<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) January 23, 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 January 23, 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 December
31, 1996, and September 30, 1996 and the audited
consolidated financial position at December 31, 1995 and its
unaudited consolidated results of operations for the three-
month and twelve-month periods ended December 31, 1996 and
the three-month periods ended September 30, 1996, and
December 31, 1995 and the audited consolidated results of
operations for the twelve-month period ended December 31,
1995.
In the opinion of the Registrant's management, all material
adjustments necessary for a fair presentation of the
Corporation's consolidated financial position at December 31,
1996, September 30, 1996, and December 31, 1995 and its
consolidated results of operations for the three-month and twelve-
month periods ended December 31, 1996 and 1995 and the three-
month period ended September 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 January 23, 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/ GEOFFREY M. FLETCHER
GEOFFREY M. FLETCHER
Senior Vice President and
Principal Accounting Officer
January 23, 1997
<PAGE>
BANKERS TRUST NEW YORK CORPORATION
FORM 8-K DATED JANUARY 23, 1997
EXHIBIT INDEX
Exhibit
Number Description of Exhibit
(99.1) Earnings Press Release of the
Registrant dated January 23, 1997.
<PAGE>
<PAGE>
THURSDAY, JANUARY 23, 1997
BANKERS TRUST EARNS $6.78 PER SHARE IN 1996, UP $4.75 FROM 1995
FOURTH QUARTER EARNINGS PER SHARE OF $1.59 INCREASE 17%
New York, January 23, 1997 -- Bankers Trust New York Corporation
(BT) today reported that earnings per share for the full year
1996 were $6.78, up $4.75 from the $2.03 earned during 1995. Net
income for 1996 was $612 million, up $397 million from the $215
million of earnings in 1995.
BT's earnings per share in the fourth quarter of 1996 were $1.59,
17% above the $1.36 per share earned in the same period last
year. Net income in the fourth quarter of 1996 was $147 million,
compared with $126 million in the 1995 fourth quarter and $176
million in the third quarter of 1996.
"For Bankers Trust, 1996 was a year of great progress, marked by
a significant recovery in earnings and an expansion of business
with clients across the range of our global activities," said
Frank Newman, chairman and chief executive officer. "Thanks to
the efforts of our exceptionally capable people, we regained the
initiative in our businesses, with client-related income
contributing approximately 70% of total revenues.
"Among last year's achievements was the addition of Wolfensohn &
Co., which strengthened our ability to offer clients the
<PAGE>
highest quality strategic advice. Throughout the Firm,
management benefited from clarified lines of responsibility and
increased accountability. With these accomplishments, Bankers
Trust enters the new year with strong momentum and innovative
spirit to deal with the challenges and opportunities of 1997.
"Chief among those challenges is to accelerate the improvement in
our profitability. We are planning to improve the earning power
of businesses that have not yet reaped the benefits of their
strong market positions. Our strategy also seeks to increase the
growth rate of our best performing businesses."
For the full year, total revenues of $4.165 billion were up $925
million, or 29%, from 1995. This increase was broadly based by
type and reflected growth in nearly all of the Firm's businesses.
Revenues reached their second highest annual level in the
Corporation's history, trailing only the 1993 record.
Total noninterest expenses for 1996 increased $390 million, or
13%, from 1995. This increase was primarily due to higher
incentive compensation and employee benefits related to the
improved financial performance.
Credit quality continued to improve during the year. At December
31, 1996, total cash basis loans amounted to $452 million, down
from $488 million at September 30, 1996 and $744 million at
December 31, 1995.
<PAGE>
ORGANIZATIONAL HIGHLIGHTS*
<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 $ 226 $140 $ 86 $ 60
Risk Management Services 115 102 13 9
Trading & Sales 133 84 49 35
Investment Management 81 75 6 4
Client Processing Services 211 180 31 22
Australia/New Zealand 131 83 48 34
Asia 35 29 6 5
Latin America 101 92 9 7
Corporate/Other 69 108 (39) (29)
Total $1,102 $893 $209 $147
</TABLE>
<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>
<PAGE>
<TABLE>
<CAPTION>
Total Non- Pretax Net
Fourth Quarter 1995 Total Net interest Income/ Income/
(in millions) Revenue Expenses (Loss) (Loss)
<S> <C> <C> <C> <C>
Investment Banking $333 $106 $227 $158
Risk Management Services 34 95 (61) (44)
Trading & Sales 99 64 35 25
Investment Management 65 72 (7) (5)
Client Processing Services 187 157 30 21
Australia/New Zealand 110 65 45 33
Asia 17 29 (12) (10)
Latin America 99 116 (17) (11)
Corporate/Other (6) 54 (60) (41)
Total $938 $758 $180 $126
</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 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 attribution 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.
The Investment Banking business contributed net income of $60
million in the fourth quarter, down from $158 million a year ago
and $77 million from the third quarter of 1996. Net income in
last year's fourth quarter reflected a $101 million after-tax
gain from the sale of a block of the Corporation's investment in
Northwest Airlines Corporation. Compared with the 1996 third
quarter, lower Private Equity Investment revenues were partly
offset by an increase in Corporate Finance revenues. In
addition, salaries and incentive compensation increased.
Risk Management Services recorded net income of $9 million in the
fourth quarter of 1996, up $53 million from the fourth quarter of
1995 and $6 million from the third quarter of 1996. Risk
management revenues of $115 million were up $81 million from the
fourth quarter of 1995 and $31 million from the previous quarter.
Net income from the Trading & Sales business, at $35 million, was
up $10 million from the fourth quarter of 1995 and $6 million
from the third quarter of 1996. The current quarter's
improvement was largely due to foreign exchange trading.
<PAGE>
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 $9 million from the 1995 comparable
period and unchanged from the third quarter of 1996. At December
31, 1996, assets under management in this organizational unit
were approximately $201 billion, compared to $193 billion and
$175 billion at September 30, 1996 and December 31, 1995,
respectively.
Client Processing Services contributed $22 million of net income
in the fourth quarter of 1996, up $1 million from the 1995 fourth
quarter and down $3 million from the preceding quarter of this
year.
Net income of the Australia/NZ business was $34 million in the
fourth quarter of 1996, up $1 million and down $9 million from
the fourth quarter of 1995 and the third quarter of 1996,
respectively. At December 31, 1996, assets under management in
Australia/NZ's investment management business were approximately
$26 billion, compared to $25 billion and $22 billion at September
30, 1996 and December 31, 1995, respectively. The decline in
revenue from the third quarter of 1996 was primarily due to lower
trading revenue within the Financial Markets Group.
Asia net income was $5 million in the fourth quarter of 1996, up
$15 million from the fourth quarter of 1995 and unchanged from
the third quarter of 1996. The increase from the fourth quarter
of 1995 was primarily due to improved corporate finance and
trading results.
Latin America net income was $7 million in the fourth quarter of
1996, up $18 million from the fourth quarter of 1995, and down
$13 million from the third quarter of 1996. The current
quarter's decline was primarily due to lower securities available
for sale gains as well as lower corporate finance revenue.
Corporate/Other net loss was $29 million in the fourth quarter of
1996, compared with a net loss of $41 million in the fourth
quarter of 1995 and a $30 million net loss in the third quarter
of 1996. As noted below, results in the current quarter included
reserves related to prior period items in the transaction
processing business while the fourth quarter of 1995 included
charges related to the settlement of leveraged derivative
transactions and related legal costs.
QUARTERLY FINANCIAL COMPARISONS
Fourth Quarter 1996 versus Third Quarter 1996
Net income of $147 million for the fourth quarter of 1996 was
down 16% from the $176 million earned in the third quarter of
1996.
Fourth quarter 1996 combined trading revenue and trading-related
net interest revenue increased $16 million from the third quarter
of 1996. Page 10 shows combined trading results by
organizational units.
<PAGE>
Corporate finance fees rose $47 million in the current quarter
primarily due to higher private placement fees, loan syndication
fees, and securities underwriting fees.
Other noninterest revenue totaled $25 million in the current
quarter, compared to $54 million in the third quarter of 1996.
This change was due to the third quarter of 1996 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.
Incentive compensation and employee benefits expense rose $33
million from the third quarter of 1996. This was primarily due
to an increase in cash incentive compensation awards for the full
year in response to increasingly competitive market conditions.
In addition, expenses related to a stock-based incentive program
increased due to increases in the Corporation's share price.
Other noninterest expenses rose by $25 million from the third
quarter of 1996. A significant portion of this increase related
to reserves for potential charges established after a review of
accounting operations since 1989 in the Corporation's transaction
processing business. None of the items identified in the review
was attributable to 1996 operations, and none was material to the
results of any prior period.
Fourth Quarter 1996 Versus Fourth Quarter 1995
Net income of $147 million for the fourth quarter of 1996 was up
17% from the $126 million earned in the fourth quarter of 1995.
Fourth quarter 1996 combined trading revenue and trading-related
net interest revenue increased $210 million. The fourth quarter
of 1995 included a $51 million charge from settlements of old
leveraged derivative transactions. Page 10 shows combined
trading results by organizational units.
Corporate finance fees increased 33% from the $125 million earned
in the fourth quarter of 1995 primarily due to higher revenue
from private placement and merger and acquisition activities.
Securities available for sale gains were $24 million in the
fourth quarter of 1996 versus $151 million in the comparable 1995
period. Last year's fourth quarter included a $145 million pre-
tax gain on the sale of a substantial portion of the
Corporation's investment in Northwest Airlines Corporation.
Total noninterest expenses of $893 million increased by $135
million, or 18%, from the fourth quarter of 1995. Incentive
compensation and employee benefits expense increased $76 million
due to improved financial performance. Salaries expense
increased $29 million, or 14%, principally due to an 8% increase
in the average number of employees. Also included in the current
quarter's noninterest expenses were the reserves related to the
transaction processing business as previously mentioned. Agency
& other professional service fees decreased $21 million, or 20%,
from the fourth quarter of 1995. The prior year period included
legal costs related to leveraged derivative transactions.
<PAGE>
CREDIT QUALITY
Credit quality improved further during the year. Cash basis
loans declined from $744 million at December 31, 1995 to $488
million at September 30, 1996 and $452 million at December 31,
1996. This decline was attributable to paydowns on various
commercial, industrial, and real estate loans.
There was no provision for credit losses as compared with a $10
million provision in the prior year's fourth quarter.
CAPITAL
Total stockholders' equity at December 31, 1996 was $5.234
billion, down $90 million and up $250 million respectively from
September 30, 1996 and December 31, 1995. During the quarter,
the Corporation repurchased approximately 4 million shares of its
common stock in connection with its previously announced
repurchase programs.
The Corporation estimates that its ratios of Tier 1 Capital and
Total Capital to risk-adjusted assets were approximately 8.5% and
13.4%, respectively, at December 31, 1996. During the quarter, a
total of $750 million of trust-preferred securities were issued.
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 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>
Fourth Third Fourth
Quarter Quarter Quarter
1995 1996 1996
<S> <C> <C> <C>
NET INTEREST REVENUE
Interest revenue $1,457 $1,669 $1,721
Interest expense 1,248 1,421 1,459
Net interest revenue 209 248 262
Provision for credit losses 10 - -
Net interest revenue after provision
for credit losses 199 248 262
NONINTEREST REVENUE
Trading* 83 219 234
Fiduciary & funds management 186 196 206
Corporate finance fees 125 119 166
Other fees & commissions 79 86 88
Net revenue from equity
investment transactions 22 74 44
Securities available for sale gains 151 11 24
Insurance premiums 58 52 53
Other 35 54 25
Total noninterest revenue 739 811 840
NONINTEREST EXPENSES
Salaries 206 229 235
Incentive compensation &
employee benefits 185 228 261
Agency & other professional service fees 104 70 83
Communication & data services 44 52 48
Occupancy, net 32 38 39
Furniture & equipment 40 42 47
Travel & entertainment 21 24 31
Provision for policyholder benefits 69 66 64
Other 57 60 85
Total noninterest expenses 758 809 893
Income before income taxes 180 250 209
Income taxes 54 74 62
NET INCOME $ 126 $ 176 $ 147
NET INCOME APPLICABLE TO COMMON STOCK $ 111 $ 168 $ 133
Cash dividends declared per common share $1.00 $1.00 $1.00
EARNINGS PER COMMON SHARE:
PRIMARY $1.36 $1.99 $1.59
FULLY DILUTED $1.36 $1.98 $1.58
<PAGE>
<FN>
*The Corporation accounts for revenues from a wide range of
business activities as "trading". See table on page 10.
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)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1995 1996*
<S> <C> <C>
NET INTEREST REVENUE
Interest revenue $5,886 $6,439
Interest expense 5,069 5,473
Net interest revenue 817 966
Provision for credit losses 31 5
Net interest revenue after provision
for credit losses 786 961
NONINTEREST REVENUE
Trading** 341 846
Fiduciary & funds management 697 783
Corporate finance fees 398 507
Other fees & commissions 314 343
Net revenue from equity investment transactions 146 211
Securities available for sale gains 180 75
Insurance premiums 234 230
Other 113 204
Total noninterest revenue 2,423 3,199
NONINTEREST EXPENSES
Salaries 804 867
Incentive compensation & employee benefits 640 951
Agency & other professional service fees 318 311
Communication & data services 184 193
Occupancy, net 152 150
Furniture & equipment 162 171
Travel & entertainment 88 97
Provision for policyholder benefits 271 280
Other 229 268
Provision for severance-related costs 50 -
Total noninterest expenses 2,898 3,288
Income before income taxes 311 872
Income taxes 96 260
NET INCOME $ 215 $ 612
NET INCOME APPLICABLE TO COMMON STOCK $ 164 $ 561
Cash dividends declared per common share $4.00 $4.00
EARNINGS PER COMMON SHARE:
PRIMARY $2.03 $6.78
FULLY DILUTED $2.02 $6.74
<FN>
* Unaudited
** The Corporation accounts for revenues from a wide range of
business activities as "trading". See quarterly information on page 10.
Certain prior period amounts have been reclassified to conform to
the current presentation.
</TABLE>
<PAGE>
COMBINED TRADING REVENUE AND TRADING-RELATED NET INTEREST REVENUE
The Corporation views trading revenue and trading-related net
interest revenue (NIR) together, as presented in the table below.
<TABLE>
<CAPTION>
Fourth Third Fourth
Quarter Quarter Quarter
($ in millions) 1995 1996 1996
<S> <C> <C> <C>
Trading Revenue $83 $219 $234
Trading-Related Net Interest
Revenue (Estimate) 13 71 72
Total Trading Revenue &
Trading-Related NIR $96 $290 $306
By Organizational Unit ($ in millions)
Investment Banking $ 10 $ 31 $ 12
Risk Management Services 12 75 111
Trading & Sales 89 93 114
Investment Management - 5 7
Client Processing Services 2 1 1
Australia/New Zealand 29 59 35
Asia 3 12 15
Latin America 10 21 24
Corporate/Other (59) (7) (13)
Total Trading Revenue &
Trading-Related NIR $ 96 $290 $306
<FN>
Note: The Corporation accounts for revenues from a wide range of
business activities as "trading". Investment Banking produces
trading revenues in secondary market activities with clients,
primarily in sectors where the Firm also serves as underwriter.
A small portion of trading revenues arise from private equity
investments that are accounted for on a mark-to-market basis.
Risk Management Services generates trading revenues primarily
from new derivative transactions with clients and in managing the
risks the Corporation assumes on such transactions. Trading &
Sales produces trading revenues through proprietary position-
taking, including arbitrage, as well as market making and other
client activities. Geographically-Based Businesses produce
trading revenues from all the above business activities.
Corporate/Other includes various transactions which, for
management accounting purposes, are not recorded in
Organizational Units.
</TABLE>
<PAGE>
NET INTEREST REVENUE
<TABLE>
<CAPTION> Fourth Third Fourth
Quarter Quarter Quarter
($ in millions) 1995 1996 1996
<S> <C> <C> <C>
Nontrading-related net interest revenue $196 $177 $190
Trading-related net interest
revenue (Estimate) 13 71 72
Net interest revenue $209 $248 $262
Average rates (fully taxable basis)
Yield on interest-earning assets 6.72% 6.78% 7.01%
Cost of interest-bearing liabilities 5.87% 6.21% 6.23%
Interest rate spread .85% .57% .78%
Net interest margin .99% 1.02% 1.08%
Average balances (billions)
Loans $12.8 $13.8 $15.2
Total interest-earning assets $86.3 $98.2 $97.8
Total assets $114.9 $123.4 $124.3
Total interest-bearing liabilities $84.3 $91.0 $93.2
</TABLE>
<PAGE>
BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
<TABLE>
<CAPTION>
December 31 September 30 December 31
1995 1996* 1996*
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 2,337 $ 825 $ 1,543
Interest-bearing deposits
in banks 2,023 4,100 2,210
Federal funds sold 854 856 1,599
Sec. purch. under resale
agreements 13,206 22,073 17,986
Securities borrowed 10,951 14,926 16,676
Trading assets:
Government securities 20,704 16,075 16,745
Corporate debt securities 5,648 8,678 8,005
Equity securities 5,098 5,585 6,048
Swaps, options &
other derivatives 10,555 10,363 11,410
Other trading assets 5,888 7,056 6,711
Total trading assets 47,893 47,757 48,919
Securities available for sale 6,283 7,461 7,920
Loans 12,633 15,264 -
Allowance for credit losses (992) (967) -
Loans, net of allowance for credit
losses of $773 at December 31, 1996 - - 15,053
Accounts receivable & accrued interest 4,220 3,417
3,003
Other assets 4,594 5,135 5,326
Total $104,002 $120,847 $120,235
LIABILITIES
Noninterest-bearing deposits
Domestic offices $ 2,687 $ 2,552 $ 2,600
Foreign offices 605 647 1,013
Interest-bearing deposits
Domestic offices 5,402 7,401 9,928
Foreign offices 17,014 18,072 16,774
Total deposits 25,708 28,672 30,315
Trading liabilities:
Securities sold, not yet purchased
Government securities 11,092 11,020 7,652
Equity securities 3,262 3,729 4,151
Other trading liabilities 473 389 325
Swaps, options & other
derivatives 11,264 10,266 11,585
Total trading liabilities 26,091 25,404 23,713
Sec. sold under repurch.
agreements 15,247 23,989 23,000
Other short-term borrowings 15,761 18,799 19,395
Accounts payable and
accrued expenses 3,931 5,252 3,656
Other liabilities, including allowance
for credit losses of $200 at
December 31, 1996 2,736 2,650 2,833
Long-term debt not included in
risk-based capital 6,934 8,070 8,533
Long-term debt included in
risk-based capital 2,360 2,437 2,576
Mandatorily redeemable capital
securities of subsidiary
trusts holding solely junior
subordinated deferrable interest
debentures included in
risk-based capital - - 730
Total liabilities 98,768 115,273 114,751
<PAGE>
PREFERRED STOCK OF SUBSIDIARY 250 250 250
STOCKHOLDERS' EQUITY
Preferred stock 865 816 810
Common stock 84 84 84
Capital surplus 1,302 1,319 1,339
Retained earnings 3,316 3,450 3,462
Common stock in treasury, at cost (336) (173) (372)
Other stockholders' equity (247) (172) (89)
Total stockholders' equity 4,984 5,324 5,234
Total $104,002 $120,847 $120,235
<FN>
* Unaudited
Certain prior period amounts have been reclassified to conform to
the current presentation.
</TABLE>
<PAGE>
STOCK AND CAPITAL DATA
<TABLE>
<CAPTION>
Fourth Third Fourth
Quarter Quarter Quarter
1995 1996 1996
<S> <C> <C> <C>
FOR THE QUARTER
Return on Average Common
Stockholders' Equity 10.6% 15.0% 11.7%
Return on Average Total Assets .44% .57% .47%
PER COMMON SHARE
Earnings:
Primary $1.36 $1.99 $1.59
Fully Diluted $1.36 $1.98 $1.58
Cash Dividends Declared $1.00 $1.00 $1.00
Market Price, End of Period $66.50 $78.625 $86.25
Book Value, End of Period (1) $50.58 $53.11 $53.27
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 4,603 2,193 4,435
Average Common and Common Equivalent
Shares Outstanding
Primary 81,322 84,442 83,812
Fully Diluted 81,415 84,885 84,225
CAPITAL RATIOS, END OF PERIOD
Common Stockholders' Equity
to Total Assets 4.0% 3.7% 3.7%
Total Stockholders' Equity
to Total Assets 4.8% 4.4% 4.4%
Bankers Trust New York Corporation:
Risk-Based Capital Ratios (2)
Tier 1 Capital 8.5% 8.0% 8.5%
Total Capital 13.9% 12.7% 13.4%
Leverage Ratio (2) 5.1% 5.3% 5.5%
Bankers Trust Company:
Risk-Based Capital Ratios (2)
Tier 1 Capital 9.5% 9.1% 9.6%
Total Capital 12.8% 12.2% 12.7%
Leverage Ratio (2) 5.1% 5.5% 5.6%
<FN>
(1) This calculation includes the effect of the vested portion of
common shares issuable under deferred stock awards.
(2) Regulatory capital ratios at December 31, 1996 are
preliminary.
</TABLE>
<PAGE>
NONPERFORMING ASSETS AND ALLOWANCE FOR CREDIT LOSSES
<TABLE>
<CAPTION> December 31 September 30 December 31
1995 1996 1996
<S> <C> <C> <C>
Nonperforming assets (in millions)
Cash basis loans
Secured by real estate $362 $291 $272
Real estate related 23 26 25
Highly leveraged 153 99 117
Other 206 72 38
Total cash basis loans $744 $488 $452
Renegotiated loans
Secured by real estate $ 88 $ 89 $ 37
Other 12 - -
Total renegotiated loans $100 $ 89 $ 37
Other real estate $259 $220 $213
Other nonperforming assets $ 67 $ 13 $ 10
Total allowance for credit losses (in millions)
Balance, beginning of period $1,032 $972 $967
Net charge-offs (recoveries)
Charge-offs 60 19 21
Recoveries 10 14 27
Total net charge-offs (recoveries)* 50 5 (6)
Provision for credit losses 10 - -
Balance, end of period (a) $ 992 $967 $973
(a) Allocation**:
Loans $773
Other liabilities 200
Balance, end of period $973
*Components of Net Charge-offs (Recoveries):
Secured by real estate $11 $(1) $ 14
Real estate related - (1) -
Highly leveraged 2 (5) (7)
Other 38 14 (13)
Refinancing country (1) (2) -
Total $50 $ 5 $ (6)
<FN>
** Beginning December 31, 1996, in accordance with the American
Institute of Certified Public Accountants Banks and Savings Institutions
Audit Guide, the Corporation has allocated its total allowance for
credit losses as follows: $773 million as a reduction of loans, and
$200 million as other liabilities related to all 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
Geoffrey M. Fletcher
Senior Vice President and
Principal Accounting Officer
January 23, 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 January 23, 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-
7098.
Very truly yours,
BANKERS TRUST NEW YORK CORPORATION
By: GEOFFREY M. FLETCHER
Geoffrey M. Fletcher
Senior Vice President and
Principal Accounting Officer
