Printer Friendly

BANK OF NEW YORK REPORTS $1.14 FOURTH QUARTER EPS, UP 43 PERCENT OVER LAST YEAR; $4.23 E.P.S. FOR 1992 COMPARED WITH $1.28 IN 1991;

 NEW YORK, Jan. 14 /PRNewswire/ -- The Bank of New York Company, Inc. (NYSE: BK) today reported fourth quarter net income of $104 million, or $1.14 per fully diluted common share, compared with net income of $66 million, or 80 cents per fully diluted common share in the fourth quarter of 1991. Stronger fee income, wider spreads, continued control of operating expenses, and a lower provision for loan losses contributed to the increase in earnings. The acquisition of substantially all of the business of Barclays Bank of New York, N.A. (Barclays) on December 11 made a small contribution to the increase in earnings.
 Net income for the year ended Dec. 31, 1992 was $369 million, or $4.23 per fully diluted common share, compared with $122 million, or $1.28 per share in 1991. In the first quarter of last year, the company took a $343 million provision for loan losses. The fourth quarter and full year per share amounts for 1992 reflect the issuance of 9.2 million common shares at the end of the second quarter.
 Nonperforming assets decreased by $96 million, or 9 percent to $931 million -- the sixth consecutive quarterly decline. Nonperforming commercial real estate assets decreased by $84 million, or 20 percent to $331 million at December 31. The Barclays acquisition added $54 million to nonperforming assets, which was slightly lower than expected when the transaction was first announced. Without this addition, nonperforming assets would have declined by $150 million, or 15 percent to $877 million. Nonperforming commercial real estate assets would have declined by $101 million, or 24 percent to $314 million without the addition of $17 million from Barclays.
 The nonperforming asset ratio declined to 3.4 percent from 3.6 percent at September 30 and 4.8 percent one year ago. The allowance for loan losses as a percent of nonperforming loans was 139 percent compared with 125 percent at Sept. 30, 1992 and 93 percent at Dec. 31, 1991. The allowance for loan losses as a percent of all nonperforming assets was 108 percent, compared with 93 percent at September 30, and 74 percent one year ago.
 During the quarter the company sold $250 million of 7.88 percent subordinated notes and $115 million of 8.6 percent preferred stock. In addition, the company redeemed $100 million of 12.38 percent debt and $100 million of 9.45 percent preferred stock. These changes contributed to the increase in the company's Tier I capital and total capital ratios to an estimated 7.53 percent and 12.45 percent at December 31, compared with 7.09 percent and 11.58 percent at September 30, and 5.78 percent and 9.56 percent at Dec. 31, 1991.
 Tangible common equity as a percent of total assets was 5.99 percent at December 31, compared with 5.55 percent at September 30, and 4.54 percent one year ago.
 Return on average assets in the fourth quarter was .97 percent, compared with .92 percent in the third quarter and .62 percent in the fourth quarter of 1991.
 Return on average common equity was 12.42 percent this quarter compared with 11.87 percent in the third quarter and 9.12 percent in the fourth quarter of last year.
 THE BANK OF NEW YORK COMPANY, INC.
 Nonperforming Assets
 (dollars in millions)
 Percent Change
 12/31/92 9/30/92 12/31/91 4Q 1992 vs.
 4Q 1991
 Loans:
 HLT $ 92 $ 117 $ 175 (47)
 Commercial Real Estate 143 176 269 (47)
 Other Commercial 139 186 357 (61)
 Foreign 89 47 98 ( 9)
 LDC 109 121 48 127
 Other 150 120 140 7
 Total Loans 722 767 1,087 (34)
 Other Real Estate 188 239 267 (30)
 Other Assets 21 21 -- --
 Total $ 931 $1,027 $1,354 (31)
 Nonperforming Asset Ratio
 (As a percent) 3.4 3.6 4.8
 Allowance/Nonperforming
 Loans (As a percent) 138.9 125.2 92.7
 Allowance/Nonperforming
 Assets (As a percent) 107.7 93.5 74.4
 Total nonperforming assets decreased by $96 million this quarter, or 9 percent. The acquisition of Barclays added $51 million of nonperforming loans and $3 million of other real estate. Since their peak level at June 30, 1991, nonperforming assets have declined by $917 million, or 50 percent. Nonperforming loan balances exclude $117 million of below-market-rate Republic of the Philippines obligations secured by zero coupon U.S. Treasury bonds with comparable maturities.
 Highly leveraged transaction (HLT) nonperforming loans decreased by $25 million from September 30. The change was the result of $8 million in payments and $23 million in sales and charge-offs, which was partially offset by $6 million that was placed on nonaccrual status.
 Nonperforming commercial real estate assets, which include other real estate owned, totaled $331 million at December 31, an $84 million, or 20 percent decrease from $415 million at September 30, and a $205 million, or 38 percent decrease from $536 million one year ago. During the quarter, payoffs were $5 million, sales of nine properties were $61 million, returns to accrual status were $30 million, and charge-offs and writedowns totaled $34 million. These reductions were partially offset by additions of one medium and one small property totaling $29 million, and $17 million from Barclays. Total commercial real estate exposure was approximately 6 percent of total loans at December 31, among the lowest exposures of the major banking companies in the country.
 The increase in other nonperforming loans is attributable to the acquisition of Barclays. The increase in foreign nonperforming loans is primarily attributable to a $35 million loan in Australia.
 THE BANK OF NEW YORK COMPANY, INC.
 Loan Loss Provision and Net Charge-Offs
 (In millions)
 4th Quarter 3rd Quarter 4th Quarter Year
 1992 1992 1991 1992 1991
 Provision $ 93 $ 95 $135 $427 $746
 Regular Net Charge-offs:
 HLT (12) (11) (46) (89) (174)
 Commercial Real
 Estate (29) (18) (52) (90) (165)
 Other Commercial (21) (23) (54) (109) (130)
 Consumer (33) (38) (43) (154) (201)
 Foreign 7 (11) (23) (10) (28)
 Other (7) (4) (5) (26) (17)
 Total ( 95) (105) (223) (478) (715)
 Transfer from
 Medium-Term
 LDC Allowance
 to Regular
 Allowance -- -- 30 -- 50
 Acquisitions and
 (Dispositions) 56 -- -- 56 (28)
 Increase (Decrease) in
 Regular Allowance $ 54 $(10) $(58) $ 5 $ 53
 Medium-Term LDC Net
 (Charge-offs)
 Recoveries $(12) $ -- $ -- $ (11) $(33)
 Other Real Estate
 Expense 11 33 23 73 80
