<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) July 20, 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 July 20, 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 June 30,
1995 and December 31, 1994 and its unaudited consolidated
results of operations for each of the three-month and six-
month periods ended June 30, 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 June 30, 1995
and December 31, 1994 and its consolidated results of operations
for the three-month and six-month periods ended June 30, 1995 and
1994 have been made. All such adjustments were of a normal
recurring nature. The results of operations for the three-month
and six-month periods ended June 30, 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
July 20, 1995
<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, hereunto duly
authorized.
BANKERS TRUST NEW YORK CORPORATION
By /s/ GEOFFREY M. FLETCHER
GEOFFREY M. FLETCHER
Senior Vice President and
Principal Accounting Officer
July 21, 1995
<PAGE>
BANKERS TRUST NEW YORK CORPORATION
FORM 8-K DATED July 20, 1995
EXHIBIT INDEX
Exhibit
Number Description of Exhibit
(99) Press Release of the
Registrant dated July 20, 1995
<PAGE>
THURSDAY, JULY 20, 1995
BANKERS TRUST REPORTS SECOND QUARTER NET INCOME OF $91 MILLION, OR $.98
PRIMARY EARNINGS PER SHARE
New York, July 20, 1995 -- Bankers Trust New York Corporation earned $91
million for the quarter ended June 30, 1995, or $.98 primary earnings per
share. In the second quarter of 1994, the Corporation earned $181 million,
or $2.09 primary earnings per share.
Commenting on the second quarter results, Bankers Trust Chairman Charles S.
Sanford, Jr. said: "During the quarter, Bankers Trust achieved the two
objectives that we set for ourselves and announced publicly. First, the
$91 million of net income returns the Firm to profitability and represents
a swing of $213 million from the $122 million net operating loss recorded
in the first quarter of this year. Second, the expense reduction programs
have been substantially implemented and are on track for producing savings
of approximately $200 million this year and approximately $275 million in
1996. With these accomplishments, the quarter can be seen as a
transitional one toward the achievement of a third objective: a return to
more competitive earnings."
"The earnings recovery from the first quarter resulted from markedly
improved performance in client-related businesses together with a strong
turnaround in trading, which itself was aided by greater focus on client
transactions. We have no more
<PAGE>
important priority than to build enduring client relationships and,
in so doing, we have been placing great value on client development
efforts that will continue to build profits for the future."
Trading revenue and trading-related net interest revenue for the second
quarter of 1995 amounted to $136 million, compared with a loss of $77
million in the year's first quarter. The recovery was attributable to a
turnaround in the Firm's derivatives business as losses in Latin America
lessened significantly during the quarter as a result of a successful
reduction of loss making positions. Client derivatives volume remained
steady during the second quarter, though comprised mainly of low margin
transactions, and infrastructure expenses related to the business were
reduced.
Revenue
Net interest revenue totaled $222 million, down $87 million, or 28%, from
the second quarter of 1994 and up $40 million, or 22%, from the first
quarter of 1995. Of the decline in the second quarter of 1995 versus the
second quarter of 1994, $64 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>
Second Quarter 1995 $79 $57 $136
Second Quarter 1994 $124 $121 $245
</TABLE>
This combined total for the second quarter of 1995 was $136 million, a $109
million decrease from the second quarter of 1994. Although the results
were below those of the second quarter of 1994, trading revenue rebounded
from the weak first quarter of 1995, as trading performance generally
improved in Latin American derivatives and in the Firm's proprietary
activities, particularly in the Latin American, Australian and Asian
markets.
Fiduciary and funds management revenue totaled $166 million for the second
quarter, down $21 million, or 11%, from the same period last year. The
decrease in revenue was due primarily to a decline in transaction volumes
in fiduciary services. The $166 million of revenue for the second quarter
was down $5 million, or 3%, from the first quarter of 1995.
Fees and commissions of $211 million increased by $16 million, or 8%, from
the second quarter of 1994. Corporate finance fees of $127 million
increased by $12 million, or 10%, from the same period last year. Higher
revenue from loan syndication and private placement fees were partially
offset by lower revenue from securities underwriting and financial advisory
activities. Compared with this year's first quarter, fees and commissions
were up $66 million, or 46%, and corporate finance fees increased by $55
million, or 76%.
