<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 17, 1997
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 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 April 17, 1997, 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,
1997 and March 31, 1996 and the audited consolidated
financial position at December 31, 1996 and its unaudited
consolidated results of operations for the three-month
periods ended March 31, 1997, December 31, 1996 and March
31, 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 March 31, 1997,
December 31, 1996 and March 31, 1996 and its consolidated results
of operations for the three-month periods ended March 31, 1997,
March 31, 1996 and December 31, 1996 have been made. All such
adjustments were of a normal recurring nature. The results of
operations for the three-month period ended March 31, 1997 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
(99.1) Earnings Press Release of the Registrant
dated April 17, 1997
<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/ RICHARD H. DANIEL
RICHARD H. DANIEL
Vice Chairman and Controller
(Principal Financial Officer)
April 17, 1997
<PAGE>
BANKERS TRUST NEW YORK CORPORATION
FORM 8-K DATED APRIL 17, 1997
EXHIBIT INDEX
Exhibit
Number Description of Exhibit
(99.1) Earnings Press Release of the
Registrant dated April 17, 1997
<PAGE>
<PAGE>
THURSDAY, APRIL 17, 1997
BANKERS TRUST EARNS $1.89 PER SHARE IN THE FIRST QUARTER OF 1997,
UP 24% FROM THE 1996 FIRST QUARTER EARNINGS PER SHARE OF $1.52
New York, April 17, 1997 -- Bankers Trust New York Corporation
(BT) today reported that earnings per share for the first quarter
were $1.89, up 24% from the $1.52 earned in the first quarter of
1996. Net income for the first quarter of 1997 was $169 million
compared with $138 million in the first quarter of 1996. Driven
by a 23% net revenue growth, return on common equity in the
quarter reached 14.3%, compared with 11.9% in the first quarter
of 1996.
"Bankers Trust continued to make solid progress in the first
quarter, driven by broad-based, diversified revenue gains in our
core businesses worldwide," said Frank Newman, chairman and chief
executive officer.
"Our recently announced merger with Alex. Brown will expand
Bankers Trust's ability to serve clients of both firms across the
full range of their financing and advisory needs. The combined
firm will field an unmatched team of respected professionals with
strong skills and long experience in working with growing and
rapidly changing companies," Mr. Newman added.
For the current quarter, total net revenues of $1.176 billion
were up $218 million, or 23%, from first quarter 1996 net
revenues of $958 million. Revenues increased in each of the
Firm's principal businesses. Trading revenue and trading-related
net interest revenue increased $136 million, due to a rebound in
<PAGE>
customer transactions in the risk management business and strong
performances in trading and sales. In addition, corporate
finance fees increased $54 million, primarily because of
increases in private placement, loan syndication, and merger and
acquisition activities.
Total noninterest expenses for the first quarter of 1997
increased $174 million, or 23%, from the first quarter of 1996.
Personnel-related expenses contributed $131 million to the
increase. Salaries rose by $36 million due to growth in the
number of employees and to merit increases. Incentive
compensation and employee benefits was $322 million, up $95
million, due to higher profitability, increased emphasis on
performance-based compensation, and increases in other employee
benefits.
The Corporation's already strong credit quality continued to
improve during the quarter. At March 31, 1997, total cash basis
loans amounted to $332 million, down from $452 million at
December 31, 1996 and $715 million at March 31, 1996.
<PAGE>
ORGANIZATIONAL HIGHLIGHTS*
<TABLE>
<CAPTION>
Total Non- Pretax Net
First Quarter 1997 Total Net interest Income/ Income/
(in millions) Revenue Expenses (Loss) (Loss)
<S> <C> <C> <C> <C>
Investment Banking $ 303 $165 $138 $ 96
Risk Management Services 105 89 16 11
Trading & Sales 134 73 61 43
Investment Management 85 72 13 9
Client Processing Services 196 178 18 13
Australia/New Zealand 129 81 48 34
Asia 40 29 11 8
Latin America 143 110 33 23
Corporate/Other 41 138 (97) (68)
Total $1,176 $935 $241 $169
</TABLE>
<TABLE>
<CAPTION>
Total Non- Pretax Net
Fourth Quarter 1996 Total Net interest Income/ Income/
(in millions) Revenue Expenses (Loss) (Loss)
<S> <C> <C> <C> <C>
Investment Banking $ 233 $151 $ 82 $ 57
Risk Management Services 108 97 11 8
Trading & Sales 127 72 55 39
Investment Management 82 76 6 4
Client Processing Services 205 180 25 17
Australia/New Zealand 130 86 44 31
Asia 36 28 8 6
Latin America 101 90 11 8
Corporate/Other 80 113 (33) (23)
Total $1,102 $893 $209 $147
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Total Non- Pretax Net
First Quarter 1996 Total Net interest Income/ Income/
(in millions) Revenue Expenses (Loss) (Loss)
<S> <C> <C> <C> <C>
Investment Banking $227 $109 $118 $ 82
Risk Management Services 63 69 (6) (4)
Trading & Sales 90 56 34 24
Investment Management 73 69 4 3
Client Processing Services 182 156 26 18
Australia/New Zealand 98 64 34 24
Asia 33 26 7 5
Latin America 136 108 28 20
Corporate/Other 56 104 (48) (34)
Total $958 $761 $197 $138
</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 diverse 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 judgments have been made to apportion revenue and
expense items. In addition, certain revenue and expenses have been
segregated and reported in Corporate/Other because, in the
opinion of management, they could not be reasonably allocated or
because their contributions to a particular organizational
unit would be distortive. 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.
Changes in Organizational Structure
To move risk management capabilities closer to clients,
responsibility for the convertible debt business and for
management of the metals and mining commodities book has been
transferred from Risk Management Services to Investment Banking
and Australia/New Zealand, respectively.
In addition, the Emerging Europe, Middle East and Africa unit has
been formed, combining people with risk management, trading, and
investment banking expertise. For external reporting purposes
this new unit is included in Risk Management Services. Prior
period results have been restated for the changes in
organizational structure. The transfer of responsibility for
managing the metals and mining commodities book in Australia/New
Zealand is reflected in 1997 results only.
<PAGE>
Organizational Unit Results
The Investment Banking business contributed net income of $96
million in the first quarter, up from $82 million a year ago.
The increase from the prior year period reflected higher
corporate finance fees and net revenue from equity transactions.
Risk Management Services recorded net income of $11 million in
the first quarter of 1997, up $15 million from the first quarter
of 1996. Revenues of $105 million were up $42 million from the
first quarter of 1996. Compared to the prior year period,
revenues from new derivatives transactions and from the Emerging
Europe, Middle East and Africa unit improved.
Net income from the Trading & Sales business, at $43 million, was
up $19 million from the first quarter of 1996. The current
quarter's improvement was largely due to higher revenues from
trading and client-related business as compared to the prior year
period.
The Corporation's Investment Management business, which for
reporting purposes does not include funds management activities
in Australia/NZ, reported net income of $9 million for the
current quarter, up $6 million from the 1996 comparable period
due to an increase in assets under management. At March 31,
1997, assets under management in this organizational unit were
approximately $206 billion, compared to $183 billion at March 31,
1996.
Client Processing Services contributed $13 million of net income
in the first quarter of 1997, down $5 million from the 1996 first
quarter. Revenues of $196 million were up $14 million from the
first quarter of 1996. The decline in net income from a year ago
reflected higher operations costs and growth in staff expense.
Net income of the Australia/NZ business was $34 million in the
first quarter of 1997, up $10 million from the first quarter of
1996. The increase from the prior year period was primarily due
to improved revenues from trading activities and fiduciary and
funds management offset in part by increased salaries and incentive
compensation and employee benefits as a result of higher staff levels.
At March 31, 1997, assets under management in Australia/NZ's
investment management business were approximately $27 billion,
compared to $23 billion at March 31, 1996.
Asia net income was $8 million in the first quarter of 1997, up
$3 million from the first quarter of 1996. The current quarter's
increase was primarily due to improved results in North Asia.
Latin America net income was $23 million in the first quarter of
1997, up $3 million from the first quarter of 1996. An increase
in trading-related activities contributed to the current
quarter's results.
<PAGE>
Corporate/Other net loss was $68 million in the first quarter of
1997, compared with a net loss of $34 million in the first
quarter of 1996. The current quarter included the effects of
increased incentive compensation and employee benefits, a
contribution to the BT Foundation, and consulting expenses
associated with several strategic and infrastructure improvement
projects.
QUARTERLY FINANCIAL COMPARISONS
First Quarter 1997 Versus First Quarter 1996
Net income of $169 million for the first quarter of 1997 was up
22% from the $138 million earned in the first quarter of 1996.
First quarter 1997 combined trading revenue and trading-related
net interest revenue increased $136 million. Page 9 shows
combined trading results by organizational units.
Fiduciary and funds management revenue was $208 million in the
first quarter of 1997 up $25 million from the prior year period.
All activities within this category contributed to the increase,
especially global private banking commissions, funds management
revenue and custodian fees.
Corporate finance fees increased 63% from the $86 million earned
in the first quarter of 1996 primarily due to higher private
placement fees, merger and acquisition fees and loan syndication
fees.
Total noninterest expenses of $935 million increased by $174
million, or 23%, from the first quarter of 1996. Salaries
expense increased $36 million, or 18%, principally due to an 8%
increase in the average number of employees and to merit
increases. Incentive compensation and employee benefits, the
largest component of noninterest expenses, increased $95 million
due to higher earnings, greater emphasis on performance-based
compensation and the increase in the average number of employees.
First Quarter 1997 versus Fourth Quarter 1996
Net income of $169 million for the first quarter of 1997 was up
15% from the $147 million earned in the fourth quarter of 1996.
First quarter 1997 combined trading revenue and trading-related
net interest revenue increased $107 million from the fourth
quarter of 1996.
Corporate finance fees decreased $26 million in the current
quarter primarily due to lower securities underwriting fees,
financial advisory fees and private placement fees, partly offset
by higher merger and acquisition fees.
<PAGE>
Other noninterest revenue totaled $41 million in the current
quarter, compared to $25 million in the fourth quarter of 1996.
The current quarter included revenue from positive mark-to-market
adjustments on venture capital equity securities.
Incentive compensation and employee benefits expense rose $61
million from the fourth quarter of 1996. This was primarily due
to higher incentive awards.
Other noninterest expenses decreased by $21 million from the
fourth quarter of 1996. The fourth quarter of 1996 included
reserves for potential charges established after a review of
accounting operations since 1989 in the Corporation's transaction
processing business.
CAPITAL
During the first quarter of 1997, a total of $750 million of
trust preferred capital securities was issued. In addition, BT
Overseas Finance N.V. ("BTOF") an indirect wholly-owned
subsidiary of the Corporation redeemed all 2,500 shares of its
BTOF Auction Rate Cumulative Preferred Stock Series A-D at a
price of $250 million. The Corporation also redeemed all
outstanding shares of its 8.55% Cumulative Preferred Stock,
Series I at a price of $100 million. The Corporation also
repurchased approximately $6 million of its Adjustable Rate
Cumulative Preferred Stock, Series Q and Series R.
Bankers Trust announced last week that it was the first banking
institution to adopt the new Market Risk amendment to the risk-
based capital guidelines issued by the Federal Reserve and the
Bank for International Settlements (BIS). The amendment changes
the calculation of the risk-weighted assets for trading accounts
by incorporating the use of internal models to measure market
risks. In addition, the amendment requires that the capital and
risk-adjusted assets of BT Securities Corporation no longer be
excluded when calculating the risk-based capital ratios at the
holding company level. All banking institutions with significant
trading activity must adopt this Amendment by January 1, 1998.
During 1997, early adoption is permissible with prior approval
from the institution's primary federal regulator.
As calculated under these new rules, the Corporation estimates
that its ratios of Tier 1 Capital and Total Capital to risk-
weighted assets were approximately 8.1% and 14.6%, respectively,
as of March 31, 1997.
<PAGE>
CREDIT QUALITY
Credit quality improved further during the quarter. Cash basis
loans declined from $715 million at March 31, 1996 to $452
million at December 31, 1996 and $332 million at March 31, 1997.
The decline during the current quarter is attributable to
collections of $69 million, charge-offs of $33 million and sales
of existing cash basis loans of $31 million. These decreases
were slightly offset by additional transfers to cash basis loans
of $16 million.
There was no provision for credit losses in the first quarter as
compared with a $5 million provision in the prior year's first
quarter.
The remainder of this release contains the following tables:
Page
1. BTNY Consolidated Quarterly Statement of Income 8
2. Combined Trading Revenue and Trading-Related Net
Interest Revenue 9
3. Net Interest Revenue 9
4. BTNY Consolidated Balance Sheet 10
5. Stock and Capital Data 11
6. Nonperforming Assets and Allowance for Credit Losses 12
For additional information, contact Douglas Kidd, 212 250-7225 (Media).
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>
First Fourth First
Quarter Quarter Quarter
1996 1996 1997
<S> <C> <C> <C>
NET INTEREST REVENUE
Interest revenue $1,590 $1,648 $1,645
Interest expense 1,377 1,386 1,337
Net interest revenue 213 262 308
Provision for credit losses 5 - -
Net interest revenue after provision
for credit losses 208 262 308
NONINTEREST REVENUE
Trading* 247 234 279
Fiduciary & funds management 183 206 208
Corporate finance fees 86 166 140
Other fees & commissions 87 88 79
Net revenue from equity
investment transactions 21 44 44
Securities available for sale gains 15 24 14
Insurance premiums 62 53 63
Other 49 25 41
Total noninterest revenue 750 840 868
NONINTEREST EXPENSES
Salaries 201 235 237
Incentive compensation &
employee benefits 227 261 322
Agency & other professional service fees 60 83 87
Communication & data services 46 48 45
Occupancy, net 37 39 37
Furniture & equipment 41 47 50
Travel & entertainment 18 31 25
Provision for policyholder benefits 72 64 68
Other 59 85 64
Total noninterest expenses 761 893 935
Income before income taxes 197 209 241
Income taxes 59 62 72
NET INCOME $ 138 $ 147 $ 169
NET INCOME APPLICABLE TO COMMON STOCK $ 123 $ 133 $ 156
Cash dividends declared per common share $1.00 $1.00 $1.00
EARNINGS PER COMMON SHARE:
PRIMARY $1.52 $1.59 $1.89
FULLY DILUTED $1.51 $1.58 $1.89
<PAGE>
<FN>
*The Corporation accounts for revenues from a wide range of business
activities as "trading". See table on page 9.
</TABLE>
<PAGE>
COMBINED TRADING REVENUE AND TRADING-RELATED NET INTEREST REVENUE
The Corporation views trading revenue and trading-related net
interest revenue (NIR) together, as presented in the table below.
<TABLE>
<CAPTION>
First Fourth First
Quarter Quarter Quarter
($ in millions) 1996 1996 1997
<S> <C> <C> <C>
Trading Revenue $247 $234 $279
Trading-Related Net Interest
Revenue (Estimate) 30 72 134
Total Trading Revenue &
Trading-Related NIR $277 $306 $413
By Organizational Unit ($ in millions)
Investment Banking $ 70 $ 17 $ 63
Risk Management Services 62 111 111
Trading & Sales 73 109 114
Investment Management 1 8 4
Client Processing Services 2 1 1
Australia/New Zealand 27 35 47
Asia 12 15 27
Latin America 38 24 49
Corporate/Other (8) (14) (3)
Total Trading Revenue &
Trading-Related NIR $277 $306 $413
<FN>
Note: The Corporation accounts for revenues from a wide range of
business activities as "trading". Investment Banking produces
trading revenues in secondary market activities with clients,
primarily in sectors where the Firm also serves as underwriter.
A small portion of trading revenues arise from private equity
investments that are accounted for on a mark-to-market basis.
Risk Management Services generates trading revenues primarily
from new derivative transactions with clients and in managing the
risks the Corporation assumes on such transactions. Trading &
Sales produces trading revenues through proprietary position-
taking, including arbitrage, as well as market making and other
client activities. Australia/New Zealand, Asia and Latin America
produce trading revenues from all the above business activities.
Corporate/Other includes various transactions which, for
management accounting purposes, are not recorded in
Organizational Units.
</TABLE>
<PAGE>
NET INTEREST REVENUE
<TABLE>
<CAPTION>
First Fourth First
Quarter Quarter Quarter
($ in millions) 1996 1996 1997
<S> <C> <C> <C>
Nontrading-related net interest
revenue(Estimate) $183 $190 $174
Trading-related net interest
revenue (Estimate) 30 72 134
Net interest revenue $213 $262 $308
Average rates (fully taxable basis)
Yield on interest-earning assets 7.49% 6.72% 7.00%
Cost of interest-bearing liabilities 6.68% 5.92% 5.93%
Interest rate spread .81% .80% 1.07%
Net interest margin 1.02% 1.08% 1.33%
Average balances (billions)
Loans $12.4 $15.2 $15.6
Total interest-earning assets $85.6 $97.8 $95.7
Total assets $113.7 $124.3 $123.6
Total interest-bearing liabilities $82.9 $93.2 $91.4
</TABLE>
<PAGE>
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
<TABLE>
<CAPTION>
March 31 December 31 March 31
1996* 1996 1997*
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 1,181 $ 1,543 $ 1,607
Interest-bearing deposits
in banks 1,377 2,210 2,581
Federal funds sold 1,038 1,599 1,195
Sec. purch. under resale
agreements 15,670 17,986 22,273
Securities borrowed 15,390 16,676 13,963
Trading assets:
Government securities 18,345 16,745 11,686
Corporate debt securities 5,670 8,005 8,460
Equity securities 6,024 6,048 7,021
Swaps, options &
other derivatives 10,330 11,410 11,222
Other trading assets 5,136 6,711 9,072
Total trading assets 45,505 48,919 47,461
Securities available for sale 6,880 7,920 7,986
Loans 13,088 - -
Allowance for credit losses (987) - -
Loans, net of allowance for credit
losses of $773 and $758 at
December 31, 1996 and
March 31, 1997, respectively - 15,053 17,221
Accounts receivable &
accrued interest 4,072 3,003 3,227
Other assets 4,930 5,326 5,464
Total $108,144 $120,235 $122,978
LIABILITIES
Noninterest-bearing deposits
Domestic offices $ 1,997 $ 2,600 $ 2,894
Foreign offices 545 1,013 961
Interest-bearing deposits
Domestic offices 5,824 9,928 12,365
Foreign offices 14,190 16,774 19,369
Total deposits 22,556 30,315 35,589
Trading liabilities:
Securities sold, not yet purchased
Government securities 11,897 7,652 3,943
Equity securities 3,918 4,151 4,935
Other trading liabilities 331 325 431
Swaps, options & other
derivatives 10,903 11,585 11,177
Total trading liabilities 27,049 23,713 20,486
Sec. sold under repurch. agreements 23,209 23,000 21,995
Other short-term borrowings 12,493 19,395 20,224
Accounts payable and
accrued expenses 4,665 3,656 3,836
Other liabilities, including
allowance for credit losses
of $200 at both December 31, 1996
and March 31, 1997 2,742 2,833 3,179
Long-term debt not included in
risk-based capital 7,707 8,533 7,955
Long-term debt included in
risk-based capital 2,418 2,576 3,164
Mandatorily redeemable capital
securities of subsidiary trusts
holding solely junior subordinated
deferrable interest debentures
included in risk-based capital - 730 1,469
Total liabilities 102,839 114,751 117,897
<PAGE>
PREFERRED STOCK OF SUBSIDIARY 250 250 -
STOCKHOLDERS' EQUITY
Preferred stock 866 810 704
Common stock 84 84 84
Capital surplus 1,304 1,339 1,349
Retained earnings 3,351 3,462 3,512
Common stock in treasury, at cost (311) (372) (527)
Other stockholders' equity (239) (89) (41)
Total stockholders' equity 5,055 5,234 5,081
Total $108,144 $120,235 $122,978
<FN>
* Unaudited
Certain prior period amounts have been reclassified to conform to
the current presentation.
