Chase Manhattan Reports Record Fourth Quarter and Full Year 1999 Results; Announces New $5 Billion Common Stock Repurchase Authorization.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 19, 2000 The Chase Manhattan Corporation The Chase Manhattan Corporation was a bank holding company formed as parent of the Chase Manhattan Bank. During its time as the parent company, it was led in succession by David Rockefeller, Willard C. Butcher, and Thomas G. Labrecque. (NYSE NYSE See: New York Stock Exchange :CMB Noun 1. CMB - (cosmology) the cooled remnant of the hot big bang that fills the entire universe and can be observed today with an average temperature of about 2. ) today reported fourth quarter 1999 diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before per share of $1.97, a 50 percent increase from $1.31 per share in the same 1998 quarter. Operating earnings and reported net income in the fourth quarter of 1999 were $1.68 billion and $1.69 billion respectively. Operating earnings and reported net income were $1.15 billion in the 1998 fourth quarter. Diluted operating earnings per share for the full year 1999 increased 38 percent to $6.21 from $4.51 in 1998. Operating earnings rose to $5.39 billion from $4.02 billion in 1998. Reported net income for the full year was $5.45 billion, compared with $3.78 billion in 1998. Fourth Quarter 1999 Highlights - Record private equity gains of $1.31 billion - Strong investment banking and trading results - Chase H&Q integration moving smoothly and quickly - Solid National Consumer Services Consumer Services refers to the formulation, deformulation, technical consulting and testing of most consumer products, such as food, herbs, beverages, vitamins, pharmaceuticals, cosmetics, hair products, household cleaners, [paints, plastics, metals, waxes, coatings, minerals, earnings Full Year Financial Highlights - Operating earnings per share increased 38 percent - Revenues were up 17 percent - Return on equity of 24 percent - Repurchased net $2.3 billion of common stock - Increased common dividend 14 percent "1999 was a terrific year for Chase and these results provide a strong signal that this company is capable of producing exceptional returns," said William B. Harrison William Benjamin Harrison was mayor of Louisville, Kentucky from 1927 to 1933. He graduated from Louisville Male High School in 1907 and the University of Virginia School of Law in 1910. He served as a captain in the United States Army during World War I. , Jr., Chairman and Chief Executive Officer. "Both fourth quarter and full year results demonstrate clearly that the new equation at Chase has fully emerged. "Market leadership positions and financial discipline provide a durable platform for growth while focused acquisitions and portfolio investments continue to provide significant upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside opportunities," continued Mr. Harrison Harrison, town (1990 pop. 13,425), Hudson co., NE N.J., an industrial suburb on the Passaic River opposite Newark; inc. 1869. The town has several foundries. Its manufactures include plastics, paperboard, and metal products. . "The creation of Chase.com, the acquisition of Hambrecht & Quist, and the accelerated investment pace of Chase Capital Partners are the types of opportunities from which Chase will continue to benefit. While revenues from private equity investments may vary from quarter to quarter, we believe that the Chase Capital Partners business system will be a significant long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. source of value creation." Chase's Board of Directors also authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of up to $5 billion of Chase's common stock in the open market or through negotiated transactions. This authorization The right or permission to use a system resource; the process of granting access. See access control. is in addition to any amounts necessary to provide for issuances under Chase's dividend reinvestment plan Dividend Reinvestment Plan (DRP) Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. and its various stock-based director and employee benefit plans. The new authorization becomes effective immediately. "Chase is totally committed to Shareholder Value Added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. ," explained Mr. Harrison. "A disciplined capital policy is a key component of that commitment." At year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , Chase's Tier One capital ratio was at the upper end of its target range of 8 to 8.25 percent. Capital generated in excess of target ratios will be used for continued purchases of Chase common stock, or for future investment and acquisition opportunities.
Financial Performance
THE CHASE MANHATTAN CORP Fourth Quarter
(dollars in millions) 1999 O(U)1998
---- --------
Operating Revenues $6,444 $1,100 21%
Cash Operating Earnings 1,761 542 44
Shareholder Value Added 1,027 557 119
Cash Return on Common Equity 31.6% 1,020bp --
Full Year 1999
(dollars in millions) 1999 O(U)1998
---- --------
Operating Revenues $22,982 $3,369 17%
Cash Operating Earnings 5,691 1,414 33
Shareholder Value Added 2,763 1,357 97
Cash Return on Common Equity 25.6% 600bp --
Line-Of-Business Results
GLOBAL BANK Fourth Quarter
(dollars in millions) 1999 O(U)1998 O(U)3Q1999
---- -------- ----------
Operating Revenues $3,214 46% 44%
Cash Operating Earnings 1,209 78 82
Shareholder Value Added 766 189 210
Cash Return on Common Equity 36.0% 1,450bp 1,510bp
GLOBAL BANK Full Year 1999
(dollars in millions) 1999 O(U) 1998
---- ---------
Operating Revenues $10,379 2,424 30%
Cash Operating Earnings 3,564 1,177 49
Shareholder Value Added 1,885 1,109 143
Cash Return on Common Equity 27.9% 850bp --
Cash operating earnings in the Global Bank were $1.21 billion in the 1999 fourth quarter, compared with $680 million in the prior-year quarter. Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. of $3.21 billion in the fourth quarter of 1999 were 46 percent higher than in the 1998 fourth quarter. For the year, operating revenues and cash operating earnings rose 30 percent and 49 percent, respectively, from 1998 levels. Shareholder value added in the 1999 fourth quarter was $766 million, compared with shareholder value added of $265 million in the 1998 fourth quarter. For the year, shareholder value added increased to $1.89 billion, compared with $776 million for 1998. -- Private equity-related investment gains in the fourth quarter were $1.31 billion, compared with $244 million in the fourth quarter of 1998. These results were significantly higher than in any prior quarter and reflect the rapid growth of investments over the past five years, early focus on New Economy businesses, and a vibrant equity market. Strong fourth quarter revenues are the result of initial public offerings of portfolio investments, such as Cobalt Networks Cobalt Networks was a maker of low-cost servers based on Linux. Founded in 1996 in Mountain View, California under the name Cobalt Microserver, the company pioneered easy to use server appliances featuring secure web user interfaces for Internet service providers (ISPs) , Triton PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. , and Telecorp; from appreciation in market values of public securities owned throughout the quarter, such as Digital Island and Stamps.com (Stamps.com, Los Angeles, CA, www.stamps.com) A PC Postage service that lets you print U.S. postage stamps on your own printer. It was one of the first such services approved by the U.S. ; and from sales of securities in both the private and public portions of the portfolio (see page 18 for a detailed description of private equity investments). -- Investment banking fees in the 1999 fourth quarter increased to $499 million, a 31 percent increase from the fourth quarter of 1998. These results reflect strong syndicated finance activity, ongoing momentum in Chase's merger and acquisitions and bond practices, and strong performance from Chase H&Q during the period following its acquisition on December December: see month. 9. Investment banking fees for the year rose 26 percent to $1.89 billion, benefiting from significant market share growth in loan syndications, mergers and acquisitions advisory, and corporate bond underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. , plus focused initiatives in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the NewEconomy. Over the past five years, Chase's investment banking fees have increased at a compound annual growth rate of 26 percent. -- Total trading revenues, including related net interest income, were $633 million in the fourth quarter. Despite Year 2000-induced slowdowns in several markets, both active market making businesses and market share gains continued to drive results. For the full year, trading revenues, including related net interest income, totalled $2.88 billion, a 48 percent increase. Investment securities activities had securities losses of $59 million in the fourth quarter, compared to securities gains of $167 million in the similar period of 1998. For the full year, securities gains were $101 million, a decrease of $508 million from 1998. The investment portfolio is managed on a total return basis, including realized and unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. and losses on the securities and the assets and liabilities being hedged hedge n. 1. A row of closely planted shrubs or low-growing trees forming a fence or boundary. 2. A line of people or objects forming a barrier: a hedge of spectators along the sidewalk. . Total market return for full-year 1999 was $278 million versus $523 million in 1998.
GLOBAL SERVICES Fourth Quarter
(dollars in millions) 1999 O(U)1998 O(U)3Q1999
---- -------- ----------
Operating Revenues $812 7% 1%
Cash Operating Earnings 127 (5%) (16)
Shareholder Value Added 31 (35%) (44)
Cash Return on Common Equity 17.2% (320bp) (340bp)
GLOBAL SERVICES Full Year 1999
(dollars in millions) 1999 O(U)1998
---- --------
Operating Revenues $3,120 $294 10%
Cash Operating Earnings 525 39 8
Shareholder Value Added 145 (48) (25)
Cash Return on Common Equity 18.1% (370bp) --
In the fourth quarter, Global Service's operating revenues rose seven percent, primarily reflecting increased business activity in Capital Markets Fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. Services, Chase's trust business, and a
slowdown For articles with similar titles, see Slow Down (disambiguation).A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in Global Investor Services, Chase's custody The care, possession, and control of a thing or person. The retention, inspection, guarding, maintenance, or security of a thing within the immediate care and control of the person to whom it is committed. The detention of a person by lawful authority or process. business. Cash operating earnings decreased five percent to $127 million as expenses in the quarter rose 12 percent, reflecting costs to address record keeping functions related to bond administration in Capital Markets Fiduciary Services. For the full year, Global Service's operating revenues increased 10 percent and cash operating earnings were eight percent higher than in 1998. Of Global Services' three major business lines, two had strong revenue growth in 1999: up 20 percent at Global Investor Services, and up 16 percent at Capital Markets Fiduciary Services. Revenues at Treasury Solutions, Chase's cash management business, were consistent with last year's level, primarily reflecting the significant decline in excess balances during the course of the year.
NATIONAL CONSUMER SERVICES Fourth Quarter
(dollars in millions) 1999 O(U)1998 O(U)3Q1999
---- -------- ----------
Operating Revenues $2,503 2% -- %
Cash Operating Earnings 426 2 (2)
Shareholder Value Added 156 (3) (10)
Cash Return on Common Equity 20.7% (70bp) (110bp)
NATIONAL CONSUMER SERVICES Full Year 1999
(dollars in millions) 1999 O(U)1998
---- --------
Operating Revenues $9,847 $698 8%
Cash Operating Earnings 1,677 232 16
Shareholder Value Added 636 218 52
Cash Return on Common Equity 21.1% 260bp --
Operating revenues for National Consumer Services increased to $2.5 billion, an increase of two percent over the fourth quarter of 1998. Cash operating earnings of $426 million increased by two percent as increased business activity and improved credit costs were partially offset by significant investments in internet and technology activities. For the full year, 1999 revenue was up eight percent and NCS (Network Call Signaling) CableLabs version of MGCP. See MGCP/MEGACO. NCS - Network Computing System: Apollo's RPC system used by DEC and Hewlett-Packard.The protocol has been adopted by OSF. achieved record cash operating earnings of $1.68 billion, up 16 percent over 1998. The increase in cash operating earnings was a result of both business volume growth and lower credit costs. Shareholder Value Added of $636 million was 52% better than in 1998 due to the improvement in earnings and the disciplined use of capital. -- Cash operating earnings for cardmember services increased 11 percent in the fourth quarter. The increase reflects significantly improved credit quality. Fourth quarter operating revenues declined six percent, due to lower yields and fees as a result of the improving credit quality of the portfolio, and as a result of higher interest rates. For the year, cash operating earnings were up 16 percent to $523 million. The increase in cash operating earnings reflects a two percent increase in revenue and improved credit quality due to lower consumer bankruptcies and enhanced collections performance. The cash return on managed assets for the full year was 1.45 percent. -- Home finance revenues increased to $341 million, a 21 percent increase from fourth quarter 1998, and cash operating earnings rose 10 percent, primarily as a result of growth in servicing and portfolio levels. For full year 1999, home finance revenues were 18 percent higher than in the prior year, due to higher volumes of originations and servicing, and cash operating earnings increased by 13 percent. -- Regional consumer banking revenues rose eight percent from the fourth quarter of 1998, reflecting higher deposit levels, the benefit from higher interest rates, and growth in consumer banking fees. Cash operating earnings grew by 15 percent. Revenues and cash operating earnings for the full year increased by nine percent and 17 percent, respectively over 1998. -- Revenues from diversified diversified (di·verˑ·s consumer services were $280 million in the fourth quarter, down two percent from the same 1998 quarter as auto origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real levels have slowed from peak levels in late 1998 and early 1999. For the full year, revenues from diversified consumer services were up 20 percent while cash operating earnings increased 33 percent. -- Middle Market revenues were $251 million, up two percent from the fourth quarter of 1998. Cash operating earnings increased four percent over the prior year quarter. These results reflect growth in loan volume along with improved credit quality and disciplined expense management. For the year, middle market revenues were up two percent and cash operating earnings increased four percent. Additional Financial Information -- Chase acquired Hambrecht & Quist Group for $1.46 billion on December 9. Chase H&Q is one of the leading providers of investment banking services to companies in the highest growth sectors of the global economy, where media, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , information technology and the internet converge con·verge v. con·verged, con·verg·ing, con·verg·es v.intr. 1. a. To tend toward or approach an intersecting point: lines that converge. b. . The integration efforts are proceeding smoothly with revenues exceeding initial expectations. Although Chase only benefited from H&Q's revenues from December 9, total fourth quarter revenues for H&Q were $371 million, compared to average quarterly revenue of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $163 million for the previous four reported quarters. -- Total assets at December 31, 1999 were $406 billion compared with $371 billion at September September: see month. 30, 1999 and $366 billion from a year ago. Management estimates that approximately $28 billion of the increase in assets and $10 billion of the deposit increase from September 30, 1999, is a result of Year 2000-related Chase balance sheet management actions and cash management activities of clients. Chase's Tier One capital ratio was 8.2 percent at December 31, 1999, compared with 8.3 percent on December 31, 1998, despite the temporary growth in the year-end balance sheet and net repurchases of $2.3 billion during the year. -- On a managed basis, including securitizations, net credit losses were $810 million in the fourth quarter of 1999, up from $633 million in the third quarter of 1999 and up from $695 million from the fourth quarter of 1998. Consumer net charge-offs, on a managed basis, were $523 million, down from $531 million in the third quarter of 1999 and $579 million in the fourth quarter of 1998, primarily reflecting a decline in the 1999 fourth quarter in the credit card net charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. ratio to 5.24 percent. Commercial net charge-offs in the fourth quarter of 1999 were $287 million, compared with $102 million in the third quarter of 1999 and $116 million in the fourth quarter of 1998, reflecting a charge-off related to one large Asian credit. For the fourth quarter of 1999, total net charge-offs on a reported basis were $570 million and the provision for credit losses was $454 million. The allowance for loan losses declined by $98 million to $3.46 billion at year-end. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. at December 31, 1999, were $1.80 billion compared with $2.02 billion at September 30, 1999 and $1.61 billion at December 31, 1998. -- Total operating noninterest expenses increased 12 percent to $12.1 billion in 1999, and were up 11 percent to $3.2 billion in the fourth quarter, reflecting higher incentives related to revenue increases as well as investment spending and costs related to Year 2000 issues. -- Operating results (revenues, expenses and earnings) for 1999 exclude the impact of credit card securitizations, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs and special items. The 1999 fourth quarter reported results included interest income from prior years' tax refunds Tax refund Money back from the government when too much tax has been paid or withheld from a salary. of $62 million and a net restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $48 million. The net restructuring charge reflects a $75 million charge taken in connection with planned staff reductions and premises premises n. 1) in real estate, land and the improvements on it, a building, store, shop, apartment, or other designated structure. The exact premises may be important in determining if an outbuilding (shed, cabana, detached garage) is insured or whether a person and equipment dispositions resulting from the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of several business functions, and a $100 million charge associated with restructuring actions undertaken in certain businesses. These charges were partially offset by the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of $127 million of costs primarily related to occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy not fully utilized under the $510 million charge taken in 1998. The Chase Manhattan Corporation is one of the world's premier financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. institutions, with operations in 48 countries around the globe. Chase has a top-tier ranking in all areas of investment banking, private banking, trading and global markets activities as well as information and transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. . Chase, a leading provider of financial solutions to large corporations, financial institutions, government entities, middle market firms, small businesses and individuals, has relationships with more than 30 million consumers across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. through products and services such as credit cards, mortgages, online banking, debit cards debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. , deposit products and auto loans. Chase can be reached on the Web at www.chase.com. A live audio webcast of Chase's fourth quarter and full year 1999 analyst presentation will be available in the investor relations Investor relations The process by which the corporation communicates with its investors. site of www.chase.com at 11 a.m. on January January: see month. 19, 2000. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Those statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For a discussion of certain factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to Chase's filings with the Securities and Exchange Commission, particularly the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Important Factors that may Affect Future Results" in Chase's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1998.
THE CHASE MANHATTAN CORPORATION
SUMMARY OF SELECTED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)
%
As of or for the period ended Fourth Quarter Over/(Under)
--------------
1999 1998 1998
---- ---- ----
OPERATING BASIS (a)
Operating Revenue $ 6,444 $ 5,344 21%
Operating Noninterest Expense 3,179 2,873 11%
Credit Costs (b) 694 695 --
Operating Earnings $ 1,683 $ 1,146 47%
Operating Earnings Per Share:
Basic $ 2.04 $ 1.34 52%
Diluted 1.97 1.31 50%
Cash Operating Earnings $ 1,761 $ 1,219 44%
Cash Operating Earnings Per Share
- Diluted 2.06 1.39 48%
Shareholder Value Added (SVA) 1,027 470 119%
Operating Performance Ratios:
Return on Average Managed Assets(c) 1.65% 1.15%
Return on Average Common Equity (c) 30.2 20.1
Common Dividend Payout Ratio 20 27
Efficiency Ratio (d) 49 54
%
As of or for the period ended For The Year Over/(Under)
------------
1999 1998 1998
---- ---- ----
OPERATING BASIS (a)
Operating Revenue $ 22,982 $ 19,613 17%
Operating Noninterest Expense 12,073 10,817 12%
Credit Costs (b) 2,614 2,491 5%
Operating Earnings $ 5,394 $ 4,016 34%
Operating Earnings Per Share:
Basic $ 6.42 $ 4.63 39%
Diluted 6.21 4.51 38%
Cash Operating Earnings $ 5,691 $ 4,277 33%
Cash Operating Earnings Per Share
- Diluted 6.56 4.81 36%
Shareholder Value Added (SVA) 2,763 1,406 97%
Operating Performance Ratios:
Return on Average Managed Assets(c) 1.39% 1.03%
Return on Average Common Equity (c) 24.2 18.4
Common Dividend Payout Ratio 26 31
Efficiency Ratio (d) 52 55
Selected Balance Sheet Items at
Period End: (e)
Managed Loans $ 194,098 $ 190,787 2%
Total Managed Assets 424,044 383,908 10%
======================================================================
As of or for the period ended
%
AS REPORTED BASIS Fourth Quarter Over/(Under)
--------------
1999 1998 1998
---- ---- ----
Revenue $ 6,266 $ 5,060 24%
Noninterest Expense (Excluding
Restructuring Costs) 3,179 2,873 11%
Restructuring Costs 48 - NM
Provision for Loan Losses 454 411 10%
Net Income $ 1,693 $ 1,146 48%
Net Income Per Share:
Basic $ 2.05 $ 1.34 53%
Diluted 1.98 1.31 51%
Cash Dividends Declared 0.41 0.36 14%
Common Shares Outstanding:
Average Common Shares:
Basic 817.5 842.3 (3%)
Diluted 845.3 863.0 (2%)
Performance Ratios:
Return on Average Total Assets (c) 1.73% 1.20%
Return on Average Common Equity (c) 30.4 20.1
As of or for the period ended %
For The Year Over/(Under)
-----------
1999 1998 1998
---- ---- ----
AS REPORTED BASIS
Revenue $ 22,217 $ 18,656 19%
Noninterest Expense (Excluding
Restructuring Costs) 12,173 10,854 12%
Restructuring Costs 48 529 (91%)
Provision for Loan Losses 1,621 1,343 21%
Net Income $ 5,446 $ 3,782 44%
Net Income Per Share:
Basic $ 6.49 $ 4.35 49%
Diluted 6.27 4.24 48%
Cash Dividends Declared 1.64 1.44 14%
Share Price at Period End 77.69 71.00 9%
Book Value at Period End 27.43 26.90 2%
Common Shares Outstanding:
Average Common Shares:
Basic 828.8 846.1 (2%)
Diluted 857.0 869.3 (1%)
Common Shares at Period End 827.2 848.0 (2%)
Performance Ratios:
Return on Average Total Assets (c) 1.47% 1.01%
Return on Average Common Equity (c) 24.5 17.3
Selected Balance Sheet Items at
Period End:
Loans $ 176,159 $ 172,754 2%
Total Assets 406,105 365,875 11%
Deposits 241,745 212,437 14%
Total Stockholders' Equity 23,617 23,838 (1%)
Capital Ratios:
---------------
Tier I Capital Ratio 8.2%(f) 8.3%
Total Capital Ratio 11.8 (f) 12.0
Tier I Leverage 6.6 (f) 6.4
(a) Excludes the impact of credit card securitizations, restructuring
costs and special items. For a reconciliation of Reported Results
as shown on the Consolidated Statement of Income to results on an
Operating Basis, see page 12.
(b) Includes provision for loan losses and credit costs related to
the securitized credit card portfolio.
(c) Ratios for the fourth quarter of 1999 and 1998 are based on
annualized amounts.
(d) Noninterest expense as a percentage of the total of net interest
income and noninterest revenue (excluding restructuring costs,
special items and costs associated with the REIT).
(e) Excludes the impact of credit card securitizations.
(f) Estimated
Certain amounts throughout the financial tables have been
reclassified to conform to the current presentation.
NM - Not meaningful
Unaudited
THE CHASE MANHATTAN CORPORATION
LINES OF BUSINESS RESULTS
(in millions, except ratios)
Global Bank
---------------------------------
Fourth Quarter 1999 Over/(Under) 1998
-------- ---------------------
Operating Revenue $ 3,214 $ 1,019 46%
Operating Earnings 1,193 523 78
Cash Operating Earnings 1,209 529 78
Average Common Equity 13,247 873 7
Average Managed Assets(b) 248,243 (2,593) (1)
Shareholder Value Added (SVA) 766 501 189
Cash Return on Common Equity 36.0% 1450bp
Cash Efficiency Ratio 37 (900)
National Consumer
Services
--------------------------------
Fourth Quarter 1999 Over/(Under) 1998
------- --------------------
Operating Revenue $ 2,503 $ 41 2%
Operating Earnings 387 14 4
Cash Operating Earnings 426 10 2
Average Common Equity 8,079 471 6
Average Managed Assets(b) 135,005 13,370 11
Shareholder Value Added (SVA) 156 (4) (3)
Cash Return on Common Equity 20.7% (70)bp
Cash Efficiency Ratio 52 300
Global Services
--------------------------------
Fourth Quarter 1999 Over/(Under) 1998
------- --------------------
Operating Revenue $ 812 $ 53 7%
Operating Earnings 111 (8) (7)
Cash Operating Earnings 127 (6) (5)
Average Common Equity 2,882 337 13
Average Managed Assets(b) 16,227 (870) (5)
Shareholder Value Added (SVA) 31 (17) (35)
Cash Return on Common Equity 17.2% (320)bp
Cash Efficiency Ratio 76 400
Total (a)
--------------------------------
Fourth Quarter 1999 Over/(Under) 1998
------- --------------------
Operating Revenue $ 6,444 $ 1,100 21%
Operating Earnings 1,683 537 47
Cash Operating Earnings 1,761 542 44
Average Common Equity 21,917 (385) (2)
Average Managed Assets(b) 405,524 8,970 2
Shareholder Value Added (SVA) 1,027 557 119
Cash Return on Common Equity 31.6% 1,020bp
Cash Efficiency Ratio 48 (400)
----------------------------------------------------------------------
GLOBAL BANK
KEY FINANCIAL MEASURES
Fourth Quarter 1999
-------------------
Cash Cash
Operating Operating Efficiency
Revenues Earnings Ratio
----------- ---------------------
Global Markets $ 888 $ 269 54%
Chase Capital Partners 1,255 772 4
Global Investment Banking 481 100 67
Corporate Lending 394 137 32
Global Private Bank 229 37 73
Other Global Bank (33) (106) NM
----------- ----------
Totals $ 3,214 $1,209 37%
=========== ==========
Over/(Under) 1998
-----------------
Cash Cash
Operating Operating Efficiency
Revenues Earnings Ratio
--------------------------------------
Global Markets (15)% (30)% 1,400bp
Chase Capital Partners 419 485 (700)
Global Investment Banking 56 18 1,200
Corporate Lending (9) (11) 400
Global Private Bank 7 (5) 400
Other Global Bank NM NM NM
Totals 46% 78% (900)bp
----------------------------------------------------------------------
NATIONAL CONSUMER SERVICES
KEY FINANCIAL MEASURES
Fourth Quarter 1999
---------------------------------------
Cash Cash
Operating Operating Efficiency
Revenues Earnings Ratio
--------- --------- ----------
Chase Cardmember Services $ 984 $ 140 35%
Regional Consumer Banking 630 118 66
Chase Home Finance 341 79 58
Diversified Consumer
Services 280 38 57
Middle Markets 251 59 55
Other NCS 17 (8) NM
------- -------
Totals $2,503 $ 426 52%
======= =======
Over/(Under) 1998
---------------------------------------
Cash Cash
Operating Operating Efficiency
Revenues Earnings Ratio
--------------- ---------- ----------
Chase Cardmember Services (6)% 11% -bp
Regional Consumer Banking 8 15 (200)
Chase Home Finance 21 10 500
Diversified Consumer
Services (2) (36) 1,000
Middle Markets 2 4 -
Other NCS NM NM NM
Totals 2% 2% 300bp
----------------------------------------------------------------------
Note: SVA is Chase's primary measure of business unit performance. SVA
represents operating earnings excluding the amortization of
goodwill and certain intangibles (i.e., cash operating earnings),
less preferred dividends and an explicit charge for allocated
capital. During 1999 organizational changes occurred that are
reflected in the lines of business results. The Middle Markets
business, which previously reported into the Global Bank
franchise, now reports into the National Consumer Services
franchise and the Global Asset Management and Mutual Funds
business, which previously was included in Corporate, now reports
into the Global Bank franchise. Prior periods have been restated.
(a) Total column includes Chase.com and the effects remaining at the
Corporate level after the implementation of management accounting
policies.
(b) Excludes the impact of credit card securitizations.