The Corporation's securities available for sale gains were $17 million,
compared with $19 million in the prior year's second quarter.
Other noninterest revenue totaled $114 million, up $2 million, from the
prior year's quarter. This increase was primarily a result of higher
insurance premium revenue recorded in the Corporation's Chilean
subsidiaries due to an increase in the number of annuity policies sold.
This was partially offset by lower net gains from sales of equity
investments. The $114 million of other noninterest revenue for the second
quarter of 1995 was up $12 million, or 12%, from the first quarter of 1995.
Expenses
Total noninterest expenses of $678 million decreased by $10 million from
the second quarter of 1994. Incentive compensation and employee benefits
expense decreased $67 million, or 33%, due to lower bonus expense
reflecting the reduced earnings. Salaries expense increased $5 million, or
3%, from the second quarter of 1994 due mostly to salary increases. The
number of full time staff at June 30, 1995 decreased by 742, to 13,787 from
December 31, 1994. Management has implemented expense reduction programs
designed to reduce overall operating expenses -- principally noninterest
expenses before bonus, policyholder benefits and minority interest. At
this operating expense level, the Corporation previously announced that it
would be reducing these expenses by approximately $200 million in 1995 and
approximately $275 million annually thereafter. Operating expense trends
in the first and second quarters of 1995 show that the Corporation is on
target to achieve these cost reductions.
All other expenses totaled $349 million for the quarter, up $52 million, or
18%, from last year's second quarter. The provision for policyholder
benefits accounted for approximately half of this increase due to an
increase in the number of annuity policies sold at the Corporation's
Chilean insurance subsidiaries.
<PAGE>
Asset Quality
No provision for credit losses was required for the current or prior year's
second quarter. Net charge-offs for the quarter were $2 million, compared
with $5 million a year ago.
Cash basis loans decreased by $52 million, or 5%, to $925 million during
the second quarter. The allowance for credit losses at June 30, 1995, was
$1.243 billion, representing 134% 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.
Six Months Results
For the first six months of 1995, the Corporation recorded a loss of $31
million, or $.65 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 programs. Net loss for the first six
months, including the effect of this provision was $66 million, or $1.10
primary loss per share. For the six months ended June 30, 1994 the
Corporation earned $345 million, or $3.99 primary earnings per share.
Capital
On May 15, 1995, the Corporation reset the interest rate on its $100
million 7.50% Convertible Capital Securities giving the holders the right
to convert the debt securities into depositary shares. Holders of more
than $96.4 million aggregate principal amount of the 7.50% Convertible
Capital Securities have converted their securities into approximately 3.9
million depositary
<PAGE>
receipts, each representing a one-fortieth interest in a
share of the Parent Company's 7.50% Cumulative Preferred Stock, Series P.
Also, on June 30, 1995, the Corporation issued $125 million, or 5 million
depositary shares at $25 per share, each representing a one-hundredth
interest in a share of the Corporation's 7 3/4% Cumulative Preferred Stock,
Series S. The preferred stock component of total stockholders' equity
increased by approximately $224 million during the second quarter of 1995
primarily as a result of the above.
The Corporation estimates that its ratios of Tier 1 Capital and Total
Capital to risk-adjusted assets were approximately 8.70% and 14.00%,
respectively, at June 30, 1995. The Leverage Ratio was 5.52% at that same
date.
For additional information, contact Douglas Kidd, (212) 454-3532 or Tom
Parisi, (212) 454-1686 (Media); Howard Schneider
(212) 250-3609 (Investors).
