Chase Reports Third Quarter Operating Earnings of $738 Million.NEW YORK--(BUSINESS WIRE)--Oct. 20, 1998--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 third quarter 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 of $738 million, compared with operating earnings of $1.081 billion in the same quarter of 1997. 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 per share were $0.82 in the third quarter of 1998, compared with $1.19 in the same 1997 period. Reported total net income was $837 million, or $0.94 per share in the third quarter. Reported total net income in the third quarter of 1997 was $982 million, or $1.08 per share. Third Quarter 1998 Financial Highlights -- Total 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. were down three percent from third quarter 1997 levels, as double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth in Chase's 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, and Global Services franchises offset a 20 percent revenue decline in Global Banking. -- Chase's Tier One capital ratio rose to 8.3 percent at September September: see month. 30, 1998, from 8.2 percent on June June: see month. 30, 1998, and 7.8 percent on September 30, 1997. During the quarter, the corporation repurchased a net amount of 7.4 million shares under its 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. program. -- Total operating noninterest expenses rose four percent, with salary expense lower than in the third quarter of 1997. Operating noninterest expenses were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $100 million, or four percent, lower than in the second quarter of 1998. -- Total commercial net charge-offs were $200 million, as previously estimated, primarily reflecting conditions in Asia and Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). . "Difficult global market conditions affected third quarter earnings negatively. At the same time, our broadly diversified diversified (di·verˑ·s revenue streams and sound risk management systems have enabled Chase to differentiate differentiate /dif·fer·en·ti·ate/ (dif?er-en´she-at) 1. to distinguish, on the basis of differences. 2. to develop specialized form, character, or function differing from that surrounding it or from the original. itself in an adverse environment," said Walter Wal·ter , Bruno 1876-1962. German conductor noted for his interpretations of Mozart and Mahler. Noun 1. Walter - German conductor (1876-1962) Bruno Walter V. Shipley Shipley, town (1991 pop. 28,815), West Yorkshire, N England, on the Aire River. Of its varied industries, light engineering and the manufacture of woolens and worsteds are the most important. , chairman and chief executive officer. "Looking ahead, we will continue to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. the 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. Chase's primary measure of business unit performance. SVA SVA School of Visual Arts SVA Severe (Thunderstorm) Advisory SVA Statens Veterinärmedicinska Anstalt (National Veterinary Institute, Sweden) SVA Shareholder Value Added represents operating earnings excluding the amortization of goodwill and certain intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. (i.e., cash operating earnings) less an explicit charge for allocated capital. Additional refinements have been made to the methodology for the allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of capital to businesses. Prior periods have been restated to reflect these changes.
The Chase Manhattan Corp. Third Quarter
Dollars, in millions 1998 O(U) 3Q97 O(U) 2Q98
Operating Revenues $4,508 $(156) $(543)
Cash Operating Earnings 801 (321) (342)
Shareholder Value Added 68 (390) (373)
Cash Return on Common
Equity 14% -- --
Nine Months
1998 O(U)%
Operating Revenues $14,474 8%
Cash Operating Earnings 3,058 (2)
Shareholder Value Added 936 (20)
Cash Return on Common
Equity 19% --
Line-Of-Business Results
Global Bank Third Quarter
Dollars, in millions 1998 O(U)3Q97 O(U) 2Q98
Operating Revenues $1,890 $(461) $(641)
Cash Operating Earnings 451 (302) (334)
Shareholder Value Added (20) (321) (335)
Cash Return on Common
Equity 12% -- --
Nine Months
1998 O(U)%
Operating Revenues $ 6,918 3%
Cash Operating Earnings 2,030 (4)
Shareholder Value Added 632 (17)
Cash Return on Common
Equity 19% --
Cash operating earnings in the Global Bank declined to $451 million in the third quarter of 1998; revenues fell 20 percent to $1.890 billion. For the nine months period, operating revenues rose three percent and cash return on common equity was 19 percent. A significant factor reducing Global Bank revenues and earnings in the third quarter of 1998 was the decrease in equity-related investment gains to $60 million, from $370 million in the preceding period and $249 million in the year-ago quarter. Trading revenues and associated net interest income totaled $259 million for the quarter, a 60 percent decline from last year's third quarter and a 50 percent decline from the previous quarter. Nevertheless, securities gains realized during the quarter were $261 million, representing a portion of the increased value in Chase's investment portfolio, which is managed as part of the corporation's overall risk management process. Remaining 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. in Chase's investment portfolio were approximately $1 billion, before taxes, at September 30, 1998, up from approximately $150 million, before taxes, three months ago. Investment banking fees ger and acquisition advisory was offset by substantially reduced underwriting fees Underwriting fee The portion of the gross underwriting spread that compensates the securities firms that underwrite a public offering for their services. in high yield and emergingn Equity 27% -- -- Nine Months Cash Operating Earnings 359 17 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. 185 39 Cash Return on Common Equity RVICES Third Quarter Dollars, in millions 1998 O(U) 3Q97 O(U) 2Q98 Operating Revenues $2,055 $201 $52 Cash Operating Earnings 302 (6) 4 Shareholder Value Added 78 (44) -- Cash Return on Common Equity 18% -- -- Nine Months 1998 O(U) % Operating Revenues $5,989 11% Cash Operating Earnings 894 7 Shareholder Value Added 226 (20) Cash Return on Common Equity 18% --
Cash operating earnings were $302 million in the third quarter,
essentially flat to year-ago levels and compared to the previous
quarter. Cash operating earnings for the nine month period were up
seven percent and cash return on common equity was 18 percent.
Shareholder value added in the third quarter of 1998 declined by $44
million from the prior-year quarter, as a result of increased capital
from recent acquisitions.