 The total allowance for loan losses, which includes the medium-term LDC allowance, was $1,003 million, or 3.66 percent of loans, compared with $960 million, or 3.40 percent of loans at Sept. 30, 1992. At Dec. 31, 1992, the medium-term LDC loan loss allowance was $124 million, or 73 percent of total medium-term LDC loans. Charge-offs of medium-term LDC loans were primarily related to Yugoslavia.
 Highly Leveraged Transactions
 (dollars in millions)
 12/31/92 Percent 9/30/92 Percent 12/31/91 Percent
 change change change
 Other $ 878 53 $1,112 57 $1,659 51
 Communications 780 47 851 43 1,581 49
 Total $1,658 100 $1,963 100 $3,240 100
 Total HLT loans declined by $305 million from Sept. 30, 1992, reflecting reductions from sales and charge-offs ($19 million), delistings ($38 million), paydowns ($167 million), and payoffs ($112 million). These reductions were offset by drawdowns of $31 million.
 Net Interest Income
 On a taxable equivalent basis, net interest income amounted to $342 million in the fourth quarter of 1992, compared with $298 million in the same period of 1991. The net interest rate spread widened to 2.93 percent in the fourth quarter of 1992 from 2.88 percent in the third quarter and 2.43 percent one year ago. The net yield on interest earning assets rose to 3.63 percent in the fourth quarter of 1992 from 3.54 percent in the third quarter and 3.26 percent last year.
 For the full year net interest income on a taxable equivalent basis was $1,286 million, compared with $1,273 million in the same period of 1991. The net interest rate spread was 2.86 percent in 1992 compared with 2.49 percent in 1991, while the net yield on interest-earning assets was 3.55 percent in 1992 and 3.43 percent in 1991.
 The higher net interest rate spread was offset by the effect of credit card securitizations in 1991. Excluding the effect of credit card securitization, net interest income would have been $4 million higher in the fourth quarter compared with one year ago, and $85 million higher for the year compared with last year.
 Noninterest Income
 Noninterest income increased 9 percent to $1,133 million for 1992, compared with $1,036 million in 1991. For the fourth quarter, noninterest income was $278 million, compared with $296 million in the same period last year.
 Securities losses were $14 million in the fourth quarter of 1992 compared with a gain of $38 million in the fourth quarter of 1991. In the fourth quarter of 1992, the company wrote down its investment in Northeast Bancorp, Inc. by $31 million. Securities gains for the year totaled $42 million and $80 million in 1992 and 1991, respectively.
 Trust, Investment, and Processing Fees
 (dollars in millions)
 1992 1991 Percent Change
 Trust and Investment $113 $108 5
 Processing:
 Securities $273 $242 13
 Other 132 113 17
 Total Processing $405 $355 14
 In trust and investment, special strength was noted in personal trust. Significant growth in the securities processing area occurred in securities lending, mutual fund custody, stock transfer, government securities clearance, and corporate trust. In other processing, particular strength was shown in funds transfer and trade finance.
 Service charges and fees, exclusive of other processing fees, grew by 6 percent to $116 million in the fourth quarter from $109 million last year. For the year service charges and fees, exclusive of other processing fees, grew by 15 percent to $426 million from $370 million in 1991. The Barclays acquisition made a modest contribution to the increase in service charge fees. Syndication fees also increased strongly in the fourth quarter compared with a year ago. Compared with the prior periods, 1992 noninterest revenues were decreased by approximately $1 million for the quarter and increased by approximately $22 million for the year as a result of the credit card securitizations.
 Fourth quarter and full year foreign exchange profits and trading activities totaled $28 million and $94 million in 1992, compared with $20 million and $71 million in 1991.
 Noninterest Expense and Income Taxes
 Total noninterest expense was $1,371 million in 1992 compared with $1,311 in 1991, an increase of 5 percent. Furniture and equipment expense declined by 9 percent to $87 million for the year, and occupancy expense declined by 6 percent to $149 million. Other real estate expense also decreased, by 9 percent to $73 million from $80 million in 1991. Salaries increased 4 percent in 1992 to $510 million from $489 million in 1991, and profit sharing increased to $42 million from $15 million. Other employee benefits -- primarily incentive compensation and health care expenses -- were up 29 percent to $116 million from $90 million in 1991. The Barclays acquisition was a modest factor in the increase in noninterest expense.
 The effective tax rate for 1992 was 34.0 percent, compared with 31.1 percent for the same period last year. For 1991, the company's effective tax rate was influenced by the first quarter's significant provision for loan losses, which was fully tax-effected.
 THE BANK OF NEW YORK COMPANY, INC.
 Financial Highlights
 (Dollars in millions, except per share amounts, unaudited)
 Three months ended Dec. 31 1992 1991 Pct. Change
 Net income $104 $ 66 57.6
 Per common share:
 Primary earnings 1.20 0.82 46.3
 Fully diluted earnings 1.14 0.80 42.5
 Cash dividends 0.38 0.38 --
 Return on average common
 shareholders' equity 12.42 pct. 9.12 pct.
 Return on average assets 0.97 0.62
 Twelve months ended Dec. 31
 Net income $369 $122 --
 Per common share:
 Primary earnings $4.45 $1.28 --
 Fully diluted earnings 4.23 -- --
 Cash dividends 1.52 1.67 (9.0)
 Return on average common
 shareholders' equity 11.95 3.61 --
 Return on average assets 0.88 0.29
 As of Dec. 31
 Assets $40,909 $39,426 3.8
 Loans 27,391 27,996 (2.2)
 Securities 4,648 3,773 23.2
 Medium - term LDC loans 170 212 (19.8)
 Reserve for medium - term LDC loans 124 135 (8.1)
 Deposits - Domestic 20,906 18,915 10.5
 - Foreign 8,543 10,059 (15.1)
 Long-term debt 1,701 1,128 50.8
 Preferred shareholders' equity 400 395 1.3
 Common shareholders' equity 3,115 2,507 24.3
 Common shareholders' equity per share 38.21 35.34 8.1
 Market value per share of common stock 53.88 30.88 74.5
 Allowance for loan losses as a
 percent of loans 3.66 pct. 3.60 pct.
 Tier I capital ratio 7.53 5.78
 Total capital ratio 12.45 9.56
 Leverage ratio 7.31 6.30
 Tangible common equity ratio 5.99 4.54
 -0- 1/14/93
 /CONTACT: Michael M. Pascale, vice president, 212-495-1041, or Pierre S. Brull, vice president, 212-495-1721, or Margaret Southerland, assistant vice president, 212-495-1725, all of The Bank of New York Company, Inc./
 (BK)


