<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 19, 1999
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 offices) (Zip code)
212-495-1784
------------
(Registrant's telephone number,
including area code)
<PAGE> 2
ITEM 5. Other Events
------------
Second Quarter of 1999 Financial Results
---------------------------------------
On July 19, 1999, The Bank of New York Company, Inc. issued a press release
containing unaudited interim financial information and accompanying discussion
for the second quarter of 1999. 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 1999 contained in the press release dated
July 19, 1999, 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 19, 1999
THE BANK OF NEW YORK COMPANY, INC.
(Registrant)
By: /s/ Thomas J. Mastro
-------------------------
Name: Thomas J. Mastro
Title: Comptroller
<PAGE> 4
EXHIBIT INDEX
-------------
Exhibit No. Description
- ----------- -----------
99 Unaudited interim financial information and accompanying
discussion for the second quarter of 1999 contained in the
press release dated July 19, 1999, 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
IMMEDIATELY
- -----------
Media: Investors:
- ----- ---------
Frank H. Scarangella, SVP Nicholas C. Silitch, SVP
(212) 635-1590 (212) 635-1591
Cary J. Giacalone,VP Richard P. Stanley, SVP
(212) 635-1590 (212) 635-1854
Gregory A. Burton, AVP
(212) 635-1578
THE BANK OF NEW YORK COMPANY, INC. REPORTS
Record Second Quarter Diluted E.P.S. of 42 Cents, Up 11%
Securities Servicing Fee Revenue Up 27%
Return on Average Common Equity of 24.82%
Return on Average Assets of 1.95%
NEW YORK, N.Y., July 19, 1999 -- The Bank of New York Company, Inc. (NYSE: BK)
reports record second quarter diluted earnings per share of 42 cents, up 11%
from the 38 cents earned in the second quarter of 1998. Net income for the
second quarter was a record $323 million, up 10% from the $295 million earned
in the same period last year. Diluted earnings per share were 82 cents for the
first half of 1999, up 11% from the 74 cents earned last year. Net income for
the first six months was a record $639 million, an increase of 11% over last
year's $578 million.
"Continued strong revenue growth in our fee based businesses combined
with the benefits of our ongoing emphasis on cost control and capital
management produced another record performance", said Thomas A. Renyi,
Chairman and CEO. Substantial new business wins coupled with strong and active
securities markets worldwide drove securities servicing revenues up 27%,
<PAGE> 2
matching the first quarter's superior performance. Trust and investment fees
once again grew 16% led by strong investment performance, new customers, and
record levels in U.S. equity markets. Overall, noninterest income contributed
61% of revenues for the quarter, demonstrating continued momentum in fee
generating businesses.
In securities servicing, all areas did well with global custody, mutual
funds, securities lending, ADRs and execution services particularly strong.
Domestic and global custody continued to gain market share from new business
wins as assets under custody grew by 20% from a year ago reaching $5.3
trillion at quarter end. Trust and investment's results were due to strong
investment performance which continues to attract new customers. Focus on cost
control was evident, as noninterest expense for the quarter was flat compared
with the first quarter of 1999 and the efficiency ratio improved to 49.9%. As
part of its capital management program, the Company has repurchased
substantially all of the 18 million shares authorized under its buyback
program. The Company has approved a new plan to buy back 30 million of its
common shares upon completion of the sale of BNY Financial Corporation.
Return on average common equity for the second quarter of 1999 was 24.82%
compared with 24.03% in the second quarter of 1998. Return on average assets
for the second quarter of 1999 was 1.95% compared with 1.90% in the second
quarter of 1998. For the first six months of 1999, return on average common
equity totaled 24.65% compared with 24.49% in 1998. Return on average assets
was 1.94% for the first six months of 1999 compared with 1.91% in 1998.
Net interest income on a taxable equivalent basis for the second quarter
decreased to $427 million from $436 million in the first quarter of 1999. For
the first six months of 1999, net interest income on a taxable equivalent
basis was $863 million compared with $828 million in the first half of 1998.
Fees from the Company's securities servicing businesses reached $302
million for the second quarter compared with $239 million last year. For the
first six months of 1999 fees from the Company's securities servicing
businesses totaled $593 million, growing by 27% compared with the
<PAGE> 3
corresponding period of the prior year. All areas contributed to strong
internal growth of 16%.
