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BANKERS TRUST EARNINGS RISE 87 PERCENT TO RECORD $310 MILLION

 NEW YORK, Oct. 21 /PRNewswire/ -- Bankers Trust New York Corporation (NYSE: BT) earned a record $310 million for the quarter ended Sept. 30, 1993, up $144 million, or 87 percent, from the $166 million earned in last year's third quarter. Earnings per share were a record $3.71, up 95 percent from $1.90 a year ago. The corporation's return on average common equity was 30 percent for the quarter.
 "This quarter's record results demonstrated again that the creativity and persistence of our employees in executing our business strategy is gaining broad recognition among clients and producing superior results for shareholders," said Chairman Charles S. Sanford, Jr. "Central to that strategy is the provision of advice and products that assist clients in the management of risk, which accounted for the majority of the increase in trading revenue and was reflected in virtually all our business lines. Total revenue increased 43 percent from a year ago, as the trading results were accompanied by strong performances in fiduciary and funds management, securities underwriting, loan and lease syndication and our transaction processing businesses," Mr. Sanford added.
 Net Interest Revenue
 Fully taxable net interest revenue was $364 million, up $52 million, or 17 percent, from the third quarter of 1992. The quarterly increase once again was attributable to substantially higher trading-related net interest generated by the firm's interest rate and currency arbitrage activities. A 13 percent increase in average interest-earning assets from the third quarter of 1992 was driven by a 57 percent increase in debt securities positions (primarily U.S. Treasuries and other sovereign bonds) in the trading account.
 Noninterest Revenue
 Record total trading revenue of $431 million increased by $187 million, or 77 percent, from the third quarter of 1992 and by $26 million from the previous record total, reported last quarter. The continued fall of worldwide interest rates, as well as periods of high volatility in European currency and interest rate markets, provided opportunities for both the firm's client risk management and proprietary trading businesses to post significantly higher trading results than in the year-ago quarter. While there was continued strong performance from interest rate and currency derivative products provided to customers, particularly strong growth occurred in both equity derivatives and sovereign bond trading.
 Fiduciary and funds management revenue totaled a record $183 million for the third quarter, up $35 million, or 24 percent, from the same period last year. Increased rv?enue from many of the firm's fiduciary activities, reflecting mainly new business in retirement services and private banking, was accompanied by higher performance-based funds management fees.
 Fees and commissions of $198 million were $33 million higher than in the third quarter of 1992. Corporate finance fees of $119 million, included therein, increased by $21 million to their highest level in four years, led by higher revenue from securities underwriting and loan and lease syndication activities, as market conditions continued to lead clients to restructure their balance sheets. The $12 million increase in all other fees and commissions related mainly to a number of the firm's client transaction processing activities.
 Other noninterest revenue totaled $114 million, up $76 million from the prior year's quarter. This increase was driven by a $62 million rise in net revenue from equity investment transactions. In addition, the corporation recorded a lower level of losses from the revaluation of non-trading foreign currency positions.
 Noninterest Expenses
 Total noninterest expenses of $789 million increased by $189 million from the third quarter of 1992. This increase was due mostly to higher incentive compensation recorded in connection with the improved results.
 Personnel related expenses increased 45 percent from the year- earlier period, to $502 million. Incentive compensation and employee benefits expense increased $143 million, or 78 percent, reflecting the higher incentive compensation. Salaries expense increased $13 million, or 8 percent, from the third quarter of 1992. The average number of employees increased by 7 percent over the same period.
 All other expenses totaled $287 million for the quarter, up $33 million, or 13 percent, from last year's third quarter. Increases were recorded in a variety of expense categories and were generally driven by higher levels of business activity. Agency personnel fees, travel and entertainment, and telecommunications accounted for approximately one- half of the increase. Other real estate expense also increased, as the corporation recorded a modest net expense in the current quarter, versus a net gain a year ago.
 Asset Quality
 The provision for credit losses for the quarter was $17 million, compared with $45 million in the prior year's third quarter. Net charge-offs for the quarter were $33 million, down from $48 million a year ago.
 Cash basis loans declined by $68 million, or 6 percent, to $1.127 billion during the third quarter. Total nonperforming assets, including renegotiated loans, declined for the seventh consecutive quarter, to $2.050 billion. The allowance for credit losses at Sept. 30, 1993 was $1.485 billion, representing 132 percent of cash basis loans.
 Income Taxes
 The effective tax rate for the quarter increased to 33 percent, from 31 percent in last year's third quarter due in part to tax law changes.
 Nine Months Results
 For the first nine months of 1993, the corporation's earnings before the cumulative effects of accounting changes totaled a record $791 million, compared with $506 million a year earlier, for an increase of 56 percent. On the same basis, earnings per share were $9.37, compared with $5.83, up 61 percent. The corporation's return on average common equity for the first nine months of 1993 was 27 percent, also excluding the cumulative effects of accounting changes.
 Adoption of Accounting Standards
 As previously reported, in the first quarter of 1993, the corporation adopted accounting standards for income taxes (SFAS 109), postretirement benefits other than pensions (SFAS 106) and postemployment benefits (SFAS 112). The corporation adopted SFAS 109 retroactively to Jan. 1, 1992, resulting in the restatement of earnings for each quarter of 1992.
 Capital
 Common stockholders' equity of $4.037 billion at Sept. 30, 1993 was up $201 million from June 30, 1993, primarily due to the retention of earnings.
 The corporation estimated that its ratios of Tier 1 capital and total capital to risk-adjusted assets were approximately 8.15 percent and 14.10 percent, respectively, at Sept. 30, 1993. The leverage ratio was 6.05 percent at that same date.
 BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
 Financial Statistics
 (unaudited, dollars in millions, except per share data)
 Second
 Third Quarter Quarter Nine Months
 1993 1992 1993 1993 1992
 Income before cumulative
 effects of accounting
 changes $310 $166 $251 $791 $506
 Cumulative effects of
 accounting changes -- -- -- (75) 446
 Net income $310 $166 $251 $716 $952
 Per common share:
 Income before cumulative
 effects of accounting
 changes $3.71 $1.90 $2.97 $8.46 $5.83
 Cumulative effects
 of accounting
 changes -- -- -- (.91) 5.38
 Net income $3.71 $1.90 $2.97 $8.46 $11.21
 Cash dividends declared $.78 $.70 $.78 $2.34 $2.10
 Book value (A) $48.38 $43.51 $45.66
 Profitability ratios
 (in percent)
 Return on average
 common stockholders'
 equity 30.37 17.28 26.07 N/M N/M
 - Excluding cumulative
 effects of accounting
 changes (B) 29.81 19.69 25.56 26.65 20.96
 Return on average
 total assets 1.38 .83 1.16 N/M N/M
 - Excluding cumulative
 effects of accounting
 changes (B) 1.38 .84 1.16 1.24 .91
 Net interest revenue
 (fully taxable basis) $364 $312 $319 $998 $787
 Average rates (fully
 taxable basis)
 (in percent)
 Yield on interest-
 earning assets 5.94 6.09 5.50 5.77 6.40
 Cost of interest-bearing
 liabilities 4.56 4.89 4.33 4.47 5.32
 Interest rate spread 1.38 1.20 1.17 1.30 1.08
 Net interest margin 1.80 1.75 1.61 1.73 1.59
 Average balances
 Loans $15,183 $16,366 $15,593 $15,681 $16,674
 Total interest-
 earning assets 80,121 71,077 79,268 76,936 65,948
 Total assets 89,216 79,149 86,752 85,114 74,755
 Total interest-
 bearing
 liabilities 72,625 63,195 71,210 69,574 59,540
 Common stockholders'
 equity 3,984 3,638 3,785 3,808 3,524
 Total stockholders'
 equity 4,234 4,138 4,043 4,126 4,024
 At end of period
 Common stockholders'
 equity to total
 assets (in percent) 4.77 4.92 4.57
 Total stockholders'
 equity to total
 assets 5.07 5.59 4.87
 Risk-based capital ratios
 (1992 year-end guidelines)
 (in percent)
 Tier 1 capital (C) 8.15 7.01 8.12
 Total capital (C) 14.10 12.64 14.10
 Leverage Ratio 6.05 5.99 5.84
 Employees 13,573 12,605 13,406
 NOTES:
 N/M Not meaningful.
