<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 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) April 18, 1995
BANKERS TRUST NEW YORK CORPORATION
(Exact name of registrant as specified in its charter)
NEW YORK
(State or other jurisdiction of incorporation)
1-5920 13-6180473
(Commission file number) (IRS employer identification no.)
280 PARK AVENUE, NEW YORK, NEW YORK 10017
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (212) 250-2500
<PAGE>
Item 5. Other Events
The purpose of this Current Report on Form 8-K is to file
certain financial information to be incorporated into currently
effective registration statements filed by the Registrant with
the Securities and Exchange Commission under the Securities Act
of 1933, as amended. Such information contained in the
Registrant's Press Release dated April 18, 1995, is described
below and is incorporated herein by reference.
1.Review of certain financial information.
2.The unaudited consolidated financial position of Bankers
Trust New York Corporation and its subsidiaries at March 31,
1995 and December 31, 1994 and its unaudited consolidated
results of operations for the three-month periods ended
March 31, 1995 and 1994.
In the opinion of the Registrant's management, all material
adjustments necessary for a fair presentation of the
Corporation's consolidated financial position at March 31, 1995
and December 31, 1994 and its consolidated results of operations
for the three-month periods ended March 31, 1995 and 1994 have
been made. All such adjustments were of a normal recurring
nature. The results of operations for the three-month periods
ended March 31, 1995 are not necessarily indicative of the
results of operations for the full year or any other interim
period.
Item 7. Financial Statements and Exhibits
(c) Exhibits
(99) Press Release of the Registrant dated
April 18, 1995
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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, hereunto duly
authorized.
BANKERS TRUST NEW YORK CORPORATION
By /s/ GEOFFREY M. FLETCHER
GEOFFREY M. FLETCHER
Senior Vice President and
Principal Accounting Officer
April 20, 1995
<PAGE>
BANKERS TRUST NEW YORK CORPORATION
FORM 8-K DATED April 18, 1995
EXHIBIT INDEX
Exhibit
Number Description of Exhibit
(99) Press Release of the
Registrant dated April 18, 1995
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TUESDAY, APRIL 18, 1995
BANKERS TRUST REPORTS FIRST QUARTER LOSS OF $122 MILLION BEFORE AN AFTER
TAX SEVERANCE CHARGE OF $35 MILLION; NET LOSS WAS $157 MILLION, OR $2.11
PRIMARY LOSS PER SHARE
New York, April 18, 1995 -- Bankers Trust New York Corporation recorded a
loss of $122 million, or $1.66 primary loss per share, excluding an after-
tax provision for severance-related costs of $35 million taken in
connection with the Corporation's expense reduction program. Net loss for
the quarter, including the effect of this provision, was $157 million, or
$2.11 primary loss per share. In the first quarter of 1994, the
Corporation earned $164 million, or $1.90 primary earnings per share.
Revenue
Net interest revenue totaled $182 million, down $188 million, or 51%, from
the first quarter of 1994. Of this decline, $176 million was from trading-
related net interest revenue. A significant portion of the Firm's trading
and risk management activities involve positions in interest rate
instruments and related derivatives. The revenue from these activities can
periodically shift between trading and net interest, depending on a variety
of factors, including risk management strategies. Therefore, the
Corporation views trading revenue and trading-related net interest revenue
together, which are discussed below.
<PAGE>
<TABLE>
<CAPTION>
Trading-
Related
Net
Trading Interest
(in millions) Revenue Revenue Total
<S> <C> <C> <C>
First Quarter 1995 $(78) $1 $(77)
First Quarter 1994 $14 $177 $191
</TABLE>
This combined total for the first quarter of 1995 was a loss of $77
million, a $268 million decrease from the first quarter of 1994. The first
quarter loss was primarily attributable to losses sustained in the emerging
markets of Latin America. The devaluation of the Mexican peso and the
associated sudden absence of liquidity adversely affected the Corporation's
positions. Additionally, while the volume of transactions from the Firm's
Client Financial Risk Management activities remained relatively steady,
revenue has been reduced as the mix of business has shifted to lower-margin
transactions.