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

TS -- NY008 -- 4733 01/14/93 09:24 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 14, 1993
Words:2238
Previous Article:FIRST CHICAGO REPORTS FOURTH QUARTER EARNINGS OF $136.6 MM WITH STRONG VENTURE CAPITAL APPRECIATION
Next Article:LYNNE V. CHENEY ELECTED TO READER'S DIGEST BOARD
Topics:


Related Articles
MAY DEPARTMENT STORES REPORTS E.P.S. INCREASE OF 3 PERCENT TO $3.87 FOR FY1991; 17TH CONSECUTIVE RECORD YEAR; FOURTH QUARTER E.P.S. UP 5 PERCENT
BANK OF NEW YORK REPORTS $1.05 SECOND QUARTER EPS, A 40 PERCENT INCREASE OVER LAST YEAR; TOTAL NONPERFORMING ASSETS DECLINE BY $186M, 14 PERCENT
CAPITAL BANCORP REPORTS 75 PERCENT INCREASE IN SECOND-QUARTER EARNINGS
THE BANK OF NEW YORK COMPANY, INC. REPORTS $1.07 THIRD QUARTER EARNINGS PER SHARE, A 49 PERCENT INCREASE OVER LAST YEAR
INVESTORS SAVINGS CORP.'S THIRD QUARTER EARNINGS UP 67 PERCENT FROM PRIOR YEAR
NORTHSTAR COMPUTER FORMS REPORTS RECORD FOURTH QUARTER AND YEAR END SALES
SOCIETY CORPORATION REPORTS RECORD ANNUAL EARNINGS AND IMPROVED CREDIT QUALITY
RYAN'S FAMILY STEAK HOUSES, INC. REPORTS RECORD FOURTH QUARTER AND FISCAL 1992 RESULTS
DOMINION RESOURCES ANNOUNCES DECREASED EARNINGS FOR 1992 DESPITE STRONG FOURTH QUARTER
Chrysler Reports 1997 Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters