<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 20, 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)
48 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
------------
Second Quarter of 1998 Financial Results
----------------------------------------
On July 20, 1998, The Bank of New York Company, Inc.
issued a press release containing unaudited interim
financial information and accompanying discussion
for the second 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 second quarter
of 1998 contained in the press
release dated July 20, 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: July 20, 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 second quarter
of 1998 contained in the press
release dated July 20, 1998, of
The Bank of New York Company, Inc.
<PAGE> 1
The Bank of New York Company, Inc. NEWS
- ----------------------------------------------------------------------------
48 Wall Street, New York, NY 10286
Contact:
PUBLIC AND INVESTOR RELATIONS DEPT.
For release:
IMMEDIATELY Paul J. Leyden, SVP
- ----------- (212) 495-1041
Nicholas C. Silitch, SVP
(212) 495-1721
Gregory A. Burton, AVP
(212) 495-1725
THE BANK OF NEW YORK COMPANY, INC. REPORTS
------------------------------------------
Record Second Quarter Diluted E.P.S. of 75 Cents, Up 14%;
---------------------------------------------------------
Common Stock Dividend Increase of 8%; and
-----------------------------------------
2-for-1 Common Stock Split
--------------------------
Return on Average Common Equity of 24.03%
Return on Average Assets of 1.90%
NEW YORK, N.Y., July 20, 1998 -- The Bank of New York Company, Inc.
(NYSE: BK) reports second quarter diluted earnings per share of 75
cents, up 14% from the 66 cents earned in the second quarter of 1997.
Net income for the second quarter was $295 million, up 10% from the $269
million earned in the same period last year.
Diluted earnings per share were $1.48 for the first half of 1998,
up 15% from the $1.29 earned last year. Net income for the first six
months was a record $578 million, an increase of 8% over last year's
$534 million.
Second quarter results were driven by broad based growth from fee
income activities. All fee generating businesses did well with the
strongest performances by securities servicing, up 25%, funds transfer,
up 19%, and trust and investment, up 16%.
<PAGE> 2
Securities servicing revenue growth was spread across all product
lines, led by ADRs and global custody. ADRs benefited from 27% growth in
trading activity in the first six months of 1998, with The Bank of New
York named as agent on 83% of new programs that came to market during
that period. Global custody's record performance was fueled by new
business wins combined with continued growth in cross-border investment
and increased trading activity. Overall, fee based revenues and
noninterest income contributed 58% of total revenues in the second
quarter, up sharply from 50% in the prior year period.
The Company's Board of Directors declared a common stock dividend
of 28 cents per share for the second quarter, an 8% increase over the 26
cents paid for the first quarter this year. This increase will result in
an annual cash dividend rate of $1.12 per share, the highest in the
Company's history. The new dividend is payable on August 6, 1998 to
holders of record as of the close of business on July 24, 1998.
The Company's Board also declared a 2-for-1 common stock split,
which will be paid after the cash dividend. On August 13, 1998, holders
of record as of the close of business on July 24, 1998 will receive one
additional share for every share held. Adjusted for the split, diluted
earnings per share were 38 cents for the second quarter and 74 cents for
the first six months of 1998 compared with 33 cents for the second
quarter and 65 cents for the first six months of 1997.
Return on average common equity for the second quarter of 1998 was
24.03% compared with 24.99% in the first quarter of 1998 and 21.84% in
the second quarter of 1997. Return on average assets for the second
quarter of 1998 was 1.90% compared with 1.93% in the first quarter of
1998 and 1.83% in the second quarter of 1997. For the first six months
of 1998, return on average common equity totaled 24.49% compared with
<PAGE> 3
21.36% in 1997. Return on average assets was 1.91% for the first six
months of 1998 compared with 1.84% in 1997.
Net interest income on a taxable equivalent basis for the second
quarter rose to $424 million from $404 million in the first quarter of
1998. This was due to commercial loan growth and a more favorable mix of
assets. Financial discipline remained a hallmark for the Company as the
efficiency ratio was 50.3% in spite of the sale of the credit card
operation and the impact of Year 2000 expenses.
