EXHIBIT 99
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The Bank of New York Company, Inc.
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Cautionary Language
The forward looking statements presented today including, among other things,
projections with respect to revenue and earnings growth and the Company's
plans and objectives are subject to risks and uncertainties that could cause
actual results to differ materially from the projections. These include lower
than expected performance or higher than expected costs in connection with
acquisitions and integration of acquired businesses, the level of capital
market activity, inaccuracies in management projections or market forecasts,
the actions that management could take in response to these changes and other
factors described in the SEC filings referred to below.
For additional detailed information, we refer you to the discussions under the
heading "Forward Looking Statements" in the Company's 1999 10-K and Third
Quarter 2000 10-Q, both of which have been filed with the SEC.
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Technology for Global Markets
-Straight through processing
-Scalable
-Internet enabled
BNY is engineered today!
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Securities Transaction STP Rates
1997 1998 1999 2000E
---- ---- ---- -----
-Cross Border 17.7 29.5 43.3 61.0
-U.S. 92.0
(Slide depicts arrow in an upward motion across years 1997 through 2000E
indicating a 300% increase).
BNY: Engineered for T + 1
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Scaled Technology for a Connected World
Global Custody Transactions
(millions)
1998 1999 2000E
---- ---- -----
Total Volume 40.7 45.6 64.7
(Slide depicts arrow in an upward motion across years 1998 through 2000E
indicating a 59% increased growth in transactions).
Employees
(thousands)
1998 1999 2000E
---- ---- -----
BNY Operations Staff 1.3 1.3 1.4
(Slide depicts arrow in an upward motion across years 1998 through 2000E
indicating a 40% increased growth in productivity).
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INFORM User Growth
Number of users in thousands
1996 1997 1998 1999 2000E 2001E 2002E
---- ---- ---- ---- ----- ----- -----
0.2 0.3 3.3 6.4 11.7 23.3 36.7
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Client Data Warehouse Growth
Database updates in millions
1999 2000E 2001E 2002E
----- ----- ----- -----
0.3 4.9 17.2 49.1
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Securities Master Database Growth
(in millions)
Global tradable securities:
1997 1998 1999 2000E 2001E 2002E
---- ---- ---- ----- ----- -----
0.15 0.50 1.7 2.8 3.5 5.0
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Cross-Sell Results - Corporate Clients
-Clients using multiple products:
-1998: 80%
-2000: 90%
-Average number of products used:
-1996: three 1998: six 2000: seven
-Top 10% of clients:
-1998: 10 products 2000: 14 products
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Cross-Sell Results - Financial Companies
-Clients using multiple products:
-1998: 90% 2000: 93%
-Average number of products used:
-1996: Three 1998: six 2000: eight
-Top 10% of clients:
1998: 17 products 2000: 19 products
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Sustainable Revenue Growth
-Positive secular trends
-Focused strategy
-New business wins
-Accelerating outsourcing trend
-Attractive European growth prospects
-Engineering new products
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Global Payment Services Revenues
$ millions
1999 2000E 2001E
---- ----- -----
Revenue 389 404 442
% Increase 8% 4% 9%
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Private Client Services &
BNY Asset Management
$ millions
1999 2000E 2001E
---- ----- -----
Fees 244 297 360
% Increase 17% 22% 21%
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Financial Market Services
-RBS Trust benefits
-High market volumes and volatility
-2000 highlights:
-20% increase in new accounts
-Introduced e-solutions: iFX Manager
-Revenue growth 2001E: 15%+
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Retail Banking Fees