<PAGE>
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
FINANCIAL STATISTICS
($ in millions, except per share data)
(unaudited)
<TABLE>
<CAPTION>
First
Second Quarter Quarter Six Months
1995 1994 1995 1995 1994
<S> <C> <C> <C> <C> <C>
Net income (loss) $91 $181 $(157) $(66) $345
Per common share
Primary earnings (loss) $.98 $2.09 $(2.11) $(1.10) $3.99
Fully diluted earnings (loss) $.98 $2.09 $(2.11) $(1.10) $3.99
Cash dividends declared $1.00 $.90 $1.00 $2.00 $1.80
Book value (1) $49.80 $53.37 $50.04
Profitability ratios
Return on average common stockholders'
equity 7.84% 15.87% N/M N/M 15.36%
Return on average total assets .33% .71% N/M N/M .66%
Net interest revenue
(fully taxable basis) $231 $330 $197 $428 $721
Average rates (fully taxable basis)
Yield on interest-earning
assets 7.53% 6.91% 7.09% 7.32% 6.52%
Cost of interest-bearing
liabilities 6.70% 5.33% 6.28% 6.49% 4.83%
Interest rate spread .83% 1.58% .81% .83% 1.69%
Net interest margin 1.14% 1.79% 1.02% 1.08% 1.87%
Average balances
Loans $10,776 $12,586 $11,683 $11,227 $12,793
Total interest-earning
assets $81,393 $74,107 $78,228 $79,819 $77,553
Total assets $109,773 $101,896 $104,539 $107,150 $105,485
Total interest-bearing
liabilities $77,674 $71,197 $75,642 $76,664 $74,547
Common stockholders' equity $4,044 $4,348 $4,207 $4,125 $4,346
Total stockholders' equity $4,735 $4,798 $4,686 $4,711 $4,701
At end of period
Common stockholders' equity
to total assets 3.91% 4.19% 3.75%
Total stockholders' equity
to total assets 4.75% 4.62% 4.35%
Risk-based capital ratios (2)
Tier 1 Capital 8.70% 8.41% 8.73%
Total Capital 14.00% 13.82% 14.20%
Leverage Ratio 5.52% 5.97% 5.18%
Employees 13,787 13,990 14,144
<FN>
N/M Not meaningful.
(1) This calculation includes the effect of common shares issuable under
deferred stock awards.
(2) Regulatory capital ratios at June 30, 1995 are preliminary.
</TABLE>
<PAGE>
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
FINANCIAL STATISTICS (CONT'D)
(in millions)
(unaudited)
<TABLE>
<CAPTION>
June 30, March 31,
1995 1994 1995
<S> <C> <C> <C>
Nonperforming assets
Cash basis loans
Secured by real estate $412 $405 $403
Real estate related 25 49 26
Highly leveraged 110 170 111
Other 378 118 437
Refinancing country - 2 -
Total cash basis loans $925 $744 $977
Renegotiated loans
Secured by real estate $ 89 $13 $ 90
Other 12 1 12
Total renegotiated loans $101 $14 $102
Other real estate $263 $310 $265
Other nonperforming assets $64 $84 $66
</TABLE>
<TABLE>
<CAPTION>
Second Quarter Six Months
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Allowance for credit losses
Balance, beginning of period $1,245 $1,345 $1,252 $1,324
Net charge-offs (recoveries)
Charge-offs 13 17 47 38
Recoveries 11 12 24 54
Total net charge-offs (recoveries)* 2 5 23 (16)
Provision for credit losses - - 14 -
Balance, end of period $1,243 $1,340 $1,243 $1,340
*Components:
Secured by real estate $(3) $ 14 $ 3 $ 12
Real estate related - 2 2 2
Highly leveraged 2 - 22 (9)
Other 4 - 4 9
Refinancing country (1) (11) (8) (30)
Total $ 2 $ 5 $23 $(16)
</TABLE>
<PAGE>
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Increase
THREE MONTHS ENDED JUNE 30, 1995 1994 (Decrease)
<S> <C> <C> <C>
NET INTEREST REVENUE
Interest revenue $1,520 $1,255 $ 265
Interest expense 1,298 946 352
Net interest revenue 222 309 (87)
Provision for credit losses - - -
Net interest revenue after provision
for credit losses 222 309 (87)
NONINTEREST REVENUE
Trading 79 124 (45)
Fiduciary and funds management 166 187 (21)
Fees and commissions 211 195 16
Securities available for sale gains 17 19 (2)
