<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 8-K/A
(Amendment No. 1)
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 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>
By this Amendment No. 1, the Registrant is correcting the amount
on page 9 for "Agency & other professional service fees" for the
six months ended June 30, 1997. The amount should have been
reported as 186 instead of 86.
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 July 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 June 30,
1997, March 31, 1997 and June 30, 1996 and the audited
consolidated financial position at December 31, 1996 and its
unaudited consolidated results of operations for each of the
three-month and six-month periods ended June 30, 1997, and June
30, 1996, and the three-month period ended March 31, 1997.
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, 1997,
and June 30, 1996 and its consolidated results of operations for
the three-month and six-month periods ended June 30, 1997 and
June 30, 1996 and the three-month period ended March 31, 1997
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, 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 July 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)
July 17, 1997
<PAGE>
BANKERS TRUST NEW YORK CORPORATION
FORM 8-K/A DATED JULY 17, 1997
EXHIBIT INDEX
Exhibit
Number Description of Exhibit
(99.1) Earnings Press Release of the
Registrant dated July 17, 1997.
THURSDAY, JULY 17, 1997
BANKERS TRUST EARNS $2.07 PER SHARE IN THE SECOND QUARTER
OF 1997, UP 24% FROM THE 1996 SECOND QUARTER EARNINGS PER SHARE
OF $1.67
New York, July 17, 1997 -- Bankers Trust New York Corporation
(BT) today reported that earnings per share for the second
quarter were $2.07, up 24% from the $1.67 earned in the second
quarter of 1996. Net income for the second quarter of 1997 was
$181 million compared with $151 million in the second quarter of
1996. Driven by a 23% revenue growth, return on common equity in
the quarter reached 15.2%, compared with 12.9% in the second
quarter of 1996.
"Broad-based revenue gains in Bankers Trust's global businesses
continued to drive an improvement in profitability in the second
quarter," said Frank Newman, chairman and chief executive
officer. "Compared to last year, revenue growth was especially
strong in our trading and sales, investment banking and risk
management services business units.
"On August 13, Bankers Trust and Alex. Brown shareholders will
vote on an historic merger of two great institutions that share a
strong commitment to clients and a long tradition of excellence,"
Mr. Newman added. "We approach this merger with solid business
momentum and growing evidence of the exciting opportunities that
lie ahead for our combined firm. Together, we will bring our
clients a comprehensive array of sophisticated financing and
advisory capabilities."
For the current quarter, total revenues of $1.285 billion were up
$244 million, or 23%, from second quarter 1996 revenues of $1.041
billion. Revenues increased in most of the Firm's business
units. Trading revenue and trading-related net interest revenue
increased $220 million, due to a rebound in the risk management
services business and strong performances in nearly all other
businesses. In addition, corporate finance fees increased $38
million, primarily due to increases in private placement, merger
and acquisition and loan syndication activities.
Total noninterest expenses for the second quarter of 1997
increased $203 million, or 25%, from the second quarter of 1996.
Personnel-related expenses contributed $172 million to the
increase. Salaries rose by $30 million due to growth in the
number of employees and to annual pay increases. Incentive
compensation and employee benefits were $377 million, up $142
million, primarily as a result of higher levels of revenues and
profits.
The Corporation's already strong credit quality continued to
improve during the quarter. At June 30, 1997, total cash basis
loans amounted to $305 million, down from $332 million at March
31, 1997 and $573 million at June 30, 1996.
2
ORGANIZATIONAL HIGHLIGHTS*
Total Non- Pretax Net
Second Quarter 1997 Total Interest Income/ Income/
(in millions) Revenue Expenses (Loss) (Loss)
Investment Banking $ 353 $193 $160 $113
Risk Management Services 107 97 10 7
Trading & Sales 168 84 84 59
Investment Management 87 75 12 8
Client Processing Services 208 182 26 18
Australia/New Zealand 132 99 33 23
Asia 11 31 (20) (14)
Latin America 172 117 55 39
Corporate/Other 47 150 (103) (72)
Total $1,285 $1,028 $257 $181
Total Non- Pretax Net
First Quarter 1997 Total Interest Income/ Income/
(in millions) Revenue Expenses (Loss) (Loss)
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
Total Non- Pretax Net
Second Quarter 1996 Total Interest Income/ Income/
(in millions) Revenue Expenses (Loss) (Loss)
Investment Banking $ 281 $132 $149 $104
Risk Management Services 38 64 (26) (18)
Trading & Sales 84 59 25 17
Investment Management 75 70 5 4
Client Processing Services 197 169 28 20
Australia/New Zealand 114 67 47 33
Asia 36 26 10 7
Latin America 166 118 48 33
Corporate/Other 50 120 (70) (49)
Total $1,041 $825 $216 $151
* 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.