In cash processing, revenues from cash management were up 11% driven by
continued cross selling to the Company's securities servicing customers.
Fees from funds transfer grew by 10% from the previous year, the result of
continued market share gains and the firming global economy. Also benefiting
from the recovery in world markets were trade finance revenues which were up
8% from a year ago. Overall, cash processing fees grew by 10% reaching $70
million for the quarter.
Trust and investment fees were $60 million for the quarter, an increase
of 16% over last year driven by strong results from personal trust, personal
asset management and retail investment products. Foreign exchange and other
trading revenues were $46 million this quarter compared with $42 million in
the second quarter last year.
Tangible diluted earnings per share (earnings before the amortization of
of goodwill and intangibles) were 44 cents per share in the second quarter of
1999, up from 40 cents per share in the second quarter of 1998. On the same
basis, tangible return on average common equity was 37.79% in 1999 compared
with 37.13% in 1998; and tangible return on average assets was 2.11% in 1999
compared with 2.07% in 1998. Tangible diluted earnings per share were 87 cents
per share for the first six months of 1999, compared with 79 cents per share
in 1998. Tangible return on average common equity was 37.53% in the first six
months of 1999 compared with 37.41% in 1998; and tangible return on average
assets was 2.11% in the first six months of 1999 compared with 2.09% last
year. Amortization of intangibles for the second quarter and the first six
months of 1999 was $27 million and $53 million compared with $25 million and
$49 million last year.
The Company's estimated Tier 1 capital and Total capital ratios remained
strong at 7.61% and 11.49% at June 30, 1999 compared with 7.84% and 11.86% at
March 31, 1999, and 7.25% and 11.24% at June 30, 1998. Tangible common equity
as a percent of total assets was 5.59% at June 30, 1999 compared with 5.88% at
<PAGE> 4
March 31, 1999 and 5.55% one year ago. The leverage ratio was 7.65% at June
30, 1999 compared with 7.69% at March 31, 1999 and 7.17% one year ago.
The Company expects the sale of BNY Financial Corporation to General
Motors Acceptance Corporation to be completed in the third quarter. As a
result, the related assets of $3.8 billion (net of a $37 million allowance for
credit losses) were classified as held for sale and included in other assets
at June 30, 1999.
NET INTEREST INCOME
<TABLE>
<CAPTION>
2nd 1st 2nd
Quarter Quarter Quarter Year to Date
------- ------- ------- --------------
(In millions) 1999 1999 1998 1999 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Interest Income $427 $436 $424 $863 $828
Net Interest Rate
Spread 2.18% 2.29% 2.27% 2.24% 2.25%
Net Yield on Interest-
Earning Assets 3.07 3.18 3.28 3.13 3.30
</TABLE>
Net interest income on a taxable equivalent basis was $427 million in the
second quarter of 1999 compared with $436 million in the first quarter of 1999
and $424 million in the second quarter of 1998. The net interest rate spread
was 2.18% in the second quarter of 1999, compared with 2.29% in the first
quarter of 1999 and 2.27% one year ago. The net yield on interest-earning
assets was 3.07% compared with 3.18% in the first quarter of 1999 and 3.28% in
last year's second quarter.
For the first six months of 1999, net interest income on a taxable
equivalent basis, amounted to $863 million compared with $828 million in the
first half of 1998. The year-to-date net interest rate spread was 2.24% in
1999 compared with 2.25% in 1998, while the net yield on interest-earning
assets was 3.13% in 1999 and 3.30% in 1998.
The declines in net interest income, interest rate spread and yield from
the first quarter were primarily the result of continued growth in loans that
support our securities servicing activities. These loans are lower yielding
and short term in nature.