-Fee focused strategy
- 1998 fees 22% of total revenue
- 2001E fees 29% of total revenue
-Non-traditional fees drive growth
- 43% growth 2000E
- 30% growth 2001E
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Corporate Banking
-Global relationship management is key
-Emphasis on cross-selling core fee-based services
- Positioned credit as tactical product
- Providing liquidity
-BNY focuses on asset quality
- Transforming risk profile
- De-emphasized broad-based loan growth
- Using all forms of risk management
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Proactive Risk Management
-Sold/Exited $ billions
---------
Credit Cards 4.0
Asset Based Lending 4.0
Non-Strategic Exposures 1.0
-Credit Only Relationships
1994 1999 2000
---- ---- ----
45% 10% 8%
-Financial Service Companies
1994 1999 2000
---- ---- ----
14% 24% 27%
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Loan Portfolio Mix
Industry 1994 1999 2000
-------- ---- ---- ----
Financial Companies 14% 24% 27%
Specialized Industries 24% 32% 29%
Private Banking 3% 5% 5%
---- ---- ----
Subtotal 41% 61% 61%
U.S. Corporate/Regional 17% 22% 20%
Retail/Leasing/Other 14% 17% 19%
Credit Card 23% 0% 0%
Asset Based Lending 5% 0% 0%
---- ---- ----
100% 100% 100%
==== ==== ====
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Risk Profile Improves
1997 2000E
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Non-Investment Grade 47% 40%
Investment Grade 53% 60%
- 50% of non-investment grade is < 1 year in maturity
- Avg. exposure size of non-investment grade is $8MM
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Domestic Financial Services Companies
- 89% investment grade
- 11% Non-investment grade
- 69% matures in less than one year
- 50%+ collateralized
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Media & Telecommunications
Ent/prog/mm 20%
Publishing 14%
Cable 14%
Wireline excl clec 14%
Wireless 14%
Broadcasting 10%
Clec 4%
Cinema 3%
All other 7%
Well diversified portfolio
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Media & Telecommunications
-50% investment grade
- 50%+ matures less than one year
-50% non-investment grade
- 40% matures less than one year
- 70% collateralized
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Corporate Banking
Loan Growth
2000E 2001E
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Growth Rate (4%) 4%
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Securities Servicing Market Leadership
Market Sustainable Growth
Rank Product 2001-2004
------ ------- -------------------
1 International Custody 25%+
2 Mutual Funds 20%+
1 Securities Clearance 20%+
1 Depositary Receipts 15%+
1 Corporate Trust 15%+
2 Unit Investment Trust 15%+
2 Securities Lending 10%+
2 Domestic Custody 10%+
3 Stock Transfer 10%+
----
Overall 15%+
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Securities Servicing Fee Revenues
$ millions `99% `00E% `01E%
`99 Change `00E Change `01E Change
--- ------ ---- ------ ---- ------
ADRs
Corporate Trust
Stock Transfer $ 503 19% $ 647 29% $ 775+ 20%+
International Custody
Domestic Custody
Securities Lending 436 29% 635 46% 740+ 17%+
Mutual Funds
Securities Clearance
UIT 306 28% 368 20% 445+ 21%+
Total Fee Revenue $1,245 24% $1,650 33% $1,960+ 19%+
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Earnings Contribution
Percent
1995 1998 1999 2000E 2001E
---- ---- ---- ----- -----
Securities Serv. & Global Paymts. 22 37 42 46 48
BNY Asset Mgmt. & Private Client 5 9 9 9 9
--- --- --- --- ---
Fiduciary/Securities Servicing 27 46 51 55 57
=== === === === ===
Corporate Banking 20 23 21 19 18
Retail Banking 15 12 12 12 12
Financial Market Services 13 11 12 14 13
Asset Based Lending 7 8 4 - -
Credit Card 18 - - - -
--- --- --- --- ---
100 100 100 100 100
=== === === === ===
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Non-U.S. Revenues
1995 1999 2000
---- ---- ----
Non-U.S. 12% 25% 32%
U.S. 88% 75% 68%
Continued Global Expansion
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Non-Interest Income
% of Revenues
1995 1998 1999* 2000E 2001E
---- ---- ----- ----- -----
41% 58% 61% 63% 65%
