<PAGE>
________________________________________________________________________________
________________________________________________________________________________
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): April 15, 1999
BANKBOSTON CORPORATION
(Exact name of registrant as specified in its charter)
Massachusetts 1-6522 04-2471221
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
100 Federal Street, Boston, Massachusetts 02110
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (617) 434-2200
________________________________________________________________________________
________________________________________________________________________________
<PAGE>
-2-
Item 5. Other Events.
- ----------------------
On April 15, 1999, BankBoston Corporation (the Corporation) issued a press
release announcing its earnings for the quarter ended March 31, 1999. The
financial information that is included herewith as Exhibit 99(a) was included in
the Corporation's press release and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
- -------------------------------------------
(c) Exhibits.
99(a) Financial information included in the Corporation's Press Release dated
April 15, 1999.
<PAGE>
-3-
SIGNATURES
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.
BANKBOSTON CORPORATION
/s/ Robert T. Jefferson
Dated: April 16, 1999 ----------------------------
Robert T. Jefferson
Comptroller
<PAGE>
EXHIBIT 99 (A)
BANKBOSTON REPORTS FIRST QUARTER NET INCOME
OF $223 MILLION OR $.75 PER SHARE
BOSTON, April 15, 1999 -- BankBoston Corporation (NYSE: BKB) reported today
first quarter net income of $223 million, or $.75 per common share on a diluted
basis. This compares with $207 million, or $.70 per share, in the fourth
quarter of 1998 and $238 million, or $.79 per share, in the first quarter of
1998.
Highlights were as follows:
. Revenues, on a fully taxable equivalent basis and excluding prior
period business sale gains and asset writedowns, were $1,234 million,
compared with $1,202 million in the prior quarter and $1,031 million
in the first quarter of 1998;
. Total expenses were $806 million in the first quarter, compared with
$816 million in the prior quarter and $661 million in the first
quarter of 1998;
. Robertson Stephens achieved record revenue levels and posted pre-tax
income, excluding bonus payments due to employees under the
acquisition agreement and goodwill amortization, of approximately $30
million. This compared with approximately $15 million in the fourth
quarter of 1998;
. The Corporation's Brazilian operations reported an increase in net
income of nearly 40% compared with the first quarter of 1998. During
the first quarter of 1999, the Brazilian government devalued its
currency by allowing it to float freely against the U.S. dollar.
Included in the first quarter of 1999 results were gains that arose
from currency positions maintained during the quarter; these gains
were offset by other factors, mainly related to various aspects of
fiscal reforms recently passed by the Brazilian government, including
certain tax measures. Net income from the Corporation's Argentine
operations improved by approximately 25% from the first quarter of
1998;
. Provision for credit losses was $70 million in the first quarter,
compared with $120 million in the prior quarter and $140 million in
the first quarter of 1998. Net credit losses were $66 million in the
current quarter, $113 million in the prior quarter and $141 million in
the first quarter of 1998. The reserve for credit losses was 1.77% of
outstanding loans and leases at March 31, 1999, compared with 1.76% at
December 31, 1998 and 1.65% at March 31, 1998;
. Nonaccrual loans and OREO totaled $382 million at March 31, 1999, $402
million at December 31, 1998 and $369 million at March 31, 1998;
. Return on average common equity was 18.54% in the first quarter,
compared with 17.21% in the prior quarter and 21.31% in the first
quarter of 1998;
. Return on average assets was 1.19% in the first quarter, compared with
1.09% in the prior quarter and 1.39% in the first quarter of 1998.
<PAGE>
Noninterest income
The components of noninterest income are as follows:
<TABLE>
<CAPTION>
Fourth
Quarter First Quarter
------- -------------
1998 (in millions) 1999 1998 Change
---- ---- ---- ------
<S> <C> <C> <C> <C>
$ 295 Financial service fees and commissions $ 334 $ 165 $ 169
42 Net equity and mezzanine profits 34 52 (18)
37 Mutual fund fees 33 31 2
40 Personal trust fees 39 40 (1)
5 Other trust and agency fees 7 8 (1)
19 Trading profits and commissions 39 34 5
32 Net foreign exchange profits 45 28 17
(12) Securities gains/(losses), net (2) 25 (27)
54 Other income 66 41 25
----- ----- ----- -----
512 Subtotal 595 424 171
89 Gains on sales of businesses 0 165 (165)
----- ----- ----- -----
$ 601 Total $ 595 $ 589 $ 6
===== ===== ===== =====
</TABLE>
. Changes in financial service fees and commissions are detailed below.
. Equity and mezzanine profits declined in both comparisons mainly due
to a lower level of sales activity. At March 31, 1999, the Private
Equity portfolio had a carrying value of $1.4 billion compared with
$1.2 billion at March 31, 1998.
. Mutual fund fees declined from the prior quarter due to a lower level
of fees from Brazil. While assets under management and fee income in
Brazil grew in local currency terms, the decline in dollar value
reflected the devaluation of Brazil's local currency. The Corporation
remains among the top mutual fund providers in Brazil and Argentina at
March 31, 1999, ranking fourth in Brazil with assets under management
of $4.5 billion and first in Argentina with assets under management of
$1.8 billion.
. The improvement in trading account profits and commissions from the
prior quarter mainly reflects profits earned during the first quarter
by the Boston-based emerging markets and high yield trading units
compared with losses incurred during the fourth quarter of last year.
The growth in trading account profits from the first quarter of last
year is due, in part, to the acquisition of Robertson Stephens during
the third quarter of 1998.
. Foreign exchange profits were up sharply in both comparisons as the
Corporation's Boston-based business benefited from a greater volume of
customer transactions due, in part, to a higher demand for products
arising out of volatile market conditions. In addition, results from
the Southern Cone region of Latin America (Argentina, Chile and
Uruguay) also improved.
. Net securities losses declined from the fourth quarter when the
Corporation recorded a $22 million charge for impairment related to
certain available for sale securities held in the Corporation's
Boston-based emerging markets portfolio. This was partially offset by
a lower level of domestic securities gains. The $25 million of net
gains registered in the first quarter of last year reflected gains
from sales of domestic and emerging markets securities.
. The increase in other income in both comparisons was primarily due to
gains that arose in Brazil from currency positions maintained during
the first quarter of 1999, as the Brazilian government devalued its
currency by allowing it to float freely against the U.S. dollar.
These gains, however, were offset by other factors, mainly related to
various aspects of fiscal reforms recently passed by the Brazilian
government, including certain tax measures. Both other income
comparisons were also affected by changes in the levels of earnings
from equity subsidiaries, earnings on investments in bank owned life
insurance policies, and loan sale gains.
<PAGE>
. During the fourth quarter of 1998, the Corporation recorded a $51
million gain in connection with the sale of its Berkshire branch
network in western Massachusetts and recorded a $38 million gain in
connection with the sale of its domestic institutional custody
business. During the first quarter of 1998, the Corporation recorded a
gain of $165 million related to the sale of its 26% ownership interest
in HomeSide Inc., a mortgage banking company.
The components of financial service fees and commissions are as follows:
<TABLE>
<CAPTION>
Fourth
Quarter First Quarter
------- -------------
1998 (in millions) 1999 1998 Change
---- ---- ---- ------
<S> <C> <C> <C> <C>
$ 87 Deposit and ATM-related fees $ 80 $ 70 $ 10
19 Letters of credit and acceptance fees 20 18 2
18 Other loan-related fees 18 13 5
24 Credit card fees 21 10 11
17 Syndication and agent fees 28 15 13
16 Underwriting fees 60 5 55
43 Brokerage fees and commissions 55 3 52
38 Advisory fees 20 5 15
33 Other 32 26 6
----- ----- ----- ----
$ 295 Total $ 334 $ 165 $169
===== ===== ===== ====
</TABLE>
. Deposit and ATM-related fees declined from the fourth quarter due to
lower levels of fees from domestic retail banking and Argentina. These
declines were due, in part, to seasonal factors that resulted in a
lower volume of transactions. The growth in fees from the first
quarter of last year was mainly driven by increases in Argentina and
domestic electronic banking fees.
