<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 17, 1996
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.)
130 LIBERTY STREET, NEW YORK, NEW YORK 10006
(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/A is to file a
Press Release 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
financial information contained in the Registrant's Press Release
dated October 17, 1996, 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 September
30, 1996, June 30, 1996, and September 30, 1995 and the
audited consolidated financial position at December 31, 1995
and its unaudited consolidated results of operations for
each of the three-month and nine-month periods ended
September 30, 1996 and 1995 and the three-month period ended
June 30, 1996.
In the opinion of the Registrant's management, all material
adjustments necessary for a fair presentation of the
Corporation's consolidated financial position at September 30,
1996, June 30, 1996, and September 30, 1995 and its consolidated
results of operations for the three-month and nine-month periods
ended September 30, 1996 and 1995 and the three-month period
ended June 30, 1996 have been made. All such adjustments were of
a normal recurring nature.
Item 7. Financial Statements and Exhibits
(c) Exhibits
(99.1) Earnings Press Release of the Registrant
dated October 17, 1996
<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
October 17, 1996
<PAGE>
BANKERS TRUST NEW YORK CORPORATION
FORM 8-K/A DATED OCTOBER 17, 1996
EXHIBIT INDEX
Exhibit
Number Description of Exhibit
(99.1) Earnings Press Release of the
Registrant dated October 17, 1996.
<PAGE>
<PAGE>
THURSDAY, OCTOBER 17, 1996
BANKERS TRUST THIRD QUARTER EARNINGS PER SHARE OF $1.99 INCREASE
16%. THIRD QUARTER NET INCOME, AT $176 MILLION, INCREASES 14%.
New York, October 17, 1996 -- Bankers Trust New York Corporation
(BT) today reported that earnings per share in the third quarter
of 1996 were $1.99, 16% above the $1.72 per share earned in the
same period last year. Net income in the third quarter of 1996
was $176 million, up $21 million, or 14%, from the $155 million
of earnings in the 1995 third quarter, and up $25 million, or
17%, from the $151 million earned in the preceding 1996 quarter.
BT's earnings per share for the first nine months of 1996 were
$5.19, up $4.53 from the $0.66 earned during the first nine
months of 1995. Net income for the first nine months of 1996 was
$465 million, up $376 million from the $89 million of earnings in
the same period of 1995.
"Third quarter results demonstrate the effectiveness of our
continuing efforts to develop Bankers Trust's core businesses
around the world," said Frank Newman, chairman and chief
executive officer. "The progress reflects our emphasis on using
the innovation that is a hallmark of the Firm to deliver value to
our clients," Mr. Newman said. He noted that third quarter
performance was especially strong in Investment Banking and
Australia/New Zealand, and that results for Asia, Latin America,
and Investment Management also showed improvement over those for
last year's third quarter.
<PAGE>
Third quarter earnings included the favorable effect ($18 million
after-tax) of the sale of a life insurance company acquired in
1992 in satisfaction of debt.
In the third quarter of 1996, total net revenue (net interest
revenue after provision for credit losses, plus noninterest
revenue) amounted to $1.059 billion, an increase of $107 million,
or 11%, from the third quarter 1995 amount. This increase is
primarily attributable to higher corporate finance fees and to
the gain on the sale of the life insurance company.
Total noninterest expenses increased by $81 million compared with
those for the third quarter of 1995, reflecting higher incentive
compensation and employee benefits, annual pay increases that
went into effect July 1, 1996, as well as an increase in staff
levels. Excluding personnel costs, the year-over-year increase
in total noninterest expenses was $7 million, or 2%.
Credit quality continued to improve during the third quarter. At
September 30, 1996 total cash basis loans amounted to $488
million, down from $573 million at June 30, 1996 and $752 million
at September 30, 1995. At quarter end, the allowance for credit
losses represented 198% of cash basis loans.
<PAGE>
ORGANIZATIONAL HIGHLIGHTS*
<TABLE>
<CAPTION>
Total Non- Pretax Net
Third Quarter 1996 Total Net interest Income/ Income/
(in millions) Revenue Expenses (Loss) (Loss)
<S> <C> <C> <C> <C>
Investment Banking $ 231 $122 $109 $ 77
Risk Management Services 84 80 4 3
Trading & Sales 107 65 42 29
Investment Management 76 70 6 4
Client Processing Services 200 165 35 25
Australia/New Zealand 138 77 61 43
Asia 30 24 6 5
Latin America 123 94 29 20
Corporate/Other 70 112 (42) (30)
Total $1,059 $809 $250 $176
</TABLE>
<TABLE>
<CAPTION>
Total Non- Pretax Net
Second Quarter 1996 Total Net interest Income/ Income/
(in millions) Revenue Expenses (Loss) (Loss)
<S> <C> <C> <C> <C>
Investment Banking $ 274 $118 $156 $109
Risk Management Services 44 76 (32) (22)
Trading & Sales 89 65 24 17
Investment Management 74 68 6 4
Client Processing Services 203 166 37 26
Australia/New Zealand 114 70 44 31
Asia 35 26 9 7
Latin America 166 115 51 36
Corporate/Other 42 121 (79) (57)
Total $1,041 $825 $216 $151
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Total Non- Pretax Net
Third Quarter 1995 Total Net interest Income/ Income/
(in millions) Revenue Expenses (Loss) (Loss)
<S> <C> <C> <C> <C>
Investment Banking $184 $ 83 $101 $ 70
Risk Management Services 107 94 13 9
Trading & Sales 124 70 54 38
Investment Management 64 68 (4) (3)
Client Processing Services 177 140 37 25
Australia/New Zealand 97 65 32 22
Asia 7 26 (19) (14)
Latin America 123 119 4 3
Corporate/Other 69 63 6 5
Total $952 $728 $224 $155
</TABLE>
*Organizational Unit business results are determined based on the
Corporation's internal management accounting process, which
allocates revenue and expenses among the Organizational Units.
Because the Corporation's business is complex in nature
and its operations are integrated, it is impractical to segregate
respective contributions of the Organizational Units with precision.
As a result, estimates and subjective judgments have been made to
apportion revenue and expense items. In order to provide
comparability from one period to the next, the Corporation will
restate this analysis to conform with material changes in the
allocation process and/or significant changes in organizational
structure.
The Investment Banking business contributed net income of $77
million in the third quarter, up from $70 million a year ago but
down $32 million from the second quarter of 1996. Net income in
the second quarter of 1996 reflected particularly high corporate
finance fees, as well as higher realized securities available for
sale gains than in the third quarter.
Risk Management Services recorded net income of $3 million in the
third quarter of 1996, down $6 million from the third quarter of
1995 but up $25 million from the second quarter of 1996. The
second quarter of 1996 included a $23 million after-tax loss
associated with the sharp drop in copper prices.
Net income from the Trading & Sales business, at $29 million, was
down $9 million from the third quarter of 1995 but up $12 million
from the second quarter of 1996. The current quarter's
improvement was largely due to strong results from arbitrage
transactions.
The Corporation's Investment Management business, which for
reporting purposes does not include investment management
activities in Australia/NZ, reported net income of $4 million for
the current quarter, up $7 million from the 1995 comparable
period and unchanged from the second quarter of 1996. At
September 30, 1996, assets under management in this
organizational unit were approximately $193 billion, compared to
$191 billion and $177 billion at June 30, 1996 and September 30,
1995, respectively.
<PAGE>
Client Processing Services contributed $25 million of net income
in the third quarter of 1996, in line with the 1995 third quarter
and the preceding quarter of this year. Total revenue increased
$23 million from the comparable 1995 period, offset by an
increase in noninterest expenses primarily due to an increased
level of investment in computer systems.
Net income of the Australia/NZ business was $43 million in the
third quarter of 1996, up $21 million and $12 million
respectively from the third quarter of 1995 and the second
quarter of 1996. Virtually all major business lines in
Australia/NZ improved, led by the Financial Markets Group. At
September 30, 1996, assets under management in Australia/NZ's
investment management business were approximately $25 billion,
compared to $24 billion and $22 billion at June 30, 1996 and
September 30, 1995, respectively.
Asia net income was $5 million in the third quarter of 1996, up
$19 million from the third quarter of 1995 and down slightly from
the second quarter of 1996. The increase from the third quarter
of 1995 was primarily due to improved risk management results.
Latin America net income was $20 million in the third quarter of
1996, up $17 million from the third quarter of 1995, and down $16
million from the second quarter of 1996. The second quarter of
1996 results reflected a $22 million net gain after-tax from the
sale of Compensa, which was the smaller of the Corporation's two
Chilean insurance subsidiaries.
Corporate/Other net loss was $30 million in the third quarter of
1996 compared with net income of $5 million in the third quarter
of 1995 and a $57 million net loss in the second quarter of 1996.
The current quarter's results included a net gain after-tax of
$18 million on the sale of Golden American Life Insurance
Company, an indirect wholly-owned subsidiary of the Corporation
acquired in satisfaction of debt in 1992. The second quarter
included unusual legal and professional fees ($20 million after-
taxes) related to the completion of the Independent Counsel's
report and the settlement of old leveraged derivative disputes.
QUARTERLY FINANCIAL COMPARISONS
Third Quarter 1996 versus Second Quarter 1996
Net income of $176 million for the third quarter of 1996 was up
17% from the $151 million earned in the second quarter of 1996.
Third quarter 1996 combined trading revenue and trading-related
net interest revenue increased $80 million from the second
quarter of 1996. Page 9 shows combined trading results by
organizational units.
Insurance premiums declined $11 million during the current
quarter, mainly due to the sale of Compensa in the second quarter
of 1996. This decline was partially offset by increases in the
number of annuity policies sold by Consorcio, the largest life
insurance company in Chile, and the average value per policy.
<PAGE>
Other noninterest revenue totaled $54 million in the current
quarter, compared to $76 million in the second quarter of 1996.
The current quarter included a gain on the sale of Golden
American Life Insurance Company, an indirect wholly-owned
subsidiary of the Corporation acquired in satisfaction of debt in
1992. The second quarter of 1996 included a $31 million gain on
the sale of Compensa.
Salaries and incentive compensation together rose 5% from the
second quarter of 1996, primarily reflecting annual pay increases
in July. As part of the Corporation's annual pay review in the
second quarter, some staff compensation was shifted from
incentive compensation into base salary to reflect market
conditions. This resulted in somewhat higher than normal growth
in salaries with an offsetting decline in incentive compensation.
Agency and other professional service fees decreased $28 million
during the current quarter. The second quarter included $28
million pre-tax of unusual legal and professional fees related to
the completion of the Independent Counsel's report and the
settlement of old leveraged derivative disputes.
Provision for policyholder benefits decreased $12 million during
the third quarter primarily due to the sale of Compensa in the
second quarter of 1996. This decline was partially offset by
increases in the number of annuity policies sold by Consorcio and
the average value per policy.
CREDIT QUALITY
Credit quality improved further in the quarter. Cash basis loans
declined from $573 million in the second quarter of 1996 to $488
million in the third quarter of 1996. This decline was
attributable to paydowns on various commercial, industrial, and
real estate loans as well as a charge-off in connection with the
settlement of an old leveraged derivative transaction.
There was no provision for credit losses as compared with a $7
million provision in the prior year's third quarter. The ratio
of the allowance for credit losses to total cash basis loans rose
to 198% at September 30, 1996 from 170% at June 30, 1996.
CAPITAL
Total stockholders' equity at September 30, 1996 was $5.324
billion, up $157 million and $340 million respectively from June
30, 1996 and December 31, 1995. The Corporation estimates that
its ratios of Tier 1 Capital and Total Capital to risk-adjusted
assets were approximately 8.1% and 12.8%, respectively, at
September 30, 1996.
Overall earnings per share of $1.99 included partially offsetting
items that produced a net increase of $0.02 per share. During
the quarter the Corporation purchased $50 million of its Series Q
and Series R preferred stock at a discount, which is reflected as
an increase in earnings per share of $0.08. Offsetting this
increase is a reduction in earnings per share of
<PAGE>
approximately $0.06 due to a net increase of common shares
primarily issued in connection with the purchase of Wolfensohn.
During the quarter the Corporation announced its authorization to
repurchase up to three million shares of its common stock, in
addition to its previously announced program to repurchase shares
issued under employee stock option and award plans.
The remainder of this release contains the following tables:
Page
1. BTNY Consolidated Quarterly Statement of Income 7
2. BTNY Consolidated Year-To-Date Statement of Income 8
3. Combined Trading Revenue and Trading-Related Net
Interest Revenue 9
4. Net Interest Revenue 9
5. BTNY Consolidated Balance Sheet 10
6. Stock and Capital Data 11
7. Nonperforming Assets and Allowance for Credit Losses 12
For additional information, contact Douglas Kidd, 212 250-7225 or
Tom Parisi, 212 250-7235 (Media); Eric Durant 212 250-6901
(Investors).
Bankers Trust news releases, including quarterly results, are
available on the Internet (http://www.bankerstrust.com/earnings).
<PAGE>
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED QUARTERLY STATEMENT OF INCOME
(in millions, except per share data)
(unaudited)
<TABLE>
<CAPTION
Third Second Third
Quarter Quarter Quarter
1995 1996 1996
<S> <C> <C> <C>
NET INTEREST REVENUE
Interest revenue $1,556 $1,459 $1,669
Interest expense 1,352 1,216 1,421
Net interest revenue 204 243 248
Provision for credit losses 7 - -
Net interest revenue after provision
for credit losses 197 243 248
NONINTEREST REVENUE
Trading* 257 146 219
Fiduciary & funds management 174 198 196
Corporate finance fees 74 136 119
Other fees & commissions 78 82 86
Net revenue from equity investment
transactions 85 72 74
Securities available for sale gains 10 25 11
Insurance premiums 64 63 52
Other 13 76 54
Total noninterest revenue 755 798 811
NONINTEREST EXPENSES
Salaries 196 202 229
Incentive compensation &
employee benefits 187 235 228
Agency & other professional
service fees 70 98 70
Communication & data services 45 47 52
Occupancy, net 41 36 38
Furniture & equipment 40 41 42
Travel & entertainment 20 24 24
Provision for policyholder benefits 75 78 66
Other 54 64 60
Total noninterest expenses 728 825 809
Income before income taxes 224 216 250
Income taxes 69 65 74
NET INCOME $ 155 $ 151 $ 176
NET INCOME APPLICABLE TO COMMON STOCK $ 139 $ 137 $ 168
Cash dividends declared per common share $1.00 $1.00 $1.00
EARNINGS PER COMMON SHARE:
PRIMARY $1.72 $1.67 $1.99
FULLY DILUTED $1.71 $1.66 $1.98
<PAGE>
<FN>
*The Corporation accounts for revenues from a wide range of
business activities as "trading". See table on page 9.
Certain prior period amounts have been reclassified to conform to
the current presentation.
</TABLE>
<PAGE>
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED YEAR-TO-DATE STATEMENT OF INCOME
(in millions, except per share data)
(unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30, 1995 1996
<S> <C> <C>
NET INTEREST REVENUE
Interest revenue $4,429 $4,718
Interest expense 3,821 4,014
Net interest revenue 608 704
Provision for credit losses 21 5
Net interest revenue after provision
for credit losses 587 699
NONINTEREST REVENUE
Trading* 258 612
Fiduciary & funds management 511 577
Corporate finance fees 273 341
Other fees & commissions 235 255
Net revenue from equity investment transactions 124 167
Securities available for sale gains 29 51
Insurance premiums 176 177
Other 78 179
Total noninterest revenue 1,684 2,359
NONINTEREST EXPENSES
Salaries 598 632
Incentive compensation and employee benefits 455 690
Agency & other professional service fees 214 228
Communication & data services 140 145
Occupancy, net 120 111
Furniture & equipment 122 124
Travel & entertainment 67 66
Provision for policyholder benefits 202 216
Other 172 183
Provision for severance-related costs 50 -
Total noninterest expenses 2,140 2,395
Income before income taxes 131 663
Income taxes 42 198
NET INCOME $ 89 $ 465
NET INCOME APPLICABLE TO COMMON STOCK $53 $428
Cash dividends declared per common share $3.00 $3.00
EARNINGS PER COMMON SHARE:
PRIMARY $.66 $5.19
FULLY DILUTED $.65 $5.16
<FN>
*The Corporation accounts for revenues from a wide range of
business activities as "trading". See table on page 9.
Certain prior period amounts have been reclassified to conform to
the current presentation.
</TABLE>
<PAGE>
COMBINED TRADING REVENUE AND TRADING-RELATED NET INTEREST REVENUE
The Corporation views trading revenue and trading-related net
interest revenue together, as presented in the table below.
<TABLE>
<CAPTION>
Third Second Third
Quarter Quarter Quarter
($ in millions) 1995 1996 1996
<S> <C> <C> <C>
Trading Revenue $257 $146 $219
Trading-Related Net Interest
Revenue (Estimate) 20 64 71
Total Trading Revenue &
Trading-Related NIR $277 $210 $290
By Organizational Unit ($ in millions)
Investment Banking $ 9 $ 21 $ 31
Risk Management Services 92 43 75
Trading & Sales 114 72 93
Investment Management (1) 2 5
Client Processing Services 2 2 1
Australia/New Zealand 30 34 59
Asia (2) 9 12
Latin America 25 28 21
Corporate/Other 8 (1) (7)
Total Trading Revenue &
Trading-Related NIR $277 $210 $290
<FN>
Note: The Corporation accounts for revenues from a wide range of
business activities as "trading". Investment Banking produces
trading revenues in secondary market activities with clients,
primarily in sectors where the Firm also serves as underwriter.