3
Organizational Unit Results
The Investment Banking business contributed net income of $113
million in the second quarter, up from $104 million a year ago
and $96 million in the previous quarter. The increase from the
prior year period and previous quarter reflected higher corporate
finance income offset partly by higher personnel-related costs.
Revenue from private equity investments declined from the high
level of the second quarter of 1996 but increased slightly from
the previous quarter.
Risk Management Services recorded net income of $7 million in the
second quarter of 1997, up $25 million from the second quarter of
1996 and down $4 million from the previous quarter. The prior
year quarter reflected losses incurred in the commodity
derivatives books when copper prices dropped sharply. Beginning
in 1997, the responsibility for managing the metals and mining
commodities book was transferred to Australia/NZ. The decrease
in net income from the first quarter of 1997 was primarily due to
higher personnel-related costs.
Net income from the Trading & Sales business, at $59 million, was
up $42 million from the second quarter of 1996 and $16 million
from the first quarter of 1997. The current quarter's
improvement was largely due to strong arbitrage activities as
compared to the prior year period and previous quarter.
The Corporation's Investment Management business, which for
reporting purposes does not include funds management activities
in Australia/NZ, reported net income of $8 million for the
current quarter, up $4 million from the 1996 comparable period
due to improved performance fees. At June 30, 1997, assets under
management in this organizational unit were approximately $242
billion, compared to $206 billion and $191 billion at March 31,
1997 and June 30, 1996, respectively.
Client Processing Services contributed $18 million of net income
in the second quarter of 1997, down $2 million from the 1996
second quarter and up $5 million from the previous quarter.
Revenues of $208 million were up $11 million from the second
quarter of 1996 and $12 million from the previous quarter. The
decline in net income from a year ago reflected higher personnel-
related costs and technology costs.
Net income of the Australia/NZ business was $23 million in the
second quarter of 1997, down $10 million from the second quarter
of 1996 and down $11 million from the previous quarter. The
decrease from the prior year period and previous quarter was
primarily due to higher personnel-related costs as a result of
increased staff levels offset in part by improved revenues from
trading activities and fiduciary and funds management. At June
30, 1997, assets under management in Australia/NZ's investment
management business were approximately $28 billion, compared to
$27 billion and $24 billion at March 31, 1997 and June 30, 1996
respectively.
4
Asia net loss was $14 million in the second quarter of 1997
compared to net income of $7 million in the second quarter of
1996 and net income of $8 million in the previous quarter.
Thailand is currently experiencing a significant reduction in its
economic growth and the Thai stock market has experienced a steep
decline. As a result, the Corporation recognized a decline in
value of its unconsolidated investment in a Thai finance company.
Offsetting this decline, the Corporation recognized trading gains
from favorable Thai baht currency positions. The combined effect
of these factors in Thailand resulted in a pre-tax net loss of
$22 million.
Latin America net income was $39 million in the second quarter of
1997, up $6 million from the second quarter of 1996 and up $16
million from the first quarter of 1997. A pre-tax gain of $22
million ($15 million after-tax) was recorded during the current
quarter resulting from the completion of the first stage on the
sale of 50% of the Corporation's stake in Consorcio, the largest
life insurance and annuity firm in Chile. The prior year's
quarter included $31 million in pre-tax revenue on the sale of
Compensa which was the smaller of the Corporation's Chilean
insurance subsidiaries.
