<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):
December 16, 1999
THE BANK OF NEW YORK COMPANY, INC.
----------------------------------
(exact name of registrant as specified in its charter)
NEW YORK
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(State or other jurisdiction of incorporation)
001-06152 13-2614959
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(Commission file number) (I.R.S. employer identification number)
One Wall Street, New York, NY 10286
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(Address of principal executive offices) (Zip code)
212-495-1784
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(Registrant's telephone number,
including area code)
<PAGE> 2
ITEM 5. Other Events
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Projections and Earnings Estimates
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On December 16, 1999, The Bank of New York Company, Inc. released the
projections and earnings estimates contained in the materials filed herewith,
as Exhibit 99, which are incorporated herein by reference.
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibit Description
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99 Materials containing projections and earnings
estimates of The Bank of New York Company, Inc.
as presented to financial analysts on
December 16,1999.
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SIGNATURE
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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.
Date: December 16, 1999
The Bank of New York Company, Inc.
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(Registrant)
By: /s/ Thomas J. Mastro
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Name: Thomas J. Mastro
Title: Comptroller
<PAGE> 4
EXHIBIT INDEX
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Exhibit No. Description
- ----------- -----------
99 Materials containing projections and earnings estimates of
Bank of New York Company, Inc. as presented to financial
analysts on December 16, 1999.
EXHIBIT 99
Cautionary Statement
The forward looking statements presented today including projections with
respect to earnings growth and the Company's plans and objectives are subject
to risks and uncertainties that could cause actual results to differ
materially from projected results discussed. These include inaccuracies in
management projections or market forecasts and the actions that management
could take in response to these changes.
For additional detailed information, we refer you to the discussions under the
heading "Forward Looking Statements" in the Company's 1998 10-K and Third
Quarter 1999 10-Q, both of which have been filed with the SEC.
==================================(SLIDE 1)===================================
The Bank of New York Company, Inc.
==================================(SLIDE 2)===================================
Earnings Contribution
Percent
<TABLE>
<CAPTION>
Pro Forma
1995 1996 1997 1998 1999E 1999E
------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Securities Serv. And Cash Proc. 22 30 35 37 41 44
Private Client Services 5 6 8 9 9 10
------- ------- ------- ------- -------- -------
Fiduciary/Securities Servicing 27 36 43 46 50 54
======= ======= ======= ======= ======== =======
Corporate Banking 20 22 24 23 21 22
Retail Banking 15 14 12 12 12 12
Financial Market Services 13 12 11 11 11 12
Asset Based Lending 7 7 8 8 6 0
Credit Card 18 9 2 0 0 0
------- ------- ------- ------- -------- -------
100 100 100 100 100 100
======= ======= ======= ======= ======== =======
</TABLE>
==================================(SLIDE 3)===================================
Transformation Continues
- -Strategic focus on fiduciary and asset servicing businesses
- -Sale of BNY Financial
- -RBS Trust Bank acquisition
- -Continued realignment of lending strategy
- -Trend will continue
==================================(SLIDE 4)===================================
Momentum Accelerates
Enhancing revenue growth
-Benefiting from favorable secular trends
-Continuing industry consolidation
-Structural pressures on asset managers and providers
==================================(SLIDE 5)===================================
Momentum Accelerates
Sustaining technology leadership
-Real-time web-based services
Enhancing investor returns
-Active capital management
==================================(SLIDE 6)===================================
BK Investment Thesis
Proven business model
-Sustainable, high growth, fee-based businesses
Breadth of product
-Integrated
-Single-source provider
Leader in technology
-Scalable
-Functional
-Low cost of delivery
==================================(SLIDE 7)===================================
BK Investment Thesis (continued)
Relationship orientation
-Successful cross-selling
-Outsourcing opportunities
Organizational expertise
-Integration of acquisitions
-Managing complex product suite
==================================(SLIDE 8)===================================
Realignment of Loan Portfolio
Percent
1994 1999
---- ----
Securities and Fiduciary Services 41 73
Credit Only 45 10
Retail, Leasing and Other 14 17