 (A) This calculation includes the effect of common shares issuable under deferred stock awards.
 (B) In each case, the cumulative effects of accounting changes have been excluded from the returns for their respective years of adoption.
 (C) Amounts at Sept. 30, 1993 are preliminary.
 BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
 Financial Statistics Continued
 ?(unaudited, dollars in millions)
 Sept. 30, Sept. 30, June 30,
 1993 1992 1993
 Nonperforming assets
 Cash basis loans
 Secured by real estate $ 509 $ 573 $ 564
 Real estate related 56 75 59
 Highly leveraged 222 498 210
 Other nonrefinancing country 155 133 173
 Refinancing country 185 222 189
 Total cash basis loans $1,127 $1,501 $1,195
 Renegotiated loans
 Mexican government
 Par Bonds $461 $611 $461
 Other 22 46 38
 Total renegotiated loans $483 $657 $499
 Other nonperforming assets
 Other real estate $295 $289 $298
 Other assets 145 100 153
 Total other nonperforming assets $440 $389 $451
 Third Quarter Nine Months
 1993 1992 1993 1992
 Allowance for credit losses
 Balance, beginning of
 period $1,501 $1,655 $1,620 $1,806
 Net charge-offs
 Charge-offs 55 61 260 256
 Recoveries 22 13 55 44
 Total net charge-offs(D) 33 48 205 212
 Losses on sales and swaps
 of refinancing country loans -- -- -- 117
 Total net charges to the
 allowance 33 48 205 329
 Provision for credit losses 17 45 70 175
 Balance, Sept. 30 $1,485 $1,652 $1,485 $1,652
 NOTE:
 (D)Components:
 Secured by real estate $ 26 $16 $ 76 $ 50
 Real estate related 1 22 2 27
 Highly leveraged (1) 20 16 63
 Other nonrefinancing country 19 (3) 119 51
 Refinancing country (12) (7) (8) 21
 Total $ 33 $48 $205 $212
 BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
 Consolidated Statement Of Income
 (unaudited, in millions, except per share data)
 Three months ended Increase
 Sept. 30, 1993 1992 (Decrease)
 Net interest revenue:
 Interest revenue $1,177 $1,072 $105
 Interest expense 835 776 59
 Net interest revenue 342 296 46
 Provision for credit losses 17 45 (28)
 Net interest revenue after
 provision for credit losses 325 251 74
 Noninterest revenue:
 Trading 431 244 187
 Fiduciary and funds management 183 148 35
 Fees and commissions 198 165 33
 Investment securities gains
 (losses) 3 (5) 8
 Other 114 38 76
 Total noninterest revenue 929 590 339
 Noninterest expenses:
 Salaries 176 163 13
 Incentive compensation and
 employee benefits 326 183 143
 Occupancy, net 40 39 1
 Furniture and equipment 37 33 4
 Other 210 182 28
 Total noninterest expenses 789 600 189
 Income before income taxes 465 241 224
 Income taxes 155 75 80
 Net income $ 310 $ 166 $144
 Net income applicable to
 common stock $ 305 $ 158 $147
 Net income per common share $3.71 $1.90 $1.81
 Cash dividends declared per
 common share $.78 $.70 $.08
 Average common shares
 outstanding 82.159 83.003 (.844)
 BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
 Consolidated Statement Of Income
 (unaudited, in millions, except per share data)
 Nine months ended Increase
 Sept. 30, 1993 1992 (Decrease)
 Net interest revenue:
 Interest revenue $3,265 $3,124 $ 141
 Interest expense 2,324 2,373 (49)
 Net interest revenue 941 751 190
 Provision for credit losses 70 175 (105)
 Net interest revenue after
 provision
 for credit losses 871 576 295
 Noninterest revenue:
 Trading 1,182 795 387
 Fiduciary and funds management 518 490 28
 Fees and commissions 518 444 74
 Investment securities gains 15 4 11
 Other 262 134 128
 Total noninterest revenue 2,495 1,867 628
 Noninterest expenses:
 Salaries 508 467 41
 Incentive compensation and
 employee benefits 910 559 351
 Occupancy, net 114 111 3
 Furniture and equipment 105 96 9
 Other 582 491 91
 Total noninterest expenses 2,219 1,724 495
 Income before income taxes
 and cumulative effects of
 accounting changes 1,147 719 428
 Income taxes 356 213 143
 Income before cumulative
 effects of accounting changes 791 506 285
 Cumulative effects of
 accounting changes (75) 446 (521)
 Net income $ 716 $ 952 $(236)
 Net income applicable
 to common stock $ 699 $ 929 $(230)
 Per common share:
 Income before cumulative
 effects of accounting
 changes $9.37 $ 5.83 $ 3.54
 Cumulative effects of
 accounting changes (.91) 5.38 (6.29)
 Net income $8.46 $11.21 $(2.75)
 Cash dividends declared $2.34 $2.10 $.24
 Average common shares
 outstanding 82.625 82.892 (.267)
 BANKERS TRUST NEW YORK CORPORATION AND SUBSIDIARIES
 Consolidated Balance Sheet
 (unaudited, dollars in millions, except par value)
 Sept. 30, 1993 Dec. 31, 1992
 ASSETS
 Cash and due from banks $ 1,743 $ 1,384
 Interest-bearing deposits with banks 2,510 3,142
 Federal funds sold 53 438
 Securities purchased under
 resale agreements 8,250 6,745
 Securities borrowed 1,540 3,166
 Trading account assets 43,613 29,908
 Investment securities
 At market 952 852
 At lower of aggregate
 cost or market
 (market value: 1993,
 $5,557; 1992, $5,462) 5,493 5,363
 Total investment securities 6,445 6,215
 Loans 15,207 17,318
 Allowance for credit losses (1,485) (1,620)
 Premises and equipment, net 717 660
 Due from customers on acceptances 522 276
 Accrued interest receivable 926 681
 Other assets 4,550 4,573
 Total $84,591 $72,886
 LIABILITIES
 Deposits
 Noninterest-bearing
 In domestic offices $ 2,871 $ 3,379
 In foreign offices 630 827
 Interest-bearing
 In domestic offices 6,408 6,809
 In foreign offices 12,469 14,056
 Total deposits 22,378 25,071
 Securities sold, not yet purchased 6,704 5,127
 Securities sold under
 repurchase agreements 22,136 17,451
 Other short-term borrowings 16,994 11,779
 Acceptances outstanding 522 276
 Accrued interest payable 284 328
 Other liabilities 5,709 4,741
 Long-term debt 5,327 3,992
 Total liabilities 80,054 68,765
 Preferred stock of subsidiary 250 --
 Stockholders' equity
 Preferred stock 250 500
 Common stock, $1 par value
 Authorized, 300,000,000 shares
 Issued, 83,678,973 shares 84 84
 Capital surplus 1,317 1,306
 Retained earnings 3,031 2,552
 Common stock in treasury,
 at cost: 1993, 2,155,299
 shares; 1992, 804,985 shares (162) (52)
 Other (233) (269)
 Total stockholders' equity 4,287 4,121
 Total $84,591 $72,886
 -0- 10/21/93
 /CONTACT: Kenneth A. Brause, 212-454-1120, or Thomas A. Parisi, 212-454-1686, both of Bankers Trust Corporation/
 (BT)


CO: Bankers Trust New York Corporation ST: New York IN: FIN SU: ERN

LD -- NY010 -- 4983 10/21/93 08:49 EDT
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