<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): October 19, 1998
THE BANK OF NEW YORK COMPANY, INC.
----------------------------------
(exact name of registrant as specified in its charter)
NEW YORK
--------
(State or other jurisdiction of incorporation)
001-06152 13-2614959
--------- ----------
(Commission file number) (I.R.S. employer identification
number)
One Wall Street, New York, NY 10286
---------------------------- -----
(Address of principal executive (Zip code)
offices)
212 - 495 - 1784
----------------
(Registrant's telephone number,
including area code)
<PAGE> 2
ITEM 5. Other Events
------------
Third Quarter of 1998 Financial Results
----------------------------------------
On October 19, 1998, The Bank of New York Company, Inc.
issued a press release containing unaudited interim
financial information and accompanying discussion
for the third quarter of 1998. Exhibit 99 is a copy
of such press release and is incorporated herein
by reference.
ITEM 7. Financial Statements, Pro Forma Financial Information
and Exhibits
-----------------------------------------------------
(c) Exhibit Description
------- -----------
99 Unaudited interim financial
information and accompanying
discussion for the third quarter
of 1998 contained in the press
release dated October 19, 1998, of The
Bank of New York Company, Inc.
<PAGE> 3
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
Dated: October 19, 1998
THE BANK OF NEW YORK COMPANY, INC.
(Registrant)
By: /s/ Robert Keilman
------------------------
Name: Robert E. Keilman
Title: Comptroller
<PAGE> 4
EXHIBIT INDEX
Exhibit No. Description
99 Unaudited interim financial
information and accompanying
discussion for the third quarter
of 1998 contained in the press
release dated October 19, 1998, of
The Bank of New York Company, Inc.
<PAGE> 1
Exhibit 99
The Bank of New York Company, Inc. NEWS
- ------------------------------------------------------------------------------
One Wall Street, New York, NY 10286
Contact:
PUBLIC AND INVESTOR RELATIONS DEPT.
For Release:
IMMEDIATELY Frank H. Scarangella, SVP
- ----------- (212) 635-1590
Nicholas C. Silitch, SVP
(212) 635-1591
Gregory A. Burton, AVP
(212) 635-1578
THE BANK OF NEW YORK COMPANY, INC. REPORTS
------------------------------------------
Record Third Quarter Diluted E.P.S. of 39 Cents, Up 15%
-------------------------------------------------------
Securities Servicing Revenue Up 27%
-----------------------------------
Return on Average Common Equity of 24.19%
Return on Average Assets of 1.86%
NEW YORK, N.Y., October 19, 1998 -- The Bank of New York Company, Inc.
(NYSE: BK) reports third quarter diluted earnings per share of 39 cents,
up 15% from the 34 cents earned in the third quarter of 1997. Net income
for the third quarter was $301 million, up 10% from the $273 million
earned in the same period last year.
Diluted earnings per share were $1.13 for the nine months of 1998,
up 15% from the $0.98 earned last year. Net income for the nine months
was a record $879 million, an increase of 9% over last year's $806
million.
Record third quarter results were driven by strong growth across
diversified fee based businesses. Record securities trading volumes, new
<PAGE> 2
business wins, and market share gains pushed securities servicing fees
up 27% and trust and investment fees up 15%. As a result, fee based
revenue and noninterest income contributed 58% of revenues. Additional
highlights for the quarter were consistent and favorable foreign
exchange results, reductions in nonperforming assets, and continued
control of operating expenses.
In securities servicing, revenue growth was led by ADRs, domestic
and global custody, stock transfer, and UIT. The ADR business continues
its strong performance with trading volumes on U.S. exchanges in the
third quarter up 38% from a year ago. In addition, the Company was
named as agent on over 34 new programs during the quarter. Domestic and
global custody continued to gain momentum from new business wins. Trust
and investment's performance, in the face of generally declining equity
markets, was the result of strong relative investment performance
creating continued new business flow. Financial discipline remained a
hallmark for the Company, as the efficiency ratio was 50.6%.
Return on average common equity for the third quarter of 1998 was
24.19% compared with 24.03% in the second quarter of 1998 and 22.06% in
the third quarter of 1997. Return on average assets for the third
quarter of 1998 was 1.86% compared with 1.90% in the second quarter of
1998 and 1.81% in the third quarter of 1997. For the nine months of
1998, return on average common equity totaled 24.39% compared with
21.59% in 1997. Return on average assets was 1.90% for the nine months
of 1998 compared with 1.83% in 1997.
Net interest income on a taxable equivalent basis for the third
quarter rose to $430 million from $424 million in the second quarter of
1998 due to growth in liquid investments related to substantial
increases in customer driven deposits from the Company's global
<PAGE> 3
securities servicing clients. Revenues from the Company's securities
servicing businesses reached $258 million for the third quarter and $726
million for the nine months of 1998, up 27% and 26% compared with the
corresponding periods of the prior year. Strong internal growth of 16%
was spread over all of the Company's securities servicing businesses.
In cash processing, fees from funds transfer grew by 8% from the
previous year, the result of continued market share gains partially
offset by reduced levels of global trade activity. Trade finance
revenues were flat with a year ago as the decline in letter of credit
volume was mitigated by improving margins. For the quarter, overall cash
processing fees grew by 5% from a year ago reaching $66 million.
Trust and investment fees were $53 million for the quarter, an
increase of 15% over last year, the result of focused and aggressive new
business efforts. Notwithstanding the turmoil in the global financial
markets, foreign exchange and other trading revenues were $30 million
compared with $35 million last year and $42 million in the second
quarter of 1998 reflecting the customer driven nature of this business.
Tangible diluted earnings per share (earnings before the
amortization of goodwill and intangibles) were 41 cents per share in the
third quarter of 1998, up 14% from 36 cents per share in the third
quarter of 1997. On the same basis, tangible return on average common
equity was 37.56% in the third quarter of 1998 compared with 32.29% in
the third quarter of 1997; and tangible return on average assets was
2.03% in the third quarter of 1998 compared with 2.00% in the third
quarter of 1997. Tangible diluted earnings per share were $1.20 per
share for the nine months of 1998, compared with $1.06 per share in
1997. Tangible return on average common equity was 37.47% in the nine
months of 1998 compared with 31.18% in 1997; and tangible return on
<PAGE> 4
average assets was 2.07% in the nine months of 1998 compared with 2.02%
last year.
Average diluted shares outstanding were 779 million for the
quarter, down from the 783 million in the second quarter of 1998 and 801
million in the third quarter a year ago as a result of the Company's
stock buyback programs. At September 30, 1998, the Company had
approximately 2 million shares remaining to repurchase under its 30
million 1998 share buyback program.
The Company's estimated Tier 1 capital and Total capital ratios
remained strong at 7.48% and 11.59% at September 30, 1998 compared with
7.25% and 11.24% at June 30, 1998, and 7.61% and 11.62% at September 30,
1997. Tangible common equity as a percent of total assets was 5.59% at
September 30, 1998 compared with 5.55% at June 30, 1998 and 5.99% one
year ago. The leverage ratio was 7.24% at September 30, 1998 compared
with 7.17% at June 30, 1998 and 7.82% one year ago.
NET INTEREST INCOME
- -------------------
3rd 2nd 3rd Year-to-date
Quarter Quarter Quarter ------------
(In millions) 1998 1998 1997 1998 1997
--------------------------------------------
Net Interest Income $430 $424 $495 $1,258 $1,480
Net Interest Rate
Spread 2.14% 2.27% 2.98% 2.21% 3.13%
Net Yield on Interest-
Earning Assets 3.15 3.28 4.02 3.25 4.11
Net interest income on a taxable equivalent basis was $430 million
in the third quarter of 1998 compared with $424 million in the second
quarter of 1998 and $495 million in the third quarter of 1997. The net
interest rate spread was 2.14% in the third quarter of 1998, compared
<PAGE> 5
with 2.27% in the second quarter of 1998 and 2.98% one year ago. The net
yield on interest-earning assets was 3.15% compared with 3.28% in the
second quarter of 1998 and 4.02% in last year's third quarter.
For the nine months of 1998, net interest income on a taxable
equivalent basis, amounted to $1,258 million compared with $1,480
million in the nine months of 1997. The year-to-date net interest rate
spread was 2.21% in 1998 compared with 3.13% in 1997, while the net
yield on interest-earning assets was 3.25% in 1998 and 4.11% in 1997.
The increase in net interest income and the decline in net interest
rate spread and yield from the second quarter were the result of growth
in highly liquid but lower yielding assets, related to substantial
increases in short-term deposits from our securities servicing client
base. The declines from the third quarter of 1997 were primarily the
result of the sale of the credit card business.
<PAGE> 6
NONINTEREST INCOME
- ------------------
3rd Quarter Year-to-date
----------- ------------
(In millions) 1998 1997 1998 1997
-----------------------------
Processing Fees
Securities $258 $202 $ 726 $ 577
Cash 66 63 193 177
---- ---- ------ ------
324 265 919 754
Trust and Investment Fees 53 46 154 134
Service Charges and Fees 81 92 248 280
Foreign Exchange and
Other Trading Activities 30 35 118 87
Securities Gains 51 51 125 91
Other 33 15 121 102
---- ---- ------ ------
Total Noninterest Income $572 $504 $1,685 $1,448
==== ==== ====== ======
Securities servicing fees increased 27% to $258 million compared
with $202 million in the third quarter of 1997. Strong internal growth
across all areas reached 16%, with remaining growth coming from
acquisitions. Third quarter service charges and fees of $81 million were
down from $85 million in the second quarter. This was due to a decline
in syndication activity which, while still strong, was below second
quarter levels. Service charges and fees were down from $92 million in
the third quarter of 1997 reflecting the loss of revenue associated with
the sale of the credit card business, partially offset by growth in
factoring commissions related to U.K. asset based lending acquisitions.
Revenues from foreign exchange and other trading activities were $30
million in the third quarter of 1998 compared with $42 million in the
second quarter of 1998 and $35 million in the third quarter of 1997. The
Company reported $51 million of securities gains in the third quarter
the same level as a year ago.
<PAGE> 7
NONINTEREST EXPENSE AND INCOME TAXES
- ------------------------------------
Total noninterest expense for the quarter was $481 million, up only
2% from $473 million in the same period last year. Year-to-date
noninterest expense was $1,420 million compared with $1,384 million in
1997, a 3% increase. Noninterest expense for the third quarter included
$8 million, approximately 1 cent per share, related to making computer
systems Year 2000 compliant. For the nine months of 1998, Year 2000
expenses were $25 million or approximately 2 cents per share.
The efficiency ratio for the third quarter of 1998 was 50.6%
compared with 50.1% for the third quarter of 1997. For the nine months
of 1998, the efficiency ratio was 50.3% compared with 48.8% last year.
The upward move from a year ago in the efficiency ratio is primarily
attributable to the sale of the Company's credit card operations and
Year 2000 systems expenses.
The effective tax rate for the third quarter and nine months of
1998 was 35.1% and 35.4% compared with 36.1% and 36.4% last year.
<PAGE> 8
NONPERFORMING ASSETS
- --------------------
Change
9/30/98
(Dollars in millions) 9/30/98 6/30/98 6/30/98
----------------------------------
Loans:
Commercial Real Estate $ 36 $ 35 $ 1
Other Commercial 56 61 (5)
Foreign 40 37 3
Community Banking 45 49 (4)
---- ---- ---
Total Loans 177 182 (5)
Other Real Estate 18 17 1
---- ---- ---
Total $195 $199 $(4)
==== ==== ===
Nonperforming Assets Ratio 0.5% 0.5%
Allowance/Nonperforming Loans 360.4 356.1
Allowance/Nonperforming Assets 327.8 324.9
Nonperforming assets totaled $195 million at September 30, 1998,
compared with $199 million at June 30, 1998, a decrease of $4 million.
This was the twenty-ninth consecutive quarter of nonperforming asset
decreases.
<PAGE> 9
LOAN LOSS PROVISION AND NET CHARGE-OFF
- --------------------------------------
3rd 2nd 3rd Year-to-date
Quarter Quarter Quarter ------------
(In millions) 1998 1998 1997 1998 1997
-------------------------------------------
Provision $ 5 $ 5 $ 60 $ 15 $ 180
==== ==== ===== ==== =====
Net(Charge-offs)Recoveries:
Commercial Real Estate 5 1 1 7 2
Other Commercial (16) (3) (26) (22) (35)
Consumer (1) (1) (1) (3) (3)
Foreign (1) - 1 (2) 4
Other - (1) (1) (2) (2)
Credit Card - - (95) - (276)
---- ---- ----- ---- -----
Total $(13) $ (4) $(121) $(22) $(310)
==== ==== ===== ==== =====
Other Real Estate Expense $ - $ - $ (2) $ 2 $ (1)
(Recoveries)
The allowance for loan losses was $638 million, or 1.66% of loans
at September 30, 1998 compared with $646 million, or 1.65% of loans at
June 30, 1998 and $771 million, or 2.01% of loans at September 30, 1997.
The ratio of the allowance to nonperforming assets was 327.8% at
September 30, 1998 compared with 324.9% at June 30, 1998 and 326.5% at
September 30, 1997.
***************************
(Financial highlights and detailed financial statements are attached.
E.P.S. has been calculated based on a new accounting pronouncement.
"Basic" and "diluted" E.P.S. have replaced "primary" and "fully diluted"
E.P.S. In addition, a new accounting pronouncement related to
comprehensive income has been adopted. This has changed how certain
components of shareholders' equity are presented. Prior periods have
been restated for these changes.)
<PAGE> 10
<TABLE>
THE BANK OF NEW YORK COMPANY, INC.
Financial Highlights
(Dollars in millions, except per share amounts)
(Unaudited)
<CAPTION>
1998 1997 Change
---- ---- ------
<S> <C> <C> <C>
For the Three Months Ended September 30:
- ---------------------------------------
Net Income $ 301 $ 273 10.3%
Per Common Share:
Basic $ 0.40 $ 0.36 11.1
Diluted 0.39 0.34 14.7
Cash Dividends Paid 0.14 0.12 16.7
Return on Average Common Shareholders'
Equity 24.19% 22.06%
Return on Average Assets 1.86 1.81
1998 1997 Change
For the Nine Months Ended September 30: ---- ---- ------
- ---------------------------------------
Net Income $ 879 $ 806 9.1%
Per Common Share:
Basic $ 1.18 $ 1.05 12.4
Diluted 1.13 0.98 15.3
Cash Dividends Paid 0.40 0.36 11.1
Return on Average Common Shareholders'
Equity 24.39% 21.59%
Return on Average Assets 1.90 1.83
As of September 30:
- -------------------
Assets $63,453 $61,222 3.6%
Loans 38,506 38,396 0.3
Securities 5,911 5,380 9.9
Deposits - Domestic 26,859 27,851 -3.6
- Foreign 17,274 14,626 18.1
Long-Term Debt 2,022 1,827 10.7
Minority Interest - Preferred Securities 1,300 1,000 30.0
Preferred Shareholders' Equity 1 112 -99.1
Common Shareholders' Equity 5,014 4,880 2.7
Common Shareholders' Equity Per Share 6.63 6.51 1.8
Market Value Per Share of Common Stock 27.38 24.00 14.1
Allowance for Loan Losses as a Percent
of Loans 1.66% 2.01%
Tier 1 Capital Ratio 7.48 7.61
Total Capital Ratio 11.59 11.62
Leverage Ratio 7.24 7.82
Tangible Common Equity Ratio 5.59 5.99
</TABLE>
<PAGE> 11
<TABLE>
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)
<CAPTION>
For the three For the nine
months ended months ended
September 30, September 30,
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest Income
- ---------------
Loans $ 708 $ 766 $2,073 $2,278
Securities
Taxable 64 59 209 178
Exempt from Federal Income Taxes 16 9 46 26