</TABLE>
<PAGE>
STOCK AND CAPITAL DATA
<TABLE>
<CAPTION>
First Fourth First
Quarter Quarter Quarter
1996 1996 1997
<S> <C> <C> <C>
FOR THE QUARTER
Return on Average Common
Stockholders' Equity 11.9% 11.7% 14.3%
Return on Average Total Assets .49% .47% .55%
PER COMMON SHARE
Earnings:
Primary $1.52 $1.59 $1.89
Fully Diluted $1.51 $1.58 $1.89
Cash Dividends Declared $1.00 $1.00 $1.00
Market Price, End of Period $70.875 $86.25 $82.00
Book Value, End of Period $51.06 $53.27 $53.42
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 4,278 4,435 5,965
Average Common and Common Equivalent
Shares Outstanding
Primary 80,896 83,812 82,784
Fully Diluted 81,560 84,225 82,898
CAPITAL RATIOS, END OF PERIOD
Common Stockholders' Equity
to Total Assets 3.9 % 3.7% 3.6%
Total Stockholders' Equity to
Total Assets 4.7% 4.4% 4.1%
Bankers Trust New York Corporation:
Risk-Based Capital Ratios (1)
Tier 1 Capital 8.2% 8.7% 8.1%
Total Capital 13.4% 13.7% 14.6%
Leverage Ratio (1) 5.3% 5.5% 4.5%
Bankers Trust Company:
Risk-Based Capital Ratios (1)
Tier 1 Capital 9.4% 9.3% 8.5%
Total Capital 12.6% 12.9% 11.9%
Leverage Ratio (1) 5.5% 5.3% 5.4%
<FN>
(1) Regulatory capital ratios at March 31, 1997 are preliminary.
These ratios reflect the adoption of the Market Risk Amendment to the risk-
based capital guidelines. This amendment changes the calculation of risk-
weighted assets for trading accounts. In addition, it requires that the
capital and risk-adjusted assets of BT Securities Corporation be included
when calculating the ratios (including the leverage ratio) for Bankers Trust
New York Corporation. Previously, the assets and capital of BT Securities
Corporation were excluded. Prior period ratios have not been restated for
the adoption of this amendment.
</TABLE>
<PAGE>
NONPERFORMING ASSETS AND ALLOWANCE FOR CREDIT LOSSES
<TABLE>
<CAPTION>
March 31 December 31 March 31
1996 1996 1997
<S> <C> <C> <C>
Nonperforming assets (in millions)
Cash basis loans
Secured by real estate $351 $272 $185
Real estate related 31 25 25
Highly leveraged 132 117 88
Other 201 38 34
Total cash basis loans $715 $452 $332
Renegotiated loans
Secured by real estate $89 $ 37 $37
Total renegotiated loans $89 $ 37 $37
Other real estate $257 $213 $188
Other nonperforming assets $ 67 $ 10 $8
Total allowance for credit losses (in millions)
Balance, beginning of period $992 $967 $973
Net charge-offs (recoveries)
Charge-offs 28 21 33
Recoveries 18 27 18
Total net charge-offs (recoveries)* 10 (6) 15
Provision for credit losses 5 - -
Balance, end of period (a) $987 $973 $958
(a) Allocation**:
Loans $773 $758
Other liabilities 200 200
Balance, end of period $973 $958
*Components of Net Charge-offs (Recoveries):
Secured by real estate $ 1 $ 14 $(1)
Real estate related 4 - -
Highly leveraged 20 (7) 16
Other (12) (13) -
Refinancing country (3) - -
Total $ 10 $ (6) $15
<FN>
** Beginning December 31, 1996, in accordance with the American
Institute of Certified Public Accountant's Banks and Savings
Institutions Audit and Accounting Guide, the Corporation has
allocated its total allowance for credit losses as a reduction
of loans and as other liabilities related to other credit-related items.
The Corporation continues to believe that the total allowance for credit
losses is available for credit losses in its entire portfolio, which is
comprised of loans, credit-related commitments, derivatives and
other financial instruments. Due to a multitude of complex
and changing factors that are collectively weighed in determining the
adequacy of the allowance for credit losses, management expects that the
allocation of the total allowance for credit losses may be
adjusted as risk factors change. Prior period amounts have
not been restated.
</TABLE>
<PAGE>
BANKERS TRUST NEW YORK CORPORATION
130 LIBERTY STREET
NEW YORK, NEW YORK 10006
Richard H. Daniel
Vice Chairman and Controller
(Principal Financial Officer)
April 17, 1997
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 17, 1997 (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-
7575.
Very truly yours,
BANKERS TRUST NEW YORK CORPORATION
By: RICHARD H. DANIEL
Richard H. Daniel
Vice Chairman and Controller
(Principal Financial Officer)