<PAGE> 5
NONINTEREST INCOME
<TABLE>
<CAPTION>
2nd 1st 2nd
Quarter Quarter Quarter Year-to-Date
------- ------- ------- ------------
(In millions) 1999 1999 1998 1999 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Processing Fees
Securities $302 $291 $239 $ 593 $ 469
Cash 70 69 64 139 127
---- ---- ---- ------ ------
372 360 303 732 596
Trust and Investment Fees 60 58 51 118 101
Service Charges and Fees 91 85 85 176 166
Foreign Exchange and
Other Trading Activities 46 42 42 88 88
Securities Gains 50 50 46 100 74
Other 32 30 34 62 88
---- ---- ---- ------ ------
Total Noninterest Income $651 $625 $561 $1,276 $1,113
==== ==== ==== ====== ======
</TABLE>
Total noninterest income reached $651 million increasing 4% from the
first quarter of 1999 and 16% from the prior year period. Securities servicing
fees grew 4% on a linked quarter basis reaching $302 million and 27% from a
year ago. Fees from trust and investment were up $2 million from the first
quarter reaching $60 million, and $9 million or 16% from the second quarter of
1998. Service charges and fees benefited from improved capital markets
activity and rose 7% from the first quarter and the prior year period reaching
$91 million. Securities gains of $50 million were level with the first quarter
of 1999 and up slightly from the $46 million in the second quarter of 1998.
NONINTEREST EXPENSE AND INCOME TAXES
Continued adherence to expense control resulted in total noninterest
expense for the quarter of $513 million, compared with $509 million in the
first quarter of 1999. The increase of 9% from $472 million in the same period
last year was principally due to acquisitions. Noninterest expense for the
second quarter included $5 million related to making computer systems Year
2000 compliant compared with $8 million in the prior year. For the first six
months of 1999, Year 2000 expenses were $11 million compared with $16 million
for the first six months of 1998.
<PAGE> 6
The efficiency ratio for the second quarter of 1999 was 49.9% compared
with 50.3% in both the first quarter of 1999 and the second quarter of 1998.
For the first half of 1999, the efficiency ratio was 50.1% compared with 50.2%
last year.
The effective tax rate for the second quarter and the first six months of
1999 was 34.9% in both periods compared with 35.0% and 35.6% last year.
NONPERFORMING ASSETS
<TABLE>
<CAPTION>
Change
6/30/99 vs.
(Dollars in millions) 6/30/99 3/31/99 3/31/99
-------- -------- --------
<S> <C> <C> <C>
Loans:
Commercial Real Estate $ 1 $ 4 $ (3)
Other Commercial 103 103 -
Foreign 68 66 2
Regional Commercial 33 35 (2)
----- ----- ----
Total Loans 205 208 (3)
Other Real Estate 15 14 1
----- ----- ----
Total $ 220 $ 222 $ (2)
===== ===== ====
Nonperforming Assets Ratio 0.6% 0.5%
Allowance/Nonperforming Loans 290.2 303.6
Allowance/Nonperforming Assets 271.0 284.3
</TABLE>
The June 30, 1999 nonperforming assets exclude $21 million classified as
assets held for sale related to the BNY Financial Corporation transaction.
<PAGE> 7
CREDIT LOSS PROVISION AND NET CHARGE-OFFS
<TABLE>
<CAPTION>
2nd 1st 2nd
Quarter Quarter Quarter Year-to-date
------- ------- ------- -------------
(In millions) 1999 1999 1998 1999 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Provision $ 15 $ 15 $ 5 $ 30 $ 10
==== ==== ==== ==== ====
Net(Charge-offs)Recoveries:
Commercial Real Estate 1 (2) 1 (1) 2
Other Commercial (13) (7) (3) (20) (6)
Consumer (1) (1) (1) (2) (2)
Foreign (2) (9) - (11) (1)
Other - - (1) - (2)
---- ---- ---- ---- ----
Total $(15) $(19) $ (4) (34) (9)
==== ==== ==== ==== ====
Other Real Estate Expenses $ - $ - $ - $ - $ 1
</TABLE>
The allowance for credit losses was $595 million, or 1.55% of loans at
June 30, 1999 compared with $632 million, or 1.59% of loans at March 31, 1999
and $646 million, or 1.65% of loans at June 30, 1998. The ratio of the
allowance to nonperforming assets was 271.0% at June 30, 1999 compared with
284.3% at March 31, 1999 and 324.9% at June 30, 1998.
***************************
(Financial highlights and detailed financial statements are attached.)
<PAGE> 8
THE BANK OF NEW YORK COMPANY, INC.