NM- Not meaningful
bp- basis points
Unaudited
THE CHASE MANHATTAN CORPORATION
Lines of Business Results
(in millions, except ratios)
Global Bank
-----------------------------
For The Year 1999 Over/(Under) 1998
------------- ---- --------------------
Operating Revenue $ 10,379 $ 2,424 30%
Operating Earnings 3,513 1,168 50
Cash Operating Earnings 3,564 1,177 49
Average Common Equity 12,616 640 5
Average Managed Assets (b) 235,197 (16,166) (6)
Shareholder Value Added (SVA) 1,885 1,109 143
Cash Return on Common Equity 27.9% 850bp
Cash Efficiency Ratio 43 (600)
National Consumer Services
-----------------------------
For The Year 1999 Over/(Under) 1998
------------- ---- --------------------
Operating Revenue $ 9,847 $ 698 8%
Operating Earnings 1,518 241 19
Cash Operating Earnings 1,677 232 16
Average Common Equity 7,823 180 2
Average Managed Assets (b) 129,314 10,268 9
Shareholder Value Added (SVA) 636 218 52
Cash Return on Common Equity 21.1% 260bp
Cash Efficiency Ratio 50 --
Global Services
-----------------------------
For The Year 1999 Over/(Under) 1998
------------- ---- --------------------
Operating Revenue $ 3,120 $ 294 10%
Operating Earnings 463 6 1
Cash Operating Earnings 525 39 8
Average Common Equity 2,855 672 31
Average Managed Assets (b) 16,540 2,204 15
Shareholder Value Added (SVA) 145 (48) (25)
Cash Return on Common Equity 18.1% (370)bp
Cash Efficiency Ratio 74 200
Total(a)
-----------------------------
For The Year 1999 Over/(Under) 1998
------------- ---- --------------------
Operating Revenue $ 22,982 $ 3,369 17%
Operating Earnings 5,394 1,378 34
Cash Operating Earnings 5,691 1,414 33
Average Common Equity 21,977 649 3
Average Managed Assets (b) 387,858 (3,364) (1)
Shareholder Value Added (SVA) 2,763 1,357 97
Cash Return on Common Equity 25.6% 600bp
Cash Efficiency Ratio 51 (300)
GLOBAL BANK
KEY FINANCIAL MEASURES
For The Year 1999
--------------------------------------
Cash Cash
Operating Operating Efficiency
Revenues Earnings Ratio
--------------------------------------
Global Markets $ 4,090 $ 1,369 48%
Chase Capital Partners 2,330 1,383 7
Global Investment Banking 1,576 335 66
Corporate Lending 1,546 548 29
Global Private Bank 887 169 67
Other Global Banking (50) (240) NM
-------- ---------
Totals $10,379 $ 3,564 43%
======== =========
Over/(Under) 1998
--------------------------------------
Cash Cash
Operating Operating Efficiency
Revenues Earnings Ratio
--------------------------------------
Global Markets 20% 35% (400)bp
Chase Capital Partners 178 210 (800)
Global Investment Banking 25 15 400
Corporate Lending (2) (2) 100
Global Private Bank 4 (6) 300
Other Global Banking NM NM NM
Totals 30% 49% (600)bp
NATIONAL CONSUMER SERVICES
KEY FINANCIAL MEASURES
For The Year 1999
--------------------------------------
Cash Cash
Operating Operating Efficiency
Revenues Earnings Ratio
--------------------------------------
Chase Cardmember Services $4,004 $ 523 35%
Regional Consumer Banking 2,410 420 69
Chase Home Finance 1,212 284 58
Diversified Consumer Services 1,125 187 53
Middle Markets 980 233 55
Other NCS 116 30 NM
------ ------
Totals $9,847 $1,677 50%
====== ======
Over/(Under) 1998
--------------------------------------
Cash Cash
Operating Operating Efficiency
Revenues Earnings Ratio
--------------------------------------
Chase Cardmember Services 2% 16% - bp
Regional Consumer Banking 9 17 (200)
Chase Home Finance 18 13 200
Diversified Consumer Services 20 33 --
Middle Markets 2 4 --
Other NCS NM NM NM
Totals 8% 16% - bp
Note: SVA is Chase's primary measure of business unit performance. SVA
represents operating earnings excluding the amortization of
goodwill and certain intangibles (i.e., cash operating earnings),
less preferred dividends and an explicit charge for allocated
capital. During 1999 organizational changes occurred that are
reflected in the lines of business results. The Middle Markets
business, which previously reported into the Global Bank
franchise, now reports into the National Consumer Services
franchise and the Global Asset Management and Mutual Funds
business, which previously was included in Corporate, now reports
into the Global Bank franchise. Prior periods have been restated.
(a) Total column includes Chase.com and the effects remaining at the
Corporate level after the implementation of management accounting
policies.
(b) Excludes the impact of credit card securitizations.
NM - Not meaningful
bp - basis points
Unaudited
THE CHASE MANHATTAN CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share data)
%
Fourth Quarter Over/(Under)
----------------------
--------- ---------
1999 1998 1998
--------- --------- ---------
INTEREST INCOME
Loans $ 3,451 $ 3,381
Securities 872 964
Trading Assets 477 435
Federal Funds Sold and
Securities Purchased
Under Resale
Agreements 329 469
Deposits with Banks 212 192
--------- ---------
Total Interest
Income 5,341 5,441
--------- ---------
INTEREST EXPENSE
Deposits 1,786 1,717
Short-Term and
Other Borrowings 1,018 1,247
Long-Term Debt 312 317
--------- ---------
--------- ---------
Total Interest
Expense 3,116 3,281
--------- ---------
NET INTEREST INCOME 2,225 2,160 3%
Provision for
Loan Losses 454 411 10%
--------- ---------
NET INTEREST INCOME
AFTER PROVISION
FOR LOAN LOSSES 1,771 1,749 1%
--------- ---------
NONINTEREST REVENUE
Investment Banking
Fees 499 381 31%
Trust, Custody and
Investment Management
Fees 469 414 13%
Credit Card Revenue 440 428 3%
Fees for Other
Financial Services 719 552 30%
Trading Revenue 531 516 3%
Securities Gains
(Losses) (59) 167 NM
Private Equity Gains 1,307 244 436%
Other Revenue 135 198 (32%)
--------- ---------
Total Noninterest
Revenue 4,041 2,900 39%
--------- ---------
NONINTEREST EXPENSE
Salaries 1,461 1,296 13%
Employee Benefits 233 194 20%
Occupancy Expense 224 220 2%
Equipment Expense 278 250 11%
Other Expense 983 913 8%
--------- ---------
Total Noninterest
Expense Before
Restructuring Costs 3,179 2,873 11%
Restructuring Costs (a) 48 -- NM
--------- ---------
--------- ---------
Total Noninterest
Expense 3,227 2,873 12%
--------- ---------
INCOME BEFORE INCOME
TAX EXPENSE 2,585 1,776 46%
Income Tax Expense 892 630 42%
--------- ---------
========= =========
NET INCOME $ 1,693 $ 1,146 48%
========= =========
========= =========
NET INCOME APPLICABLE
TO COMMON STOCK $ 1,677 $ 1,128 49%
========= =========
NET INCOME PER
COMMON SHARE:
Basic $ 2.05 $ 1.34 53%
Diluted $ 1.98 $ 1.31 51%
%
For The Year Over/(Under)
-------------------------
----------- -----------
1999 1998 1998
----------- ----------- --------
INTEREST INCOME
Loans $ 13,113 $ 13,389
Securities 3,216 3,616
Trading Assets 1,705 2,431
Federal Funds Sold and
Securities Purchased
Under Resale
Agreements 1,451 2,211
Deposits with Banks 752 642
----------- -----------
Total Interest
Income 20,237 22,289
----------- -----------
INTEREST EXPENSE
Deposits 6,592 6,840
Short-Term and
Other Borrowings 3,653 5,612
Long-Term Debt 1,248 1,271
----------- -----------
----------- -----------
Total Interest
Expense 11,493 13,723
----------- -----------
NET INTEREST INCOME 8,744 8,566 2%
Provision for
Loan Losses 1,621 1,343 21%
----------- -----------
NET INTEREST INCOME
AFTER PROVISION
FOR LOAN LOSSES 7,123 7,223 (1%)
----------- -----------
NONINTEREST REVENUE
Investment Banking
Fees 1,887 1,502 26%
Trust, Custody and
Investment Management
Fees 1,801 1,543 17%
Credit Card Revenue 1,698 1,474 15%
Fees for Other
Financial Services 2,496 2,093 19%
Trading Revenue 2,137 1,238 73%
Securities Gains
(Losses) 101 609 (83%)
Private Equity Gains 2,522 967 161%
Other Revenue 831 664 25%
----------- -----------
Total Noninterest
Revenue 13,473 10,090 34%
----------- -----------
NONINTEREST EXPENSE
Salaries 5,678 5,025 13%
Employee Benefits 964 854 13%
Occupancy Expense 866 798 9%
Equipment Expense 1,015 890 14%
Other Expense 3,650 3,287 11%
----------- -----------
Total Noninterest
Expense Before
Restructuring Costs 12,173 10,854 12%
Restructuring Costs (a) 48 529 (91%)
----------- -----------
----------- -----------
Total Noninterest
Expense 12,221 11,383 7%
----------- -----------
INCOME BEFORE INCOME
TAX EXPENSE 8,375 5,930 41%
Income Tax Expense 2,929 2,148 36%
----------- -----------
=========== ===========
NET INCOME $ 5,446 $ 3,782 44%
=========== ===========
=========== ===========
NET INCOME APPLICABLE
TO COMMON STOCK $ 5,375 $ 3,684 46%
=========== ===========
NET INCOME PER
COMMON SHARE:
Basic $ 6.49 $ 4.35 49%
Diluted $ 6.27 $ 4.24 48%
(a) The 1999 fourth quarter includes a net restructuring charge of
$48 million reflecting a $75 million charge taken in connection
with planned staff reductions and premises and equipment
dispositions resulting from the relocation of several business
functions, and a $100 million charge associated with
restructuring actions undertaken in certain businesses. These
charges were partially offset by the reversal of $127 million of
costs primarily related to occupancy not fully utilized under the
$510 million charge taken in 1998. 1998 includes the $510 million
charge taken in connection with initiatives to streamline support
functions, and merger-related restructuring costs of $19 million.