Fiduciary and funds management revenue totaled $171 million for the first
quarter, down $17 million, or 9%, from the same period last year.
Decreased revenue was recorded by most business activities within this
revenue category, primarily due to a decline in transaction volumes.
Fees and commissions of $145 million decreased by $37 million, or 20%, from
the first quarter of 1994. Corporate finance fees of $72 million decreased
by $36 million from the same period last year, due to lower revenue from
securities underwriting and loan syndication fees. These results were
partially offset by higher revenue from merger and acquisition and
financial advisory activities.
<PAGE>
The Corporation's securities available for sale gains were $2 million,
compared with $4 million in the prior year's first quarter.
Other noninterest revenue totaled $102 million, down $15 million, or 13%,
from the prior year's quarter. This decrease was due to a decline in the
category of equity in income of unconsolidated subsidiaries, lower
insurance premium revenue as well as lower net gains from sales of equity
investments and other assets. These factors were partially offset by a
lower level of losses from the revaluation of non-trading foreign currency
investments.
Expenses
In response to the lower revenue and reduced market activity in certain
businesses, management has implemented a wide ranging expense reduction
program. This program was designed to reduce overall operating expenses
(principally, noninterest expenses before bonus and policyholder benefits)
by approximately $200 million in 1995. Management anticipates that these
actions will result in savings of approximately $275 million in 1996.
In order to accomplish these expense reductions, it is anticipated that
total staff will be reduced by approximately 1,400, comprised of 1,000
regular staff and 400 temporary employees. In order to provide for
appropriate cost of severance, Bankers Trust has recorded a provision for
severance-related costs of $50 million, pre-tax, in the first quarter.
Total noninterest expenses of $734 million increased by $93 million, or
15%, from the first quarter of 1994. Excluding the provision for severance-
related costs of $50 million, noninterest expenses were $684 million, an
increase of $43 million, or 7%, from last year's first quarter. Incentive
compensation and employee benefits expense decreased $29 million, or 18%, due
primarily to lower bonus expense reflecting the reduced earnings. Salaries
expense increased $31 million, or 18%, from the first
<PAGE>
quarter of 1994. The average number of employees increased by 5% versus the
same period, to 14,369, whereas the number of employees at March 31, 1995
decreased by 3%, to 14,144 from December 31, 1994 as a result of the initial
effect of the expense reduction program.
All other expenses, excluding the provision for severance-related costs,
totaled $343 million for the quarter, up $41 million, or 14%, from last
year's first quarter. Increases in professional fees and agency personnel
fees accounted for more than half of this increase.
Asset Quality
The Corporation recorded $21 million of net charge-offs and a $14 million
provision for credit losses in the first quarter of 1995. In the prior
year's first quarter, $21 million of net recoveries was recognized and no
provision for credit losses was required. The current quarter included a
charge-off of $22 million to a highly leveraged borrower. Leveraged
derivative transaction charge-offs for the quarter were immaterial.
Cash basis loans decreased by $19 million, or 2%, to $977 million during
the first quarter. The allowance for credit losses at March 31, 1995, was
$1.245 billion, representing 127% of cash basis loans.
The allowance for credit losses is available for credit losses arising from
the Corporation's portfolio, which is comprised of loans, credit-related
commitments, derivatives and other financial instruments. In the opinion
of management, the allowance, when taken as a whole, is adequate to absorb
reasonably estimated credit losses inherent in the Corporation's portfolio,
as defined above.
<PAGE>
Capital
On March 1, 1995, the Corporation's $100 million 6.90% Subordinated Notes
matured and, in accordance with their original terms, the holders of this
issue were required to purchase 4 million depositary shares, at $25 per
share, each representing a one-fourth interest in a share of the Parent
Company's 8.55% Cumulative Preferred Stock, Series I. Also, on this same
date, the Corporation reset the interest rate on its $150 million 7 5/8%
Convertible Capital Securities giving the holders the right to convert
the debt securities into depositary shares, at $25 per share, each
representing a one-tenth interest in a share of the Parent Company's 7 5/8%
Cumulative Preferred Stock, Series O. As a result of the above, the
preferred stock component of total stockholders' equity increased by
approximately $244 million during the first quarter of 1995.
