Executive Vice President
A Principal Financial Officer
Dated: October 20, 1995
<TABLE>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
(In Millions)
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
EXCLUDING INTEREST ON DEPOSITS: 1994 1993 1992 1991 1990 1995 1994
--------- -------- -------- -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) 5,906 6,324 5,826 5,973 9,414 3,100 4,908
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 108 107
--------- -------- -------- -------- -------- --------- ---------
TOTAL FIXED CHARGES 6,049 6,471 5,988 6,144 9,587 3,208 5,015
INCOME:
NET INCOME(LOSS) 3,422 (A) 1,919 (B) 722 (914) (C) 318 (D) 2,559 2,380 (A)
INCOME TAXES 1,189 941 696 677 508 1,586 1,000
FIXED CHARGES 6,049 6,471 5,988 6,144 9,587 3,208 5,015
--------- -------- -------- -------- -------- --------- ---------
TOTAL INCOME 10,660 9,331 7,406 5,907 10,413 7,353 8,395
========= ======== ======== ======== ======== ========= =========
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.76 1.44 1.24 0.96 (E) 1.09 2.29 1.67
========= ======== ======== ======== ======== ========= =========
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 14,902 16,121 16,327 17,089 23,798 9,713 11,822
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 108 107
--------- -------- -------- -------- -------- --------- ---------
TOTAL FIXED CHARGES 15,045 16,268 16,489 17,260 23,971 9,821 11,929
INCOME:
NET INCOME(LOSS) 3,422 (A) 1,919 (B) 722 (914) (C) 318 (D) 2,559 2,380 (A)
INCOME TAXES 1,189 941 696 677 508 1,586 1,000
FIXED CHARGES 15,045 16,268 16,489 17,260 23,971 9,821 11,929
--------- -------- -------- -------- -------- --------- ---------
TOTAL INCOME 19,656 19,128 17,907 17,023 24,797 13,966 15,309
========= ======== ======== ======== ======== ========= =========
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.31 1.18 1.09 0.99 (E) 1.03 1.42 1.28
========= ======== ======== ======== ======== ========= =========
(A) NET INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1994 AND THE FULL YEAR
1994 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL
ACCOUNTING STANDARDS No. 112, "EMPLOYERS' ACCOUNTING FOR POSTEMPLOYMENT
BENEFITS", OF $(56) MILLION.
(B) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1993 EXCLUDES THE CUMULATIVE
EFFECT OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 109,
"ACCOUNTING FOR INCOME TAXES", OF $300 MILLION.
(C) NET LOSS FOR THE YEAR ENDED DECEMBER 31, 1991 EXCLUDES THE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE FOR VENTURE CAPITAL INVESTMENTS OF $457
MILLION.
(D) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1990 EXCLUDES THE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE FOR CERTAIN DERIVATIVE PRODUCTS OF $140
MILLION.
(E) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER
FIXED CHARGES BY THE AMOUNT OF $237 MILLION.
</TABLE>
<TABLE>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
INCLUDING PREFERRED STOCK DIVIDENDS
<CAPTION>
(In Millions) NINE MONTHS ENDED
SEPTEMBER 30
EXCLUDING INTEREST ON DEPOSITS: 1994 1993 1992 1991 1990 1995 1994
--------- -------- -------- -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) 5,906 6,324 5,826 5,973 9,414 3,100 4,908
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 108 107
DIVIDENDS--PREFERRED STOCK 505 (A) 465 416 271 (A) 361 444 (A) 405 (A)
--------- -------- -------- -------- -------- --------- ---------
TOTAL FIXED CHARGES 6,554 6,936 6,404 6,415 9,948 3,652 5,420
INCOME:
NET INCOME(LOSS) 3,422 (B) 1,919 (C) 722 (914) (D) 318 (E) 2,559 2,380 (B)
INCOME TAXES 1,189 941 696 677 508 1,586 1,000
FIXED CHARGES (EXCLUDING PREFERRED
STOCK DIVIDENDS) 6,049 6,471 5,988 6,144 9,587 3,208 5,015
--------- -------- -------- -------- -------- --------- ---------
TOTAL INCOME 10,660 9,331 7,406 5,907 10,413 7,353 8,395
========= ======== ======== ======== ======== ========= =========
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.63 1.35 1.16 0.92 (F) 1.05 2.01 1.55
========= ======== ======== ======== ======== ========= =========
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 14,902 16,121 16,327 17,089 23,798 9,713 11,822
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 108 107
DIVIDENDS--PREFERRED STOCK 505 (A) 465 416 271 (A) 361 444 (A) 405 (A)
--------- -------- -------- -------- -------- --------- ---------
TOTAL FIXED CHARGES 15,550 16,733 16,905 17,531 24,332 10,265 12,334
INCOME:
NET INCOME(LOSS) 3,422 (B) 1,919 (C) 722 (914) (D) 318 (E) 2,559 2,380 (B)
INCOME TAXES 1,189 941 696 677 508 1,586 1,000
FIXED CHARGES (EXCLUDING PREFERRED
STOCK DIVIDENDS) 15,045 16,268 16,489 17,260 23,971 9,821 11,929
--------- -------- -------- -------- -------- --------- ---------
TOTAL INCOME 19,656 19,128 17,907 17,023 24,797 13,966 15,309
========= ======== ======== ======== ======== ========= =========
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.26 1.14 1.06 0.97 (F) 1.02 1.36 1.24
========= ======== ======== ======== ======== ========= =========
(A) CALCULATED ON A BASIS OF AN ASSUMED TAX RATE OF 39% AND 34% FOR THE NINE
MONTHS ENDED SEPTEMBER 30,1995 AND 1994, 29% AND 34% FOR THE FULL YEAR OF
1994 AND 1991,RESPECTIVELY.
(B) NET INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1994 AND THE FULL YEAR
1994 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL
ACCOUNTING STANDARDS No. 112, "EMPLOYERS' ACCOUNTING FOR POSTEMPLOYMENT
BENEFITS", OF $(56) MILLION.
(C) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1993 EXCLUDES THE CUMULATIVE
EFFECT OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 109,
"ACCOUNTING FOR INCOME TAXES", OF $300 MILLION.
(D) NET LOSS FOR THE YEAR ENDED DECEMBER 31, 1991 EXCLUDES THE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE FOR VENTURE CAPITAL INVESTMENTS OF $457
MILLION.
(E) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1990 EXCLUDES THE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE FOR CERTAIN DERIVATIVE PRODUCTS OF $140
MILLION.
(F) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER
FIXED CHARGES BY THE AMOUNT OF $508 MILLION.
</TABLE>
