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
September 15, 1998
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Date of report (Date of earliest event reported)
BankAmerica Corporation
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(Exact name of registrant as specified in its charter)
Delaware 1-7377 94-1681731
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification Number)
Bank of America Center
555 California Street
San Francisco, California 94104
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(Address of principal executive offices) (Zip Code)
415-622-3530
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(Registrant's telephone number, including area code)
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Item 5. Other Events.
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Attached hereto as Exhibit 99 is a copy of BankAmerica Corporation's
press release dated September 15, 1998 titled "BankAmerica Issues Update on
Effects of Market Conditions."
Item 7. Financial Statements, Pro Forma
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Financial Statements and Exhibits.
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(c) Exhibits
Exhibit
Number Description
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99 BankAmerica Corporation press release dated September 15, 1998,
titled "BankAmerica Issues Update on Effects of Market Conditions."
<PAGE>
SIGNATURES
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.
BANKAMERICA CORPORATION
(Registrant)
Date: September 15, 1998
By /s/ CHERYL SOROKIN
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Cheryl Sorokin
Executive Vice President
and Corporate Secretary
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description
- -------- -----------
99 BankAmerica Corporation press release dated
September 15, 1998, titled "BankAmerica Issues
Update on Effects of Market Conditions."
[BANKAMERICA CORPORATION LOGO APPEARS HERE]
Exhibit 99
NEWS
For Release:
Contact: John Keane (415) 622-2773
Mike Zampa (415) 622-4524
BANKAMERICA ISSUES UPDATE ON EFFECTS OF MARKET CONDITIONS
SAN FRANCISCO, September 15, 1998 -- BankAmerica Corporation today
announced that turbulent conditions in global markets are continuing to have
negative impacts on quarterly income. Nevertheless, BankAmerica said that its
consumer business trends remain solid and the company expects to report an
after-tax profit, excluding merger-related charges, in excess of $500 million
for the third quarter of 1998.
The bank said that as a result of market volatility it has lost
approximately $330 million in non-interest trading income in the quarter to date
(including the impact of the previously announced trading losses). This compares
with non-interest trading income of $119 million in the second quarter of 1998
and $251 million in the first quarter of 1998.
Market turbulence has also affected the company's non-interest income
from equity investment activities. Non-interest income from equity investment
activities totaled $30 million in July and August compared to $125 million in
the second quarter of 1998.
Net-interest income has also been negatively affected by volatile
market conditions, primarily affecting income from purchasing and carrying
securities. Interest income from purchasing and carrying securities recorded
a loss of $12 million in July and August, compared to a gain of $53 million
in the second quarter 1998. This decline was primarily attributable to one
borrower where BankAmerica's relationship included a yield enhancement entitling
BankAmerica to a 50 percent share of net profits.
BankAmerica said that its loan loss experience is expected to be in
line with recent quarters. The company's credit losses are expected to total
approximately $270 million in the third quarter. Credit losses were $230 million
in the second quarter of this year and $259 million in the third quarter of last
year.
As previously announced, BankAmerica is expected to close its sale of
BA Housing Services to Greenpoint Financial this quarter, resulting in an
expected pre-tax gain of $480 million. The bank also expects to take a charge
of approximately $200 million primarily as a result of a write-down of its
investment in KorAm Bank in South Korea and other charges.
BankAmerica management reiterated its strong support for its scheduled
merger with NationsBank Corporation which will be voted upon by shareholders of
both companies on September 24.
The company noted that market conditions remain volatile and these
results are subject to change. BankAmerica said the foregoing contains forward-
looking statements conveying management's expectations as to the future. These
statements are subject to uncertainties, including those discussed in the
"Forward-Looking Statements" in BankAmerica's most recent report on Form 10-K,
that may cause actual results to differ materially. Investors are cautioned not
to place undue reliance on those forward-looking statements, which speak only
as of the date hereof.
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