Corporate/Other net loss was $72 million in the second quarter of
1997, compared with a net loss of $49 million in the second
quarter of 1996 and a net loss of $68 million in the first
quarter of 1997. The first half of 1997 included the effects of
increased incentive compensation and employee benefits and
consulting expenses associated with several strategic and
infrastructure improvement projects. The prior year period
included higher levels of legal and professional fees.
QUARTERLY FINANCIAL COMPARISONS
Second Quarter 1997 Versus Second Quarter 1996
Net income of $181 million for the second quarter of 1997 was up
20% from the $151 million earned in the second quarter of 1996.
Second quarter 1997 combined trading revenue and trading-related
net interest revenue increased $220 million. Page 10 shows
combined trading results by organizational unit.
Fiduciary and funds management revenue was $234 million in the
second quarter of 1997 up $36 million from the prior year period.
Client processing services, funds management and global private
banking commissions contributed to this increase.
Corporate finance fees increased 28% from the $136 million earned
in the second quarter of 1996 primarily due to higher private
placement fees, merger and acquisition fees and loan syndication
fees.
The Corporation's private equity investment activities largely
contributed to the changes in securities available for sale gains
(up $43 million) and net revenue from equity investment
transactions (down $69 million).
Total noninterest expenses of $1.028 billion increased by $203
million, or 25%, from the second quarter of 1996. Salaries
expense increased $30 million, or 15%, principally due to a 7%
increase in the average number of employees
5
and to annual pay increases. Incentive compensation and employee
benefits, the largest component of noninterest expenses,
increased $142 million due to higher profitability and the
increase in the average number of employees.
Second Quarter 1997 versus First Quarter 1997
Net income of $181 million for the second quarter of 1997 was up
7% from the $169 million earned in the first quarter of 1997.
Second quarter 1997 combined trading revenue and trading-related
net interest revenue increased $17 million from the first quarter
of 1997.
Fiduciary funds management revenue was $234 million in the
current quarter, up $26 million from the previous quarter
primarily due to increased client processing services and funds
management revenue.
Corporate finance fees increased $34 million in the current
quarter primarily due to higher loan syndication fees and
securities underwriting fees.
The Corporation's private equity investment activities largely
contributed to the changes in securities available for sale gains
(up $54 million) and net revenue from equity investment
transactions (down $41 million).
Incentive compensation and employee benefits expense rose $55
million from the first quarter of 1997. This was primarily due
to higher incentive accruals.
CAPITAL
In March 1997, the Corporation became 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 14.3%, respectively,
as of June 30, 1997.
CREDIT QUALITY
Credit quality improved further during the quarter and there was
no provision for credit losses. Cash basis loans declined from
$573 million at June 30, 1996 to $332 million at March 31, 1997
and $305 million at June 30, 1997.
6
The remainder of this release contains the following tables:
Page
1. BTNY Consolidated Quarterly Statement of Income 8
2. BTNY Consolidated Year-To-Date Statement of Income 9
3. Combined Trading Revenue and Trading-Related Net
Interest Revenue 10
4. Net Interest Revenue 10
5. BTNY Consolidated Balance Sheet 11
6. Stock and Capital Data 12
7. Nonperforming Assets and Allowance for Credit Losses 13
For additional information, contact William McBride, 212-250-
7961. Bankers Trust news releases, including quarterly results, are
available on the Internet (http://www.bankerstrust.com/earnings).
7
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED QUARTERLY STATEMENT OF INCOME
(in millions, except per share data)
(unaudited)
Second First Second
Quarter Quarter Quarter
1996 1997 1997
NET INTEREST REVENUE
Interest revenue $1,459 $1,645 $1,694
Interest expense 1,216 1,337 1,379
Net interest revenue 243 308 315
Provision for credit losses - - -
Net interest revenue after provision
for credit losses 243 308 315
NONINTEREST REVENUE
Trading* 146 279 282
Fiduciary & funds management 198 208 234
Corporate finance fees 136 140 174
Other fees & commissions 82 79 91
Net revenue from equity investment
transactions 72 44 3
Securities available for sale gains 25 14 68
Insurance premiums 63 63 64
Other 76 41 54
Total noninterest revenue 798 868 970
Total revenue 1,041 1,176 1,285
NONINTEREST EXPENSES
Salaries 202 237 232
Incentive compensation &
employee benefits 235 322 377
Agency & other professional service fees 98 87 99
Communication & data services 47 45 45
Occupancy, net 36 37 38
Furniture & equipment 41 50 49
Travel & entertainment 24 25 31
Provision for policyholder benefits 78 68 72
Other 64 64 85
Total noninterest expenses 825 935 1,028
Income before income taxes 216 241 257
Income taxes 65 72 76
NET INCOME $ 151 $ 169 $ 181
NET INCOME APPLICABLE TO COMMON STOCK $ 137 $ 156 $ 169
Cash dividends declared per common share $1.00 $1.00 $1.00
EARNINGS PER COMMON SHARE:
PRIMARY $1.67 $1.89 $2.07
FULLY DILUTED $1.66 $1.89 $2.05
*The Corporation accounts for revenues from a wide range of
business activities as "trading".
See table on page 10.
8
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED YEAR-TO-DATE STATEMENT OF INCOME
(in millions, except per share data)
(unaudited)
SIX MONTHS ENDED JUNE 30, 1996 1997
NET INTEREST REVENUE
Interest revenue $3,049 $3,339
Interest expense 2,593 2,716
Net interest revenue 456 623
Provision for credit losses 5 -
Net interest revenue after provision
for credit losses 451 623
NONINTEREST REVENUE
Trading* 393 561
Fiduciary & funds management 381 442
Corporate finance fees 222 314
Other fees & commissions 169 170
Net revenue from equity investment
transactions 93 47
Securities available for sale gains 40 82
Insurance premiums 125 127
Other 125 95
Total noninterest revenue 1,548 1,838
Total revenue 1,999 2,461
NONINTEREST EXPENSES
Salaries 403 469
Incentive compensation & employee benefits 462 699
Agency & other professional service fees 158 186
Communication & data services 93 90
Occupancy, net 73 75
Furniture & equipment 82 99
Travel & entertainment 42 56
Provision for policyholder benefits 150 140
Other 123 149
Total noninterest expenses 1,586 1,963
Income before income taxes 413 498
Income taxes 124 148
NET INCOME $ 289 $ 350
NET INCOME APPLICABLE TO COMMON STOCK $ 260 $ 325
Cash dividends declared per common share $2.00 $2.00
EARNINGS PER COMMON SHARE:
PRIMARY $3.19 $3.95
FULLY DILUTED $3.17 $3.93
* The Corporation accounts for revenues from a wide range of
business activities as "trading".
See quarterly information on page 10.
9
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.
Second First Second
Quarter Quarter Quarter
(in millions) 1996 1997 1997
Trading Revenue $146 $279 $282
Trading-Related Net Interest
Revenue (Estimate) 64 134 148
Total Trading Revenue &
Trading-Related NIR $210 $413 $430
By Organizational Unit (in millions)
Investment Banking $ 28 $ 63 $ 68
Risk Management Services 40 111 117
Trading & Sales 68 114 97
Investment Management 2 4 4
Client Processing Services 2 1 1
Australia/New Zealand 34 47 56
Asia 10 27 42
Latin America 28 49 48
Corporate/Other (2) (3) (3)
Total Trading Revenue &
Trading-Related NIR $210 $413 $430
Note: The Corporation accounts for revenues from a wide range of
business activities as "trading". Investment Banking produces
trading revenues in secondary market activities with clients,
primarily in sectors where the Firm also serves as underwriter.
A small portion of trading revenues arise from private equity
investments that are accounted for on a mark-to-market basis.
Risk Management Services generates trading revenues primarily
from new derivative transactions with clients and in managing the
risks the Corporation assumes on such transactions. Trading &
Sales produces trading revenues through proprietary position-
taking, including arbitrage, as well as market making and other
client activities. Australia/New Zealand, Asia and Latin America
produce trading revenues from all the above business activities.
Corporate/Other includes various transactions which, for
management accounting purposes, are not recorded in
Organizational Units.