A small portion of trading revenues arise from private equity
investments that are accounted for on a mark-to-market basis.
Risk Management Services generates trading revenues primarily
from new derivative transactions with clients and in managing the
risks the Corporation assumes on such transactions. Trading &
Sales produces trading revenues through proprietary position-
taking, including arbitrage, as well as market making and other
client activities. Geographically-Based Businesses produce
trading revenues from all the above business activities.
Corporate/Other includes various transactions which, for
management accounting purposes, are not recorded in
Organizational Units.
</TABLE>
<PAGE>
NET INTEREST REVENUE
<TABLE>
<CAPTION>
Third Second Third
Quarter Quarter Quarter
($ in millions) 1995 1996 1996
<S> <C> <C> <C>
Nontrading-related net interest revenue $184 $179 $177
Trading-related net interest revenue 20 64 71
Net interest revenue $204 $243 $248
Average rates (fully taxable basis)
Yield on interest-earning assets 7.56% 6.47% 6.78%
Cost of interest-bearing liabilities 6.91% 5.64% 6.21%
Interest rate spread .65% .83% .57%
Net interest margin 1.04% 1.09% 1.02%
Average balances (billions)
Loans $11.7 $13.1 $13.8
Total interest-earning assets $82.3 $91.0 $98.2
Total assets $109.4 $117.8 $123.4
Total interest bearing liabilities $77.7 $86.7 $91.0
</TABLE>
<PAGE>
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
<TABLE>
<CAPTION>
September 30 December 31 June 30 September 30
1995* 1995 1996* 1996*
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 1,715 $ 2,337 $ 1,663 $ 825
Interest-bearing deposits
in banks 1,605 2,023 2,065 4,100
Federal funds sold 29 854 365 856
Sec. purch. under
resale agreements 11,485 13,206 25,420 22,073
Securities borrowed 12,063 10,951 13,373 14,926
Trading assets:
Government securities 20,698 20,704 14,565 16,075
Corporate debt securities 5,267 5,648 7,637 8,678
Equity securities 4,892 5,098 6,869 5,585
Swaps, options &
other derivatives 11,885 10,555 9,486 10,363
Other trading assets 7,622 5,888 5,218 7,056
Total trading assets 50,364 47,893 43,775 47,757
Securities available
for sale 7,140 6,283 6,851 7,461
Loans 12,786 12,633 14,249 15,264
Allowance for credit losses (1,032) (992) (972) (967)
Accounts receivable &
accrued interest 3,168 4,220 2,841 3,417
Other assets 4,626 4,594 4,971 5,135
Total $103,949 $104,002 $114,601 $120,847
LIABILITIES
Noninterest-bearing deposits
Domestic offices $ 2,898 $ 2,687 $ 3,327 $ 2,552
Foreign offices 522 605 488 647
Interest-bearing deposits
Domestic offices 5,052 5,402 6,091 7,401
Foreign offices 15,685 17,014 15,387 18,072
Total deposits 24,157 25,708 25,293 28,672
Trading liabilities:
Securities sold, not yet purchased
Government securities 9,390 11,092 10,918 11,020
Equity securities 3,105 3,262 4,655 3,729
Other trading liabilities 376 473 377 389
Swaps, options &
other derivatives 11,801 11,264 10,333 10,266
Total trading liabilities 24,672 26,091 26,283 25,404
Sec. sold under
repurch. agreements 17,899 15,247 24,050 23,989
Other short-term borrowings 16,573 15,761 15,755 18,799
Accounts payable and
accrued expenses 4,351 3,931 4,531 5,252
Other liabilities 2,632 2,736 2,563 2,650
Long-term debt 8,354 9,294 10,709 10,507
Total liabilities 98,638 98,768 109,184 115,273
PREFERRED STOCK OF SUBSIDIARY 250 250 250 250
STOCKHOLDERS' EQUITY
Preferred stock 865 865 866 816
Common stock 84 84 84 84
Capital surplus 1,301 1,302 1,308 1,319
Retained earnings 3,295 3,316 3,393 3,450
Common stock in treasury,
at cost (373) (336) (273) (173)
Other stockholders' equity (111) (247) (211) (172)
Total stockholders' equity 5,061 4,984 5,167 5,324
Total $103,949 $104,002 $114,601 $120,847
<FN>
* Unaudited
Certain prior period amounts have been reclassified to conform to
the current presentation.
