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BANK OF NEW YORK REPORTS $1.05 SECOND QUARTER EPS, A 40 PERCENT INCREASE OVER LAST YEAR; TOTAL NONPERFORMING ASSETS DECLINE BY $186M, 14 PERCENT

BANK OF NEW YORK REPORTS $1.05 SECOND QUARTER EPS, A 40 PERCENT INCREASE OVER LAST YEAR; TOTAL NONPERFORMING ASSETS DECLINE BY $186M, 14 PERCENT
 NEW YORK, July 15 /PRNewswire/ -- The Bank of New York Company, Inc. (NYSE: BK), today reported second quarter net income of $87 million, or $1.05 per fully diluted common share, compared with net income of $60 million, or 75 cents per fully diluted common share, in the second quarter of 1991. Stronger fee income, wider spreads, continued stringent control of operating expenses, and a lower provision for loan losses contributed to the increase in earnings.
 Net income in the first half of 1992 was $167 million, or $2.02 per fully diluted common share, compared with a loss of $3 million, or 27 cents per share in the first six months of 1991. That loss resulted from a $343 million provision for loan losses taken in the first quarter of 1991.
 Total nonperforming assets decreased by $186 million, or 14 percent to $1,102 million - the fourth consecutive quarterly decline. The nonperforming asset ratio declined to 4.0 percent from 4.6 percent at March 31 and 6.0 percent one year ago. The allowance for loan losses as a percent of nonperforming loans increased to 127 percent, from 103 percent at March 31, and 82 percent at June 30, 1991.
 During the quarter, the company raised $339 million of common equity through the sale of 9.2 million shares of common stock. This contributed to the increase in the Tier I capital and total capital ratios (based on 1992 standards) to 7.04 percent and 10.75 percent at June 30, compared with 6.11 percent and 9.86 percent at March 31, and 5.38 percent and 8.51 percent at June 30, 1991. The total capital ratio was strengthened further by the sale of $350 million of subordinated notes on July 7. This ratio would have been approximately 83 basis points higher at June 30 if the financing had occurred in the second quarter.
 Tangible common equity as a percent of total assets also increased, to 5.50 percent at June 30, from 4.62 percent at March 31 and 4.10 percent one year ago.
 Return on average common equity and return on average assets were 12.12 percent and .85 percent in the second quarter, compared with 11.29 percent and .77 percent in the first quarter. The second quarter ratios were the highest levels since the first quarter of 1990.
 THE BANK OF NEW YORK COMPANY, INC.
 Nonperforming Assets
 (Dollars in millions)
 6/30/92 3/31/92 12/31/91 6/30/92
 Loans:
 HLT $ 92 $ 174 $ 175 $ 469
 Commercial real estate 181 252 269 337
 Other commercial 214 259 357 418
 Foreign 91 94 98 67
 LDC 65 46 48 53
 Other 124 131 140 139
 Total loans 767 956 1,087 1,483
 Other real estate 313 310 267 365
 Other Assets 22 22 -- --
 Total $1,102 $1,288 $1,354 $1,848
 Nonperforming asset ratio
 (As a percent) 4.0 4.6 4.8 6.0
 Allowance/nonperforming loans
 (As a percent) 126.5 103.0 92.7 81.8
 Total nonperforming assets decreased by $186 million this quarter, or 14 percent. Since June 30, 1991, nonperforming assets have declined by $746 million, or 40 percent.
 Highly leveraged transaction (HLT) nonperforming loans declined by $82 million as a result of approximately $7 million in payments and charge-offs and sales of $103 million. Two loans accounted for most of the charge-offs and sales. These reductions were partly offset by two loans, aggregating $28 million, that became nonperforming.
 Nonperforming commercial real estate assets, which include other real estate owned, decreased $68 million, or 12 percent, during the second quarter. Charge-offs and writedowns on four loans amounted to $33 million, repayment of one loan totaled $6 million, sales (primarily two properties) were $13 million, and two small and two medium-sized loans totaling $23 million returned to accrual status. There were no significant new nonperforming commercial real estate loans in the second quarter. Total commercial real estate exposure was 7 percent of total loans at June 30, among the lowest exposures of the major banking companies in the country.