Revenues from the Company's securities servicing businesses reached
$239 million for the second quarter and $469 million for the first six
months of 1998, growing by 25% compared with the corresponding periods
of the previous year. Strong internal growth of 16% was spread over all
of the Company's businesses with ADRs, global custody, domestic custody,
and stock transfer performing particularly well.
In cash processing, funds transfer fees were particularly strong,
growing by 19%, with cash management fees ahead by 14%. Trade finance
revenues were essentially flat during the quarter due to reduced trade
flows in Southeast Asia. On a combined basis, fees from cash processing
were ahead 8% in the second quarter, reaching $64 million.
New business and generally strong markets resulted in trust and
investment fees of $51 million for the quarter, an increase of 16% over
last year. Foreign exchange and other trading revenues increased 69%
from a year ago to $42 million for the quarter, but were slightly below
the $47 million for the first quarter.
Tangible diluted earnings per share (earnings before the
amortization of goodwill and intangibles) were 80 cents per share in the
second quarter of 1998, up 13% from 71 cents per share in the second
quarter of 1997. On the same basis, tangible return on average common
<PAGE> 4
equity was 37.15% in the second quarter of 1998 compared with 31.75% in
the second quarter of 1997; and tangible return on average assets was
2.07% in the second quarter of 1998 compared with 2.01% in the second
quarter of 1997. Tangible diluted earnings per share were $1.57 per
share for the first six months of 1998, compared with $1.39 per share in
1997. Tangible return on average common equity was 37.42% in the first
six months of 1998 compared with 30.65% in 1997; and tangible return on
average assets was 2.09% in the first six months 1998 compared with
2.03% last year.
Average diluted shares outstanding were 392 million for the
quarter, up from the 390 million in the first quarter of 1998 due to the
conversion of warrants, and down significantly from the 405 million in
the second quarter a year ago as a result of the Company's stock buyback
programs. The Company has approximately 3 million shares remaining to
repurchase under its 15 million 1998 share buyback program.
The Company's estimated Tier 1 capital and Total capital ratios
remained strong at 7.27% and 11.28% at June 30, 1998 compared with 7.25%
and 11.43% at March 31, 1998, and 7.83% and 12.00% at June 30, 1997.
Tangible common equity as a percent of total assets was 5.55% at June
30, 1998 compared with 5.68% at March 31, 1998 and 5.92% one year ago.
The leverage ratio was 7.17% at June 30, 1998 compared with 7.33% at
March 31, 1998 and 8.04% one year ago.
<PAGE> 5
NET INTEREST INCOME
- -------------------
2nd 1st 2nd Year-to-date
Quarter Quarter Quarter ------------
(In millions) 1998 1998 1997 1998 1997
--------------------------------------------
Net Interest Income $424 $404 $489 $828 $985
Net Interest Rate
Spread 2.27% 2.24% 3.12% 2.25% 3.21%
Net Yield on Interest-
Earning Assets 3.28 3.33 4.08 3.30 4.16
Net interest income on a taxable equivalent basis was $424 million
in the second quarter of 1998 compared with $404 million in the first
quarter of 1998 and $489 million in the second quarter of 1997. The net
interest rate spread was 2.27% in the second quarter of 1998, compared
with 2.24% in the first quarter of 1998 and 3.12% one year ago. The net
yield on interest-earning assets was 3.28% compared with 3.33% in the
first quarter of 1998 and 4.08% in last year's second quarter.
For the first six months of 1998, net interest income on a taxable
equivalent basis, amounted to $828 million compared with $985 million in
the first half of 1997. The year-to-date net interest rate spread was
2.25% in 1998 compared with 3.21% in 1997, while the net yield on
interest-earning assets was 3.30% in 1998 and 4.16% in 1997.
The increase in net interest income and the net interest rate
spread from the first quarter reflects growth in the balance sheet,
improvements in the mix of assets due to corporate loan growth and lower
cost of funds. The decline from the second quarter of 1997 was primarily
the result of the sale of the credit card business. The slight decline
in the net yield on interest-earning assets from the first quarter of
this year is due to the lower value of free funds in a declining rate
environment. The decrease in the yield as compared to the second quarter
<PAGE> 6
last year is the result of the sale of the credit card business as well
as the stock buyback program.