---- ----
Total 100 100
==== ====
==================================(SLIDE 9)===================================
Loan Portfolio Mix
Percent
1994 1999
---- ----
Industry:
Financial Companies 14 24
Specialized Industries 24 32
Private Banking 3 5
---- ----
Subtotal 41 61
U.S. Corporate/Regional 17 22
Retail, Leasing and Other 14 17
Credit Card 23 0
Asset Based Lending 5 0
---- ----
Total 100 100
==== ====
==================================(SLIDE 10)==================================
Key Capital Ratios
Percent
1998 1999E
----- -----
Tier 1 7.89 7.60
Total 11.90 11.70
TCE 6.25 4.70
Leverage 7.46 6.90
==================================(SLIDE 11)==================================
Tier 1 Capital Sources and Uses
In Millions of Dollars
----------------------
Earnings projection: Year 2000* $1,400
Plus: Emp. Purch./GW Amort. 400
Less: Dividends (500)
Acquisitions (400)
Balance sheet growth (100)
------
Capital available for further acquisitions/
TCE improvement/stock buyback $ 800
======
* Based on Yr. 2000 First Call estimates
==================================(SLIDE 12)==================================
Technology Investment
In Millions
1996 1997 1998 1999E 2000E
---- ---- ---- ----- -----
$290 $308 $360 $400 $455
12% Average Growth
==================================(SLIDE 13)==================================
Acquisitions will Continue
Consolidation pressures increasing
-Scale players benefit
-Refocusing on core competencies
Year 2000 opportunities
-Corporate Trust
-Investor Services
-Private Client Services
-Execution and Clearing Services
==================================(SLIDE 14)==================================
Securities Servicing
Market Sustainable Growth
Rank Product 2000 - 2003
- ------- ------- ------------------
2 International Custody 25% +
2 Mutual Funds 20% +
1 Securities Clearance 20% +
1 Depositary Receipts 15% +
2 Corporate Trust 15% +
2 Domestic Custody 10% +
2 Securities Lending 10% +
2 Unit Investment Trust 10% +
3 Stock Transfer 10% +
-----
Overall 15% +
==================================(SLIDE 15)==================================
Growth Rates
Depositary Receipt Services
Sustainable revenue growth: 15%+
Significant upside potential: 30%+
-Volatility
-Corporate actions
Increases in recurring fees
New products
-Basket depositary receipts
==================================(SLIDE 16)==================================
Corporate Trust Growth Rates
Sustainable revenue growth: 15%+
Significant upside potential: 25%+
-Continued global expansion
-BNY Asset Solutions
-Ongoing acquisitions
-32 since 1993
-6 in 1999
==================================(SLIDE 17)==================================
Securities Servicing Fee Revenues
In Millions of Dollars
<TABLE>
<CAPTION>
Est. 1999 Est. 2000
1999 Growth 2000 Growth
------- -------- ------- -------
<S> <C> <C> <C> <C>
ADRs
Corporate Trust $ 507 20% $ 620+ 22%
Stock Transfer
International Custody
Domestic Custody $ 431 28% 595+ 38%
Securities Lending
Mutual Funds
Securities Clearance $ 307 28% 360+ 18%
UIT
------ -------
Total Fee Revenue $1,245 24% $1,575+ 27%
======= =======
</TABLE>
==================================(SLIDE 18)==================================
Earnings Contribution
Percent
<TABLE>
<CAPTION>
1995 1998 1999E 2000E
------- -------- ------- -------
<S> <C> <C> <C> <C>
Securities Serv. And Cash Proc. 22 37 41 46
Private Client Services 5 9 9 10
------- -------- ------- -------
Fiduciary/Securities Servicing 27 46 50 56
======= ======== ======= =======
Corporate Banking 20 23 21 20
Retail Banking 15 12 12 12
Financial Market Services 13 11 11 12
Asset Based Lending 7 8 6 0
Credit Card 18 0 0 0
------- -------- ------- -------
100 100 100 100
======= ======== ======= =======
</TABLE>
==================================(SLIDE 19)==================================
Cash Processing Revenues
In Millions of Dollars
1999E 2000E
----- -----
Revenue $389 $419
%Increase 6% 8%
==================================(SLIDE 20)==================================
Private Client Services
In Millions of Dollars
1999E 2000E
----- -----
Fees $243 $292
% Increase 16%+ 20%+
==================================(SLIDE 21)==================================
Corporate Banking
- -Expected loan growth for 1999E: 5.5%+
- -Expected loan growth for 2000E: 8.0%+
- -Strong asset quality continues
- -Capital market capabilities
- -Fee income focus
==================================(SLIDE 22)==================================
Financial Market Services
- -Increased customer volumes
- -Improved penetration of European customer base
- -Significant upside: RBS Trust
- -Revenue growth for 1999E: 20%+
- -Revenue growth for 2000E: 30%+
==================================(SLIDE 23)==================================
Non-Interest Income
% of Revenues
1995 1998 1999E 2000E
- ---- ---- ----- -----
41% 58% 61% 63%
==================================(SLIDE 24)==================================
Financial Goals 2000-2003
Target Goal
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Return on Equity 24%+
Return on Assets 2%
Efficiency Ratio 48%
EPS Growth Rate 12 to 14%
====================================(END)====================================