</TABLE>
<PAGE>
STOCK AND CAPITAL DATA
<TABLE>
<CAPTION>
Third Second Third
Quarter Quarter Quarter
1995 1996 1996
<S> <C> <C> <C>
FOR THE QUARTER
Return on Average Common
Stockholders' Equity 13.5% 12.9% 15.0%
Return on Average Total Assets .56% .52% .57%
PER COMMON SHARE
Earnings:
Primary $1.72 $1.67 $1.99
Fully Diluted $1.71 $1.66 $1.98
Cash Dividends Declared $1.00 $1.00 $1.00
Market Price, End of Period $70.25 $73.875 $78.625
Book Value, End of Period (1) $51.72 $51.86 $53.11
COMMON SHARES (shares in thousands except par value)
Common stock $1 par value:
Authorized, at period end 300,000 300,000 300,000
Issued, at period end 83,679 83,679 83,679
Common stock in treasury,
at period end 5,085 3,758 2,193
Average Common and Common Equivalent
Shares Outstanding
Primary 81,039 81,900 84,442
Fully Diluted 81,403 82,351 84,885
CAPITAL RATIOS, END OF PERIOD
Common Stockholders' Equity to
Total Assets 4.0% 3.8% 3.7%
Total Stockholders' Equity to
Total Assets 4.9% 4.5% 4.4%
Bankers Trust New York Corporation:
Risk-Based Capital Ratios (2)
Tier 1 Capital 8.1% 8.3% 8.1%
Total Capital 13.0% 13.5% 12.8%
Leverage Ratio (2) 5.5% 5.5% 5.3%
Bankers Trust Company:
Risk-Based Capital Ratios (2)
Tier 1 Capital 8.7% 9.3% 9.2%
Total Capital 11.1% 12.4% 12.4%
Leverage Ratio (2) 5.5% 5.5% 5.5%
<FN>
(1) This calculation includes the effect of the vested portion of
common shares issuable under deferred stock awards.
(2) Regulatory capital ratios at September 30, 1996 are
preliminary.
</TABLE>
<PAGE>
NONPERFORMING ASSETS AND ALLOWANCE FOR CREDIT LOSSES
<TABLE>
<CAPTION>
September 30 June 30 September 30
1995 1996 1996
<S> <C> <C> <C>
Nonperforming assets (in millions)
Cash basis loans
Secured by real estate $394 $308 $291
Real estate related 23 31 26
Highly leveraged 148 128 99
Other 187 106 72
Total cash basis loans $752 $573 $488
Renegotiated loans
Secured by real estate $ 89 $89 $89
Other nonrefinancing country 12 - -
Total renegotiated loans $101 $89 $89
Other real estate $281 $219 $220
Other nonperforming assets $64 $ 68 $13
</TABLE>
<TABLE>
<CAPTION>
September 30 June 30 September 30
1995 1996 1996
<S> <C> <C> <C>
Allowance for credit losses (in millions)
Balance, beginning of period $1,243 $987 $972
Net charge-offs
Charge-offs 223 21 19
Recoveries 5 6 14
Total net charge-offs* 218 15 5
Provision for credit losses 7 - -
Balance, end of period $1,032 $972 $967
*Components:
Secured by real estate $ 9 $ - $(1)
Real estate related - - (1)
Highly leveraged 6 3 (5)
Other 203 13 14
Refinancing country - (1) (2)
Total $218 $ 15 $ 5
</TABLE>
<PAGE>
BANKERS TRUST NEW YORK CORPORATION
130 LIBERTY STREET
NEW YORK, NEW YORK 10006
Geoffrey M. Fletcher
Senior Vice President and
Principal Accounting Officer
October 31, 1996
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/A dated October 17, 1996 (the
"Form 8-K/A"). The Form 8-K/A amends the Form 8-K filed on October 17, 1996
which was incorrectly identified as an Item 3 (Bankruptcy or Receivership)
filing. The Form 8-K/A 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