NET INTEREST REVENUE
Second First Second
Quarter Quarter Quarter
($ in millions) 1996 1997 1997
Nontrading-related net interest
revenue(Estimate) $179 $174 $167
Trading-related net interest
revenue (Estimate) 64 134 148
Net interest revenue $243 $308 $315
Average rates (fully taxable basis)
Yield on interest-earning assets 6.47% 7.00% 6.82%
Cost of interest-bearing liabilities 5.64% 5.93% 5.65%
Interest rate spread .83% 1.07% 1.17%
Net interest margin 1.09% 1.33% 1.29%
Average balances (billions)
Loans $13.1 $15.6 $18.2
Total interest-earning assets $91.0 $95.7 $100.0
Total assets $117.8 $123.6 $129.9
Total interest-bearing liabilities $86.7 $91.4 $97.9
10
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
June 30 December 31 March 31 June 30
1996* 1996 1997* 1997*
ASSETS
Cash and due from banks $ 1,663 $ 1,543 $ 1,607 $ 1,730
Interest-bearing deposits
in banks 2,065 2,210 2,581 2,334
Federal funds sold 365 1,599 1,195 1,305
Sec. purch. under resale
agreements 25,420 17,986 22,273 25,754
Securities borrowed 13,373 16,676 13,963 12,794
Trading assets:
Government securities 14,565 16,745 11,686 12,270
Corporate debt securities 7,637 8,005 8,460 9,642
Equity securities 6,869 6,048 7,021 8,018
Swaps, options &
other derivatives 9,486 11,410 11,222 10,824
Other trading assets 5,218 6,711 9,072 8,328
Total trading assets 43,775 48,919 47,461 49,082
Securities available for sale 6,851 7,920 7,986 7,478
Loans 14,249 - - -
Allowance for credit losses (972) - - -
Loans, net of allowance for
credit losses of $773,
$758 and $767 at
December 31, 1996,
March 31, 1997 and
June 30, 1997, respectively - 15,053 17,221 18,939
Accounts receivable &
accrued interest 2,841 3,003 3,227 3,431
Other assets 4,971 5,326 5,464 6,101
Total $114,601 $120,235 $122,978 $128,948
LIABILITIES
Noninterest-bearing deposits
Domestic offices $ 3,327 $ 2,600 $ 2,803 $ 3,046
Foreign offices 488 1,013 1,052 1,439
Interest-bearing deposits
Domestic offices 6,091 9,928 12,365 15,618
Foreign offices 15,387 16,774 19,369 18,327
Total deposits 25,293 30,315 35,589 38,430
Trading liabilities:
Securities sold, not
yet purchased
Government securities 10,918 7,652 3,943 4,949
Equity securities 4,655 4,151 4,935 4,973
Other trading liabilities 377 325 431 401
Swaps, options & other
derivatives 10,333 11,585 11,177 11,064
Total trading liabilities 26,283 23,713 20,486 21,387
Sec. sold under repurch.
agreements 24,050 23,000 21,995 22,550
Other short-term borrowings 15,755 19,395 20,224 19,398
Accounts payable and
accrued expenses 4,531 3,656 3,836 5,776
Other liabilities, including
allowance for credit losses
of $200 at December 31, 1996
and March 31, 1997
and $206 at June 30, 1997 2,563 2,833 3,179 3,504
Long-term debt not included
in risk-based capital 8,225 8,533 7,955 8,268
Long-term debt included in
risk-based capital 2,484 2,576 3,164 2,939
Mandatorily redeemable
capital securities of
subsidiary trusts holding
solely junior subordinated
deferrable interest
debentures included in
risk-based capital - 730 1,469 1,470
Total liabilities 109,184 114,751 117,897 123,722
PREFERRED STOCK OF SUBSIDIARY 250 250 - -
STOCKHOLDERS' EQUITY
Preferred stock 866 810 704 703
Common stock 84 84 84 84
Capital surplus 1,308 1,339 1,349 1,352
Retained earnings 3,393 3,462 3,512 3,588
Common stock in treasury,
at cost (273) (372) (527) (513)
Other stockholders' equity (211) (89) (41) 12
Total stockholders' equity 5,167 5,234 5,081 5,226
Total $114,601 $120,235 $122,978 $128,948
* Unaudited
Certain prior period amounts have been reclassified to conform to
the current presentation.
11
STOCK AND CAPITAL DATA
Second First Second
Quarter Quarter Quarter
1996 1997 1997
FOR THE QUARTER
Return on Average Common Stockholders'
Equity 12.9% 14.3% 15.2%
Return on Average Total Assets .52% .55% .56%
PER COMMON SHARE
Earnings:
Primary $1.67 $1.89 $2.07
Fully Diluted $1.66 $1.89 $2.05
Cash Dividends Declared $1.00 $1.00 $1.00
Market Price, End of Period $73.875 $82.00 $87.125
Book Value, End of Period $51.86 $53.42 $54.84
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 3,758 5,965 6,012
Average Common and Common Equivalent
Shares Outstanding
Primary 81,900 82,784 81,585
Fully Diluted 82,351 82,898 82,403
CAPITAL RATIOS, END OF PERIOD
Common Stockholders' Equity
to Total Assets 3.8% 3.6% 3.5%
Total Stockholders' Equity
to Total Assets 4.5% 4.1% 4.1%
Bankers Trust New York Corporation:
Risk-Based Capital Ratios (1)
Tier 1 Capital 8.3% 8.2% 8.1%
Total Capital 13.5% 14.8% 14.3%
Leverage Ratio (1) 5.5% 4.5% 4.4%
Bankers Trust Company:
Risk-Based Capital Ratios (1)
Tier 1 Capital 9.3% 8.6% 8.8%
Total Capital 12.4% 12.1% 12.2%
Leverage Ratio (1) 5.5% 5.4% 5.3%
(1) Regulatory capital ratios at June 30, 1997 are preliminary.
Regulatory capital ratios at June 30, 1997 and March 31, 1997 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
risk-based capital ratios for Bankers Trust New York Corporation.
As a result of this adoption, the Corporation's leverage
ratios also reflect the capital and average assets of BT Securities
Corporation. Previously, such assets and capital were excluded.
Regulatory capital ratios at June 30, 1996 have not been restated for
the adoption of this amendment.
12
NONPERFORMING ASSETS AND ALLOWANCE FOR CREDIT LOSSES
June 30 March 31 June 30
1996 1997 1997
Nonperforming assets (in millions)
Cash basis loans
Secured by real estate $308 $185 $156
Real estate related 31 25 25
Highly leveraged 128 88 76
Other 106 34 48
Total cash basis loans $573 $332 $305
Renegotiated loans
Secured by real estate $89 $37 $37
Total renegotiated loans $89 $37 $37
Other real estate $219 $188 $196
Other nonperforming assets $68 $8 $8
Total allowance for credit losses (in millions)
Balance, beginning of period $987 $973 $958
Net charge-offs (recoveries)
Charge-offs 21 33 3
Recoveries 6 18 1
Total net charge-offs (recoveries)* 15 15 2
Provision for credit losses - - -
Allowance related to acquisition
of an affiliate - - 17
Balance, end of period (a) $972 $958 $973
(a) Allocation**:
Loans $758 $767
Other liabilities 200 206
Balance, end of period $958 $973
* Components of Net Charge-offs (Recoveries):
Secured by real estate $ - $(1) $2
Real estate related - - -
Highly leveraged 3 16 -
Other 13 - 1
Refinancing country (1) - (1)
Total $15 $15 $2
** 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. Amounts as of June 30, 1996
have not been restated.
13
<PAGE>
BANKERS TRUST NEW YORK CORPORATION
130 LIBERTY STREET
NEW YORK, NEW YORK 10006
Richard H. Daniel
Vice Chairman and Controller
(Principal Financial Officer)
July 18, 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/A (Amendment No. 1) dated July 17, 1997
(the "Form 8-K/A"). 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-
7575.
Very truly yours,
BANKERS TRUST NEW YORK CORPORATION
By: RICHARD H. DANIEL
Richard H. Daniel
Vice Chairman and Controller
(Principal Financial Officer)
