<PAGE> 1
_____________________________________________________________________
______
_____________________________________________________________________
______
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
______________
Date of Report (Date of earliest event reported) July 13, 1995
J.P. MORGAN & CO. INCORPORATED
(Exact name of registrant as specified in its charter)
DELAWARE 1-5885 13-2625764
(State or other juris- (Commission (IRS Employer
diction of File Number) Identification No.)
incorporation)
60 WALL STREET, NEW YORK, NEW YORK 10260-
0060
(Address of principal executive offices) (Zip
Code)
Registrant's telephone number, including area code (212) 483-2323
_________________________________________________________________
(Former name or former address, if changed since last report)
_____________________________________________________________________
______
_____________________________________________________________________
______
<PAGE> 2
ITEM 5. OTHER EVENTS
On July 13, 1995, the Registrant issued a press release
announcing
its earnings for the three-month period ended June 30, 1995.
A copy of
such press release is filed herein as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS
(a) Financial Statements
NONE. The financial statements included in this report
are not
required to be filed as part of this report.
(b) Pro Forma Financial Information
NONE.
(c) Exhibits
99. Copy of press release of J.P. Morgan & Co.
Incorporated
dated July 13, 1995.
<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.
J.P. MORGAN & CO. INCORPORATED
______________________________
(REGISTRANT)
/s/ PATRICIA A. JONES
____________________________
NAME: PATRICIA A. JONES
TITLE: MANAGING DIRECTOR
DATE: July 13, 1995
<PAGE> 1
July 13, 1995
J.P. MORGAN REPORTS 1995 SECOND QUARTER RESULTS
J.P. Morgan & Co. Incorporated reported net income of $315 million in
the second quarter of 1995, down 10% from the second quarter of 1994.
Net income in the first quarter of this year was $255 million,
including a special charge of $55 million ($33 million after tax, or
$0.17 per share) related primarily to severance. Second quarter
earnings per share were $1.56 versus $1.73 a year earlier and $1.27
in the 1995 first quarter.
Net income for the first six months of 1995 totaled $570 million,
including the special charge, compared with $695 million in the first
six months of 1994. Six-month earnings per share were $2.83 versus
$3.43 a year ago.
Douglas A. Warner III, chairman, said: "Second quarter results
continued the improvement reported in the first quarter. Challenging
conditions in a number of markets again drove home the value of
global diversification in our core business activities."
<TABLE>
SECOND QUARTER RESULTS AT A GLANCE
<CAPTION>
In millions of dollars, First
except per share data Second quarter quarter
1995 1994 1995
_____________________________________________________________________
________
<S> <C> <C> <C>
Revenues $1,449 $1,466 $1,388
Operating expenses (984) (936) (1,002)
Income taxes (150) (180) (131)
_____________________________________________________________________
_________
Net income $ 315 $ 350 $ 255
Net income per share $ 1.56 $ 1.73 $ 1.27
_____________________________________________________________________
_________
Dividends declared per $ 0.75 $ 0.68 $ 0.75
share
_____________________________________________________________________
____ _____
</TABLE>
REVENUES in the second quarter were approximately even with those
of a year ago:
-Combined trading and related net interest revenue rose 10%
to $333 million.
-Corporate finance revenue was up 34% to $117 million.
Morgan's market share in capital raising grew, and advisory
fees increased. Investment management fees also rose,
while credit-related fees were lower.
-Net equity investment securities gains were $132 million in
the second quarter versus $264 million in the corresponding
1994 quarter.
OPERATING EXPENSES rose 5% from a year ago.
In other developments, J.P. Morgan, as previously announced, has
agreed to sell its U.S., U.K., and global securities custody
businesses and U.S. commercial paper issuing and paying agency
business. The move reflects a sharpening of the firm's strategic
focus on core global banking activities. The dispositions will
produce a net gain, to be recorded over time, and are expected to
have no material effect on Morgan's ongoing consolidated results.
The remainder of this release contains information on specific areas
of results, a financial summary, and the consolidated financial
statements.
<PAGE> 2
REVENUES
Revenues totaled $1.449 billion in the second quarter of 1995,
compared with $1.466 billion a year earlier.
Net interest revenue totaled $508 million in the second quarter of
1995, compared with $540 million in the year-earlier quarter. The
1994 quarter included approximately $35 million of past-due interest
payments on Brazilian assets and $50 million in interest revenue
associated with income tax refunds. Excluding these items, net
interest revenue rose 12% from the 1994 second quarter, primarily due
to asset and liability management activities, principally in the
United States.
Trading revenue increased 34% to $305 million from the second quarter
of 1994. Reported trading revenue does not include net interest
revenue associated with trading activities, which was $28 million in
the second quarter of 1995 and $74 million in the second quarter of
1994.
Combined trading and related net interest revenue rose 10% to $333
million from a year earlier. (See the table of combined trading and
related net interest revenue by principal markets on page 9.)
Combined revenue from debt instruments was $136 million, an increase
of $52 million from a year earlier, with improved performance in
Latin America and Asia that was partially offset by mortgage-backed
securities results. Combined revenue from equities and commodities
was up slightly in the second quarter, as was combined revenue from
foreign exchange. Combined trading and net interest revenue from
swaps and other interest rate contracts totaled
$106 million versus $132 million a year ago.
Corporate finance revenue rose 34% to $117 million in the second
quarter from the year-earlier quarter. Underwriting revenue totaled
$41 million, 64% higher than the corresponding 1994 quarter, and
advisory and syndication fees increased 23% to $76 million.
Credit-related fees were $41 million in the second quarter, 25% lower
than in the second quarter of 1994, primarily due to lower securities
lending revenue.
Investment management fees increased 9% to $138 million from a year
earlier, reflecting an increase in assets under management, primarily
from net new business.
Operational service fees in the second quarter totaled $140 million,
unchanged from a year ago.
Net investment securities gains were $33 million in the second
quarter, compared with net gains of $35 million in the second quarter
of 1994.
Other revenue was $167 million in the second quarter, compared with
$254 million in the 1994 second quarter. The 1995 second quarter
reflected net equity investment securities gains of $132 million,
versus $264 million in the year-earlier quarter, when $255 million
was generated from the sale of a portion of the firm's investment in
Columbia/HCA Corporation common stock.
<PAGE> 3
OPERATING EXPENSES
Operating expenses were $984 million in the second quarter of 1995,
5% higher than a year earlier. The weakening in the dollar's value
accounted for 3 percentage points of the increase. Employee
compensation and benefits expenses rose, mostly due to an increase in
salary expense reflecting growth in staff from a year ago.
Technology and communications expenses were $165 million, 14% higher
than a year ago, mainly reflecting expenditures on business support
and development and increases in market information costs.
Expense management initiatives begun in the first quarter of 1995
continued into the second quarter. Excluding the special charge in
the first quarter of 1995, operating expenses rose 4% from the prior
quarter because of an increase in accrued incentive compensation in
line with higher earnings. Expenses other than employee compensation
and benefits were lower than in the first quarter of 1995. At June
30, 1995, staff totaled 16,267 employees compared with 17,055
employees at December 31, 1994.
Income tax expense of $150 million in the second quarter reflects an
effective tax rate of 32%, down from an effective tax rate of 34% in
the second quarter of 1994.
ASSETS
Total assets were $167 billion at June 30, 1995, unchanged from the
total at March 31, 1995. Nonperforming assets decreased by $30
million to $187 million during the second quarter as new
classifications were more than offset by charge-offs, and sales and
repayments. No provision for credit losses was deemed necessary in
the 1995 second quarter. The allowance for credit losses was $1.132
billion at June 30, 1995. (For details, see asset quality tables on
page 10.)
CAPITAL
At June 30, 1995, J.P. Morgan's estimated Tier 1 and total risk-based
capital ratios were 8.7% and 12.9%, respectively, compared with Tier
1 and total risk-based capital ratios of 8.9% and 13.2%,
respectively, at March 31, 1995. The June 30, 1995, leverage ratio
was 6.0%, versus 5.9% at March 31, 1995. J.P. Morgan's risk-based
capital and leverage ratios remain well above the minimum standards
set by the Federal Reserve Board.
At June 30, 1995, stockholders' equity included approximately $459
million of net unrealized appreciation on debt investment and
marketable equity investment securities, net the related deferred tax
liability of $287 million. This compares with $449 million of net
unrealized appreciation at March 31, 1995. The unrealized
appreciation on debt investment securities was $283 million and $227
million at June 30, 1995, and at March 31, 1995, respectively. The
unrealized appreciation on marketable equity investment securities
was $463 million at June 30, 1995, and $498 million at March 31,
1995.