Other 114 112 2
Total noninterest revenue 587 637 (50)
NONINTEREST EXPENSES
Salaries 194 189 5
Incentive compensation and employee benefits 135 202 (67)
Occupancy, net 38 38 -
Furniture and equipment 40 37 3
Other 271 222 49
Total noninterest expenses 678 688 (10)
Income before income taxes 131 258 (127)
Income taxes 40 77 (37)
NET INCOME $ 91 $ 181 $ (90)
NET INCOME APPLICABLE TO COMMON STOCK $ 79 $ 172 $ (93)
EARNINGS PER COMMON SHARE:
PRIMARY $.98 $2.09 $(1.11)
FULLY DILUTED $.98 $2.09 $(1.11)
Cash dividends declared per common share $1.00 $.90 $.10
</TABLE>
<PAGE>
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Increase
SIX MONTHS ENDED JUNE 30, 1995 1994 (Decrease)
<S> <C> <C> <C>
NET INTEREST REVENUE
Interest revenue $2,873 $2,466 $ 407
Interest expense 2,469 1,787 682
Net interest revenue 404 679 (275)
Provision for credit losses 14 - 14
Net interest revenue after provision
for credit losses 390 679 (289)
NONINTEREST REVENUE
Trading 1 138 (137)
Fiduciary and funds management 337 375 (38)
Fees and commissions 356 377 (21)
Securities available for sale gains 19 23 (4)
Other 216 229 (13)
Total noninterest revenue 929 1,142 (213)
NONINTEREST EXPENSES
Salaries 402 366 36
Incentive compensation and employee benefits 268 364 (96)
Occupancy, net 79 75 4
Furniture and equipment 82 76 6
Provision for severance-related costs 50 - 50
Other 531 448 83
Total noninterest expenses 1,412 1,329 83
Income (loss) before income taxes (93) 492 (585)
Income taxes (27) 147 (174)
NET INCOME (LOSS) $ (66) $ 345 $(411)
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK $ (86) $ 331 $(417)
EARNINGS (LOSS) PER COMMON SHARE:
PRIMARY $(1.10) $3.99 $(5.09)
FULLY DILUTED $(1.10) $3.99 $(5.09)
Cash dividends declared per common share $2.00 $1.80 $.20
</TABLE>
<PAGE>
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
($ in millions, except par value)
(unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
<S> <C> <C>
ASSETS
Cash and due from banks $ 1,739 $ 1,985
Interest-bearing deposits with banks 1,357 3,390
Federal funds sold 238 2,544
Securities purchased under resale agreements 17,629 9,943
Securities borrowed 6,929 6,197
Trading assets 50,565 47,514
Securities available for sale 6,479 7,475
Loans 11,537 12,501
Allowance for credit losses (1,243) (1,252)
Premises and equipment, net 931 915
Due from customers on acceptances 370 378
Accounts receivable and accrued interest 2,697 2,356
Other assets 3,709 3,070
Total $102,937 $97,016
LIABILITIES
Deposits
Noninterest-bearing
In domestic offices $ 2,465 $ 3,285
In foreign offices 527 541
Interest-bearing
In domestic offices 5,170 5,769
In foreign offices 14,443 15,344
Total deposits 22,605 24,939
Trading liabilities 28,404 20,949
Securities sold under repurchase agreements 18,933 15,617
Other short-term borrowings 14,010 18,222
Acceptances outstanding 370 378
Accounts payable and accrued expenses 3,615 3,174
Other liabilities 2,347 2,328
Long-term debt 7,514 6,455
Total liabilities 97,798 92,062
PREFERRED STOCK OF SUBSIDIARY 250 250
STOCKHOLDERS' EQUITY
Preferred stock 863 395
Common stock, $1 par value
Authorized, 300,000,000 shares
Issued, 83,678,973 shares 84 84
Capital surplus 1,300 1,317
Retained earnings 3,240 3,494
Common stock in treasury, at cost: 1995, 5,327,632 shares;
1994, 5,609,707 shares (391) (416)
Other (207) (170)
Total stockholders' equity 4,889 4,704
Total $102,937 $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
July 21, 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 July 20, 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
