SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Act of 1934
Date of Report: May 5, 1995
REPUBLIC NEW YORK CORPORATION
(Exact name of registrant as specified in its charter)
Maryland 1-7436 13-2764867
(State or other jurisdiction (Commission file (IRS Employer
of incorporation) number) Identification No.)
452 Fifth Avenue, New York, New York 10018
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 525-6100
Item 5. Other Events
The Corporation's press release dated May 5, 1995 announcing
the beginning of the implementation phase of its previously
announced company-wide project to improve operating efficiencies
and reduce costs is incorporated by reference in this Current
Report on Form 8-K and a copy of such press release is attached
hereto as an exhibit.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
c. Exhibits
99 Press release dated May 5, 1995
announcing the beginning of the
implementation phase of the Corporation's
company-wide project to improve
operating efficiencies and reduce costs.
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.
REPUBLIC NEW YORK CORPORATION
By: Patricia J. Howard
____________________________
First Vice President
Date: May 5, 1995
REPUBLIC TO INCREASE EFFICIENCY
New York - May 5, 1995: Republic New York Corporation today said
that it has begun the implementation phase of Project
Excellence-Plus, its previously announced company-wide project to
improve operating efficiencies and reduce costs.
Republic, which has consistently ranked as one of America's most
efficient bank holding companies, expects to improve its
"efficiency ratio" (total operating expenses to fully taxable
equivalent net interest income and other income). In the first
quarter of 1995, Republic had an efficiency ratio of 57.0
percent, excluding a one-time charge of $7.5 million related to a
previously announced accounting change. If, during the first
quarter, Republic had benefited from the cost savings identified
by this project, the efficiency ratio would have been 51.2
percent, without giving effect to any revenue enhancements
resulting from the project.
The company expects pre-tax cost savings in operating expenses to
reach a rate of not less than $75 million per year once the
project's ideas are fully implemented over the next 14 months.
The corporation said that in the fourth quarter of 1995 it
expects to have reached at least 60 percent of the full rate of
total projected savings. Cost savings will be achieved in both
personnel and non-personnel areas, and will result from general
efficiencies, process redesign, vendor management, restructuring
and consolidation of operations and automation.
Republic will take one-time restructuring and related charges of
approximately $120 million on a pre-tax basis in the second
quarter of 1995. Approximately 80 percent of this charge is
related to the cost of severance for approximately 850 personnel
out of a worldwide staff of 5,550. The distribution of personnel
affected is approximately 75 percent domestic and 25 percent
international.
In connection with the reduction of personnel, Republic Chairman
Walter H. Weiner said, "Republic has endeavored to be fair in the
process and in the terms and conditions of parting. We have
designed severance programs to provide meaningful transition
benefits, particularly for those with long service. It is
important to all of our constituents that Republic remain a
highly desirable employer. Consistent with our long-standing
culture of loyalty, we have worked to the best of our ability to
meet the needs of our colleagues who are departing as well as
those who remain with us."
Mr. Weiner also said, "The corporation intends to pursue a
program of continuously improving its processes in order to
maintain a competitive level of efficiency. An important
complement to cost efficiency will be the ongoing strategic
analysis of the competitive environment, with the object of
taking advantage of appropriate business opportunities."
Tandon Capital Associates advised Republic on Project
Excellence-Plus.