# # #
J.P. Morgan is a global banking firm that serves clients with complex
financial needs through an integrated range of advisory, financing,
trading, investment, and related capabilities.
Attached are the financial summary, the financial statements, the
combined trading and related net interest revenue table, and the
asset quality tables. J.P. Morgan news releases, including quarterly
financial results, are available on the Internet
(http://www.jpmorgan.com).
<PAGE> 4
<TABLE>
FINANCIAL SUMMARY
J.P. Morgan & Co. Incorporated
_____________________________________________________________________
_____________
<CAPTION>
Dollars in
millions,
except per
share data Second Quarter First Six Months
__________________________ Quarter
_________________________
1995 1994 1995 1995 1994
_____________________________________________________________________
_____________
<S> <C> <C> <C> <C> <C>
Net income $315 $350 $255 $570 $695
PER COMMON
SHARE
Net income (a) $ 1.56 $ 1.73 $ 1.27 $ 2.83 $ 3.43
Dividends 0.75 0.68 0.75 1.50 1.36
declared
Book value (b) 48.14 46.86 47.19
_____________________________________________________________________
_____________
Weighted-
average number
of common and
common
equivalent 198,241,3 200,011,0 196,905,1 197,724,0 200,473,4
shares 01 49 06 69 03
outstanding
_____________________________________________________________________
_____________
Dividends
declared on $141 $130 $141 $282 $261
common stock
Dividends
declared on 6 5 6 12 9
preferred
stock
SELECTED
RATIOS
Annualized
rate of return
on average
common
stockholders' 13.4 % 14.8 % 11.1 % 12.3 % 14.8 %
equity (c)
As % of period-
end total
assets:
Common 5.6 5.8 5.5
equity
Total equity 5.9 6.1 5.8
Regulatory
capital ratios
(d)
Tier 1 risk-
based
capital 8.7 9.3 8.9
ratio
Total risk-
based 12.9 13.5 13.2
capital
ratio
Leverage 6.0 6.2 5.9
ratio
_____________________________________________________________________
_____________
AVERAGE
BALANCES
Debt
investment $ 20,659 $ 20,244 $ 22,720 $ 21,684 $ 19,801
securities
(e)
Loans 24,639 23,968 23,667 24,156 24,504
Total
interest- 128,235 134,177 135,310 132,169 135,543
earning
assets
Total assets 174,502 173,630 175,694 175,095 174,693
Total
interest-
bearing 124,177 126,587 129,279 126,714 128,100
liabilities
Total
liabilities 164,753 163,806 166,128 165,437 164,858
Common
stockholders' 9,255 9,330 9,072 9,164 9,341
equity
Total
stockholders' 9,749 9,824 9,566 9,658 9,835
equity
Net interest
earnings
(fully taxable 535 570 529 1,064 996
basis)
Net yield on
interest-
earning assets 1.67 % 1.70 % 1.59 % 1.62 % 1.48 %
_____________________________________________________________________
_____________
Employees at
period-end 16,267 15,745 16,443
_____________________________________________________________________
_____________
<FN>
(a) Earnings per share amounts represent both primary and fully
diluted earnings per share, except for the six months ended June 30,
1995. Fully diluted earnings per share for the six months ended June
30, 1995, was $2.81.
(b) Excluding the impact of SFAS No. 115, book value per common share
would have been $45.78, $43.36 and $44.87 for the three months ended
June 30, 1995, June 30, 1994, and March 31, 1995 respectively.
(c) Excluding the impact of SFAS No. 115, the rate of return on
average common stockholders' equity would have been 14.1%, 16.6% and
11.7% for the three months ended June 30, 1995, June 30, 1994, and
March 31, 1995 respectively, and 12.9% and 16.7% for the six months
ended June 30, 1995 and 1994.
(d) In accordance with Federal Reserve Board guidelines, these ratios
exclude the equity, assets and off-balance-sheet exposures of J.P.
Morgan Securities, Inc. and the effect of SFAS No. 115. Risk-based
capital ratios for June 30, 1995, are estimates.
(e) Average debt investment securities are computed based on
historical amortized cost, excluding the effects of SFAS No. 115
adjustments.