* Excludes gain on sale of BNY Financial and liquidity charge
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Quality of Revenue
Non-Interest Income
Percent
1995 1998 1999 2000E 2001E
---- ---- ---- ----- -----
Securities Serv. & Global Paymts. 42 55 59 61 62
BNY Asset Mgmt. & Priv. Clients 9 9 9 9 10
--- --- --- --- ---
Fiduciary / Securities Servicing 51 64 68 70 72
Service Charges 30 14 13 12 11
Foreign Exchange & Other Trading 4 8 7 9 9
Other 15 14 12 9 8
--- --- --- --- ---
100 100 100 100 100
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Quality of Revenues
Net Interest Income
Percent
1998 1999 2000E 2001E
---- ---- ----- -----
Corporate Banking 41 36 31 29
Fiduciary / Sec. Servicing 24 28 35 37
Retail Banking 29 28 27 27
Other 6 8 7 7
--- --- --- ---
100 100 100 100
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Quality of Revenues
-Growing
-Diversified
-Sustainable
-Increasing quality
Expanding P/E Multiple (depicted inside an upward arrow)
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Key Capital Ratios
1999 2000E 2001E
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Tier 1 7.5 8.1 7.8
Total 11.7 12.2 11.8
TCE 4.8 5.5 5.5
Leverage 7.2 7.1 6.9
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Tier 1 Capital Sources & Uses
$ millions
Earnings projection: Yr. 2001* $1,620
Plus: Emp. Purch./GW Amort. 385
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2,005
Less: Dividends (535)
Acquisitions (400)
Other (270)
-------
Capital available for further acquisitions/
stock buyback $ 800
=======
* Based on Yr. 2001 First Call estimates
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2000 Acquisitions
New New
Customers Products
--------- --------
Corporate Trust
---------------
Harris Trust & Savings Bank X
Sakura Trust Company X
Dai-Ichi Kangyo Bank of CA X
Bank of Montreal (Canada) X
Execution/Clearing Services
----------------------------
SG Cowen Securities Corp X
Schroder & Co. X X
BHF Securities Corp X X
GENA X
Private Client Services
-----------------------
Ivy Asset Management Corp X X
Bank of America Advisory Custody X
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Acquisitions Will Continue
-Significant consolidation opportunities
-Build execution and clearing capabilities
- BNY ESI
- BNY Clearing
-Expand private client services capabilities
- Complementary products
- Asset managers
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BNY Technology Investment
millions
1996 290
1997 308
1998 360
1999 400
2000E 495
2001E 595
-CAGR 16%
Accelerating investment for competitive advantage
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Positive Operating Leverage
-Distinguishing characteristics of BNY
-Balance current investment spending with tangible future benefits
-Objective is to manage core spread to exceed 200 basis points
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First Call Consensus
4th Qtr. 2000YE 2001YE
------ ------ ------
EPS $.50 $1.93 $2.17
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Credit Quality Peer Comparison
Third Quarter 2000
Loan Loan
NPA's Net C/O's Loss Reserve Loss Reserve
as % of as % of as % of as % of
Loans & OREO Avg. Loans NPL's Total Loans
------------ ---------- ------------- --------------
BK .45 .19 378% 1.65
Peer Group
Avg. .86 .55 207% 1.65
BK Rank (of 25) 5 5 5 6
Reserves and change-off experience strong vs. peers
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Earnings Growth Absorbs Rising Costs
EPS Provision
--- ---------
1998
----
1Q 0.36 5
2Q 0.38 5
3Q 0.39 5
4Q 0.40 5
1999
----
1Q 0.41 15
2Q 0.42 15
3Q 0.42 15
4Q 0.44 15
2000
----
1Q 0.46 20
2Q 0.48 25
3Q 0.49 25
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Summary
-Sustainable revenue growth
-High earnings quality
-Proactive risk management
-Technology leadership
Enabling the global capital markets
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Financial Goals 2001-2004
Target Goal
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Return on Equity 25%+
Return on Assets 2%
Efficiency Ratio 48%
EPS Growth Rate 12 to 14%
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