. The decline in credit card fees from the fourth quarter is mainly due
to a decrease in fees from Argentina, while the increase from the
first quarter of last year is due to growth in Brazil and Uruguay. The
latter was affected by the acquisition of OCA (a consumer finance
company in Uruguay) during 1998.
. Syndication and agent fees increased in both comparisons due to a
higher level of activity.
. The growth in underwriting fees and brokerage fees and commissions in
both comparisons relates to Robertson Stephens and includes a very
strong performance in both of these fee categories during the first
quarter of 1999.
. The change in advisory fees in both comparisons relates to Robertson
Stephens, an investment banking company acquired by the Corporation
during the third quarter of 1998, and includes a very strong
performance in the fourth quarter of last year.
. Other financial service fees improved from the first quarter of last
year due, in part, to a higher level of fees from Argentina.
<PAGE>
Net interest revenue
Net interest revenue, on a fully taxable equivalent basis, was $639 million
for the first quarter of 1999, compared with $668 million in the prior quarter
and $607 million in the first quarter of 1998. Net interest margin was 4.03%
for the first quarter of 1999, compared with 4.13% in the fourth quarter of 1998
and 4.07% in the first quarter of last year.
The $29 million decline in net interest revenue and the 10 basis point
decline in net interest margin from the prior quarter were affected by a
decrease of approximately $20 million in dividends from private equity
investments and the impact of fiscal reforms recently passed by the Brazilian
government, including certain tax measures. These factors were partially
offset by wider spreads in Brazil stemming from economic volatility in the
country and higher domestic loan fees. Two fewer days in the first quarter
accrual period also contributed to the decline in net interest revenue. The
decline in net interest margin was also affected by a $2 billion increase in the
average balance of liquid, lower-yielding assets in the Corporation's Section 20
subsidiary, reflecting a much higher level of activity in Robertson Stephens.
Domestic average loans and leases declined by approximately $2 billion mainly
due to securitizations of domestic commercial and home equity loans which were
completed in December, 1998. The commercial loan securitization had a favorable
impact on net interest margin.
Compared with the first quarter of 1998, net interest revenue increased $32
million while net interest margin declined 4 basis points. The increase in net
interest revenue was mainly driven by international operations, as Argentina
benefited from wider spreads and an increase in average earning assets of
approximately $1.5 billion. The latter reflected expansion activities that
occurred during 1998, including the acquisition of Deutsche Bank Argentina and
the opening of new branches. In addition, the net interest revenue comparison
also benefited from last year's acquisition of OCA and wider spreads in Brazil.
Partially offsetting these improvements was a decline in Brazilian average
earning assets, reflecting the current recessionary environment, and the impact
of fiscal reforms recently passed by the Brazilian government, including certain
tax measures. Net interest revenue from domestic operations declined due to the
absence of net interest revenue from the national credit card business, which
was contributed into a joint venture during the first quarter of 1998, and
narrower spreads. These factors were also the main reasons for the decline in
consolidated margin, partially offset by the aforementioned wider spreads in
Argentina and Brazil.
<PAGE>
Noninterest expense
The components of noninterest expense are as follows:
<TABLE>
<CAPTION>
Fourth
Quarter First Quarter
------- -------------
1998 (in millions) 1999 1998 Change
---- ---- ---- ------
<S> <C> <C> <C> <C>
$ 459 Employee costs $ 473 $ 354 $119
109 Occupancy & equipment 109 94 15
36 Professional fees 27 24 3
25 Advertising and public relations 25 22 3
38 Communications 35 30 5
13 Goodwill amortization 13 8 5
136 Other 124 129 (5)
----- ----- ----- ----
$ 816 Total $ 806 $ 661 $145
===== ===== ===== ====
</TABLE>
Noninterest expense was $806 million in the first quarter of 1999, compared
with $816 million in the prior quarter and $661 million in the first quarter of
1998. Below is an analysis of the changes in noninterest expense from the
fourth quarter:
<TABLE>
<S> <C>
Noninterest expense: fourth quarter 1998 $816
. Increase in compensation expense for Robertson Stephens associated with quarterly growth in revenue 19
. Absence of Q4 charges associated with the write-off of software in connection with converting to a new
trust system and branch closings (9)
. Lower professional fees, mainly consulting (9)
. Other factors net, including impact of Brazil's devaluation (11)
----
Noninterest expense: first quarter 1999 $806
====
</TABLE>
Noninterest expense increased $145 million from the first quarter of 1998.
This mainly reflects expansion activities by the Corporation and includes an
increase of approximately $120 million (including bonus payments due to
employees under the acquisition agreement and goodwill amortization) from
Robertson Stephens, which was acquired during the third quarter of last year,
and an increase of approximately $45 million from Latin America, mainly
reflecting branch expansion in Argentina and Brazil. In addition, higher levels
of incentive compensation associated with the growth in revenue also contributed
to the increase. These factors were partially offset by the absence of $48
million of charges recorded in the first quarter of 1998 related to the Regional
Bank, as well as the realignments of the European and the private banking
businesses.
<PAGE>
Credit Profile
Loan and Lease Portfolio
The segments of the lending portfolio are as follows:
<TABLE>
(in millions) 3-31-99 12-31-98 9-30-98 6-30-98 3-31-98
------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
United States Operations:
Commercial, industrial and financial $ 17,028 $ 16,294 $ 18,218 $ 16,275 $ 15,887
Commercial real estate:
Construction 228 215 209 219 260
Other commercial real estate 3,531 3,871 4,089 3,876 3,736
Consumer-related loans:
Residential mortgages 1,840 2,035 2,111 2,229 2,551
Home equity 2,325 2,294 2,672 2,871 2,802
Credit card 379 404 393 412 503
Other 2,433 2,532 2,693 2,753 2,801
Lease financing 1,768 1,801 1,607 1,609 2,017
Unearned income (291) (275) (231) (232) (303)
-------- --------- -------- -------- --------
29,241 29,171 31,761 30,012 30,254
-------- --------- -------- -------- --------
International Operations:
Commercial 10,308 10,356 10,636 10,218 10,682
Consumer-related loans:
Residential mortgages 1,249 1,251 1,383 1,318 1,302
Credit card 327 362 339 248 226
Other 1,162 1,192 1,164 1,087 987
Lease financing 705 725 652 519 517
Unearned income (217) (251) (188) (148) (146)
-------- --------- -------- -------- --------
13,534 13,635 13,986 13,242 13,568
-------- --------- -------- -------- --------
Total loans and lease financing $ 42,775 $ 42,806 $ 45,747 $ 43,254 $ 43,822
======== ========= ======== ======== ========
</TABLE>
Loans and leases were $42.8 billion at March 31, 1999 and December 31,
1998. The domestic portfolio increased $70 million from the end of 1998 as
increases in certain commercial and industrial portfolios, including asset based
finance, were offset by lower levels of consumer and commercial real estate
loans. The latter is affected by the timing of syndication activity. The
international portfolio declined slightly from the end of 1998 as an increase in
Argentine loans was offset by declines in the Brazilian and Asian portfolios.
The decline in Brazil related to the recessionary environment in that country
and the devaluation of Brazil's local currency. The decrease in Asia reflects
downsizing in the region as announced by the Corporation in October 1998,
including the closing of four offices.
<PAGE>
Nonaccrual Loans and OREO
Nonaccrual loans and OREO amounted to $382 million at March 31, 1999,
compared with $402 million at December 31, 1998, and $369 million at March 31,
1998. Nonaccrual loans and OREO represented .9% of related assets at March 31,
1999 and December 31, 1998, compared with .8% at March 31, 1998.
The components of consolidated nonaccrual loans and OREO are as follows:
<TABLE>
<CAPTION>
(in millions) 3-31-99 12-31-98 9-30-98 6-30-98 3-31-98
-------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Domestic nonaccrual loans:
Commercial, industrial and financial $ 81 $ 86 $ 71 $ 63 $ 43
Commercial real estate:
Construction 2 2 2 2 3
Other commercial real estate 17 19 30 33 41
Consumer-related loans:
Residential mortgages 30 36 36 42 46
Home equity 16 17 18 15 15
Credit card 6 6 6 6 6
Other 16 20 21 18 20
-------- --------- -------- -------- --------
168 186 184 179 174
-------- --------- -------- -------- --------
International nonaccrual loans:
Commercial 77 86 103 107 97
Consumer-related loans:
Residential mortgages 56 50 39 36 34
Credit card 8 6 7 6 4
Other 49 47 33 26 18
-------- --------- -------- -------- --------
190 189 182 175 153
-------- --------- -------- -------- --------
Total nonaccrual loans 358 375 366 354 327
OREO 24 27 29 28 42
-------- --------- -------- -------- --------
Total $ 382 $ 402 $ 395 $ 382 $ 369
======== ========= ======== ======== ========
</TABLE>
<PAGE>
Provision and Reserve for Credit Losses
The reserve for credit losses at March 31, 1999 was $758 million, or 1.77%
of outstanding loans and leases, compared with $754 million, or 1.76% at
December 31, 1998, and $725 million, or 1.65% at March 31, 1998. The reserve
for credit losses was 212% of nonaccrual loans at March 31, 1999, compared with
201% at December 31, 1998 and 222% at March 31, 1998.
The provision for credit losses was $70 million in the first quarter of
1999, compared with $120 million in the fourth quarter of 1998 and $140 million
in the first quarter of 1998.
Net credit losses were $66 million in the first quarter of 1999, compared
with $113 million in the fourth quarter of 1998 and $141 million in the first
quarter of 1998. The improvement in net credit losses from the fourth quarter
reflected declines from the domestic commercial, Asian, Argentine and Brazilian
portfolios. Net credit losses in the first quarter of 1998 included $66 million
related to a previously discussed situation surrounding a series of loans made
by a former officer in the Corporation's international private banking office in
New York, as well as $16 million related to the national credit card portfolio
that was subsequently contributed to a joint venture.
Net credit losses as a percent of average loans and leases on an annualized
basis were .63% in the first quarter of 1999, compared with .98% for the fourth
quarter of 1998 and 1.30% in the first quarter of 1998.
Net credit losses were as follows:
<TABLE>
<CAPTION>
Fourth
Quarter First Quarter
------- -------------
1998 (in millions) 1999 1998
---- ---- ----
<S> <C> <C> <C>
Domestic
$ 38 Commercial, industrial and financial $ 21 $ 13
0 Commercial real estate (3) (1)
Consumer-related loans:
2 Residential mortgages 0 2
5 Credit card 4 20
2 Home equity 1 2
13 Other 13 19
----- ----- -----
60 36 55
International
34 Commercial 8 76
Consumer-related loans:
5 Credit card 4 2
14 Other 18 8
----- ----- -----
53 30 86
----- ----- -----
$ 113 Total $ 66 $ 141
===== ===== =====
</TABLE>
<PAGE>
The Corporation
BankBoston, with assets of $75.7 billion and some 25,000 employees, is the
nation's oldest commercial bank and New England's only global bank. BankBoston
is engaged in consumer, small business and corporate banking in New England;
delivering sophisticated financial solutions to corporations and governments
nationally and internationally; and full service banking in leading Latin
American markets. The Corporation's common stock is listed on the New York and
Boston stock exchanges.
On March 14, 1999, the Corporation entered into an agreement and plan of
merger with Fleet Financial Group, Inc. The merger, which will be accounted for
as a pooling of interests, is subject to shareholder and regulatory approvals,
and is expected to be completed in the latter half of 1999.