</TABLE>
<PAGE> 5
<TABLE>
CONSOLIDATED STATEMENT OF INCOME
J.P. Morgan & Co. Incorporated
_____________________________________________________________________
_____________
<CAPTION>
In millions,
except per share data Three months ended
_________________________________________________________
June June Increase March 31 Increase
30 30 (Decreas 1995 (Decreas
1995 1994 e) e)
_________________________________________________________
<S> <C> <C> <C> <C> <C>
NET INTEREST REVENUE
Interest revenue $2,405 $2,031 $374 $2,470 ($65)
Interest expense 1,897 1,491 406 1,970 (73)
_____________________________________________________________________
_____________
Net interest revenue 508 540 (32) 500 8
NONINTEREST REVENUE
Trading revenue 305 228 77 303 2
Corporate finance 117 87 30 114 3
revenue
Credit-related fees 41 55 (14) 43 (2)
Investment management
fees 138 127 11 130 8
Operational service 140 140 - 140 -
fees
Net investment
securities 33 35 (2) 9 24
gains
Other revenue 167 254 (87) 149 18
_____________________________________________________________________
_____________
Total noninterest 941 926 15 888 53
revenue
Total revenue 1,449 1,466 (17) 1,388 61
OPERATING EXPENSES
Employee compensation
and 616 592 24 626 (10)
benefits
Net occupancy 79 69 10 80 (1)
Technology and
communications 165 145 20 172 (7)
Other expenses 124 130 (6) 124 -
_____________________________________________________________________
_____________
Total operating 984 936 48 1,002 (18)
expenses
Income before income
taxes 465 530 (65) 386 79
Income taxes 150 180 (30) 131 19
_____________________________________________________________________
_____________
Net income 315 350 (35) 255 60
PER COMMON SHARE
Net income (a) $1.56 $1.73 ($0.17) $1.27 $0.29
Dividends declared 0.75 0.68 0.07 0.75 -
_____________________________________________________________________
_____________
(a) Earnings per share amounts represent both primary and fully
diluted
earnings per share.
</TABLE>
<PAGE> 6
<TABLE>
CONSOLIDATED STATEMENT OF INCOME
J.P. Morgan & Co. Incorporated
_____________________________________________________________________
_____________
<CAPTION>
In millions,
except per share data Six months ended
_______________________________________________________
June 30 June 30 Increase
1995 1994 (Decrease)
_______________________________________________________
<S> <C> <C> <C>
NET INTEREST REVENUE
Interest revenue $4,875 $3,868 $1,007
Interest expense 3,867 2,931 936
_____________________________________________________________________
_____________
Net interest revenue 1,008 937 71
NONINTEREST REVENUE
Trading revenue 608 584 24
Corporate finance 231 204 27
revenue
Credit-related fees 84 111 (27)
Investment management
fees 268 254 14
Operational service 280 284 (4)
fees
Net investment
securities 42 126 (84)
gains
Other revenue 316 357 (41)
_____________________________________________________________________
_____________
Total noninterest 1,829 1,920 (91)
revenue
Total revenue 2,837 2,857 (20)
OPERATING EXPENSES
Employee compensation
and 1,242 1,140 102
benefits
Net occupancy 159 133 26
Technology and
communications 337 274 63
Other expenses 248 241 7
_____________________________________________________________________
_____________
Total operating 1,986 1,788 198
expenses
Income before income
taxes 851 1,069 (218)
Income taxes 281 374 (93)
_____________________________________________________________________
_____________
Net income 570 695 (125)
PER COMMON SHARE
Net income (a) $2.83 $3.43 ($0.60)
Dividends declared 1.50 1.36 0.14
_____________________________________________________________________
_____________
(a) See Financial Summary for per common share data assuming full
dilution.
</TABLE>
<PAGE> 7
<TABLE>
CONSOLIDATED BALANCE SHEET
J.P. Morgan & Co. Incorporated
_____________________________________________________________________
_____________
<CAPTION>
Dollars in millions June 30 March 31 December 31
1995 1995 1994
________________________________________________
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 1,812 $ 1,153 $ 2,210
Interest-earning deposits
with banks 1,736 1,650 1,362
Debt investment securities
available-for-sale carried at
fair value 20,416 21,655 22,657
Trading account assets 68,259 68,198 57,065
Securities purchased under
agreements to resell ($26,127
in June 1995, $27,434 in
March 1995, and $21,170 in
December 1994) and federal 26,209 27,478 21,350
funds sold
Securities borrowed 10,313 11,073 12,127
Loans 24,043 24,434 22,080
Less: allowance for credit 1,132 1,132 1,131
losses
_____________________________________________________________________
_____________
Net loans 22,911 23,302 20,949
Customers' acceptance 266 658 586
liability
Accrued interest and accounts
receivable 3,214 3,011 5,028
Premises and equipment 3,438 3,395 3,318
Less: accumulated 1,420 1,361 1,302
depreciation
_____________________________________________________________________
_____________
Premises and equipment, net 2,018 2,034 2,016
Other assets 9,406 6,865 9,567
_____________________________________________________________________
_____________
Total assets 166,560 167,077 154,917
_____________________________________________________________________
_____________
LIABILITIES
Noninterest-bearing deposits:
In offices in the U.S. 3,494 2,889 3,693
In offices outside the 995 682 767
U.S.
Interest-bearing deposits:
In offices in the U.S. 2,156 2,015 1,826
In offices outside the 38,671 41,238 36,799
U.S.
_____________________________________________________________________
_____________
Total deposits 45,316 46,824 43,085
Trading account liabilities 42,404 45,210 36,407
Securities sold under
agreements to repurchase
($32,864 in June 1995,
$32,884 in March 1995, and
$30,179 in December 1994) and 38,496 35,843 35,768
federal funds purchased
Commercial paper 1,903 2,309 3,507
Other liabilities for
borrowed money 12,068 11,334 10,900
Accounts payable and accrued
expenses 4,804 3,949 6,231
Liability on acceptances 266 658 586
Long-term debt not qualifying
as risk-based capital 5,759 5,009 3,605
Other liabilities 2,340 3,018 2,063
_____________________________________________________________________
_____________
153,356 154,154 142,152
Long-term debt qualifying as
risk-based capital 3,333 3,283 3,197
_____________________________________________________________________
_____________
Total liabilities 156,689 157,437 145,349
STOCKHOLDERS' EQUITY
Preferred stock (authorized
shares: 10,000,000):
Adjustable rate cumulative
preferred stock (issued and
outstanding: 2,444,300) 244 244 244
Variable cumulative
preferred
stock (issued and 250 250 250
outstanding:
250,000)
Common stock, $2.50 par value
(authorized shares:
500,000,000; issued:
200,674,673 in June 1995,
200,672,173 in March 1995 and 502 502 502
200,668,373 in December 1994)
Capital surplus 1,441 1,448 1,452
Retained earnings 7,315 7,149 7,044
Net unrealized gains on
investment securities, net of 459 449 456
taxes
Other 407 368 367
_____________________________________________________________________
_____________
10,618 10,410 10,315
Less: treasury stock
(12,856,867 shares in June
1995, 13,272,339 shares in
March 1995 and 12,966,917 747 770 747
shares in December 1994) at
cost
_____________________________________________________________________
_____________
Total stockholders' equity 9,871 9,640 9,568
_____________________________________________________________________
_____________
Total liabilities and
stockholders' equity 166,560 167,077 154,917
_____________________________________________________________________
_____________
</TABLE>
<PAGE> 8
<TABLE>
CONSOLIDATED STATEMENT OF CONDITION
Morgan Guaranty Trust Company of New
York
_____________________________________________________________________
_____________
<CAPTION>
Dollars in millions June 30 December
1995 31
1994
_________________________________
<S> <C> <C>
ASSETS
Cash and due from banks $ 1,743 $ 2,182
Interest-earning deposits with banks 1,791 1,605
Debt investment securities available-for-
sale 17,590 21,292
carried at fair value
Trading account assets 56,060 45,386
Securities purchased under agreements to
resell 17,396 16,562
and federal funds sold
Loans 20,980 19,397
Less: allowance for credit losses 1,027 1,025
_____________________________________________________________________
_____________
Net loans 19,953 18,372
Customers' acceptance liability 216 556
Accrued interest and accounts receivable 3,182 3,594
Premises and equipment 3,054 2,967
Less: accumulated depreciation 1,247 1,149
_____________________________________________________________________
_____________
Premises and equipment, net 1,807 1,818
Other assets 8,167 7,360
_____________________________________________________________________
_____________
Total assets 127,905 118,727
_____________________________________________________________________
_____________
LIABILITIES
Noninterest-bearing deposits:
In offices in the U.S. 3,400 3,698
In offices outside the U.S. 1,030 770
Interest-bearing deposits:
In offices in the U.S. 1,931 1,480
In offices outside the U.S. 38,444 38,566
_____________________________________________________________________
_____________
Total deposits 44,805 44,514
Trading account liabilities 38,009 30,730
Securities sold under agreements to
repurchase 21,290 22,099
and federal funds purchased
Other liabilities for borrowed money 5,634 5,320
Accounts payable and accrued expenses 3,448 2,902
Liability on acceptances 216 556
Long-term debt not qualifying as risk-based 3,167 1,968
capital
Other liabilities 2,243 2,080
_____________________________________________________________________
_____________
118,812 110,169
