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BANK OF NEW YORK COMPANY, INC. REPORTS $1.47 THIRD QUARTER E.P.S., A 46 PCT INCREASE OVER LAST YEAR; $151 MLN NET INCOME A QUARTERLY RECORD

 NEW YORK, Oct. 14 /PRNewswire/ -- The Bank of New York Company, Inc. reported record third quarter net income of $151 million, which compares with net income of $104 million in the third quarter of 1992. Fully diluted earnings per share in the third quarter of 1993 were $1.47 compared with $1.01 per share last year, an increase of 46 percent. Improved operating results at National Community Banks, Inc., which was acquired on August 11, 1993, and has been re-named The Bank of New York NA, National Community Division, contributed to the Company's performance. The Company's results for 1993 and 1992 have been restated to reflect the acquisition, which was accounted for on a pooling-of- interests basis. The tax increase signed into law in August, retroactive to January 1, 1993, reduced earnings for the third quarter by $5 million or 5 cents per share.
 Spreads widened, reflecting a continuing shift in asset mix toward higher yielding assets and a lower level of nonperforming assets. Fee income was strong, especially from credit cards and securities and other processing. A lower provision for loan losses, continued control of operating expenses, and the acquisition of 62 branches of Barclays Bank of New York, N.A. (Barclays) on December 11, 1992, also helped to increase earnings.
 Net income for the first nine months of 1993 was $402 million, a 43 percent increase over the $281 million earned in the first nine months of 1992. Net income was $3.91 per fully diluted share, a 34 percent increase over the $2.92 earned last year. Year-to-date net income for 1993 was affected by pre-tax restructuring charges of $45 million ($30 million after-tax) recorded by National Community Banks in the second quarter.
 Net income for National Community Division was $22 million in the third quarter. While moderate cost savings contributed to the these results, meaningful expense reductions are not expected until the fourth quarter and into 1994. The integration of National Community Division's systems into those of the Company was completed over the Labor Day weekend, and National Community Division's results were accretive to the third quarter's earnings.
 On October 12, the Company's Board of Directors declared a regular quarterly dividend of 45 cents per share of Common Stock and a special dividend of 5 cents per share. If the Company's present favorable earnings trends continue, the Board will consider a change in the quarterly dividend rate in 1994.
 The Company's estimated Tier I capital and total capital ratios were 8.45 percent and 13.24 percent at September 30, compared with 8.24 percent and 13.34 percent at June 30, and 7.14 percent and 11.44 percent at September 30, 1992. Tangible common equity as a percent of total assets was 6.72 percent at September 30, compared with 6.49 percent at June 30, and 5.44 percent one year ago.
 Return on average assets in the third quarter was 1.28 percent - a record for the Company - compared with 1.03 percent in the second quarter of 1993 and .89 percent in the third quarter of 1992.
 Return on average common equity was 15.95 percent in the third quarter, compared with 12.65 percent in the second quarter of 1993, and 11.95 percent in the third quarter of 1992.
 BANK OF NEW YORK COMPANY, INC.
 NONPERFORMING ASSETS
 (dollars in millions)
 Change
 9/30/93 6/30/93 9/30/92 3Q 1993
 vs 3Q 1992
 Loans:
 HLT $ 58 $ 68 $ 117 (50) percent
 Commercial
 Real Estate 71 68 176 (60)
 Other Commercial 130 119 186 (30)
 Foreign 68 76 47 45
 LDC(1) 96 107 121 (21)
 Community Banking 150 177 193 (22)
 Total Loans 573 615 840 (32)
 Other Real Estate 132 164 322 (59)
 Other Assets 14 18 21 (33)
 Total $ 719 $ 797 $1,183 (39)
 Nonperforming
 Asset Ratio 2.4 pct 2.6 pct 3.8 pct
 Allowance/Nonperforming
 Loans 175.2 168.8 123.3
 Allowance/Nonperforming
 Assets 139.6 130.2 87.6 (1) Excludes $117 million of reduced rate Philippine obligations secured by U.S. Treasury bonds.
 Nonperforming assets declined for the ninth consecutive quarter to $719 million from $797 million at June 30. Since their peak level at June 30, 1991, nonperforming assets have declined by $1.3 billion, or 64 percent.
 Nonperforming commercial real estate assets, which include other real estate owned, totaled $203 million at September 30, a $29 million, or 13 percent decrease from $232 million at June 30, and a $295 million, or 59
percent decrease from $498 million one year ago. The acquisition of National Community added $29 million in nonperforming commercial real estate assets. Excluding National Community, nonperforming commercial real estate assets would have declined by $28 million, or 14 percent, to $174 million at September 30, 1993. During the quarter, payoffs were $3 million, sales of properties were $18 million, and charge-offs and writedowns totaled $20 million. Two commercial real estate loans totaling $12 million became nonperforming in the third quarter. Total commercial real estate exposure was approximately 10 percent of total loans at September 30, among the lowest exposures of the major banking companies in the country.
 LOAN LOSS PROVISION AND NET CHARGE-OFFS
 (in millions)
 3rd Quarter 2nd Quarter Year to date
 1993 1993 1993 1992
 Provision $ 55 $ 86 $234 $346
 Net Charge-offs:
 HLT (12) (6) (25) (77)
 Commercial Real Estate (7) (15) (40) (61)
 Other Commercial (19) (2) (53) (88)
 Consumer (31) (36) (103) (120)
 Foreign (2) (35) (39) (17)
 LDC (8) --- (8) ---
 Other (10) (18) (34) (31)
 Total (89) (112) (302) (394)
 Decrease in
 Allowance $(34) $(26) $(68) $(48)
 Other Real Estate
 Expense $ 10 $ 31 $ 49 $ 85
 The total allowance for loan losses, which includes the medium-term LDC allowance, was $1,004 million, or 3.31 percent of loans at September 30, compared with $1,038 million, or 3.43 percent of loans at June 30, 1993.
 NET INTEREST INCOME
 On a taxable equivalent basis, net interest income amounted to $389 million in the third quarter of 1993, compared with $358 million in the same period of 1992, an increase of 9 percent. The net interest rate spread was 3.09 percent in the third quarter of 1993 compared with 3.20 percent in the second quarter and 2.93 percent one year ago. The net yield on interest earning assets was 3.81 percent in the third quarter of 1993 compared with 3.90 percent in the second quarter and 3.61 percent in the same period last year.
 For the first nine months of 1993, net interest income on a taxable equivalent basis was $1,157 million, compared with $1,056 million in the same period of 1992. The year to date net interest rate spread was 3.13 percent in 1993 compared with 2.91 percent in 1992, while the net yield on interest-earning assets was 3.85 percent in 1993 and 3.59 percent in 1992.
 NONINTEREST INCOME
 Noninterest income increased 7 percent to $335 million in the third quarter, compared with $312 million in the same period last year. Strong performance in credit cards and securities and other processing, combined with the Barclays acquisition, contributed significantly to the increase. Year to date noninterest income totaled $1,011 million, compared with $894 million in 1992, an increase of 13 percent. Other noninterest income for the nine months ended September 30, 1993 included a pre-tax gain of $24 million related to the sale of 20 percent of the Company's interest in Wing Hang Bank, Ltd. in Hong Kong during the second quarter.
 Securities gains were $12 million and $27 million in the third quarters of 1993 and 1992; year to date securities gains totaled $60 million in 1993 and $56 million in 1992.
 Third quarter and year to date foreign exchange profits and trading activities totaled $22 million and $64 million in 1993, compared with $16 million and $66 million in 1992.
 TRUST, INVESTMENT, AND PROCESSING FEES
 (dollars in millions)
 3rd 3rd
 Qtr Qtr Yr-to-date
 1993 1992 Change 1993 1992 Change
 Trust and Investment $ 32 $ 29 10 pct $ 97 $ 88 10 pct
 Processing:
 Securities $ 77 $ 70 10 $229 $203 13
 Other 42 37 14 117 105 11
 Total Processing $119 $107 11 $346 $308 12
 In trust and investment, special strength was noted in personal trust. Significant growth in the securities processing area occurred in American depositary receipts, government securities clearance, master trust, mutual fund custody, stock transfer, and corporate trust. In other processing, there was strong performance in funds transfer and deposit services.
 SERVICE CHARGES AND FEES
 Service charges and fees, excluding other processing fees, were $117 million in the third quarter compared with $115 million last year. The Barclays acquisition contributed to the improvement. Strong growth in credit cards also contributed to the rise, as the number of card accounts increased by 24 percent to 4.5 million, and managed outstandings were up by 22 percent to $5.8 billion from one year ago. In the first nine months of 1993, service charges and fees, excluding other processing fees, were $348 million compared with $326 million in 1992.
 NONINTEREST EXPENSE AND INCOME TAXES
 Total noninterest expense was $405 million and $1,238 million in the third quarter and first nine months of 1993 compared with $401 million and $1,129 million in 1992. Furniture and equipment expense declined by 4 percent for the quarter. Other real estate expense decreased to $10 million from $45 million in the third quarter of 1992.
 Salaries increased 9 percent in the third quarter to $149 million from $137 million in the same period last year, and profit sharing increased to $15 million from $10 million. Other employee benefits - primarily incentive compensation and health care expenses - were up 15 percent to $38 million from $33 million in the third quarter of 1992. Post-retirement benefits accrued during the quarter under FAS 106 represented $2.5 million of the increase. The Barclays acquisition contributed significantly to the increase in these costs.
 The effective tax rate for the third quarter of 1993 was 39.8 percent, compared with 33.8 percent for the third quarter of 1992. The effective rate for the first nine months of 1993 was 38.7 percent, compared with 33.6 percent for the same period last year. The increase in the effective tax rate is partially attributable to the increase in the federal tax rate from 34 percent to 35 percent, effective January 1, 1993, as a result of legislation signed into law in August, 1993.
 THE BANK OF NEW YORK COMPANY, INC.
 Financial Highlights
 (Unaudited)
 (Dollars in millions, except per share amounts)
 For the Three Months
 Ended Sept. 30: 1993 1992 Change
 Net Income $151 $104 45.2 pct.
 Per Common Share:
 Primary Earnings $1.56 $1.06 47.2
 Fully Diluted Earnings 1.47 1.01 45.5
 Cash Dividends 0.45 0.38 18.4
 Return on Average Common
 Shareholders' Equity 15.95 pct. 11.95 pct.
 Return on Average Assets 1.28 0.89
 For the Nine Months
 Ended Sept. 30:
 Net Income $402 $281 43.1 pct.
 Per Common Share:
 Primary Earnings $4.12 $3.05 35.1
 Fully Diluted Earnings 3.91 2.92 33.9
 Cash Dividends 1.21 1.14 6.1
 Return on Average Common
 Shareholders' Equity 14.56 pct. 11.81 pct.
 Return on Average Assets 1.16 0.82
 As of Sept. 30:
 Assets $45,544 $46,506 -2.1 pct.
 Loans 30,368 30,394 -0.1
 Securities 5,394 6,465 -16.6
 Deposits - Domestic 23,721 22,721 4.4
 - Foreign 8,002 8,941 -10.5
 Long-Term Debt 1,740 1,551 12.2
 Preferred Shareholders'
 Equity 296 416 -28.8
 Common Shareholders'
 Equity 3,667 3,209 14.3
 Common Shareholders'
 Equity Per Share 38.98 35.22 10.7
 Market Value Per Share
 of Common Stock 56.63 44.00 28.7
 Allowance for Loan Losses
 as a Percent of Loans 3.31 pct. 3.41 pct.
 Tier I Capital Ratio 8.45 7.14
 Total Capital Ratio 13.24 11.44
 Leverage Ratio 7.85 6.98
 Tangible Common
 Equity Ratio 6.72 5.44
 Certain amounts for 1992 have been restated in connection with the adoption of Statement of Financial Accounting Standards No. 109 and for the acquisition of National Community Banks Inc. accounted for as a pooling of interests.
 -0- 10/14/93
 /CONTACT: Michael M. Pascale, VP, 212-495-1041, Pierre S. Brull, VP, 212-495-1721, Rhonda Barnat, AVP, 212-495-1725/
 (BK)


CO: Bank of New York Company, Inc. ST: New York IN: FIN SU: ERN

LG-TW -- NY010 -- 2049 10/14/93 09:15 EDT
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