 Loan Loss Provision and Net Charge-offs
 (In millions)
 2nd Quarter 1st Quarter 2nd Quarter Year to date
 1992 1992 1991 1992 1991
 Provision $106 $133 $127 $239 $470
 Regular net charge-offs:
 HLT (61) (5) (22) (66) (25)
 Commercial Real Estate (21) (22) (38) (43) (57)
 Other commercial 7 (72) (26) (65) (40)
 Consumer (40) (42) (53) (82) (106)
 Foreign -- (6) (1) (6) (1)
 Other (5) (10) (8) (15) (11)
 Total (120) (157) (148) (277) (240)
 Transfer from Medium-Term
 LDC Allowance to Regular
 Allowance -- -- -- -- 20
 Asset Sales -- -- -- -- (20)
 Increase (decrease) in
 regular allowance $(14) $(24) $(21) $ (38) $230
 Medium-term LDC net
 (charge-offs)
 recoveries -- 1 -- 1 (34)
 Other real estate
 expense 8 20 6 28 29
 The total allowance for loan losses, which includes the medium-term allowance, was $970 million, or 3.53 percent of loans, compared with $984 million, or 3.54 percent of loans at March 31, 1992.
 A change in the accounting treatment of an Argentine restructuring caused medium-term LDC loans to increase in the second quarter by $19 million to $229 million, and related nonperforming LDC loans to increase to $65 million. At June 30, 1992, the medium-term LDC loan loss allowance was $135 million, or 59 percent of total medium-term LDC loans.
 Highly Leveraged Transactions
 (Dollars in millions)
 6/30/92 Pct. ch. 3/31/92 Pct. ch. 6/30/91 Pct. ch.
 Other $1,123 57 $1,505 59 $2,507 59
 Communications 841 43 1,062 41 1,728 41
 Total $1,964 100 $2,567 100 $4,235 100
 Total HLT loans declined by $603 million, or 23 percent, from March 31, 1992, reflecting reductions from sales and charge-offs ($181 million), delistings ($179 million), paydowns ($177 million), and payoffs ($144 million). These reductions were partly offset by drawdowns ($46 million) and new loans ($32 million).
 Net Interest Income
 On a taxable equivalent basis, net interest income amounted to $307 million in the second quarter of 1992, unchanged from the same period of 1991. The net interest rate spread widened to 2.88 percent in the second quarter of 1992 from 2.81 percent in the first quarter and 2.42 percent last year. The higher net interest rate spread was offset by a lower volume of average interest-earning assets and the effect of credit card securitization. The net yield on interest earning assets rose to 3.51 percent in the second quarter of 1992 from 3.37 percent in 1991; it was 3.51 percent in the first quarter of 1992.
 Year to date net interest income on a taxable equivalent basis was $622 million, compared with $659 million in the same period of 1991. The year to date net interest rate spread was 2.85 percent in 1992 compared with 2.50 percent in 1991, while the net yield on interest- earning assets was 3.51 percent in 1992 and 3.50 percent in 1991.
 Excluding the effect of credit card securitization, net interest income would have been $20 million higher in the second quarter compared with one year ago, and $60 million higher in the year to date period compared with last year.
 Noninterest Income
 Noninterest income increased 12 percent to $272 million in the second quarter from $242 million in the same period last year. Year to date noninterest income totaled $558 million, compared with $470 million in 1991.
 Second quarter trust and securities processing fees increased 9 percent from last year's second quarter, with improvement in most areas. Significant growth occurred in securities lending (up 36 percent), stock transfer (up 30 percent), and mutual fund custody (up 29 percent). Special strength was also noted in master trust, personal trust, and personal asset management.