NONINTEREST INCOME
- ------------------
2nd Quarter Year-to-date
----------- ------------
(In millions) 1998 1997 1998 1997
-----------------------------
Processing Fees
Securities $239 $190 $ 469 $375
Cash 64 59 127 114
---- ---- ------ ----
302 249 596 489
Trust and Investment Fees 51 44 101 87
Service Charges and Fees 85 94 166 187
Foreign Exchange and
Other Trading Activities 42 25 88 52
Securities Gains 46 33 74 40
Other 34 44 88 89
---- ---- ------ ----
Total Noninterest Income $561 $489 $1,113 $944
==== ==== ====== ====
Securities servicing fees increased 25% to $239 million compared
with $190 million in the second quarter of 1997. Strong internal growth
across all areas reached 16%, with remaining growth coming from
acquisitions made during 1997. In the first half of 1998, securities
servicing fees were $469 million compared with $375 million in 1997.
Second quarter service charges and fees of $85 million were up from $81
million in the first quarter due to increased syndication fees. However,
service charges and fees were down from $94 million in the second
quarter of 1997 reflecting the loss of fee income 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 $42
<PAGE> 7
million in the second quarter of 1998 compared with $47 million in the
first quarter of 1998 and $25 million in the second quarter of 1997. The
Company reported $46 million of securities gains in the second quarter
of 1998 compared with $33 million in the second quarter of 1997.
NONINTEREST EXPENSE AND INCOME TAXES
- ------------------------------------
Total noninterest expense for the quarter was $472 million, up 2%
from $465 million in the same period last year. Year-to-date noninterest
expense was $939 million compared with $909 million in 1997. Noninterest
expense for the second quarter included $8 million, approximately 1 cent
per share, related to making computer systems Year 2000 compliant. For
the first six months of 1998, Year 2000 expenses were $16 million or
approximately 2 cents per share.
The efficiency ratio for the second quarter of 1998 was 50.3%
compared with 50.1% in the first quarter of 1998 and 49.1% for the
second quarter of 1997. For the first half of 1998, the efficiency ratio
was 50.2% compared with 48.1% 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 second quarter and first six months
of 1998 was 35.0% and 35.6% compared with 36.5% and 36.6% last year.
<PAGE> 8
NONPERFORMING ASSETS
- --------------------
Change
6/30/98
(Dollars in millions) 6/30/98 3/31/98 3/31/98
----------------------------------
Loans:
Commercial Real Estate $ 35 $ 37 $(2)
Other Commercial 61 58 3
Foreign 37 38 (1)
Community Banking 49 53 (4)
---- ---- ---
Total Loans 182 186 (4)
Other Real Estate 17 15 2
---- ---- ---
Total $199 $201 $(2)
==== ==== ===
Nonperforming Assets Ratio 0.5% 0.5%
Allowance/Nonperforming Loans 356.1 347.4
Allowance/Nonperforming Assets 324.9 321.2
Nonperforming assets totaled $199 million at June 30, 1998,
compared with $201 million at March 31, 1998, a decrease of $2 million.
This was the twenty-eighth consecutive quarter of nonperforming asset
decreases.