************
This press release contains forward-looking statements that involve risks
and uncertainties that could cause actual results to differ materially from
estimates. These risks and uncertainties include, among other things, (1)
significant changes in world financial markets, particularly in Latin America
and Asia; (2) the ability of various countries in Asia and Latin America,
particularly in Brazil, to institute timely and effective economic policies; (3)
developments in general economic conditions, both domestic and international,
including interest rate and currency fluctuations, market fluctuations and
perceptions, and inflation; (4) legislative or regulatory developments,
including changes in laws concerning taxes, banking, securities, insurance and
other aspects of the financial services industry; (5) changes in the competitive
environment for financial services organizations and the Corporation's ability
to manage those changes; and (6) the Corporation's ability and resources, in
both its domestic and international operations, to effectively execute its
articulated business strategies and manage risks associated with the Year 2000
issue. In addition to these factors, the forward-looking statements in this
press release relating to the Corporation's pending merger with Fleet Financial
Group, Inc. are subject to a number of risks and uncertainties including, among
other things, (1) the ability of the combined entity to fully realize expected
cost savings from the merger or to realize those savings within the expected
timeframe; (2) the level of revenues following the merger; (3) the level of
costs related to the integration of the businesses of the Corporation and Fleet.
<PAGE>
Consolidated Balance Sheet
(dollars in millions)
<TABLE>
<CAPTION>
December 31 March 31
----------- ---------------------
1998 1999 1998
----- ------- -------
<S> <C> <C>
Assets
Securities:
$12,075 Available for sale $13,472 $10,669
459 Held to maturity 410 535
42,806 Loans and lease financing 42,775 43,822
(754) Reserve for credit losses (758) (725)
------- ------- -------
42,052 Net loans and lease financing 42,017 43,097
5,733 Other earning assets 6,939 5,875
13,194 Cash and other assets 12,870 11,252
------- ------- -------
$73,513 Total Assets $75,708 $71,428
======= ======= =======
Liabilities and Stockholders' Equity
$48,500 Deposits $48,468 $46,397
12,016 Funds borrowed 13,878 13,954
4,593 Notes payable 4,616 3,469
2,592 Other liabilities 2,788 2,054
Guaranteed preferred beneficial interests in
995 corporation's junior subordinated debentures 995 747
------- ------- -------
68,696 Total Liabilities 70,745 66,621
------- ------- -------
Stockholders' Equity
0 Preferred equity 0 278
4,817 Common equity 4,963 4,529
------- ------- -------
4,817 Total Stockholders' Equity 4,963 4,807
------- ------- -------
$73,513 Total Liabilities and Stockholders' Equity $75,708 $71,428
======= ======= =======
</TABLE>
Selected Average Balances
<TABLE>
<CAPTION>
Quarter Ended Quarters Ended
December 31 March 31
----------- --------
1998 1999 1998
------ ------- -------
<S> <C> <C>
Assets
$45,731 Loans and lease financing $42,536 $43,706
12,171 Securities 13,247 10,606
64,204 Total earning assets 64,280 60,487
75,331 Total assets 76,110 69,710
Liabilities and Stockholders' Equity
40,535 Interest bearing deposits 40,378 37,158
6,854 Noninterest bearing deposits 7,038 8,616
------- ------- -------
47,389 Total deposits 47,416 45,774
5,477 Notes payable (1) 5,526 3,749
59,291 Total interest bearing liabilities 59,280 53,216
4,769 Common stockholders' equity 4,877 4,452
4,769 Total stockholders' equity 4,877 4,730
</TABLE>
(1) Amounts include guaranteed beneficial interests in the Corporation's junior
subordinated debentures.