----- ----- ------ ------
80 68 255 204
Deposits in Banks 44 45 127 118
Federal Funds Sold and Securities
Purchased Under Resale Agreements 68 37 140 105
Trading Assets 6 5 15 16
----- ----- ------ ------
Total Interest Income 906 921 2,610 2,721
----- ----- ------ ------
Interest Expense
- ----------------
Deposits 367 331 1,034 960
Federal Funds Purchased and
Securities Sold Under Repurchase
Agreements 38 30 104 88
Other Borrowed Funds 52 42 154 124
Long-Term Debt 34 32 100 94
----- ----- ------ ------
Total Interest Expense 491 435 1,392 1,266
----- ----- ------ ------
Net Interest Income 415 486 1,218 1,455
- -------------------
Provision for Loan Losses 5 60 15 180
----- ----- ------ ------
Net Interest Income After
Provision for Loan Losses 410 426 1,203 1,275
----- ----- ------ ------
Noninterest Income
- ------------------
Processing Fees
Securities 258 202 726 577
Cash 66 63 193 177
----- ----- ------ ------
324 265 919 754
Trust and Investment Fees 53 46 154 134
Service Charges and Fees 81 92 248 280
Securities Gains 51 51 125 91
Other 63 50 239 189
----- ----- ------ ------
Total Noninterest Income 572 504 1,685 1,448
----- ----- ------ ------
Noninterest Expense
- -------------------
Salaries and Employee Benefits 294 269 863 789
Net Occupancy 41 42 126 126
Furniture and Equipment 22 23 63 70
Other 124 139 368 399
----- ----- ------ ------
Total Noninterest Expense 481 473 1,420 1,384
----- ----- ------ ------
Income Before Income Taxes 501 457 1,468 1,339
Income Taxes 175 165 519 488
Distribution on Trust Preferred
Securities 25 19 70 45
----- ----- ------ ------
Net Income $ 301 $ 273 $ 879 $ 806
- ---------- ===== ===== ====== ======
Net Income Available to
Common Shareholders $ 301 $ 270 $ 879 $ 799
- ----------------------- ===== ===== ====== ======
Per Common Share Data:
- ----------------------
Basic Earnings $0.40 $0.36 $1.18 $1.05
Diluted Earnings 0.39 0.34 1.13 0.98
Cash Dividends Paid 0.14 0.12 0.40 0.36
Diluted Shares Outstanding 779 801 781 812
</TABLE>
<PAGE> 12
<TABLE>
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Balance Sheets
(Dollars in millions, except per share amounts)
(Unaudited)
<CAPTION>
September 30, December 31,
1998 1997
---- ----
<S> <C> <C>
Assets
- ------
Cash and Due from Banks $ 7,693 $ 5,769
Interest-Bearing Deposits in Banks 2,308 2,126
Securities:
Held-to-Maturity 996 1,127
Available-for-Sale 4,915 5,501
------- -------
Total Securities 5,911 6,628
Trading Assets at Fair Value 2,416 2,616
Federal Funds Sold and Securities Purchased
Under Resale Agreements 1,143 2,820
Loans (less allowance for loan losses
of $638 in 1998 and $641 in 1997) 37,868 34,486
Premises and Equipment 850 835
Due from Customers on Acceptances 1,121 1,187
Accrued Interest Receivable 340 356
Other Assets 3,803 3,138
------- -------
Total Assets $63,453 $59,961
======= =======
Liabilities and Shareholders' Equity
- ------------------------------------
Deposits
Noninterest-Bearing (principally
domestic offices) $11,209 $12,561
Interest-Bearing
Domestic Offices 15,769 15,607
Foreign Offices 17,155 13,189
------- -------
Total Deposits 44,133 41,357
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 1,807 2,329
Other Borrowed Funds 5,230 4,673
Acceptances Outstanding 1,132 1,196
Accrued Taxes and Other Expenses 2,163 1,910
Accrued Interest Payable 173 182
Other Liabilities 479 503
Long-Term Debt 2,022 1,809
------- -------
Total Liabilities 57,139 53,959
------- -------
Guaranteed Preferred Beneficial Interests
in the Company's Junior Subordinated
Deferrable Interest Debentures 1,300 1,000
------- -------
Shareholders' Equity
Class A Preferred Stock - par value $2.00
per share, authorized 5,000,000 shares,
outstanding 22,800 shares in 1998 and
23,844 shares in 1997 1 1
Common Stock-par value $7.50 per share,
authorized 1,600,000,000 shares, issued
953,810,729 shares in 1998 and
920,425,238 shares in 1997 7,154 6,904
Additional Capital 72 12
Retained Earnings 1,110 529
Accumulated Other Comprehensive Income 221 285
------- -------
8,558 7,731
Less: Treasury Stock (195,994,250 shares in 1998
and 170,641,008 shares in 1997), at cost 3,529 2,714
Loan to ESOP (2,113,658 shares), at cost 15 15
------- -------
Total Shareholders' Equity 5,014 5,002
------- -------
Total Liabilities and Shareholders' Equity 63,453 $59,961
======= =======
</TABLE>
<PAGE> 13
<TABLE>
THE BANK OF NEW YORK COMPANY, INC.
Average Balances and Rates on a Taxable Equivalent Basis
Preliminary
(Dollars in millions)
<CAPTION>
For the three months For the three months
ended September 30, 1998 ended September 30, 1997
------------------------ ------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
Interest-Bearing
Deposits in Banks
(primarily foreign) $ 3,247 $ 44 5.43% $ 3,207 $ 45 5.55%
Federal Funds Sold and
Securities Purchased
Under Resale Agreements 4,889 68 5.50 2,677 37 5.43
Loans
Domestic Offices 20,074 383 7.56 22,346 515 9.15
Foreign Offices 18,846 327 6.88 15,041 252 6.65
------- ----- ------- -----
Total Loans 38,920 710 7.23 37,387 767 8.14
------- ----- ------- -----
Securities
U.S. Government
Obligations 2,907 42 5.73 2,788 40 5.74
U.S. Government Agency
Obligations 465 8 6.67 360 6 6.47
Obligations of States and
Political Subdivisions 687 13 7.80 659 14 8.56
Other Securities,
including Trading
Securities 2,984 36 4.76 1,721 21 4.89
------- ----- ------- -----
Total Securities 7,043 99 5.58 5,528 81 5.86
------- ----- ------- -----
Total Interest-Earning
Assets 54,099 921 6.75% 48,799 930 7.56%
----- -----
Allowance for Loan Losses (646) (821)
Cash and Due from Banks 3,133 3,661
Other Assets 7,446 7,959
------- -------
TOTAL ASSETS $64,032 $59,598
======= =======
LIABILITIES AND
SHAREHOLDERS' EQUITY
- ---------------------
Interest-Bearing Deposits
Money Market Rate
Accounts $ 5,078 62 4.87% $ 4,399 51 4.62%
Savings 7,645 50 2.60 7,874 50 2.53
Certificates of Deposit
$100,000 & Over 666 9 5.46 751 11 5.55
Other Time Deposits 2,228 27 4.78 2,473 31 4.96
Foreign Offices 17,542 219 4.94 15,044 188 4.96
------- ----- ------- -----
Total Interest-Bearing
Deposits 33,159 367 4.39 30,541 331 4.30
Federal Funds Purchased
and Securities Sold
Under Repurchase
Agreements 3,205 38 4.75 2,277 30 5.18
Other Borrowed Funds 3,827 52 5.31 3,053 42 5.54
Long-Term Debt 1,998 34 6.81 1,807 32 6.96
------- ----- ------- -----
Total Interest-Bearing
Liabilities 42,189 491 4.61% 37,678 435 4.58%
----- -----
Noninterest-Bearing
Deposits 10,220 9,795
Other Liabilities 5,391 6,153
Minority Interest-
Preferred Securities 1,300 1,000
Preferred Stock 1 112
Common Shareholders'
Equity 4,931 4,860
------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $64,032 $59,598
======= =======
Net Interest Earnings
and Interest Rate Spread $ 430 2.14% $ 495 2.98%
===== ==== ===== ====
Net Yield on Interest-
Earning Assets 3.15% 4.02%
==== ====
</TABLE>
<PAGE> 14
<TABLE>
THE BANK OF NEW YORK COMPANY, INC.