Financial Highlights
(Dollars in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
1999 1998 Change
---- ---- ------
<S> <C> <C> <C>
For the Three Months Ended June 30:
- -----------------------------------
Net Income $ 323 $ 295 9.5%
Per Common Share:
Basic $ 0.42 $ 0.39 7.7
Diluted 0.42 0.38 10.5
Cash Dividends Paid 0.14 0.13 7.7
Return on Average Common Shareholders'
Equity 24.82% 24.03%
Return on Average Assets 1.95 1.90
For the Six Months Ended June 30:
- ---------------------------------
Net Income $ 639 $ 578 10.6%
Per Common Share:
Basic $ 0.84 $ 0.78 7.7
Diluted 0.82 0.74 10.8
Cash Dividends Paid 0.28 0.26 7.7
Return on Average Common Shareholders'
Equity 24.65% 24.49%
Return on Average Assets 1.94 1.91
As of June 30:
- --------------
Assets $67,771 $63,003 7.6%
Loans 38,387 39,049 -1.7
Securities 6,022 6,817 -11.7
Deposits - Domestic 26,859 27,371 -1.9
- Foreign 20,619 16,036 28.6
Long-Term Debt 2,277 2,003 13.7
Minority Interest - Preferred Securities 1,500 1,300 15.4
Preferred Shareholders' Equity 1 1 -
Common Shareholders' Equity 5,279 4,968 6.3
Common Shareholders' Equity Per Share 6.95 6.64 4.7
Market Value Per Share of Common Stock 36.69 30.44 20.5
Allowance for Credit Losses as a Percent
of Loans 1.55% 1.65%
Tier 1 Capital Ratio 7.61 7.25
Total Capital Ratio 11.49 11.24
Leverage Ratio 7.65 7.17
Tangible Common Equity Ratio 5.59 5.55
</TABLE>
<PAGE> 9
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
For the three For the six
months ended months ended
June 30, June 30,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest Income
- ---------------
Loans $ 659 $ 695 $1,319 $1,364
Securities
Taxable 63 72 128 146
Exempt from Federal Income Taxes 12 16 22 30
----- ----- ------ ------
75 88 150 176
Deposits in Banks 54 40 118 83
Federal Funds Sold and Securities Purchased
Under Resale Agreements 46 42 99 72
Trading Assets 5 5 10 9
---- ----- ----- ------
Total Interest Income 839 870 1,696 1,704
----- ----- ----- ------
Interest Expense
- ----------------
Deposits 324 343 641 667
Federal Funds Purchased and Securities Sold
Under Repurchase Agreements 36 31 67 65
Other Borrowed Funds 28 54 75 103
Long-Term Debt 35 34 70 66
----- ----- ----- ------
Total Interest Expense 423 462 853 901
----- ----- ----- ------
Net Interest Income 416 408 843 803
- -------------------
Provision for Credit Losses 15 5 30 10
----- ----- ----- ------
Net Interest Income After Provision for
Credit Losses 401 403 813 793
----- ----- ----- ------
Noninterest Income
- ------------------
Processing Fees
Securities 302 239 593 469
Cash 70 64 139 127
----- ----- ----- ------
372 303 732 596
Trust and Investment Fees 60 51 118 101
Service Charges and Fees 91 85 176 166
Securities Gains 50 46 100 74
Other 78 76 150 176
----- ----- ----- ------
Total Noninterest Income 651 561 1,276 1,113
----- ----- ----- ------
Noninterest Expense
- -------------------
Salaries and Employee Benefits 311 287 622 570
Net Occupancy 40 43 81 84
Furniture and Equipment 21 21 45 41
Other 141 121 274 244
----- ----- ----- ------
Total Noninterest Expense 513 472 1,022 939
----- ----- ----- ------
Income Before Income Taxes 539 492 1,067 967
Income Taxes 188 172 372 344
Distribution on Trust Preferred Securities 28 25 56 45
----- ----- ----- ------
Net Income $ 323 $ 295 $ 639 $ 578
- ---------- ===== ===== ===== ======
Net Income Available to Common Shareholders $ 323 $ 295 $ 639 $ 578
- ------------------------------------------- ===== ===== ===== ======
Per Common Share Data:
- ----------------------
Basic Earnings $0.42 $0.39 $0.84 $ 0.78
Diluted Earnings 0.42 0.38 0.82 0.74
Cash Dividends Paid 0.14 0.13 0.28 0.26
Diluted Shares Outstanding 773 783 776 782
</TABLE>
<PAGE> 10
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Balance Sheets
(Dollars in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
---- ----
<S> <C> <C>
Assets
- ------
Cash and Due from Banks $ 5,619 $ 3,999
Interest-Bearing Deposits in Banks 4,499 4,504
Securities:
Held-to-Maturity 817 964
Available-for-Sale 5,205 5,451
------- -------
Total Securities 6,022 6,415
Trading Assets at Fair Value 1,659 1,637
Federal Funds Sold and Securities Purchased Under Resale
Agreements 2,583 3,281
Loans (less allowance for credit losses of $595 in 1999
and $636 in 1998) 37,792 37,750
Premises and Equipment 854 856
Due from Customers on Acceptances 853 946
Accrued Interest Receivable 295 355
Other Assets 7,595 3,760
------- -------
Total Assets $67,771 $63,503
======= =======
Liabilities and Shareholders' Equity
- ------------------------------------
Deposits
Noninterest-Bearing (principally domestic offices) $10,896 $11,480
Interest-Bearing
Domestic Offices 16,120 16,091
Foreign Offices 20,462 17,061
------- -------
Total Deposits 47,478 44,632
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 3,639 1,571
Other Borrowed Funds 3,703 4,536
Acceptances Outstanding 864 951
Accrued Taxes and Other Expenses 2,165 2,183
Accrued Interest Payable 126 188
Other Liabilities 739 608
Long-Term Debt 2,277 2,086
------- -------
Total Liabilities 60,991 56,755
------- -------
Guaranteed Preferred Beneficial Interests in the
Company's Junior Subordinated Deferrable Interest
Debentures 1,500 1,300
------- -------
Shareholders' Equity
Class A Preferred Stock - par value $25.00 per share,
authorized 5,000,000 shares, outstanding 16,887 shares
in 1999 and 22,820 shares in 1998 1 1
Common Stock-par value $7.50 per share,
authorized 1,600,000,000 shares, issued
974,810,001 shares in 1999 and
970,767,767 shares in 1998 7,311 7,281
Additional Capital 242 142
Retained Earnings 1,744 1,318
Accumulated Other Comprehensive Income 217 312
------- -------
9,515 9,054
Less: Treasury Stock (212,980,823 shares in 1999
and 197,648,459 shares in 1998), at cost 4,222 3,593
Loan to ESOP (1,801,003 shares in 1999
And 1998), at cost 13 13
------- -------
Total Shareholders' Equity 5,280 5,448
------- -------
Total Liabilities and Shareholders' Equity $67,771 $63,503
======= =======
<FN>
- ----------------------------------------------------------------------------------------
Note: The balance sheet at December 31, 1998 has been derived from the audited financial
statements at that date.
</FN>
</TABLE>
<PAGE> 11
THE BANK OF NEW YORK COMPANY, INC.
Average Balances and Rates on a Taxable Equivalent Basis
(Preliminary)
(Dollars in millions)
<TABLE>
<CAPTION>
For the three months For the three months
ended June 30, 1999 ended June 30, 1998
------------------------------ ------------------------------
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) $ 5,024 $ 54 4.31% $ 3,150 $ 40 5.12%
Federal Funds Sold and Securities
Purchased Under Resale Agreements 3,949 46 4.66 3,165 42 5.33
Loans
Domestic Offices 20,704 362 7.02 19,753 384 7.80
Foreign Offices 19,310 297 6.16 18,219 312 6.86
------- ----- ------- -----
Total Loans 40,014 659 6.60 37,972 696 7.35
------- ----- ------- -----
Securities
U.S. Government Obligations 2,512 36 5.82 3,307 48 5.81
U.S. Government Agency Obligations 875 14 6.40 557 9 6.50
Obligations of States and
Political Subdivisions 580 11 7.90 656 14 8.23
Other Securities, including
Trading Securities 2,740 30 4.31 3,085 37 4.86
------- ----- ------- -----
Total Securities 6,707 91 5.46 7,605 108 5.68
------- ----- ------- -----
Total Interest-Earning Assets 55,694 850 6.12% 51,892 886 6.85%
----- -----
Allowance for Credit Losses (630) (598)