NM - Not meaningful
Unaudited
THE CHASE MANHATTAN CORPORATION
NONINTEREST REVENUE AND NONINTEREST EXPENSE DETAIL
(in millions)
%
Fourth Quarter Over/(Under)
----------------------
--------- ---------
NONINTEREST REVENUE 1999 1998 1998
--------- --------- ---------
Fees for Other
Financial Services:
Mortgage Servicing Fees $ 167 $ 43 288%
Service Charges on
Deposit Accounts 104 93 12%
Fees in Lieu of
Compensating Balances 91 88 3%
Commissions on Letters
of Credit and
Acceptances 78 83 (6%)
Brokerage and Investment
Services 62 40 55%
Insurance Fees (a) 47 42 12%
Loan Commitment Fees 28 35 (20%)
Other Fees 142 128 11%
--------- ---------
========= =========
Total $ 719 $ 552 30%
========= =========
Trading-Related
Revenue: (b)
Interest Rate
Contracts $ 184 $ 315 (42%)
Foreign Exchange
Revenue 191 140 36%
Equities and
Commodities 52 32 63%
Debt Instruments
and Other 206 199 4%
--------- ---------
Total $ 633 $ 686 (8%)
========= =========
Other Revenue:
Residential Mortgage
Origination/Sales
Activities $ 48 $ 115 (58%)
Gains on Sales of a
Nonstrategic Building
and Branches -- -- --
All Other Revenue 87 83 5%
--------- ---------
========= =========
Total $ 135 $ 198 (32%)
========= =========
%
For The Year Over/(Under)
-----------------------
--------- ----------
NONINTEREST REVENUE 1999 1998 1998
--------- ---------- ----------
Fees for Other
Financial Services:
Mortgage Servicing Fees $ 405 $ 192 111%
Service Charges on
Deposit Accounts 393 368 7%
Fees in Lieu of
Compensating Balances 378 344 10%
Commissions on Letters
of Credit and
Acceptances 285 301 (5%)
Brokerage and Investment
Services 198 142 39%
Insurance Fees (a) 171 145 18%
Loan Commitment Fees 139 136 2%
Other Fees 527 465 13%
--------- ----------
========= ==========
Total $ 2,496 $ 2,093 19%
========= ==========
Trading-Related
Revenue: (b)
Interest Rate
Contracts $ 989 $ 607 63%
Foreign Exchange
Revenue 807 936 (14%)
Equities and
Commodities 355 156 128%
Debt Instruments
and Other 731 250 192%
--------- ----------
Total $ 2,882 $ 1,949 48%
========= ==========
Other Revenue:
Residential Mortgage
Origination/Sales
Activities $ 323 $ 356 (9%)
Gains on Sales of a
Nonstrategic Building
and Branches 166 (c) -- NM
All Other Revenue 342 308 11%
--------- ----------
========= ==========
Total $ 831 $ 664 25%
========= ==========
------------------------------------------------------------------------
NONINTEREST EXPENSE %
Fourth Quarter Over/(Under)
----------------------
--------- ---------
1999 1998 1998
--------- --------- ---------
Other Expense:
Professional Services $ 209 $ 185 13%
Marketing Expense 103 113 (9%)
Telecommunications 99 91 9%
Amortization of Intangibles 78 73 7%
Travel and Entertainment 63 66 (5%)
Minority Interest (d) 12 14 (14%)
Foreclosed Property Expense 1 3 (67%)
Special Contribution to the
Foundation -- -- --
All Other 418 368 14%
--------- ---------
========= =========
Total $ 983 $ 913 8%
========= =========
NONINTEREST EXPENSE
%
For The Year Over/(Under)
-----------------------
--------- ----------
1999 1998 1998
--------- ---------- ----------
Other Expense:
Professional Services $ 719 $ 668 8%
Marketing Expense 459 419 10%
Telecommunications 383 349 10%
Amortization of Intangibles 297 261 14%
Travel and Entertainment 226 243 (7%)
Minority Interest (d) 49 50 (2%)
Foreclosed Property Expense 15 5 200%
Special Contribution to the
Foundation 100 (e) -- NM
All Other 1,402 1,292 9%
--------- ---------
========= =========
Total $ 3,650 $ 3,287 11%
========= =========
(a) Insurance amounts exclude certain insurance fees related to
credit cards and mortgage products, which are included in those
revenue captions.
(b) Charge-offs for risk management instruments are included in
trading revenue. All prior periods have been restated.
Trading-related revenue includes net interest income attributable
to trading activities.
(c) Includes a $95 million gain on the sale of One New York Plaza and
a $71 million gain on the sale of branches in Beaumont, Texas.
(d) Includes REIT minority interest of $11 million in each quarter
and $44 million in each year.
(e) Represents a $100 million special contribution to The Chase
Manhattan Foundation.
NM - Not meaningful
Unaudited
THE CHASE MANHATTAN CORPORATION
OPERATING INCOME RECONCILIATION
(in millions, except per share data)
FOURTH QUARTER 1999
----------------------------------------
REPORTED CREDIT SPECIAL OPERATING
RESULTS CARD ITEMS BASIS
(a) (b) (c)
-------- ------- ------ --------
EARNINGS
Market-Sensitive Revenue $ 2,380 $ - $ - $ 2,380
Less Market-Sensitive
Revenue 3,886 240 (62) 4,064
-------- ------- ------- --------
Total Revenue 6,266 240 (62) 6,444
Noninterest Expense 3,179 - - 3,179
-------- ------- ------- --------
Operating Margin 3,087 240 (62) 3,265
Credit Costs 454 240 - 694
-------- ------- ------- --------
Income Before
Restructuring
Costs 2,633 - (62) 2,571
Restructuring Costs 48 - (48) -
-------- ------- ------- --------
Income Before Income
Tax Expense 2,585 - (14) 2,571
Income Tax Expense 892 - (4) 888
-------- ------- ------- --------
-------- ------- ------- --------
Net Income $ 1,693 $ - $(10) $ 1,683
-------- ------- ------- --------
NET INCOME PER
COMMON SHARE
Basic $ 2.05 $ 2.04
Diluted $ 1.98 $ 1.97
FOURTH QUARTER 1998
----------------------------------------
REPORTED CREDIT SPECIAL OPERATING
RESULTS CARD ITEMS BASIS
(a) (b) (c)
------- ------- ------- --------
EARNINGS
Market-Sensitive Revenue $ 1,478 $ - $ - $ 1,478
Less Market-Sensitive
Revenue 3,582 284 - 3,866
-------- ------- ------- --------
Total Revenue 5,060 284 - 5,344
Noninterest Expense 2,873 - - 2,873
-------- ------- ------- --------
Operating Margin 2,187 284 - 2,471
Credit Costs 411 284 - 695
-------- ------- ------- --------
Income Before
Restructuring
Costs 1,776 - - 1,776
Restructuring Costs - - - -
-------- ------- ------- --------
Income Before Income
Tax Expense 1,776 - - 1,776
Income Tax Expense 630 - - 630
-------- ------- ------- --------
-------- ------- --------
Net Income $ 1,146 $ - $ - $ 1,146
-------- ------- ------- --------
NET INCOME PER
COMMON SHARE
Basic $ 1.34 $ 1.34
Diluted $ 1.31 $ 1.31
----------------------------------------------------------------------------------------------------------------------------
FOR THE YEAR 1999
----------------------------------------
REPORTED CREDIT SPECIAL OPERATING
RESULTS CARD ITEMS BASIS
(a) (b) (c)
-------- ------- ------- --------
EARNINGS
Market-Sensitive Revenue $ 7,392 $ - $ - $ 7,392
Less Market-Sensitive
Revenue 14,825 993 (228) 15,590
-------- ------- ------- --------
Total Revenue 22,217 993 (228) 22,982
Noninterest Expense 12,173 - (100) 12,073
-------- ------- ------- --------
Operating Margin 10,044 993 (128) 10,909
Credit Costs 1,621 993 - 2,614
-------- ------- ------- --------
Income Before
Restructuring Costs 8,423 - (128) 8,295
Restructuring Costs 48 - (48) -
-------- ------- ------- --------
Income Before Income
Tax Expense 8,375 - (80) 8,295
Income Tax Expense 2,929 - (28) 2,901
-------- ------- ------- --------
Net Income $ 5,446 $ - $(52) $ 5,394
-------- ------- ------- --------
NET INCOME PER
COMMON SHARE
Basic $ 6.49 $ 6.42
Diluted $ 6.27 $ 6.21
FOR THE YEAR 1998
----------------------------------------
REPORTED CREDIT SPECIAL OPERATING
RESULTS CARD ITEMS BASIS
(a) (b) (c)
------- ------- ------- --------
EARNINGS
Market-Sensitive Revenue $ 5,027 $ - $ - $ 5,027
Less Market-Sensitive
Revenue 13,629 1,148 (191) 14,586
------- ------- ------- --------
Total Revenue 18,656 1,148 (191) 19,613
Noninterest Expense 10,854 - (37) 10,817
------- ------- ------- --------
Operating Margin 7,802 1,148 (154) 8,796
Credit Costs 1,343 1,148 - 2,491
------- ------- ------- --------
Income Before
Restructuring Costs 6,459 - (154) 6,305
Restructuring Costs 529 - (529) -
------- ------- ------- --------
Income Before Income
Tax Expense 5,930 - 375 6,305
Income Tax Expense 2,148 - 141 2,289
------- ------- ------- --------
Net Income $ 3,782 $ - $234 $ 4,016
------- ------- ------- --------
NET INCOME PER
COMMON SHARE
Basic $ 4.35 $ 4.63
Diluted $ 4.24 $ 4.51
Note: Charge-offs and provisions for risk management instruments,
included in credit costs prior to 1999, are now netted against
trading revenue. All prior periods have been restated.