The Corporation estimates that its ratios of Tier 1 Capital and Total
Capital to risk-adjusted assets were approximately 8.85% and 14.40%,
respectively, at March 31, 1995. The Leverage Ratio was 5.18% at that same
date.
For additional information, contact Douglas Kidd, (212) 454-3532 or Tom
Parisi, (212) 454-1686 (Media); Howard Schneider
(212) 454-1120 (Investors).
<PAGE>
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
FINANCIAL STATISTICS
($ in millions, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Fourth
First Quarter Quarter
1995 1994 1994
<S> <C> <C> <C>
Net income (loss) $(157) $164 $101
Per common share
Primary earnings (loss) $(2.11) $1.90 $1.19
Fully diluted earnings (loss) $(2.11) $1.90 $1.18
Cash dividends declared $1.00 $.90 $1.00
Book value (1) $50.04 $52.41 $53.67
Profitability ratios
Return on average common stockholders'
equity N/M 14.85% 8.64%
Return on average total assets N/M .61% .38%
Net interest revenue (fully taxable basis) $197 $391 $252
Average rates (fully taxable basis)
Yield on interest-earning assets 7.09% 6.17% 7.05%
Cost of interest-bearing liabilities 6.28% 4.38% 5.93%
Interest rate spread .81% 1.79% 1.12%
Net interest margin 1.02% 1.96% 1.29%
Average balances
Loans $11,683 $13,003 $12,548
Total interest-earning assets $78,228 $81,037 $77,642
Total assets $104,539 $109,113 $106,009
Total interest-bearing liabilities $75,642 $77,935 $75,521
Common stockholders' equity $4,207 $4,343 $4,364
Total stockholders' equity $4,686 $4,602 $4,759
At end of period
Common stockholders' equity to total
assets 3.75% 4.14% 4.44%
Total stockholders' equity to total
assets 4.35% 4.57% 4.85%
Risk-based capital ratios (2)
Tier 1 Capital 8.85% 8.89% 9.05%
Total Capital 14.40% 14.66% 14.77%
Leverage Ratio 5.18% 5.39% 5.26%
Employees 14,144 13,748 14,529
<FN>
N/M Not meaningful.
(1) This calculation includes the effect of common shares issuable under
deferred stock awards.
(2) Regulatory capital ratios at March 31, 1995 are preliminary.
</TABLE>
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BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
FINANCIAL STATISTICS (CONT'D)
(in millions)
(unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994 1994
<S> <C> <C> <C>
Nonperforming assets
Cash basis loans
Secured by real estate $403 $462 $356
Real estate related 26 52 29
Highly leveraged 111 162 150
Other 437 124 459
Refinancing country - 62 2
Total cash basis loans $977 $862 $996
Renegotiated loans
Secured by real estate $ 90 $14 $65
Other 12 6 1
Total renegotiated loans $102 $20 $66
Other real estate $265 $283 $301
Other nonperforming assets $66 $101 $63
</TABLE>
<TABLE>
<CAPTION>
Fourth
First Quarter Quarter
1995 1994 1994
<S> <C> <C> <C>
Allowance for credit losses
Balance, beginning of period $1,252 $1,324 $1,329
Net charge-offs
Charge-offs 34 21 93
Recoveries 13 42 8
Total net charge-offs (recoveries)* 21 (21) 85
Provision for credit losses 14 - 8
Balance, end of period $1,245 $1,345 $1,252
*Components:
Secured by real estate $ 6 $ (2) $ -
Real estate related 2 - 1
Highly leveraged 20 (9) 3
Other - 9 83
Refinancing country (7) (19) (2)
Total $21 $(21) $ 85
</TABLE>
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BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Increase
THREE MONTHS ENDED MARCH 31, 1995 1994(Decrease)
<S> <C> <C> <C>
NET INTEREST REVENUE
Interest revenue $1,353 $1,211 $ 142
Interest expense 1,171 841 330
Net interest revenue 182 370 (188)
Provision for credit losses 14 - 14
Net interest revenue after provision
for credit losses 168 370 (202)
NONINTEREST REVENUE
Trading (78) 14 (92)
Fiduciary and funds management 171 188 (17)
Fees and commissions 145 182 (37)
Securities available for sale gains 2 4 (2)
Other 102 117 (15)
Total noninterest revenue 342 505 (163)
NONINTEREST EXPENSES
Salaries 208 177 31
Incentive compensation and employee benefits 133 162 (29)
Occupancy, net 41 37 4
Furniture and equipment 42 39 3
Provision for severance-related costs 50 - 50
Other 260 226 34
Total noninterest expenses 734 641 93
Income (loss) before income taxes (224) 234 (458)
Income taxes (67) 70 (137)
NET INCOME (LOSS) $ (157) $ 164 $(321)
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK $ (165) $ 159 $(324)
EARNINGS (LOSS) PER COMMON SHARE:
PRIMARY $(2.11) $1.90 $(4.01)
FULLY DILUTED $(2.11) $1.90 $(4.01)
Cash dividends declared per common share $1.00 $.90 $.10
</TABLE>
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BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
($ in millions, except par value)
(unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
<S> <C> <C>
ASSETS
Cash and due from banks $ 1,603 $ 1,985
Interest-bearing deposits with banks 2,900 3,390
Federal funds sold 2,115 2,544
Securities purchased under resale agreements 18,280 9,943
Securities borrowed 7,633 6,197
Trading assets 51,603 47,514
Securities available for sale 6,019 7,475
Loans 11,731 12,501
Allowance for credit losses (1,245) (1,252)
Premises and equipment, net 932 915
Due from customers on acceptances 387 378
Accounts receivable and accrued interest 2,034 2,356
Other assets 3,370 3,070
Total $107,362 $97,016
LIABILITIES
Deposits
Noninterest-bearing
In domestic offices $ 2,352 $ 3,285
In foreign offices 532 541
Interest-bearing
In domestic offices 5,433 5,769
In foreign offices 16,279 15,344
Total deposits 24,596 24,939
Trading liabilities 29,383 20,949
Securities sold under repurchase agreements 18,631 15,617
Other short-term borrowings 16,396 18,222
Acceptances outstanding 387 378
Accounts payable and accrued expenses 4,137 3,174
Other liabilities 2,293 2,328
Long-term debt 6,621 6,455
Total liabilities 102,444 92,062
PREFERRED STOCK OF SUBSIDIARY 250 250
STOCKHOLDERS' EQUITY
Preferred stock 639 395
Common stock, $1 par value
Authorized, 300,000,000 shares
Issued, 83,678,973 shares 84 84
Capital surplus 1,306 1,317
Retained earnings 3,243 3,494
Common stock in treasury, at cost:
1995, 5,340,654 shares;
1994, 5,609,707 shares (393) (416)
Other (211) (170)
Total stockholders' equity 4,668 4,704
Total $107,362 $97,016
</TABLE>
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BANKERS TRUST NEW YORK CORPORATION
280 PARK AVENUE
NEW YORK, NEW YORK 10017
Geoffrey M. Fletcher
Senior Vice President and
Principal Accounting Officer
April 20, 1995
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Dear Sirs:
Accompanying this letter is Bankers Trust New York Corporation's
report on Form 8-K dated April 18, 1995 (the "Form 8-K"). The Form 8-K is
being filed electronically through the EDGAR System.
If there are any questions or comments in connection with the enclosed
filing, please contact the undersigned at 212-250-7098.
Very truly yours,
BANKERS TRUST NEW YORK CORPORATION
By: GEOFFREY M. FLETCHER
Geoffrey M. Fletcher
Senior Vice President and
Principal Accounting Officer