Long-term debt qualifying as risk-based 1,224 1,249
capital
_____________________________________________________________________
_____________
Total liabilities 120,036 111,418
STOCKHOLDER'S EQUITY
Preferred stock, $100 par value
(authorized shares: 2,500,000) - -
Common stock, $25 par value
(authorized and outstanding shares: 250 250
10,000,000)
Surplus 2,820 2,670
Undivided profits 4,644 4,266
Net unrealized gains on investment
securities, net of 158 124
taxes
Foreign currency translation (3) (1)
_____________________________________________________________________
_____________
Total stockholder's equity 7,869 7,309
_____________________________________________________________________
_____________
Total liabilities and stockholder's equity 127,905 118,727
_____________________________________________________________________
_____________
<FN>
Member of the Federal Reserve System and the Federal Deposit
Insurance Corporation.
</TABLE>
<PAGE> 9
<TABLE>
COMBINED TRADING AND RELATED NET INTEREST REVENUE
J.P. Morgan & Co. Incorporated
_____________________________________________________________________
_____________
<CAPTION>
Dollars in millions
Foreign
Swaps and exchange
other spot and Equities
interest Debt option and
rate
contracts instrumen contract commoditi Total
ts s es
_____________________________________________________________________
_____________
<S> <C> <C> <C> <C> <C>
SECOND QUARTER
1995
Trading revenue $100 $73 $24 $108 $305
Net interest
revenue* 6 63 (1) (40) 28
_____________________________________________________________________
_____________
Combined total 106 136 23 68 333
_____________________________________________________________________
_____________
SECOND QUARTER
1994
Trading revenue 126 (3) 27 78 228
Net interest 6 87 (5) (14) 74
revenue
_____________________________________________________________________
_____________
Combined total 132 84 22 64 302
_____________________________________________________________________
_____________
SIX MONTHS 1995
Trading revenue 176 167 94 171 608
Net interest
revenue* 13 131 (2) (53) 89
_____________________________________________________________________
_____________
Combined total 189 298 92 118 697
_____________________________________________________________________
_____________
SIX MONTHS 1994
Trading revenue 392 33 37 122 584
Net interest 15 144 (10) (30) 119
revenue
_____________________________________________________________________
_____________
Combined total 407 177 27 92 703
* Estimated
</TABLE>
<PAGE> 10
<TABLE>
ASSET QUALITY
J.P. Morgan & Co. Incorporated
_____________________________________________________________________
_____________
NONPERFORMING ASSETS
<CAPTION>
June 30 March 31 December June 30
31
Dollars in millions 1995 1995 1994 1994
_____________________________________________________________________
_____________
<S> <C> <C> <C> <C>
Nonaccrual loans:
Commercial and $127 $148 $136 $157
industrial
Other 56 65 81 82
_____________________________________________________________________
_____________
183 213 217 239
Restructuring countries 3 3 2 7
_____________________________________________________________________
_____________
Total nonaccrual loans 186 216 219 246
Other nonperforming 1 1 1 2
assets
_____________________________________________________________________
_____________
Total nonperforming 187 217 220 248
assets
_____________________________________________________________________
_____________
ALLOWANCE FOR CREDIT LOSSES
<CAPTION>
June 30 March 31 December June 30
31
Dollars in millions 1995 1995 1994 1994
_____________________________________________________________________
_____________
<S> <C> <C> <C> <C>
Allowance for credit $1,132 $1,132 $1,131 $1,141
losses
_____________________________________________________________________
____________
<CAPTION>
Second Quarter Six Months
1995 1994 1995 1994
_____________________________________________________________________
_____________
<S> <C> <C> <C> <C>
Charge-offs:
Commercial and ($14) - ($20) ($21)
industrial
Restructuring - ($17) - (17)
countries
Other (4) (6) (6) (7)
Recoveries 18 20 27 28
_____________________________________________________________________
_____________
</TABLE>