(a) Represent results as reported in Chase's financial statements,
except that revenues are categorized between market-sensitive and
less market-sensitive revenues and restructuring costs have been
separately displayed. Market-sensitive revenue includes
investment banking fees, trading-related revenue (including
trading-related net interest income), securities gains and
private equity gains.
(b) This column excludes the impact of credit card securitizations.
(c) Includes restructuring costs and special items. The 1999 fourth
quarter results included interest income from prior years' tax
refunds of $62 million and a net restructuring charge of $48
million. The net restructuring charge reflects a $75 million
charge taken in connection with planned staff reductions and
premises and equipment dispositions resulting from the relocation
of several business functions, and a $100 million charge
associated with restructuring actions undertaken in certain
businesses. These charges were partially offset by the reversal
of $127 million of costs primarily related to occupancy not fully
utilized under the $510 million charge taken in 1998. Also
included in the 1999 full year results were $166 million in gains
from sales of nonstrategic assets, of which $95 million was from
the sale of One New York Plaza and $71 million was from the sale
of branches in Beaumont, Texas, and a special contribution of
$100 million. The 1998 full year results included interest income
from prior years' tax refunds of $191 million, costs incurred for
accelerated vesting of stock-based incentive awards of $37
million, and a $510 million charge taken in connection with
initiatives to streamline support functions, and merger-related
restructuring costs of $19 million.
Unaudited
The Chase Manhattan Corporation
Consolidated Balance Sheet
(in millions)
%
December 31, Over/(Under)
1999 1998 1998
ASSETS
Cash and Due from Banks $ 16,229 $ 17,068 (5%)
Deposits with Banks 28,076 7,212 289%
Federal Funds Sold and
Securities Purchase
Under Resale Agreements 23,823 18,487 29%
Trading Assets:
Debt and Equity
Instruments 30,191 24,844 22%
Risk Management Instruments 33,078 32,848 1%
Securities 61,513 64,490 (5%)
Loans (Net of Allowance for
Loan Losses of $3,457
in 1999 and $3,552
in 1998) 172,702 169,202 2%
Other Assets 40,493 31,724 28%
TOTAL ASSETS $ 406,105 $ 365,875 11%
LIABILITIES
Deposits:
Domestic:
Noninterest-Bearing $ 49,468 $ 47,541 4%
Interest-Bearing 80,132 85,886 (7%)
Foreign:
Noninterest-Bearing 6,061 4,082 48%
Interest-Bearing 106,084 74,928 42%
Total Deposits 241,745 212,437 14%
Federal Funds Purchased
and Securities Sold Under
Repurchase Agreements 50,148 41,632 20%
Commercial Paper 8,509 7,788 9%
Other Borrowed Funds 5,145 7,239 (29%)
Trading Liabilities 38,573 38,502 --
Accounts Payable, Accrued
Expenses and Other
Liabilities, Including
the Allowance for Credit
Losses of $170 in 1999
and 1998 17,678 15,514 14%
Long-Term Debt 17,602 16,187 9%
Guaranteed Preferred
Beneficial Interests
in Corporation's Junior
Subordinated Deferrable
Interest Debentures 2,538 2,188 16%
TOTAL LIABILITIES 381,938 341,487 12%
PREFERRED STOCK OF
SUBSIDIARY 550 550 --
STOCKHOLDERS' EQUITY
Preferred Stock 928 1,028 (10%)
Common Stock 882 882 --
Capital Surplus 9,714 9,836 (1%)
Retained Earnings 17,547 13,544 30%
Accumulated Other
Comprehensive Income (Loss) (1,454) 392 NM
Treasury Stock, at Cost (4,000) (1,844) 117%
TOTAL STOCKHOLDERS' EQUITY 23,617 23,838 (1%)
TOTAL LIABILITIES,
PREFERRED STOCK OF
SUBSIDIARY AND
STOCKHOLDERS' EQUITY $ 406,105 $ 365,875 11%
NM - Not meaningful
Unaudited
The Chase Manhattan Corporation
Consolidated Statement of Changes
in Stockholders' Equity
(in millions)
For The Year
1999 1998
Preferred Stock
Balance at Beginning of Year $ 1,028 $ 1,740
Issuance of Stock - 200
Redemption of Stock (100) (912)
Balance at End of Year $ 928 $ 1,028
Common Stock
Balance at Beginning of Year $ 882 $ 441
Issuance of Common Stock for a
Two-for-One Stock Split - 441
Balance at End of Year $ 882 $ 882
Capital Surplus
Balance at Beginning of Year $ 9,836 $ 10,360
Issuance of Common Stock for a
Two-for-One Stock Split - (441)
Issuance of Common Stock
and Options for the Purchase
Accounting Acquisition of H&Q 215 -
Shares Issued and Commitments
to Issue Common Stock for
Employee Stock-Based Awards
and Related Tax Effects (337) (83)
Balance at End of Year $ 9,714 $ 9,836
Retained Earnings
Balance at Beginning of Year $ 13,544 $ 11,086
Net Income 5,446 3,782
Cash Dividends Declared:
Preferred Stock (71) (98)
Common Stock (1,372) (1,226)
Balance at End of Year $ 17,547 $ 13,544
Accumulated Other
Comprehensive Income (Loss)
Balance at Beginning of Year $ 392 $ 112
Other Comprehensive Income (Loss) (1,846) 280
Balance at End of Year $ (1,454) $ 392
Treasury Stock, at Cost
Balance at Beginning of Year $ (1,844) $ (1,997)
Purchase of Treasury Stock (4,349) (1,091)
Reissuance of Treasury Stock 1,981 1,244
Reissuance of Treasury Stock
for the Purchase Accounting
Acquisition of H&Q 212 -
Balance at End of Year $ (4,000) $ (1,844)
Total Stockholders' Equity $ 23,617 $ 23,838
Comprehensive Income
Net Income $ 5,446 $ 3,782
Other Comprehensive Income (Loss) (1,846) 280
Comprehensive Income $ 3,600 $ 4,062
Unaudited
THE CHASE MANHATTAN CORPORATION
CREDIT RELATED INFORMATION
(in millions)
%
Credit-Related Assets Over/(Under)
December 31, 1999 1998 1998
CONSUMER LOANS
Domestic Consumer:
1-4 Family Residential Mortgages $ 44,262 $41,831 6%
Credit Card - Reported 15,633 14,229 10%
Credit Card Securitizations (b) 17,939 18,033 (1%)
Credit Card - Managed 33,572 32,262 4%
Auto Financings 18,442 16,456 12%
Other Consumer 6,902 8,375 (18%)
Total Domestic Consumer 103,178 98,924 4%
Total Foreign Consumer 2,800 2,939 (5%)
Total Consumer Loans 105,978 101,863 4%
COMMERCIAL LOANS
Domestic Commercial:
Commercial and Industrial 52,308 49,706 5%
Commercial Real Estate 3,636 3,984 (9%)
Total Domestic Commercial 55,944 53,690 4%
Total Foreign Commercial 32,176 35,234 (9%)
Total Commercial Loans 88,120 88,924 (1%)
Derivative and FX Contracts 33,611 33,255 1%
Total Commercial Credit-Related 121,731 122,179 --
Total Managed Credit-Related $227,709 $224,042 2%
%
Nonperforming Assets Over/(Under)
December 31, 1999 1998 1998
CONSUMER LOANS
Domestic Consumer:
1-4 Family Residential Mortgages $ 286 $ 313 (9%)
Credit Card - Reported 40 (a) -- NM
Credit Card Securitizations (b) -- -- --
Credit Card - Managed 40 -- NM
Auto Financings 83 50 66%
Other Consumer 7 6 17%
Total Domestic Consumer 416 369 13%
Total Foreign Consumer 22 23 (4%)
Total Consumer Loans 438 392 12%
COMMERCIAL LOANS
Domestic Commercial:
Commercial and Industrial 392 332 18%
Commercial Real Estate 51 41 24%
Total Domestic Commercial 443 373 19%
Total Foreign Commercial 779 675 15%
Total Commercial Loans 1,222 1,048 17%
Derivative and FX Contracts 34 50 (32%)
Total Commercial Credit-Related 1,256 1,098 14%
Total Managed Credit-Related 1,694 1,490 14%
Assets Acquired as Loan
Satisfactions 102 116 (12%)
Total Nonperforming Assets $ 1,796 $ 1,606 12%
%
Fourth Quarter Over/(Under)
NET CHARGE-OFFS 1999 1998 1998
CONSUMER LOANS
Domestic Consumer:
1-4 Family Residential
Mortgages $ 10 $ 9 11%
Credit Card - Reported 187 212 (12%)
Credit Card Securitizations (b) 240 284 (15%)
Credit Card - Managed 427 496 (14%)
Auto Financings 24 19 26%
Other Consumer 52 44 18%
Total Domestic Consumer 513 568 (10%)
Total Foreign Consumer 10 11 (9%)
Total Consumer Loans 523 579 (10%)
COMMERCIAL LOANS
Domestic Commercial:
Commercial and Industrial 107 9 NM
Commercial Real Estate (1) (5) NM
Total Domestic Commercial 106 4 NM
Total Foreign Commercial 181 112 62%
Total Commercial Loans 287 116 147%
Total Managed Net Charge-offs (c) $ 810 $ 695 17%
%
For The Year Over/(Under)
NET CHARGE-OFFS 1999 1998 1998
CONSUMER LOANS
Domestic Consumer:
1-4 Family Residential
Mortgages $ 29 $ 31 (6%)
Credit Card - Reported 828 762 9%
Credit Card Securitizations (b) 993 1,148 (14%)
Credit Card - Managed 1,821 1,910 (5%)
Auto Financings 81 77 5%
Other Consumer 196 167 17%
Total Domestic Consumer 2,127 2,185 (3%)
Total Foreign Consumer 37 25 48%
Total Consumer Loans 2,164 2,210 (2%)
COMMERCIAL LOANS
Domestic Commercial:
Commercial and Industrial 252 (68) NM
Commercial Real Estate (14) (14) --
Total Domestic Commercial 238 (82) NM
Total Foreign Commercial 324 438 (26%)
Total Commercial Loans 562 356 58%
Total Managed Net Charge-offs (c) $ 2,726 $ 2,566 6%
(a) Includes currently performing loans placed on a cash basis
because of concerns as to collectibility.
(b) Represents the portion of Chase's credit card receivables that
have been securitized.
(c) Excludes charge-offs for risk management instruments which are
netted against trading revenues.
NM - Not meaningful
Unaudited
THE CHASE MANHATTAN CORPORATION
CREDIT RELATED INFORMATION (Continued)
As of or For The As of or the For The
Three Months Ended Year Ended
December 31, December 31,
MANAGED CREDIT CARD
PORTFOLIO(i) 1999 1998 1999 1998
(in millions, except
ratios)
Average Credit Card
Receivables $ 33,290 $ 31,902 $ 32,707 $ 31,965
Past Due 90 Days or More
and Accruing $ 638 $ 691 $ 638 $ 691
As a Percentage of
Average Credit Card
Receivables 1.92% 2.17% 1.95% 2.16%
Net Charge-offs $ 436 $ 500 $ 1,852 $ 1,925
As a Percentage of Average
Credit Card Receivables 5.24% 6.27% 5.66% 6.02%
(i) Includes domestic and international credit card activity.
----------------------------------------------------------------------
SELECTED COUNTRY EXPOSURE (a)
(in billions)
At December 31, 1999
Gross
Local
Lending- Trading- Country
LATIN AMERICA Related (b) Related (c) Assets
----------- ----------- --------
Brazil $ 0.9 $ 0.2 $ 1.3
Argentina 2.1 0.2 0.4
Mexico 1.6 0.8 0.4
Chile 0.9 - 0.1
Colombia 0.6 - -
Venezuela 0.3 - -
All Other Latin America (d) 0.7 0.1 0.8
----------- ----------- ---------
Total Latin America $ 7.1 $ 1.3 $ 3.0
----------- ----------- ---------
LATIN AMERICA At December 31, 1999
Country
Less Net Related
Local Cross- Resale
Funding Border Agree-
Exposure (a) ments (a)
---------- ----------- ---------
Brazil $ (1.0) $ 1.4 $ 0.9
Argentina (0.3) 2.4 0.6
Mexico (0.4) 2.4 0.5
Chile (0.1) 0.9 -
Colombia - 0.6 -
Venezuela - 0.3 0.1
All Other Latin America (d) (0.8) 0.8 -
Total Latin America $ (2.6) $ 8.8 $ 2.1
----------- ----------- -----------
At Dec. 31, 1998
LATIN AMERICA Net Country
Cross- Related
Border Resale
Exposure Agree-
ments
-------- --------
Brazil 2.3 0.9
Argentina 2.3 0.5
Mexico 1.8 0.4
Chile 0.9 -
Colombia 0.8 -
Venezuela 0.4 -
All Other Latin America (d) 1.0 -
Total Latin America $ 9.5 $ 1.8
----------- ----------
At December 31, 1999
ASIAN IMF COUNTRIES Gross
----------------------- Local
Lending- Trading- Country
Related (b) Related (c) Assets
----------- ---------- -------
South Korea $ 0.6 $ 0.2 $ 0.9
Indonesia 0.8 0.1 0.1
Thailand 0.1 0.1 0.7
----------- ----------- ---------
Subtotal 1.5 0.4 1.7
At December 31, 1999
Country
Less Net Related
Local Cross- Resale
Funding Border Agree-
Exposure (a) ments (a)
--------- ---------- ----------
South Korea $ (0.3) $ 1.4 $ -
Indonesia (0.1) 0.9 -
Thailand (0.2) 0.7 -
----------- ----------- -----------
Subtotal (0.6) 3.0 -
At Dec. 31, 1998
ASIAN IMF COUNTRIES
----------------------- Net Country
Cross- Related
Border Resale
Exposure Agree-
ments
--------- ---------
South Korea $ 2.4 $ -
Indonesia 1.2 -
Thailand 0.9 -
----------- ----------
Subtotal 4.5 -
At December 31, 1999
Gross
Local
Lending- Trading- Country
OTHER EMERGING ASIA Related (b) Related (c) Assets
------------------------- ------------ ---------- -------
Hong Kong 0.4 0.1 4.5
Singapore 0.8 0.1 0.1
Philippines 0.1 0.1 0.3
Malaysia 0.1 0.1 0.6
China 0.2 0.2 0.1
All Other Asia 0.3 - 0.5
----------- ----------- ---------
Total Emerging Asia (e) $ 3.4 $ 1.0 $ 7.8
----------- ----------- ---------
At December 31, 1999
Country
Less Net Related
Local Cross- Resale
Funding Border Agree-
Exposure (a) ments (a)
OTHER EMERGING ASIA ---------- ----------- ---------
--------------------------
Hong Kong (4.5) 0.5 -
Singapore (0.1) 0.9 -
Philippines (0.1) 0.4 -
Malaysia (0.1) 0.7 -
China (0.1) 0.4 -
All Other Asia (0.3) 0.5 -
----------- ----------- -----------
Total Emerging Asia (e) $ (5.8) $ 6.4 $ -
----------- ----------- -----------
At Dec. 31, 1998
OTHER EMERGING ASIA
----------------------- Net Country
Cross- Related
Border Resale
Exposure Agree-
ments
---------- --------
Hong Kong 0.8 -
Singapore 0.8 -
Philippines 0.6 -
Malaysia 0.6 -
China 0.6 -
All Other Asia 0.5 -
----------- ----------
Total Emerging Asia (e) $ 8.4 $ -
----------- ----------
(a) Estimated cross-border disclosure is based on the Federal
Financial Institutions Examination Council ("FFIEC") guidelines
governing the determination of cross-border risk. Under FFIEC
guidelines, resale agreements are reported by the country of the
issuer of the underlying security. Chase, however, does not
consider the cross-border risk of resale agreements to depend
upon the country of the issuer of the underlying security and, as
a result, has presented these amounts separately in the above
table.
(b) Includes loans and accrued interest, interest-bearing deposits
with banks, acceptances, other monetary assets, issued letters of
credit and undrawn commitments to extend credit.
(c) Includes cross-border trading debt and equity instruments and the
mark-to-market exposure of foreign exchange and derivative
contracts. The amounts associated with foreign exchange and
derivative contracts are presented after taking into account the
impact of legally enforceable master netting agreements.
(d) Excludes Bermuda and Cayman Islands.
(e) Excludes Japan, Australia and New Zealand. The net cross-border
exposure for Japan, Australia and New Zealand at December 31,
1999 was $4.9 billion, $2.0 billion and $0.3 billion,
respectively, compared with $5.2 billion, $1.9 billion and $0.6
billion, respectively, at December 31, 1998. Japan also had
country-related resale agreements of $3.3 billion at December 31,
1999, compared with $1.7 billion at December 31, 1998.
Unaudited
THE CHASE MANHATTAN CORPORATION
CONDENSED AVERAGE CONSOLIDATED BALANCE SHEET, INTEREST AND RATES
(Taxable-Equivalent Interest and Rates; in millions)
Fourth Quarter 1999
------------------------------------
Average Rate
Balance Interest (Annualized)
ASSETS
Liquid Interest-Earning
Assets $ 70,789 $ 1,018 5.71%
Securities 59,977 878 5.81%
Loans 175,822 3,452 7.79%
---------- --------
Total Interest-Earning
Assets 306,588 5,348 6.92%
Noninterest-Earning Assets 81,000
----------
Total Assets $ 387,588
==========
LIABILITIES
Interest-Bearing Deposits $ 172,655 1,786 (b) 4.10%
Short-Term and
Long-Term Debt 99,451 1,330 5.31%
---------- --------
Total Interest-Bearing
Liabilities 272,106 3,116 4.54%
--------
Noninterest-Bearing
Deposits 50,710
Other Noninterest-Bearing
Liabilities 41,377
----------
Total Liabilities 364,193
----------
PREFERRED STOCK OF
SUBSIDIARY 550
----------
STOCKHOLDERS' EQUITY
Preferred Stock 928
Common Stockholders'
Equity 21,917
----------
Total Stockholders'
Equity 22,845
----------
Total Liabilities,
Preferred Stock of
Subsidiary and
Stockholders' Equity $ 387,588
==========
INTEREST RATE SPREAD 2.38%
=====
NET INTEREST INCOME
AND NET YIELD ON
INTEREST-EARNING ASSETS $ 2,232 2.89%
======== =====
NET INTEREST INCOME AND
NET YIELD ON
INTEREST-EARNING
ASSETS (a) $ 2,567 3.14% (b)
======== =====
----------------------------------------------------------------------
Fourth Quarter 1998
-----------------------------------
Average Rate
Balance Interest (Annualized)
ASSETS
Liquid Interest-Earning
Assets $ 62,155 $ 1,096 7.00%
Securities 64,340 967 5.96%
Loans 173,119 3,382 7.75%
---------- --------
Total Interest-Earning
Assets 299,614 5,445 7.21%
Noninterest-Earning Assets 78,827
----------
Total Assets $ 378,441
==========
LIABILITIES
Interest-Bearing Deposits $ 160,386 1,717 4.25%
Short-Term and
Long-Term Debt 92,633 1,564 6.70%
---------- --------
Total Interest-Bearing
Liabilities 253,019 3,281 5.14%
----------
Noninterest-Bearing
Deposits 48,628
Other Noninterest-Bearing
Liabilities 52,914
----------
Total Liabilities 354,561
----------
PREFERRED STOCK OF
SUBSIDIARY 550
----------
STOCKHOLDERS' EQUITY
Preferred Stock 1,028
Common Stockholders'
Equity 22,302
----------
Total Stockholders'
Equity 23,330
----------
Total Liabilities,
Preferred Stock of
Subsidiary and
Stockholders' Equity $ 378,441
==========
INTEREST RATE SPREAD 2.07%
=====
NET INTEREST INCOME
AND NET YIELD ON
INTEREST-EARNING ASSETS $ 2,164 2.87%
======== =====
NET INTEREST INCOME AND
NET YIELD ON
INTEREST-EARNING
ASSETS (a) $ 2,531 3.16%
======== =====
For The Year 1999
------------------------------------
Average
Balance Interest Rate
ASSETS
Liquid Interest-Earning
Assets $ 64,212 $ 3,908 6.09%
Securities 56,216 3,233 5.75%
Loans 173,770 13,118 7.55%
---------- --------
Total Interest-Earning
Assets 294,198 20,259 6.89%
Noninterest-Earning Assets 75,949
----------
Total Assets $ 370,147
==========
LIABILITIES
Interest-Bearing Deposits $ 163,795 6,592 (b) 4.02%
Short-Term and
Long-Term Debt 92,179 4,901 5.32%
---------- --------
Total Interest-Bearing
Liabilities 255,974 11,493 4.49%
----------
Noninterest-Bearing Deposits 48,752
Other Noninterest-Bearing
Liabilities 41,892
----------
Total Liabilities 346,618
----------
PREFERRED STOCK OF SUBSIDIARY 550
----------
STOCKHOLDERS' EQUITY
Preferred Stock 1,002
Common Stockholders' Equity 21,977
----------
Total Stockholders'
Equity 22,979
----------
Total Liabilities, Preferred
Stock of Subsidiary
and Stockholders' Equity $ 370,147
==========
INTEREST RATE SPREAD 2.40%
=====
NET INTEREST INCOME
AND NET YIELD ON
INTEREST-EARNING ASSETS $ 8,766 2.98%
======== =====
NET INTEREST INCOME AND
NET YIELD ON
INTEREST-EARNING
ASSETS (a) $10,101 3.24% (b)
======== =====
For The Year 1998
-----------------------------------
Average
Balance Interest Rate
ASSETS
Liquid Interest-Earning
Assets $ 68,910 $ 5,284 7.67%
Securities 58,484 3,635 6.22%
Loans 169,386 13,394 7.91%
---------- --------
Total Interest-Earning
Assets 296,780 22,313 7.52%
Noninterest-Earning Assets 76,431
----------
Total Assets $ 373,211
==========
LIABILITIES
Interest-Bearing Deposits $ 153,545 6,840 (b) 4.45%
Short-Term and
Long-Term Debt 98,368 6,883 7.00%
---------- --------
Total Interest-Bearing
Liabilities 251,913 13,723 5.45%
----------
Noninterest-Bearing Deposits 46,169
Other Noninterest-Bearing
Liabilities 51,971
----------
Total Liabilities 350,053
----------
PREFERRED STOCK OF SUBSIDIARY 550
----------
STOCKHOLDERS' EQUITY
Preferred Stock 1,280
Common Stockholders' Equity 21,328
----------
Total Stockholders'
Equity 22,608
----------
Total Liabilities, Preferred
Stock of Subsidiary
and Stockholders' Equity $ 373,211
==========
INTEREST RATE SPREAD 2.07%
=====
NET INTEREST INCOME
AND NET YIELD ON
INTEREST-EARNING ASSETS $ 8,590 2.89%
======== =====
NET INTEREST INCOME AND
NET YIELD ON
INTEREST-EARNING
ASSETS (a) $10,050 3.19% (b)
======== =====
(a) Excludes the impact of the credit card securitizations.
(b) Includes interest income of $62 million recognized in the 1999
fourth quarter and $191 million recognized in 1998 for prior
years' tax refunds. Excluding these amounts, the net yield on
interest-earning assets would be 3.07%, 3.22% and 3.13% for the
1999 fourth quarter, 1999 full year and 1998 full year,
respectively.
Unaudted
THE CHASE MANHATTAN CORPORATION
Chase Capital Partners
----------------------------------------------------------------------
Chase Capital Partners Investment Portfolio at December 31, 1999
($ in millions) Carrying
Value Cost
--------------------------------
Total Public Securities
(101 securities) $ 2,624 $ 696
Total Non-Public Direct
Investments (484 investments) 4,481 4,344
Total Non-Public Fund
Investments (282 funds) 1,844 1,867
--------------- -------------
=============== =============
Total Investment Portfolio $ 8,949 $ 6,907
=============== =============
--------------------------------------------------------------------------------------------------------------------
Public Securities Investments at December 31, 1999
Quoted
($ in millions) Public
Symbol Shares (MM) Value Cost
------------------------------------------
TRITON PCS HOLDING, INC. TPCS 11.6 $ 546 $ 67
TELECORP PCS TLCP 11.6 491 60
STARMEDIA NETWORK, INC. STRM 11.0 442 28
IXL ENTERPRISES, INC. IIXL 7.4 411 29
DIGITAL ISLAND ISLD 2.3 223 12
COBALT NETWORKS, INC. COBT 1.9 208 5
AMERICAN TOWER SYSTEMS AMT 6.2 188 17
SEAT - PATINE GIALLE SPA SPG IM (a) 185 12
FISHER SCIENTIFIC FSH 4.1 146 39
ITXC CORP. ITXC 3.8 135 6
--------- ------
Top Ten Public Securities $ 2,975 $ 275
Other Securities (91 securities) 1,003 421
--------- ------
========= ======
Total Public Securities (Carrying value $2,624) $ 3,978 $ 696
========= ======
(a) - owned through a limited partnership
----------------------------------------------------------------------
Policy:
Public securities held by Chase Capital Partners are
marked-to-market at the quoted public value less liquidity discounts,
with the resulting unrealized gains/losses included in the income
statement. Chase's valuation policy for public securities incorporates
the use of these liquidity discounts and price averaging methodologies
in certain circumstances to take into account the fact that Chase can
not immediately realize such public quoted values due to the numerous
regulatory, corporate and contractual sales restrictions. Non-Public
investments are carried at cost, with the exception of holdings in
which a subsequent investment by an unaffiliated party indicates a
valuation in excess of cost and holdings for which evidence of an
other-than-temporary decline in value exists.
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