<PAGE>
Consolidated Statement of Income
(dollars in millions, except per share amounts)
<TABLE>
<CAPTION>
Quarter Ended Quarters Ended
December 31 March 31
----------- --------------
1998 1999 1998
----- ------ ------
<S> <C> <C> <C>
$1,439.6 Interest income $1,371.7 $1,337.4
780.7 Interest expense 736.9 734.1
-------- -------- --------
658.9 Net interest revenue 634.8 603.3
120.0 Provision for credit losses 70.0 140.0
-------- -------- --------
Net interest revenue after provision
538.9 for credit losses 564.8 463.3
-------- -------- --------
Noninterest income:
294.5 Financial service fees and commissions 333.5 165.1
82.4 Trust and investment management fees 79.1 79.3
19.0 Trading profits and commissions 39.0 34.0
(12.2) Securities gains/(losses), net (2.0) 24.8
216.8 Other income 145.1 285.8
-------- -------- --------
600.5 Total noninterest income 594.7 589.0
-------- -------- --------
Noninterest expense:
390.9 Salaries 401.9 292.7
68.2 Employee benefits 71.5 60.9
62.9 Occupancy expense 64.0 54.4
45.9 Equipment expense 44.6 40.1
248.0 Other expense 223.5 212.9
-------- -------- --------
815.9 Total noninterest expense 805.5 661.0
-------- -------- --------
323.5 Income before income taxes 354.0 391.3
116.6 Provision for income taxes 131.0 153.0
-------- -------- --------
$ 206.9 NET INCOME $ 223.0 $ 238.3
======== ======== ========
Net Income Per Common Share:
$ .70 Basic $ .75 $ .80
$ .70 Diluted $ .75 $ .79
$ .29 Dividends Paid Per Common Share $ .32 $ .29
Average number of common shares, in thousands:
294,774 Basic 295,935 292,542
296,755 Diluted 298,477 296,840
$ 0 Preferred dividends $ 0 $ 4.4
</TABLE>
Number of Employees
<TABLE>
<CAPTION>
Mar. 31 Dec. 31 Mar. 31
1999 1998 1998
--------- --------- ----------
<S> <C> <C> <C>
Full time equivalent employees 24,700 24,500 22,500
</TABLE>
<PAGE>
Other Data
(dollars in millions, except per share amounts)
<TABLE>
<CAPTION>
Quarter Ended Quarters Ended
December 31 March 31
----------- --------
1998 1999 1998
------- ------ ------
<S> <C> <C> <C>
1.09% Return on average total assets (annualized) 1.19% 1.39%
17.21% Return on average common equity (annualized) 18.54% 21.31%
$668.2 Net interest revenue, fully taxable equivalent basis $639.0 $607.0
4.13% Consolidated net interest margin 4.03% 4.07%
3.64% Domestic net interest margin (estimated) 3.55% 4.14%
5.34% International net interest margin (estimated) 5.23% 3.92%
</TABLE>
<TABLE>
<CAPTION>
December 31 March 31
----------- --------
1998 1999 1998
------ ------- ------
<S> <C> <C>
Common stockholders' equity:
$ 4,817 Common stockholders' equity $ 4,963 $ 4,529
294,972 Common shares outstanding, in thousands 296,626 293,413
Per common share:
$ 16.33 Book value $ 16.73 $ 15.44
38.94 Market value 43.31 55.13
Capital ratios/regulatory capital:
5.54% Tangible common equity ratio 5.56% 5.75%
Risk-based capital ratios: Estimate
7.1% Tier 1 capital ratio (minimum required 4.00%) 7.2% 7.9%
11.7% Total capital ratio (minimum required 8.00%) 11.6% 12.3%
6.7% Leverage ratio 6.9% 7.3%
$ 5,021 Tier 1 capital $ 5,182 $ 5,049
8,239 Total capital 8,331 7,874
70,377 Total risk-adjusted assets 71,671 63,848
</TABLE>
Reserve for Credit Losses
(dollars in millions)
<TABLE>
<CAPTION>
Quarter Ended Quarters Ended
December 31 March 31
----------- --------------------
1998 1999 1998
------- ------ ------
<S> <C> <C>
$ 740.0 Beginning balance $753.5 $ 711.6
120.0 Provision for credit losses 70.0 140.0
6.6 Reserve of acquired companies 0.0 14.0
(132.9) Credit losses (83.6) (156.1)
19.8 Recoveries 17.5 15.6
-------- ------ -------
(113.1) Net credit losses (66.1) (140.5)
-------- ------ -------
$ 753.5 Ending balance $757.4 $ 725.1
======== ====== =======
1.76% Reserve as a % of loans and leases 1.77% 1.65%
======== ====== =======
201% Reserve as a % of nonaccrual loans 212% 222%
======== ====== =======
</TABLE>
######