Cash and Due from Banks 3,075 3,529
Other Assets 8,398 7,411
------- -------
TOTAL ASSETS $66,537 $62,234
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-Bearing Deposits
Money Market Rate Accounts $ 5,195 54 4.13% $ 4,991 59 4.77%
Savings 7,821 43 2.22 7,751 48 2.50
Certificates of Deposit
$100,000 & Over 591 7 4.75 734 10 5.48
Other Time Deposits 2,123 22 4.25 2,293 28 4.86
Foreign Offices 19,652 198 4.04 15,864 198 4.98
------- ----- ------- -----
Total Interest-Bearing Deposits 35,382 324 3.67 31,633 343 4.34
Federal Funds Purchased and
Securities Sold Under Repurchase
Agreements 3,370 36 4.26 2,760 31 4.56
Other Borrowed Funds 2,153 28 5.25 4,053 54 5.36
Long-Term Debt 2,233 35 6.30 1,964 34 6.83
------- ----- ------- -----
Total Interest-Bearing Liabilities 43,138 423 3.94% 40,410 462 4.58%
----- -----
Noninterest-Bearing Deposits 10,640 10,227
Other Liabilities 6,044 5,379
Minority Interest-Preferred Securities 1,500 1,300
Preferred Stock - 1
Common Shareholders' Equity 5,215 4,917
------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $66,537 $62,234
======= =======
Net Interest Earnings
and Interest Rate Spread $ 427 2.18% $ 424 2.27%
===== ==== ===== ====
Net Yield on Interest-Earning Assets 3.07% 3.28%
==== ====
</TABLE>
<PAGE> 12
THE BANK OF NEW YORK COMPANY, INC.
Average Balances and Rates on a Taxable Equivalent Basis
(Preliminary)
(Dollars in millions)
<TABLE>
<CAPTION>
For the six months For the six months
ended June 30, 1999 ended June 30, 1998
------------------------------ ------------------------------
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) $ 5,158 $ 118 4.61% $ 3,002 $ 83 5.56%
Federal Funds Sold and Securities
Purchased Under Resale Agreements 4,229 99 4.71 2,743 72 5.29
Loans
Domestic Offices 20,263 724 7.21 19,389 755 7.86
Foreign Offices 19,407 596 6.19 17,923 611 6.87
------- ----- ------- -----
Total Loans 39,670 1,320 6.71 37,312 1,366 7.38
------- ----- ------- -----
Securities
U.S. Government Obligations 2,552 73 5.77 3,365 97 5.78
U.S. Government Agency Obligations 866 28 6.36 584 19 6.47
Obligations of States and
Political Subdivisions 603 23 7.80 660 27 8.23
Other Securities, including
Trading Securities 2,538 55 4.37 2,907 65 4.53
------- ----- ------- -----
Total Securities 6,559 179 5.51 7,516 208 5.58
------- ----- ------- -----
Total Interest-Earning Assets 55,616 1,716 6.22% 50,573 1,729 6.89%
----- -----
Allowance for Credit Losses (633) (621)
Cash and Due from Banks 3,075 3,535
Other Assets 8,217 7,439
------- -------
TOTAL ASSETS $66,275 $60,926
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-Bearing Deposits
Money Market Rate Accounts $ 5,186 106 4.12% $ 4,857 114 4.73%
Savings 7,808 86 2.21 7,712 97 2.54
Certificates of Deposit
$100,000 & Over 624 15 4.84 701 19 5.50
Other Time Deposits 2,188 47 4.34 2,301 55 4.86
Foreign Offices 19,127 387 4.08 15,112 382 5.10
------- ----- ------- -----
Total Interest-Bearing Deposits 34,933 641 3.70 30,683 667 4.39
Federal Funds Purchased and
Securities Sold Under Repurchase
Agreements 3,181 67 4.24 2,856 65 4.60
Other Borrowed Funds 2,886 75 5.29 3,717 103 5.56
Long-Term Debt 2,180 70 6.41 1,902 66 6.88
------- ----- ------- -----
Total Interest-Bearing Liabilities 43,180 853 3.98% 39,158 901 4.64%
----- -----
Noninterest-Bearing Deposits 10,532 10,124
Other Liabilities 5,863 5,718
Minority Interest-Preferred Securities 1,473 1,164
Preferred Stock - 1
Common Shareholders' Equity 5,227 4,761
------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $66,275 $60,926
======= =======
Net Interest Earnings
and Interest Rate Spread $ 863 2.24% $ 828 2.25%
===== ==== ===== ====
Net Yield on Interest-Earning Assets 3.13% 3.30%
==== ====
</TABLE>