Revenues from cardmember services grew 16 percent in the quarter
to $979 million, with growth primarily driven by portfolio
acquisitions. As anticipated, charge-offs rose in the quarter,
reflecting the effect of newly-acquired portfolios. These factors,
combined with increased marketing costs, resulted in a modest decline
in cash operating earnings.
Regional consumer banking revenues rose five percent, as a result
of deposit growth in excess of $1.5 billion, and higher fee income
from product and pricing initiatives. Cash operating earnings rose
seven percent from prior-year levels.
Home finance revenues grew by eight percent, benefiting from
significantly higher volume of mortgage originations partially offset
by the impact of higher levels of prepayments on the mortgage
portfolio. Cash operating earnings grew three percent in the third
quarter.
Revenues from diversified consumer services rose 17 percent in
the third quarter, with continued strong growth in Chase's auto
finance, insurance and consumer investment businesses. Cash operating
earnings rose 19 percent.
Additional Financial Information
-- Operating results (revenues and earnings) exclude the impact of
credit card securitizations, restructuring costs and special
items. Special items in the third quarter of 1998 include $191
million in pre-tax interest income ($123 million after tax),
resulting from tax refunds in prior years, and a $37 million
pre-tax charge ($24 million after tax) for the accelerated
vesting of stock-based awards. Special items in the same 1997
quarter include an $85 million pre-tax charge ($54 million after
tax) for the acceleed by cash and treasury securities, approximatelas
approximately $400
million invested in ate return of negative four percent.
-- Chase's exposure to emerging markets in Asia and Latin America
has declined substantially in the past nine months, as detailed
in the attached tables. In addition, at September 30, 1998, Chase
had approximately $200 million of lending and trading-related
exposure to Russia, a decline of over $250 million from August
31, 1998. Chase also had approximately $450 million in resale
agreements secured by non-ruble denominated Russian debt, at
September 30, 1998.
-- The provision for credit losses in the third quarter of 1998 was
$455 million, compared with $190 million in the year-ago quarter
and $338 million in the second quarter of 1998. Nonperforming
assets at September 30, 1998 were $1.533 billion compared with
$1.036 billion at September 30, 1997 and $1.365 billion at June
30, 1998.
-- Total assets at September 30, 1998 were $356 billion, down
approximately $10 billion from the second quarter of 1998 and
from year-ago levels. As a result, Chase was able to repurchase
net $351 million of its stock during the third quarter and still
increase its Tier One capital ratio to 8.3 percent at the end of
the quarter.
All per share results reflect a two-for-one stock split that
became effective June 15, 1998.
Chase's news releases and quarterly financial results are
available on the Internet at www.Chase.com.
THE CHASE MANHATTAN CORPORATION SUMMARY OF SELECTED FINANCIAL HIGHLIGHTS (in millions, except per share and ratio data) % As of or for the period ended Third Quarter Over/(Under) 1998 1997 3QTR QTR Quarter QTR Qatar Airways (ICAO code) QTR Exact Time (American Radio Relay League - Amateur Handbook) QTR Qualification Test Report 97 OPERATING BASIS (a) --------------------------- Operating Revenue $ 4,508 $ 4,664 (3%) Operating Noninterest Expense 2,614 2,505 4% Credit Costs (b) 749 445 68% Operating Net Income $ 738 $ 1,081 (32%) Cash Operating Earnings $ 801 $ 1,122 (29%) Shareholder Value Added (SVA) 68 458 (85%) Operating Net Income Per Common Share: Basic $ 0.84 $ 1.23 (32%) Diluted 0.82 1.19 (31%) Performance Ratios: Return on Average Total Assets (annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. ) 0.81% 1.19% Return on Average Common Equity (annualized) 13.1 21.7 Common Dividend Payout Ratio Dividend Payout Ratio The percentage of earnings paid to shareholders in dividends. Calculated as: 42 25 Efficiency Ratio (Excluding REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). Minority Interest) 58 53 AS REPORTED BASIS --------------------------- Revenue $ 4,401 $ 4,415 -- Noninterest Expense (Excluding 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) 2,647 2,596 2% Restructuring Costs -- 71 NM Provision for Credit Losses 455 0.94 1.08 (d 43.13 59.00 (27%) Common Shares: Average Common Shares: Basic 848.3 844.8 Diluted 9 19.6 % As of or for the period ended Nine Months Over/(Under4 $ 13,404 8% Operating Noninterest Expense 7,942 7,282 9% Credit Costs (b) 2,003 1,338 50% Operating N Diluted 3.20 17.8 20.5 Common D $ 185,544 $ 178,892 4% Total Assets 375,422 382,379 (2%) AS REPORTED BASIS ---------------------- Revenue $ 13,801 $ 12,718 9% Noninterest $ 2,636 $ 2,834 (d 2.93 3.04 59.00 (27%) Common Shares: Average Common Shares: Basic 847.4 851.4 Diluted 871.2 884. $ 166,572 $ 163,087 1,166 10% Capital Ratios: --------------- Tier I Risk-Based Capital Ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. 8.3%(d) 7.8% Total Risk-Based Capior 1 common stock split, effective June 15, 1998. (a) Excludes the impact of credit card securitizations, restructuring costs and special items. (b) Includes provi Lines of Business Results 0%) Average Common Equity 13,919 948 7% Average Assets (c) 259,540 (7,084) (3%) Shareholder Value Added (SVA) (20) (321) NM Cash Return on Commo Services (a) Three Monthue Added (SVA) 78 (44) (36%) Cash Return on Common Equity 17.7% (440)bp Efficiency Ratio (Operating) 52% 100bp Global Services (a) Three Months Ended Over/(Under) 1997 September 30, 1998 $ % or bp Operating Revenues $ 666 $ 65 11% Cash Operating Earnings 122 10 9% Average Common Equity 1,734 56 3% Average Assets (c) 8,928 (890) (9%) Shareholder Value Added (SVA) 63 10 19% Cash Return on Common Equity 27.4% 170bp Efficiency Ratio (Operating) 71% -- Total (b) Three Months Ended Over/(Under) 1997 September 30, 1998 $ % or bp Operating Revenues $ 4,508 $(156) (3%) Cash Operating Earnings 801 (321) (29%) Average Common Equity 21,681 2,658 14% Average Assets (c) 381,327 6,591 2% Shareholder Value Added (SVA) 68 (390) (85%) Cash Return on Common Equity 14.3% (830)bp Efficiency Ratio (Operating) 58% 500bp GLOBAL BANKING KEY FINANCIAL MEASURES Operating Revenue Three Months Ended Over/(Under) 1997 September 30, 1998 $ % Global Investment Banking $ 205 $ (70) (26%) Corporate Lending 402 24 6% Global Markets 749 (167) (18%) Chase Capital Partners (29) (251) NM Global Asset Management and Private Banking 198 8 4% Middle Market 197 (6) (3%) Chase Bank of Texas N.A. (Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: ) 412 55 15% Cash Operating Earnings Three Months Ended Over/(Under) 1997 September 30, 1998 $ % Global Investment Banking $ 22 $ (52) (71%) Corporate Lending 134 8 6% Global Markets 180 (126) (41%) Chase Capital Partners (35) (159) NM Global Asset Management and Private Banking 34 (6) (16%) Middle Market 43 (7) (14%) Chase Bank of Texas N.A. (Consolidated) 118 22 23% Efficiency Ratio Over/ (Under) Three Months Ended September 30, 1998 1997 Global Investment 86% 3,100bp Banking Corporate Lending 31 100bp Global Markets 59 1,300bp Chase Capital Partners NM NM Global Asset Management and Private Banking 71 700bp Middle Market 57 700bp Chase Bank of Texas N.A. (Consolidated) 57 (100)bp NATIONAL CONSUMER SERVICES KEY FINANCIAL MEASURES Operating Revenue Three Months Ended Over/(Under) 1997 September 30, 1998 $ % Cardmember Services $ 979 $ 139 16% Regional Consumer Banking (a) 591 29 5% Chase Home Finance 262 20 8% Diversified Consumer Services 247 36 17% Cash Operating Earnings Three Months Ended Over/(Under) 1997 September 30, 1998 $ % Cardmember Services $ 104 $(6) (5%) Regional Consumer Banking (a) 97 6 7% Chase Home Finance 66 2 3% Diversified Consumer Services 58 9 19% Efficiency Ratio Over/ (Under) Three Months Ended 1998 1997 September 30, Cardmember Services 38% 100bp Regional Consumer Banking (a) 70 (100)bp Chase Home Finance 56 400bp Diversified Consumer Services 47 100bp 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 an explicit charge for allocated capital. Additional refinements were made to the methodology for the allocation of capital to businesses. Prior periods have been restated to reflect these changes. (a) Only the global banking portion of Chase Bank of Texas, N.A. is reported in the total Global Banking line of business results. The consumer- and global services-related results for Chase Texas are reported as part of 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. and Global Services lines of business results, respectively. (b) Total column includes Corporate results. (c) Excludes the impact of credit card securitizations. bp - basis points NM - Not meaningful Unaudited THE CHASE MANHATTAN CORPORATION Lines of Business Results (in millions, except ratios) Global Banking (a) Nine Months Ended Over/(Under) 1997 September 30, 1998 $ % or bp ------------------------------ -------- ------- --------- Operating Revenues $ 6,918 $ 210 3% Cash Operating Earnings 2,030 (80) (4%) Average Common Equity 13,878 978 8% Average Assets (c) 268,669 10,052 4% Shareholder Value Added (SVA) 632 (132) (17%) Cash Return on Common Equity 19.1% (180)bp Efficiency Ratio (Operating) 49% 300bp -------------------------------- ---------------------------- National Consumer Services (a) Nine Months Ended Over/(Under) 1997 --------------- September 30, 1998 $ % or bp ------------------------------ -------- ------- -------- Operating Revenues $ 5,989 $ 572 11% Cash Operating Earnings 894 60 7% Average Common Equity 6,641 1,338 25% Average Assets (c) 105,892 12,528 13% Shareholder Value Added (SVA) 226 (56) (20%) Cash Return on Common Equity 17.5% (260)bp Efficiency Ratio (Operating) 51% (100)bp ------------------------------- -------------------------- Global Services (a) Nine Months Ended Over/(Under) 1997 --------------- September 30, 1998 $ % or bp ------------------------------ -------- ------- -------- Operating Revenues $ 1,937 $ 215 12% Cash Operating Earnings 359 51 17% Average Common Equity 1,728 49 3% Average Assets (c) 9,182 72 1% Shareholder Value Added (SVA) 185 52 39% Cash Return on Common Equity 27.3% 380bp Efficiency Ratio (Operating) 71% (100)bp ------------------------------- -------------------------- Total (b) Nine Months Ended Over/(Under) 1997 --------------- September 30, 1998 $ % or bp ------------------------------ -------- ------- -------- Operating Revenues $ 14,474 $1,070 8% Cash Operating Earnings 3,058 (64) (2%) Average Common Equity 20,999 2,416 13% Average Assets (c) 389,377 25,885 7% Shareholder Value Added (SVA) 936 (234) (20%) Cash Return on Common Equity 19.0% (240)bp Efficiency Ratio (Operating) 55% 100bp ------------------------------- -------------------------- GLOBAL BANKING KEY FINANCIAL MEASURES Operating Revenue -------------------------- Nine Months Ended Over/(Under) 1997 ----------------- September 30, 1998 $ % ------------------------------ ------- ------- -------- Global Investment Banking $ 951 $ 278 41% Corporate Lending 1,169 22 2% Global Markets 2,580 (128) (5%) Chase Capital Partners 587 46 9% Global Asset Management and Private Banking 594 64 12% Middle Market 587 (29) (5%) Chase Bank of Texas N.A. (Consolidated) 1,185 164 16% ---------------------------------------------------------------------- Cash Operating Earnings -------------------------- Nine Months Ended Over/(Under) 1997 ---------------- September 30, 1998 $ % ------------------------------ ------ -------- ------- Global Investment Banking $ 226 $ 66 41% Corporate Lending 377 (2) -- Global Markets 799 (144) (15%) Chase Capital Partners 316 22 8% Global Asset Management and Private Banking 109 6 6% Middle Market 130 (24) (15%) Chase Bank of Texas N.A. (Consolidated) 325 62 24% --------------------------------- ------------------------------- Efficiency Ratio ----------------- Over/ Nine Months Ended (Under) September 30, 1998 1997 ------------------------------ -------- ------- Global Investment Banking 60% -- Corporate Lending 31 -- Global Markets 50 500bp Chase Capital Partners 15 100bp Global Asset Management and Private Banking 68 100bp Middle Market 55 600bp Chase Bank of Texas N.A. (Consolidated) 57 (300)bp ---------------------------------------------------------------------- NATIONAL CONSUMER SERVICES KEY FINANCIAL MEASURES Operating Revenue -------------------------- Nine Months Ended Over/(Under) 1997 September 30, 1998 $ % ------------------------------ ------- ------- -------- Cardmember Services $2,882 $ 459 19% Regional Consumer Banking (a) 1,727 42 3% Chase Home Finance 748 38 5% Diversified Consumer Services 686 81 13% ---------------------------------------------------------------------- Cash Operating Earnings -------------------------- Nine Months Ended Over/(Under) 1997 ---------------- September 30, 1998 $ % ------------------------------ ------ -------- ------- Cardmember Services $ 345 $ 80 30% Regional Consumer Banking (a) 268 (8) (3%) Chase Home Finance 189 7 4% Diversified Consumer Services 142 11 8% ---------------------------------- ---------------------------- Efficiency Ratio ----------------- Over/ Nine Months Ended (Under) September 30, 1998 1997 ------------------------------ -------- ------- Cardmember Services 37% (200)bp Regional Consumer Banking (a) 72 100bp Chase Home Finance 55 200bp Diversified Consumer Services 49 200bp ---------------------------------- ---------------------------- 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 an explicit charge for allocated capital. Additional refinements were made to the methodology for the allocation of capital to businesses. Prior periods have been restated to reflect these changes. (a) Only the global banking portion of Chase Bank of Texas, N.A. is reported in the total Global Banking line of business results. The consumer- and global services-related results for Chase Texas are reported as part of NCS and Global Services lines of business results, respectively. (b) Total column includes Corporate results. (c) Excludes the impact of credit card securitizations. bp - basis points Unaudited THE CHASE MANHATTAN CORPORATION CONSOLIDATED STATEMENT OF INCOME (in millions, except per share data) % % Third Quarter Over/(Under) Nine Months Over/(Under) 1998 1997 3QTR 97 1998 1997 YTD See Year-to-date. YTD See year to date (YTD). 97 INTEREST INCOME Loans $ 3,287 $ 3,294 -- $ 10,008 $ 9,529 5% Securities 874 720 21% 2,652 2,177 22% Trading Assets 604 732 (17%) 1,996 2,063 (3%) Federal Funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve Sold and Securities Purchased Under Resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. Agreements 517 623 (17%) 1,742 1,879 (7%) Deposits with Banks 150 149 1% 450 369 22% Total Interest Income 5,432 5,518 (2%) 16,848 16,017 5% INTEREST EXPENSE Deposits 1,524 1,714 (11%) 5,123 4,797 7% Short-Term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. and Other Borrowings 1,378 1,451 (5%) 4,365 4,263 2% Long-Term Debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. 324 284 14% 954 814 17% Total Interest Expense 3,226 3,449 (6%) 10,442 9,874 6% NET INTEREST INCOME 2,206 2,069 7% 6,406 6,143 4% Provision for Credit Losses 455 190 139% 1,137 599 90% NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 1,751 1,879 (7%) 5,269 5,544 (5%) NONINTEREST REVENUE Investment Banking Fees 322 308 5% 1,121 767 46% Trust, 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. and Investment Management Fees 398 338 18% 1,129 969 17% Credit Card Revenue 381 281 36% 1,046 766 37% Fees for Other Financial Services 522 505 3% 1,541 1,466 5% Trading Revenue 114 505 (77%) 927 1,401 (34%) Securities Gains 261 58 350% 442 189 134% Revenue from Equity-Related Investments 60 249 (76%) 723 605 20% Other Revenue 137 102 34% 466 412 13% Total Noninterest Revenue 2,195 2,346 (6%) 7,395 6,575 12% NONINTEREST EXPENSE Salaries 1,205 1,292 (7%) 3,729 3,526 6% Employee Benefits 221 206 7% 660 647 2% 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 Expense 198 194 2% 578 574 1% Equipment Expense 219 192 14% 640 575 11% Other Expense 804 712 13% 2,374 2,104 13% Total Noninterest Expense Before Restructuring Costs 2,647 2,596 2% 7,981 7,426 7% Restructuring Costs -- 71 NM 529 172 208% Total Noninterest Expense 2,647 2,667 (1%) 8,510 7,598 12% INCOME BEFORE INCOME TAX EXPENSE 1,299 1,558 (17%) 4,154 4,521 (8%) Income Tax Expense 462 576 (20%) 1,518 1,687 (10%) NET INCOME $ 837 $ 982 (15%) $ 2,636 $ 2,834 (7%) NET INCOME APPLICABLE TO COMMON STOCK $ 815 $ 941 (13%) $ 2,556 $ 2,687 (5%) NET INCOME PER COMMON SHARE: Basic $ 0.96 $1.11 (14%) $ 3.02 $ 3.15 (4%) Diluted $ 0.94 $1.08 (13%) $ 2.93 $ 3.04 (4%) NM - Not meaningful Certain amounts have been reclassified to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the current presentation. Unaudited THE CHASE MANHATTAN CORPORATION NONINTEREST REVENUE AND NONINTEREST EXPENSE DETAIL (in millions) % NONINTEREST REVENUE Third Quarter Over/(Under) 1998 1997 3QTR 97 Fees for Other 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. : Service Charges on Deposit Accounts $ 92 $ 94 (2%) Fees in Lieu of Instead of; in place of; in substitution of. It does not mean in addition to. Compensating Balances 85 81 5% Commissions on Letters of Credit and Acceptances 72 78 (8%) Mortgage Servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. Fees 43 59 (27%) Loan Commitment Fees 31 30 3% Other Fees 199 163 22% Total $ 522 $ 505 3% Trading-Related Revenue: (a) Interest Rate Contracts $ 142 $ 157 (10%) Foreign Exchange Revenue 263 226 16% Debt Instruments and Other (146) 264 NM Total $ 259 $ 647 (60%) Other Revenue: Residential Mortgage Origination/Sales Activities $ 105 $ 37 184% Gains on Sale of Partially-Owned Investments -- -- -- All Other Revenue 32 65 (51%) Total $ 137 $ 102 34% NONINTEREST EXPENSE Other Expense: Professional Services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. $ 180 $ 139 29% Marketing Expense 108 90 20% Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. 90 77 17% Travel and Entertainment 58 49 18% Amortization of Intangibles 63 41 54% Minority Interest (b) 12 19 (37%) Foreclosed Property Expense (4) 6 NM All Other 297 291 2% Total $ 804 $ 712 13% % NONINTEREST REVENUE Nine Months Over/(Under) 1998 1997 YTD97 Fees for Other Financial Services: Service Charges on Deposit Accounts $ 275 $ 280 (2%) Fees in Lieu of Compensating Balances 256 236 8% Commissions on Letters of Credit and Acceptances 218 224 (3%) Mortgage Servicing Fees 149 177 (16%) Loan Commitment Fees 101 86 17% Other Fees 54 $ 1,466 5% Trading-Related Revenue: (a) Interest Rate Contracts $ 378 $ 539 739 (63%) Total nvestments -- 44 NM All Other Revenue 225 Professional Services $ 483 $ tainment 177 161 10% Amortization of Intangibles 188 123 nterest related to the REIT of $11 million in each quarter. NM - Not meaningful Certain amounts have been reclassified to conform to the current presentation. Unaudited THE CHASE MANHATTAN CORPORATION OPERATING INCOME Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. RECONCILIATION (in millions, except per share data) THIRD QUARTER 1998 - (37) 2,614 749 ----------- ---------- ---------- --------- Income Before Restructuring ----------- ---------- -------------- ----------- --------- Net Income $ 0.84 Diluted $ 0.94 $ 0.82 ---------------------------------------------------------------------- THIRD QUARTER 1997 -ONS ITEMS BASIS EARNINGS T--- ---------- Operating Margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: 1,825 Restructuring Costs 1,629 - 85 1,714 Restructuring Costs 71 ,558 - 156 1,714 Tax E $ 1,081 ----------- -------- --------- ---------- NET INCOME PER COMMON SHARE Basic $ 1.11 $ 1.19 ------------------------------oreclosed property expense is included in creditck-based awards and merger-related restructuring costs. Unaudited THE CHASE NINE MONTHS 1998 ARNINGS Total Revenue $ 13,801 1,139 864 - 2,003 Income Before Restructuring Costs 4,683 - 375 4,529 Tax Expe 3.02 $ 3.29 DilTED CARD SPECIAL OPERATING RESULTS SECURITIZATIONS ITEMS BASIS EARNINGS Total Revenue $ 12,718 $ 730 $ (44) $ 13,404 Noninterest Expense 7,417 - 4,784 Restructuring Costs 172 Reported results represent amounts shown in Chase's financial statements, except restructuring costs have impact of credit card securitizations. 1998 sck-based awards, the $510 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge ($320 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ) in the first quarter, taken in con costs of $19 million pre-tax ($13 million after-tax). 1997 special items include a $44 million pre-tax gain (in millions) 1998 1997 1997 -------- --------- ----------- ASSETS Cash and Due from Banks $ 14,585 $ 14,367 2% Deposits with Banks 3,877 4,152 (7%) or Credit Losses (3,554) (3,462) 21% -------- --------- TOTAL ASSETS $ 356,450 $ est-Bearing $ 46,231 $ 39,131 ,096 69,293 7% ------- ------- Total Deposits 43,156 65,453 (34%) Commercial Paper 4,239 4,584 Corporation's Junior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Deferrable Interest Debentures 2,188 1,390 -------- --------- PREFERRED STOCK Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. OF SUBSIDIARY 550 1,028 1,740 (41%) Common StockAccumulated Other Comprehensive Income KHOLDERS' EQUITY 23,218 21,166 CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. (in millions) Nine Months Ended September 30, 1998 1997 Preferred Stock: Balance at Beginning of Year $ 1,740 $ 2,650 Issuance of Stock 200 -- Redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of Stock (912) (910) Balance at End of Period $ 1,028 $ 1,740 Common Stock: Balance at Beginning of Year $ 441 $ 441 Issuance of Common Stock for a Two-for-One Stock Split 441 -- Balance at End of Period $ 882 $ 441 Capital Surplus: Balance at Beginning of Year $10,360 $10,459 Issuance of Common Stock for a Two-for-One Stock Split (441) -- Shares Issued and Commitments to Issue Common Stock for Employee Stock-Based Awards and Related Tax Effects (67) (102) Balance at End of Period $ 9,852 $10,357 Retained Earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. : Balance at Beginning of Year $11,086 $ 8,610 Net Income 2,636 2,834 Cash Dividends Declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. : Preferred Stock (80) (147) Common Stock (920) (789) Balance at End of Period $ 12,722 $10,508 Accumulated Other Comprehensive Income In 1997 the Financial Accounting Standards Board issued a Statement on Financial Accounting Standards entitled “Comprehensive Income”. This statement required all income statement items to be reported either as a regular item in the income statement and or a special item as : (a) Balance at Beginning of Year $ 112 $ (271) Other Comprehensive Income 589 415 Balance at End of Period $ 701 $ 144 Common Stock in Treasury, at Cost: Balance at Beginning of Year $ (1,997) $ (895) Purchase of Treasury Stock (1,038) (2,036) Reissuance of Treasury Stock 1,068 907 Balance at End of Period $ (1,967) $(2,024) Total Stockholders' Equity $ 23,218 $21,166 Comprehensive Income: (a) Net Income $ 2,636 $ 2,834 Other Comprehensive Income 589 415 Comprehensive Income $ 3,225 $ 3,249 (a) Effective with the first quarter 1998, Chase adopted SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 130, which defines and establishes the standards for reporting comprehensive income. Comprehensive income for Chase includes net income as well as the change in unrealized gains and losses on available-for-sale securities and foreign currency translation adjustments. Prior period amounts have been reclassified to conform to the current presentation. Unaudited THE CHASE MANHATTAN CORPORATION CREDIT RELATED INFORMATION % Sept. 30, LOANS OUTSTANDING 1998 1997 1997 CONSUMER Domestic Consumer: 1-4 Family Residential Mortgages ard 12,472 11,618 te 5,071 6,555 (23%) Total Domestic Commercial 53,082 50,463 (7%) Total Commercial mestic Consumer: 1-4 Family Resid re·sid n. Informal Residual oil. Noun 1. resid - oil products that remain after petroleum has been distilled residual oil 69% Total Domestic Consumer Domestic Commercial: Commercial and Industrial 353 310 14% Commercial Real Estate 53 119 (55%) Total Domestic Commercial 406 429 (5%) Total Foreign Commercial 559 125 347% Total Commercial 965 554 74% Total Nonperforming Loans 1,383 931 49% Derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. and Foreign Exchange Contracts 19 -- NM Assets Acquired as Loan Satisfactions 131 105 25% Total 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. $ 1,533 $ 1,036 48% % Third Quarter Over/(Under) NET CHARGE-OFFS 1998 1997 3QTR 97 CONSUMER Domestic Consumer: 1-4 Family Residential Mortgages $ 6 $ 8 (25%) Credit Card 187 132 42% Other Consumer 56 56 -- Total Domestic Consumer 249 196 27% Total Foreign Consumer 6 3 100% Total Consumer 255 199 28% COMMERCIAL Domestic Commercial: Commercial and Industrial (59) 14 NM Commercial Real Estate (3) (13) NM Total Domestic Commercial (62) 1 NM Total Foreign Commercial 154 (10) NM Total Commercial 92 (9) NM Derivative and Foreign Exchange Contracts 108 -- NM Total Net Charge-offs $ 455 $ 190 139% % Nine Months Over/(Under) 1998 1997 YTD 97 NET CHARGE-OFFS CONSUMER Domestic Consumer: 1-4 Family Residential Mortgages $ 22 $ 21 5% Credit Card 550 403 36% Other Consumer 181 171 6% Total Domestic Consumer 753 595 27% Total Foreign Consumer 14 9 56% Total Consumer 767 604 27% COMMERCIAL Domestic Commercial: Commercial and Industrial (77) 32 NM Commercial Real Estate (9) (23) NM Total Domestic Commercial (86) 9 NM Total Foreign Commercial 326 (14) NM Total Commercial 240 (5) NM Derivative and Foreign Exchange Contracts 130 -- NM Total Net Charge-offs $ 1,137 $ 599 90% NM - Not meaningful Unaudited THE CHASE MANHATTAN CORPORATION CREDIT RELATED INFORMATION (Continued) As of or For The CREDIT CARD PORTFOLIO (excluding Three Months Ended the impact of securitizations): (a) September 30, (in millions, except ratios) 1998 1997 Average Credit Card Receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed $ 31,607 $ 27,630 Past Due 90 Days or More and Accruing $ 675 $ 528 As a Percentage of Average Credit Card Receivables 2.14% 1.91% Net Charge-offs $ 489 $ 379 As a Percentage of Average Credit Card Receivables 6.19% 5.49% As of or For The Nine Months Ended September 30, 1998 1997 Average Credit Card Receivables $ 31,991 $ 26,527 Past Due 90 Days or More and Accruing $ 675 $ 528 As a Percentage of Average Credit Card Receivables 2.11% 1.99% Net Charge-offs $ 1,425 $ 1,125 As a Percentage of Average Credit Card Receivables 5.94% 5.65% (a)Includes domestic and international credit card activity. ---------------------------------------------------------------------- SELECTED COUNTRY EXPOSURE (in billions) At September 30, 1998 (a) ------------------------------------- Lending- Foreign At Dec. 31, Related Exchange 1997 and Other(b) and Resale Total Total Deriva- Agree- Cross- cross- combining form 1. indicating action from one individual or group to another: cross-cultural, cross-refer 2. Cross- tives(c) ments(d) Border Border ASIA Exposure Exposure Japan $ 3.8 $ 1.9 $ 0.1 $ 5.8 $ 9.6 Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. 2.3 1.1 - 3.4 5.0 Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. 2.0 0.5 - 2.5 5.4 Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. 2.0 0.3 - 2.3 3.6 Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. 1.2 0.2 - 1.4 2.6 Thailand Thailand (tī`lănd, –lənd), Thai Prathet Thai [land of the free], officially Kingdom of Thailand, constitutional monarchy (2005 est. pop. 65,444,000), 198,455 sq mi (514,000 sq km), Southeast Asia. 1.2 0.2 - 1.4 2.1 Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). 1.1 0.3 - 1.4 1.8 Philippines Philippines officially Republic of the Philippines Island country, western Pacific Ocean, on an archipelago off the southeast coast of Asia. Area: 122,121 sq mi (316,294 sq km). Population (2005 est.): 84,191,000. 0.7 - - 0.7 1.1 Malaysia Malaysia (məlā`zhə), independent federation (2005 est. pop. 23,953,000), 128,430 sq mi (332,633 sq km), Southeast Asia. The official capital and by far the largest city is Kuala Lumpur; Putrajaya is the adminstrative capital. 0.5 0.1 - 0.6 1.1 All Other Asia 1.7 0.2 0.1 2.0 1.7 Total Asia $ 16.5 $ 4.8 $ 0.2 $ 21.5 $34.0 LATIN AMERICA Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. $ 2.8 $ 0.1 $ 0.9 $ 3.8 $ 4.9 Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. 2.3 0.1 0.5 2.9 3.3 Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. 1.5 0.6 0.5 2.6 3.0 Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. 1.1 - - 1.1 1.6 Colombia Colombia (kəlŭm`bēə, Span. kōlōm`byä), officially Republic of Colombia, republic (2005 est. pop. 42,954,000), 439,735 sq mi (1,138,914 sq km), NW South America. Bogotá is the capital and largest city. 0.9 - - 0.9 0.8 Venezuela Venezuela (vĕnəzwā`lə, Span. vānāswā`lä), officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. 0.4 - 0.1 0.5 1.0 All Other Latin America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. (e) 0.8 0.2 - 1.0 1.5 Total Latin America $ 9.8 $ 1.0 $ 2.0 $12.8 $16.1 (a) Estimated cross-border disclosure is based on Chase's credit risk management policies in assessing Chase's cross-border risk Cross-border risk Describes the volatility of returns on international investments caused by events associated with a particular country as opposed to events associated solely with a particular economic or financial agent. . (b) Includes loans and accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. , interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid deposits with banks, trading debt and equity instruments, acceptances, other monetary assets, issued letters of credit, undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely commitments to extend credit and local currency assets, net of local currency liabilities. (c) Foreign exchange largely represents the mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. exposure of spot and forward contracts. Derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. largely represent the mark-to-market exposure of risk management instruments. Mark-to-market exposure is a measure, at a point in time, of the value of a foreign exchange or derivative contract in the open market. The impact of legally enforceable en·force tr.v. en·forced, en·forc·ing, en·forc·es 1. To compel observance of or obedience to: enforce a law. 2. master netting agreements on these foreign exchange and derivative contracts reduced exposure by $16.7 billion at September 30, 1998 and $12.7 billion at December December: see month. 31, 1997. (d) A majority of this exposure represents resale agreements with investment grade counterparties Counterparties The parties on either side of an interest rate swap or a currency, equity or commodity swap, or to an options or futures position. from G-7 (Group of 7) countries. G-7 countries are 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. , United Kingdom, Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , Japan, Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. , France, and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . (e) Excludes Bermuda Bermuda (bûrmy  `də), British dependency (2005 est. pop. 65,400), 21 sq mi (53 sq km), comprising some 150 coral rocks, islets, and islands (of which some 20 are inhabited), in the and Cayman
Islands Cayman Islands (kā`mən), British dependency (2005 est. pop. 44,300), 100 sq mi (259 sq km), comprising three islands in the West Indies. .Unaudited THE CHASE MANHATTAN CORPORATION Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Average Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. , Interest and Rates (Taxable-Equivalent Interest and Rates; in millions) Three Months Ended September 30, 1998 ---------------------------------- Average Rate Balance Interest (Annualized) ASSETS Liquid Interest-Earning Assets $ 63,853 $ 1,271 7.89% Securities 56,897 879 6.13% Loans 166,134 3,288 7.86% -------- ------ Total Interest-Earning Assets 286,884 5,438 7.52% Noninterest-Earning Assets 75,981 ------- Total Assets $ 362,865 ========== LIABILITIES Interest-Bearing Deposits $ 150,787 1,524 (a) 4.01% Short-Term and Long-Term Debt 90,976 1,702 7.42% ------- ------ Total Interest-Bearing Liabilities 241,763 3,226 5.29% ------ Noninterest-Bearing Deposits 45,684 Other Noninterest-Bearing Liabilities 52,021 ------- Total Liabilities 339,468 -------- PREFERRED STOCK OF SUBSIDIARY 550 ---- STOCKHOLDERS' EQUITY Preferred Stock 1,166 Common Stockholders' Equity 21,681 ------- Total Stockholders' Equity 22,847 ------- Total Liabilities, Preferred Stock of Subsidiary and Stockholders' Equity $ 362,865 ========== INTEREST RATE SPREAD 2.23% ===== NET INTEREST INCOME AND NET YIELD ON INTEREST-EARNING ASSETS $ 2,212 3.06% ======== ===== NET INTEREST INCOME AND NET YIELD ON INTEREST-EARNING ASSETS (b) $ 2,586 3.36%(a) ======== ===== --------------------------------------------------------------------- Three Months Ended September 30, 1997 ----------------------------------- Average Rate Balance Interest (Annualized) ASSETS Liquid Interest-Earning Assets $ 83,331 $ 1,504 7.16% Securities 45,039 725 6.38% Loans 161,247 3,296 8.11% -------- ------ Total Interest-Earning Assets 289,617 5,525 7.57% Noninterest-Earning Assets 70,697 ------ Total Assets $ 360,314 ========= LIABILITIES Interest-Bearing Deposits $ 139,091 1,714 4.89% Short-Term and Long-Term Debt 108,245 1,735 6.36% -------- ------ Total Interest-Bearing Liabilities 247,336 3,449 5.53% ------ Noninterest-Bearing Deposits 41,935 Other Noninterest-Bearing Liabilities 49,493 ------ Total Liabilities 338,764 ------- PREFERRED STOCK OF SUBSIDIARY 550 --- STOCKHOLDERS' EQUITY Preferred Stock 1,977 Common Stockholders' Equity 19,023 ------ Total Stockholders' Equity 21,000 ------ Total Liabilities, Preferred Stock of Subsidiary and Stockholders' Equity $ 360,314 ========= INTEREST RATE SPREAD 2.04% ===== NET INTEREST INCOME AND NET YIELD ON INTEREST-EARNING ASSETS $ 2,076 2.84% ======== ===== NET INTEREST INCOME AND NET YIELD ON INTEREST-EARNING ASSETS (b) $ 2,395 3.12% ======== ===== ----------------------------------- Nine Months Ended September 30, 1998 ----------------------------------- Average Rate Balance Interest (Annualized) ASSETS Liquid Interest-Earning Assets $ 71,187 $ 4,188 7.86% Securities 56,511 2,668 6.31% Loans 168,128 10,012 7.96% -------- ------- Total Interest-Earning Assets 295,826 16,868 7.62% Total Noninterest-Earning Assets 75,623 ------- Total Assets $ 371,449 ========== LIABILITIES Total Interest-Bearing Deposits $ 151,240 5,123 (a) 4.53% Short-Term and Long-Term Debt 100,300 5,319 7.09% -------- ------ Total Interest-Bearing Liabilities 251,540 10,442 5.55% ------- Noninterest-Bearing Deposits 45,340 Other Noninterest-Bearing Liabilities 51,655 ------- Total Liabilities 348,535 -------- PREFERRED STOCK OF SUBSIDIARY 550 ---- STOCKHOLDERS' EQUITY Preferred Stock 1,365 Common Stockholders' Equity 20,999 ------- Total Stockholders' Equity 22,364 ------- Total Liabilities, Preferred Stock of Subsidiary and Stockholders' Equity $ 371,449 ========== INTEREST RATE SPREAD 2.07% ===== NET INTEREST INCOME AND NET YIELD ON INTEREST-EARNING ASSETS $ 6,426 2.90% ======== ===== NET INTEREST INCOME AND NET YIELD ON INTEREST-EARNING ASSETS (b) $ 7,519 3.20%(a) ======== ===== Nine Months Ended September 30, 1997 ---------------------------------- Average Rate Balance Interest (Annualized) ASSETS Liquid Interest-Earning Assets $ 79,828 $ 4,311 7.22% Securities 44,329 2,190 6.61% Loans 156,942 9,535 8.12% -------- ------ Total Interest-Earning Assets 281,099 16,036 7.63% Total Noninterest-Earning Assets 68,470 ------ Total Assets $ 349,569 ========= LIABILITIES Total Interest-Bearing Deposits $ 135,332 4,797 4.74% Short-Term and Long-Term Debt 103,088 5,077 6.58% -------- ------ Total Interest-Bearing Liabilities 238,420 9,874 5.54% ------ Noninterest-Bearing Deposits 41,302 Other Noninterest-Bearing Liabilities 48,343 ------ Total Liabilities 328,065 ------- PREFERRED STOCK OF SUBSIDIARY 550 --- STOCKHOLDERS' EQUITY Preferred Stock 2,371 Common Stockholders' Equity 18,583 ------ Total Stockholders' Equity 20,954 ------ Total Liabilities, Preferred Stock of Subsidiary and Stockholders' Equity $ 349,569 ========= INTEREST RATE SPREAD 2.09% ===== NET INTEREST INCOME AND NET YIELD ON INTEREST-EARNING ASSETS $ 6,162 2.93% ======== ===== NET INTEREST INCOME AND NET YIELD ON INTEREST-EARNING ASSETS (b) $ 7,075 3.20% ======== ===== (a) Includes $191 million pre-tax income for prior years' tax refunds Tax refund Money back from the government when too much tax has been paid or withheld from a salary. . Excluding this amount, the net yield on interest-earning assets excluding the impact of credit card securitizations would be 3.11% for the 1998 third quarter and 3.12% for the 1998 first nine months. (b) Excludes the impact of the credit card securitizations. Unaudited |
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