<PAGE> 9
LOAN LOSS PROVISION AND NET CHARGE-OFF
- --------------------------------------
2nd 1st 2nd Year-to-date
Quarter Quarter Quarter ------------
(In millions) 1998 1998 1997 1998 1997
-------------------------------------------
Provision $ 5 $ 5 $ 60 $ 10 $ 120
==== ==== ==== ==== =====
Net(Charge-offs)Recoveries:
Commercial Real Estate 1 1 - 2 1
Other Commercial (3) (3) (6) (6) (9)
Other Consumer (1) (1) (1) (2) (3)
Foreign - (1) - (1) 4
Other (1) (1) (2) (2) (1)
Credit Card - - (88) - (181)
---- ---- ---- ---- -----
Total $ (4) $ (5) $(97) (9) $(189)
==== ==== ==== ==== =====
Other Real Estate Expense $ - $ 1 $ 1 $ 1 $ 1
The allowance for loan losses was $646 million, or 1.65% of loans
at June 30, 1998 compared with $645 million, or 1.74% of loans at March
31, 1998 and $832 million, or 2.13% of loans at June 30, 1997. The ratio
of the allowance to nonperforming assets was 324.9% at June 30, 1998
compared with 321.2% at March 31, 1998 and 342.1% at June 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> ---- ---- ------
For the Three Months Ended June 30: <C> <C> <C>
- -----------------------------------
Net Income $ 295 $ 269 9.7 %
Per Common Share:
Earnings $ 0.79 $ 0.70 12.9
Diluted 0.75 0.66 13.6
Cash Dividends Paid 0.26 0.24 8.3
Return on Average Common Shareholders'
Equity 24.03% 21.84%
Return on Average Assets 1.90 1.83
For the Six Months Ended June 30:
- ---------------------------------
Net Income $ 578 $ 534 8.2 %
Per Common Share:
Basic $ 1.56 $ 1.38 13.0
Diluted 1.48 1.29 14.7
Cash Dividends Paid 0.52 0.48 8.3
Return on Average Common Shareholders'
Equity 24.49% 21.36%
Return on Average Assets 1.91 1.84
As of June 30:
- --------------
Assets $62,974 $61,242 2.8 %
Loans 39,049 39,024 0.1
Securities 6,788 5,010 35.5
Deposits - Domestic 27,371 27,537 -0.6
- Foreign 16,036 16,276 -1.5
Long-Term Debt 2,003 1,801 11.2
Minority Interest - Preferred Securities 1,300 1,000 30.0
Preferred Shareholders' Equity 1 112 -99.1
Common Shareholders' Equity 4,961 4,825 2.8
Common Shareholders' Equity Per Share 13.25 12.78 3.7
Market Value Per Share of Common Stock 60.88 43.63 39.5
Allowance for Loan Losses as a Percent
of Loans 1.65% 2.13%
Tier 1 Capital Ratio 7.27 7.83
Total Capital Ratio 11.28 12.00
Leverage Ratio 7.17 8.04
Tangible Common Equity Ratio 5.55 5.92
</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 Six
Months Ended Months Ended
June 30, June 30,
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest Income
- ---------------
Loans $ 695 $ 765 $1,364 $1,511
Securities
Taxable 77 58 156 119
Exempt from Federal Income Taxes 11 8 20 18
----- ----- ------ ------
88 66 176 137
Deposits in Banks 40 39 83 73
Federal Funds Sold and Securities
Purchased Under Resale Agreements 42 35 72 68
Trading Assets 5 7 9 10
----- ----- ------ ------
Total Interest Income 870 912 1,704 1,799
----- ----- ------ ------
Interest Expense
- ----------------
Deposits 343 328 667 629
Federal Funds Purchased and
Securities Sold Under Repurchase
Agreements 31 30 65 58
Other Borrowed Funds 54 42 103 81
Long-Term Debt 34 31 66 63
----- ----- ------ ------
Total Interest Expense 462 431 901 831
----- ----- ------ ------
Net Interest Income 408 481 803 968
- -------------------
Provision for Loan Losses 5 60 10 120
----- ----- ------ ------
Net Interest Income After
Provision for Loan Losses 403 421 793 848
----- ----- ------ ------
Noninterest Income
- ------------------
Processing Fees
Securities 239 190 469 375
Cash 64 59 127 114
----- ----- ------ ------
303 249 596 489
Trust and Investment Fees 51 44 101 87
Service Charges and Fees 85 94 166 187
Securities Gains 46 33 74 40
Other 76 69 176 141
----- ----- ------ ------
Total Noninterest Income 561 489 1,113 944
----- ----- ------ ------
Noninterest Expense
- -------------------
Salaries and Employee Benefits 287 263 570 521
Net Occupancy 43 42 84 84
Furniture and Equipment 21 24 41 48
Other 121 136 244 256
----- ----- ------ ------
Total Noninterest Expense 472 465 939 909
----- ----- ------ ------
Income Before Income Taxes 492 445 967 883
Income Taxes 172 162 344 323
Distribution on Trust
Preferred Securities 25 14 45 26
----- ----- ------ ------
Net Income $ 295 $ 269 $ 578 $ 534
- ---------- ===== ===== ====== ======
Net Income Available to
- -----------------------
Common Shareholders $ 295 $ 266 $ 578 $ 529
------------------- ===== ===== ====== ======
Per Common Share Data:
- ----------------------
Basic Earnings $0.79 $0.70 $ 1.56 $ 1.38
Diluted Earnings 0.75 0.66 1.48 1.29
Cash Dividends Paid 0.26 0.24 0.52 0.48
Diluted Shares Outstanding 392 405 391 409
</TABLE>
<PAGE> 12
<TABLE>
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Balance Sheets
(Dollars in millions, except per share amounts)
(Unaudited)
<CAPTION>
June 30, December 31,
1998 1997
---- ----
<S> <C> <C>
Assets
- ------
Cash and Due from Banks $ 7,329 $ 5,769
Interest-Bearing Deposits in Banks 1,900 2,126
Securities:
Held-to-Maturity 1,030 1,127
Available-for-Sale 5,758 5,501
------- -------
Total Securities 6,788 6,628
Trading Assets at Fair Value 1,422 2,616
Federal Funds Sold and Securities Purchased
Under Resale Agreements 1,167 2,820
Loans (less allowance for loan losses
of $646 in 1998 and $641 in 1997) 38,403 34,486
Premises and Equipment 843 835
Due from Customers on Acceptances 974 1,187
Accrued Interest Receivable 364 356
Other Assets 3,784 3,138
------- -------
Total Assets $62,974 $59,961
======= =======
Liabilities and Shareholders' Equity
- ------------------------------------
Deposits
Noninterest-Bearing (principally
domestic offices) $11,814 $12,561
Interest-Bearing
Domestic Offices 15,707 15,607
Foreign Offices 15,887 13,189
------- -------
Total Deposits 43,408 41,357
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 1,996 2,329
Other Borrowed Funds 5,626 4,673
Acceptances Outstanding 983 1,196
Accrued Taxes and Other Expenses 2,087 1,910
Accrued Interest Payable 152 182
Other Liabilities 457 503
Long-Term Debt 2,003 1,809
------- -------
Total Liabilities 56,712 53,959
------- -------
Guaranteed Preferred Beneficial Interests
in the Company's Junior Subordinated
Deferrable Interest Debentures 1,300 1,000
------- -------
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 800,000,000 shares, issued
472,128,198 shares in 1998 and
460,212,619 shares in 1997 3,541 3,452
Additional Capital 594 465
Retained Earnings 3,912 3,528
Accumulated Other Comprehensive Income 348 285
------- -------
8,396 7,731
Less: Treasury Stock (96,731,240 shares in
1998 and 85,320,504 shares in 1997), at cost 3,419 2,714
Loan to ESOP (1,056,829 shares), at cost 15 15
------- -------
Total Shareholders' Equity 4,962 5,002
------- -------
Total Liabilities and Shareholders' Equity $62,974 $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 June 30, 1998 ended June 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) $ 3,150 $ 40 5.12 % $ 2,942 $ 39 5.31 %
Federal Funds Sold and
Securities Purchased
Under Resale Agreements 3,165 42 5.33 2,531 35 5.50
Loans
Domestic Offices 19,753 384 7.80 22,469 523 9.34
Foreign Offices 18,219 312 6.86 14,792 243 6.58
------- ------ ------- ------
Total Loans 37,972 696 7.35 37,261 766 8.25
------- ------ ------- ------
Securities
U.S. Government
Obligations 3,307 48 5.81 2,683 39 5.86
U.S. Government Agency
Obligations 557 9 6.50 386 6 6.46
Obligations of States and
Political Subdivisions 656 14 8.23 632 14 8.69
Other Securities,
including Trading
Securities 3,085 37 4.86 1,712 21 4.90
------- ------ ------- ------
Total Securities 7,605 108 5.68 5,413 80 5.93
------- ------ ------- ------
Total Interest-Earning
Assets 51,892 886 6.85 % 48,147 920 7.67 %
------ ------
Allowance for Loan Losses (644) (837)
Cash and Due from Banks 3,529 3,756
Other Assets 7,457 7,853
------- -------
TOTAL ASSETS $62,234 $58,919
======= =======
LIABILITIES AND
- ---------------
SHAREHOLDERS' EQUITY
--------------------
Interest-Bearing Deposits
Money Market Rate
Accounts $ 4,991 59 4.77 % $ 4,259 49 4.59 %
Savings 7,751 48 2.50 8,022 51 2.53
Certificates of Deposit
$100,000 & Over 734 10 5.48 715 10 5.46
Other Time Deposits 2,293 28 4.86 2,569 31 5.02
Foreign Offices 15,864 198 4.98 15,200 187 4.93
------- ------ ------- ------
Total Interest-Bearing
Deposits 31,633 343 4.34 30,765 328 4.28
Federal Funds Purchased
and Securities Sold
Under Repurchase
Agreements 2,760 31 4.56 2,226 30 5.33
Other Borrowed Funds 4,053 54 5.36 3,195 42 5.25
Long-Term Debt 1,964 34 6.83 1,808 31 6.94
------- ------ ------- ------
Total Interest-Bearing
Liabilities 40,410 462 4.58 % 37,994 431 4.55 %
------ ------
Noninterest-Bearing
Deposits 10,227 9,183
Other Liabilities 5,379 6,028
Minority Interest-
Preferred Securities 1,300 714
Preferred Stock 1 112
Common Shareholders'
Equity 4,917 4,888
------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $62,234 $58,919
======= =======
Net Interest Earnings
and Interest Rate Spread $ 424 2.27 % $ 489 3.12 %
====== ==== ====== ====
Net Yield on Interest-
Earning Assets 3.28 % 4.08 %
==== ====
</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 six months For the six months
ended June 30, 1998 ended June 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) $ 3,002 $ 83 5.56% $ 2,692 $ 73 5.46%
Federal Funds Sold and
Securities Purchased
Under Resale Agreements 2,743 72 5.29 2,541 68 5.41
Loans
Domestic Offices 19,389 755 7.86 22,610 1,048 9.32
Foreign Offices 17,923 611 6.87 14,545 466 6.46
------- ------ ------- ------
Total Loans 37,312 1,366 7.38 37,155 1,514 8.22
------- ------ ------- ------
Securities
U.S. Government
Obligations 3,365 97 5.78 2,718 78 5.82
U.S. Government Agency
Obligations 584 19 6.47 405 13 6.40
Obligations of States and
Political Subdivisions 660 27 8.23 637 28 8.67
Other Securities,
including Trading
Securities 2,907 65 4.53 1,617 42 5.21
------- ------ ------- ------
Total Securities 7,516 208 5.58 5,377 161 6.03
------- ------ ------- ------
Total Interest-Earning
Assets 50,573 1,729 6.89% 47,765 1,816 7.67%
------ ------
Allowance for Loan Losses (644) (854)
Cash and Due from Banks 3,535 3,901
Other Assets 7,462 7,576
------- -------
TOTAL ASSETS $60,926 $58,388
======= =======
LIABILITIES AND
- ---------------
SHAREHOLDERS' EQUITY
--------------------
Interest-Bearing Deposits
Money Market Rate
Accounts $ 4,857 114 4.73% $ 4,074 89 4.42%
Savings 7,712 97 2.54 8,071 102 2.55
Certificates of Deposit
$100,000 & Over 701 19 5.50 706 19 5.38
Other Time Deposits 2,301 55 4.86 2,531 61 4.88
Foreign Offices 15,112 382 5.10 14,904 358 4.83
------- ------ ------- ------
Total Interest-Bearing
Deposits 30,683 667 4.39 30,286 629 4.19
Federal Funds Purchased
and Securities Sold
Under Repurchase
Agreements 2,856 65 4.60 2,246 58 5.22
Other Borrowed Funds 3,717 103 5.56 3,223 81 5.08
Long-Term Debt 1,902 66 6.88 1,812 63 6.89
------- ------ ------- ------
Total Interest-Bearing
Liabilities 39,158 901 4.64% 37,567 831 4.46%
------ ------
Noninterest-Bearing
Deposits 10,124 9,226
Other Liabilities 5,718 5,836
Minority Interest-
Preferred Securities 1,164 657
Preferred Stock 1 112
Common Shareholders'
Equity 4,761 4,990
------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $60,926 $58,388
======= =======
Net Interest Earnings
and Interest Rate Spread $ 828 2.25% $ 985 3.21%
====== ==== ====== ====
Net Yield on Interest-
Earning Assets 3.30% 4.16%
==== ====
</TABLE>