 Service charges and fees grew by 12 percent to $136 million in the second quarter from $121 million last year. Year to date service charges and fees were $264 million in 1992, up from $225 million in 1991. Compared with the prior year, 1992 noninterest revenues were increased by approximately $1 million and $19 million in the second quarter and year to date periods as a result of the credit card securitizations. The balance of the increase in service charges and fees was primarily related to higher revenue from other processing areas -- domestic cash management, funds transfer, and trade finance -- which totaled $25 million in the second quarter, a 7 percent increase from last year.
 Securities gains were $14 million in the second quarter of 1992 compared with $1 million in 1991; year to date securities gains totaled $29 million and $16 million in 1992 and 1991, respectively.
 Second quarter and year to date foreign exchange profits and trading activities totaled $14 million and $49 million in 1992, compared with $15 million and $25 million in 1991.
 Noninterest Expense and Income Taxes
 (In millions)
 2nd Quarter 1st Quarter 2nd Quarter Year to date
 1992 1992 1991 1992 1991
 Salaries and employee
 benefits $153 $151 $147 $304 $298
 Occupancy expenses 36 37 38 73 75
 Furniture and equipment
 expenses 22 22 25 44 50
 Other operating expenses 86 82 83 168 166
 Operating expenses 297 292 293 589 589
 Other real estate
 expense 8 20 6 28 30
 Deposit insurance 11 10 9 21 18
 Profit sharing 10 9 1 19 2
 Deconsolidated
 subsidiary -- -- -- -- 5
 Total $326 $331 $309 $657 $644
 Operating expenses increased by 1 percent from the second quarter of 1991 and remained unchanged at $589 million for the six months ended June 30, 1992 when compared to last year.
 The effective income tax rate for the second quarter of 1992 was 34.1 percent, compared with 36.8 percent for the second quarter of 1991. The effective rate for the first six months of 1992 was 34.0 percent. An income tax benefit was recorded in the first half of 1991 as a consequence of the significant provision for loan losses, which was fully tax-effected.
 THE BANK OF NEW YORK COMPANY, INC.
 Financial Highlights
 (Dollars in millions, except per share amounts - Unaudited)
 Percent
 Three months ended June 30: 1992 1991 Change
 Net income $87 $60 45
 Per common share:
 Primary earnings $1.11 $0.75 48
 Fully diluted earnings 1.05 0.75 40
 Cash dividends 0.38 0.38 --
 Return on average common
 shareholders' equity 12.12 pct. 8.68 pct. --
 Return on average assets 0.85 0.58 --
 Six months ended June 30:
 Net income (loss) $167 ($3) --
 Per common share:
 Primary earning (loss) $2.13 ($0.27) --
 Fully diluted earnings 2.02 -- --
 Cash dividends 0.76 0.91 -16.5
 Return on average common
 shareholders' equity 11.71 pct. -- --
 Return on average assets 0.80 -- --
 As of June 30:
 Assets $41,337 $41,360 -0.1
 Loans 27,493 30,435 -9.7
 Securities 3,686 3,171 16.2
 Medium-term LDC loans 229 237 -3.4
 Reserve for medium-term LDC loans 135 164 -17.7
 Deposits - Domestic 19,597 20,489 -4.4
 - Foreign 9,985 11,343 -12.0
 Long-term debt 1,227 854 43.7
 Preferred shareholders equity 387 395 -2.0
 Common shareholders equity 2,964 2,450 21.0
 Common shareholders'
 equity per share 36.67 34.58 6.0
 Market value per share
 of common stock 40.38 27.38 47.5
 Allowance for loan losses as
 a percent of loans 3.53 3.99
 Tier 1 Capital Ratio 7.04 5.38
 Total Capital Ratio 10.75 8.51
 Leverage ratio 7.16 5.82
 Tangible common equity ratio 5.50 4.10
 -0- 7/15/92
 /CONTACT: Michael M. Pascale, vice president, 212-495-1041, or Pierre S. Brull, vice president, 212-495-1721, or Margaret Southerland, assistant vice president, 212-495-1725, all of Bank of New York/
 (BK) CO: The Bank of New York Company, Inc. ST: New York IN: FIN SU: ERN


TS -- NY002 -- 9403 07/15/92 09:09 EDT
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