Printer Friendly

THE BANK OF NEW YORK COMPANY, INC. REPORTS RECORD FOURTH QUARTER AND FULL YEAR NET INCOME AND E.P.S.; FOURTH QUARTER NET INCOME

 NEW YORK, Jan. 13 /PRNewswire/ -- The Bank of New York Company, Inc. (NYSE: BK) reported record fourth quarter net income of $157 million, which compares with net income of $112 million in the fourth quarter of 1992. Fully diluted earnings per share in the fourth quarter of 1993 were a record $1.53 compared with $1.08 per share last year, an increase of 42%. Spreads widened, reflecting a continuing shift in asset mix toward higher yielding loans 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 and continued control of operating expenses contributed to higher earnings. In addition, the acquisition of 62 branches from Barclays Bank of New York, N.A. (Barclays) in December 1992, and improved performance at the 105-branch National Community Banks, helped to increase earnings.
 Net income for the full year 1993 was a record $559 million, a 42% increase over the $393 million earned in 1992. Net income was a record $5.44 per fully diluted share, a 36% increase over the $4.00 earned last year. 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.
 The Company's estimated Tier I capital and total capital ratios were 8.77% and 13.51% at Dec. 31, 1993 compared with 8.51% and 13.33% at Sept. 30, and 7.59% and 12.30% at Dec. 31, 1992. Tangible common equity as a percent of total assets was 7.00% at Dec. 31, 1993 compared with 6.72% at Sept. 30 and 5.83% one year ago.
 Return on average assets in the fourth quarter was 1.32% - a record for the Company - compared with 1.28% in the third quarter of 1993 and .94% in the fourth quarter of 1992. Return on average assets for the full year 1993 was 1.20% - also a record for the Company - compared with .85% for 1992.
 Return on average common equity was 16.16% in the fourth quarter of 1993 compared with 15.95% in the third quarter and 12.52% in the fourth quarter of 1992. Return on average common equity was 14.98% for the full year compared with 12.00% for 1992.
 THE BANK OF NEW YORK COMPANY, INC.
 Nonperforming Assets
 (Dollars in Millions)
 Change
 12/31/93 vs.
 12/31/93 9/30/93 12/31/92 12/31/92
 Loans:
 HLT $ 52 $ 58 $ 92 (43)%
 Commercial Real
 Estate 72 71 143 (50)
 Other Commercial 130 130 139 (6)
 Foreign 34 68 89 (62)
 LDC(1) 96 96 109 (12)
 Community Banking 156 150 216 (28)
 Total Loans 540 573 788 (31)
 Other Real Estate 85 132 247 (66)
 Other Assets 14 14 21 (33)
 Total $ 639 $ 719 $1,056 (39)
 Nonperforming
 Asset Ratio 2.1% 2.4% 3.6%
 Allowance/
 Nonperforming
 Loans 179.6 175.2 136.0
 Allowance/
 Nonperforming
 Assets 151.8 139.6 101.5
 (A) Excludes $117 million of reduced rate Philippine obligations secured by U.S. Treasury bonds.
 Nonperforming assets declined for the tenth consecutive quarter to $639 million from $719 million at Sept. 30, a decrease of 11%. For the full year, nonperforming assets declined by $417 million or 39%.
 Nonperforming commercial real estate assets, which include other real estate owned, declined to $157 million at Dec. 31, a $46 million, or 23% decrease from $203 million at Sept. 30, primarily due to sales of four properties totaling $25 million. In the fourth quarter only $2 million of nonperforming real estate loans were added. For the year, nonperforming commercial real estate assets declined by $233 million or 60%.
 LOAN LOSS PROVISION AND NET CHARGE-OFFS
 (in millions)
 4th 3rd
 Quarter Quarter Year to date
 1993 1993 1993 1992
 Provision $ 50 $ 55 $ 284 $ 443
 Regular Net Charge-offs:
 HLT 2 (12) (23) (89)
 Commercial Real Estate (30) (7) (70) (90)
 Other Commercial (6) (19) (59) (109)
 Consumer (40) (31) (143) (154)
 Foreign (6) (2) (45) (10)
 LDC --- (8) (8) (11)
 Other (5) (10) (39) (48)
 Total (85) (89) (387) (511)
 Acquisitions 1 --- 1 56
 Decrease in Regular
 Allowance $ (34) $ (34) $(102) $(12)
 Other Real Estate
 Expense $ 4 $ 10 $ 53 $106
 The allowance for loan losses was $970 million, or 3.17% of loans at Dec. 31, compared with $1,004 million, or 3.31% of loans at Sept. 30, 1993.
 NET INTEREST INCOME
 On a taxable equivalent basis, net interest income amounted to $392 million in the fourth quarter of 1993, compared with $377 million in the same period of 1992, an increase of 4%. The net interest rate spread was 3.12% in the fourth quarter of 1993 compared with 3.09% in the third quarter and 2.95% one year ago. The net yield on interest earning assets was 3.83% in the fourth quarter of 1993 compared with 3.81% in the third quarter and 3.67% in the same period last year.
 For the full year, net interest income on a taxable equivalent basis was $1,550 million, compared with $1,434 million in the same period of 1992. The year to date net interest rate spread was 3.12% in 1993 compared with 2.91% in 1992, while the net yield on interest-earning assets was 3.84% in 1993 and 3.61% in 1992.