Average Balances and Rates on a Taxable Equivalent Basis
Preliminary
(Dollars in millions)
<CAPTION>
For the nine months For the nine months
ended September 30, 1998 ended September 30, 1997
------------------------ ------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
Interest-Bearing
Deposits in Banks
(primarily foreign) $ 3,084 $ 127 5.51% $ 2,866 $ 118 5.49%
Federal Funds Sold and
Securities Purchased
Under Resale Agreements 3,466 140 5.39 2,587 105 5.42
Loans
Domestic Offices 19,620 1,137 7.76 22,529 1,563 9.28
Foreign Offices 18,234 938 6.88 14,704 718 6.53
------- ------ ------- ------
Total Loans 37,854 2,075 7.33 37,233 2,281 8.19
------- ------ ------- ------
Securities
U.S. Government
Obligations 3,211 139 5.77 2,742 119 5.79
U.S. Government Agency
Obligations 544 27 6.53 390 19 6.43
Obligations of States and
Political Subdivisions 669 41 8.08 645 42 8.63
Other Securities,
including Trading
Securities 2,933 101 4.61 1,652 62 5.10
------- ------ ------- ------
Total Securities 7,357 308 5.58 5,429 242 5.97
------- ------ ------- ------
Total Interest-Earning
Assets 51,761 2,650 6.84% 48,115 2,746 7.63%
------ ------
Allowance for Loan Losses (644) (843)
Cash and Due from Banks 3,400 3,820
Other Assets 7,456 7,703
------- -------
TOTAL ASSETS $61,973 $58,795
======= =======
LIABILITIES AND
SHAREHOLDERS' EQUITY
- ---------------------
Interest-Bearing Deposits
Money Market Rate
Accounts $ 4,931 176 4.78% $ 4,183 141 4.49%
Savings 7,689 147 2.56 8,005 152 2.54
Certificates of Deposit
$100,000 & Over 689 28 5.49 721 29 5.44
Other Time Deposits 2,276 82 4.83 2,512 93 4.91
Foreign Offices 15,931 601 5.04 14,951 545 4.88
------- ------ ------- ------
Total Interest-Bearing
Deposits 31,516 1,034 4.39 30,372 960 4.22
Federal Funds Purchased
and Securities Sold
Under Repurchase
Agreements 2,974 104 4.65 2,256 88 5.20
Other Borrowed Funds 3,754 154 5.48 3,168 124 5.23
Long-Term Debt 1,935 100 6.85 1,810 94 6.91
------- ------ ------- ------
Total Interest-Bearing
Liabilities 40,179 1,392 4.63% 37,606 1,266 4.50%
------ ------
Noninterest-Bearing
Deposits 10,156 9,418
Other Liabilities 5,609 5,940
Minority Interest-
Preferred Securities 1,210 773
Preferred Stock 1 112
Common Shareholders'
Equity 4,818 4,946
------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $61,973 $58,795
======= =======
Net Interest Earnings
and Interest Rate Spread $1,258 2.21% $1,480 3.13%
====== ==== ====== ====
Net Yield on Interest-
Earning Assets 3.25% 4.11%
==== ====
</TABLE>