 There was continued strong performance in credit cards, as the number of card accounts increased by 22% to 4.8 million and managed outstandings were up by 19% to $6.2 billion from one year ago. The spread and yield modestly benefited from the start in November of the amortization phase of the Company's credit card securitization. This phase will continue through March 1995 and return $1.35 billion of credit card loans to the balance sheet.
 NONINTEREST INCOME
 Noninterest income increased 6% to $307 million in the fourth quarter, compared with $290 million in the same period last year. Noninterest income totaled $1,319 million in 1993, compared with $1,185 million in 1992, an increase of 11%.
 Trust, investment, and processing fees were $154 million for the quarter, an $11 million, or 8% increase over the fourth quarter of last year. The Barclays acquisition also contributed to the increase in noninterest income.
 Securities gains and foreign exchange profits and trading activities were $18 million in the fourth quarter of 1993 compared with $14 million in the same period last year. For the full year, securities gains and foreign exchange profits and trading activities were $143 million in 1993 and $136 million in 1992.
 TRUST, INVESTMENT, AND PROCESSING FEES
 (dollars in millions)
 4th 4th
 Qtr Qtr Year to date
 1993 1992 Change 1993 1992 Change
 Trust and
 Investment $ 34 $ 29 17% $ 131 $ 118 11%
 Processing:
 Securities $ 78 $ 70 11 $ 307 $ 273 12
 Other 42 44 (5) 161 148 9
 Total Processing $120 $ 114 5 $ 468 $ 421 11
 During the year, special strength was noted in institutional investment management. 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.
 SERVICE CHARGES AND FEES
 Service charges and fees, excluding other processing fees, were $115 million in the fourth quarter of 1993, compared with $114 million in the fourth quarter of last year. In the fourth quarter, noninterest income attributable to the Company's credit card securitization was $2 million less than the comparable period of last year due in part to these assets starting to return to the balance sheet. For the year, service charges and fees, excluding other processing fees, were $460 million, compared with $442 million in 1992. Strong growth in credit cards contributed to the full year rise.
 NONINTEREST EXPENSE AND INCOME TAXES
 Total noninterest expense was $409 million and $1,646 million in the fourth quarter and full year compared with $390 million and $1,519 million in 1992. Other real estate expense decreased to $4 million from $21 million in the fourth quarter of 1992.
 Salaries increased 6% in the fourth quarter to $149 million from $140 million in the same period last year, and profit sharing increased to $16 million from $11 million. The Barclays acquisition contributed significantly to the increase in these costs. Furniture and equipment expenses and other employee benefits - primarily incentive compensation and health care expenses - were unchanged from the fourth quarter of last year.
 The effective tax rate for the fourth quarter of 1993 was 31.4% compared with 32.1% for the fourth quarter of 1992. The effective rate for the full year was 36.9% compared with 33.2% for the same period last year.
 THE BANK OF NEW YORK COMPANY, INC.
 Financial Highlights
 (Unaudited)
 (Dollars in millions, except per share amounts)
 For the Three Months Ended Dec. 31 1993 1992 Change
 Net Income $157 $112 40.2%
 Per Common Share:
 Primary Earnings $1.62 $1.13 43.4
 Fully Diluted Earnings 1.53 1.08 41.7
 Cash Dividends 0.50 0.38 31.6
 Return on Average Common
 Shareholders' Equity 16.16% 12.52%
 Return on Average Assets 1.32 0.94
 For the 12 Months Ended Dec. 31
 Net Income $559 $393 42.2%
 Per Common Share:
 Primary Earnings $5.74 $4.19 37.0
 Fully Diluted Earnings 5.44 4.00 36.0
 Cash Dividends 1.71 1.52 12.5
 Return on Average Common
 Shareholders' Equity 14.98% 12.00%
 Return on Average Assets 1.20 0.85
 As of Dec. 31:
 Assets $45,552 $45,210 0.8%
 Loans 30,570 29,497 3.6
 Securities 5,597 5,900 -5.1
 Deposits - Domestic 23,790 24,712 -3.7
 - Foreign 8,369 8,543 -2.0
 Long-Term Debt 1,590 1,695 -6.2
 Preferred Shareholders' Equity 294 428 -31.3
 Common Shareholders' Equity 3,778 3,302 14.4
 Common Shareholders' Equity Per Share 40.11 35.96 11.5
 Market Value Per Share of Common Stock 57.00 53.88 5.8
 Allowance for Loan Losses as a
 Percent of Loans 3.17% 3.63%
 Tier I Capital Ratio 8.77 7.59
 Total Capital Ratio 13.51 12.30
 Leverage Ratio 7.99 7.11
 Tangible Common Equity Ratio 7.00 5.83
 The above amounts for 1992 have been restated for the adoption of the liability method of accounting for income taxes and for the acquisition of National Community Banks, Inc. on Aug. 11, 1993 which was accounted for as a pooling of interests.
 -0- 1/13/94
 /CONTACT: Michael M. Pascale, VP, 212-495-1041, Pierre S. Brull, VP, 212-495-1721, or Rhonda Barnat, AVP, 212-495-1725, all of The Bank of New York Company/
 (BK)


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

MP-JG -- NY012 -- 1682 01/13/94 08:54 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 13, 1994
Words:1823
Previous Article:TENNANT AGREES IN PRINCIPLE TO ACQUIRE THE BUSINESS OF CASTEX INDUSTRIES
Next Article:BRADLEES ANNOUNCES THIRD QUARTER RESULTS
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters