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THE BANK OF NEW YORK COMPANY REPORTS $1.42 SECOND QUARTER E.P.S.; $130 MILLION NET INCOME; NONPERFORMING ASSETS DECLINE; DIVIDEND INCREASED

 NEW YORK, July 13 /PRNewswire/ -- The Bank of New York Company, Inc. (NYSE: BK) reported second quarter net income of $130 million, or $1.42 per fully diluted common share, compared with net income of $87 million, or $1.05 per fully diluted common share in the second quarter of 1992. Spreads widened, benefitting from 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 Dec. 11, 1992, also helped to increase earnings.
 The company's board of directors today declared a quarterly dividend of 45
cents per share, an 18% increase over the 38 cents previously paid. The dividend is payable on Aug. 6, 1993, to holders of record as of the close of business on July 23, 1993.
 Net income in the first half of 1993 was $256 million, a 53 percent increase over the $167 million earned in the first six months of 1992. Net income was $2.79 per fully diluted share, a 38 percent increase over the $2.02 earned last year.
 Nonperforming assets declined for the eighth consecutive quarter, to $717 million from $860 million at March 31. The $143 million decrease represented a record quarterly percentage decline of 17 percent. Nonperforming commercial real estate assets decreased by $87 million to $202 million at June 30. This 30 percent change was also a record percentage decline for one quarter.
 The nonperforming asset ratio declined to 2.5 percent from 3.1 percent at March 31 and 4.0 percent one year ago. The allowance for loan losses as a percent of nonperforming loans increased to 171 percent from 153 percent at March 31, 1993 and 127 percent at June 30, 1992. The allowance for loan losses as a percent of all nonperforming assets was 135 percent, compared with 115 percent at March 31, and 88 percent one year ago.
 The company's estimated Tier I capital and total capital ratios were 8.07 percent and 13.39 percent at June 30, compared with 8.08 percent and 12.93 percent at March 31, and 6.85 percent and 10.53 percent at June 30, 1992. Tangible common equity as a percent of total assets was 6.58 percent at June 30, compared with 6.45 percent at March 31, and 5.37 percent one year ago.
 Return on average assets in the second quarter was 1.24 percent -- a record for the company -- and compares with 1.20 percent in the first quarter of 1993 and .84 percent in the second quarter of 1992.
 Return on average common equity was 15.15 percent in the first and second quarters of 1993 compared with 12.34 percent in the second quarter of last year.
 THE BANK OF NEW YORK COMPANY, INC.
 NONPERFORMING ASSETS
 (Dollars in millions)
 Change
 6/30/93 3/31/93 6/30/92 2Q 1993
 vs. 2Q 1992
 Loans:
 HLT $ 68 $ 84 $ 92 (26)
 Commercial Real Estate 68 97 181 (62)
 Other Commercial 119 118 214 (44)
 Foreign 76 97 91 (16)
 LDC(A) 107 107 65 65
 Other 127 146 124 2
 Total Loans 565 649 767 (26)
 Other Real Estate 134 192 313 (57)
 Other Assets 18 19 22 (18)
 Total $ 717 $ 860 $1,102 (35)
 Nonperforming Asset Ratio
 (percent) 2.5 3.1 4.0
 Allowance/Nonperforming
 Loans 171.0 153.0 126.5
 Allowance/Nonperforming
 Assets 134.7 115.5 88.0
 (A) Excludes $117 million of reduced rate Philippine obligations secured by U.S. Treasury bonds.
 Total nonperforming assets decreased by $143 million this quarter, or 17 percent. Since their peak level at June 30, 1991, nonperforming assets have declined by $1.1 billion, or 61 percent.
 Highly leveraged transaction (HLT) nonperforming loans decreased by $16 million from March 31, as a result of sales and charge-offs.
 Nonperforming commercial real estate assets, which include other real estate owned, totaled $202 million at June 30, an $87 million, or 30 percent decrease from $289 million at March 31, and a $292 million, or 59 percent
decrease from $494 million one year ago. During the quarter, payoffs were $3 million, sales of 3 properties were $34 million, returns to accrual status were $36 million, and charge-offs and writedowns totaled $32 million. Three commercial real estate loans totaling $18 million became nonperforming in the second quarter. Total commercial real estate exposure was approximately 8 percent of total loans at June 30, among the lowest exposures of the major banking companies in the country.
 THE BANK OF NEW YORK COMPANY, INC.
 LOAN LOSS PROVISION AND NET CHARGE-OFFS
 (In millions)
 2nd 1st 2nd
 Quarter Quarter Quarter Year-to-date
 1993 1993 1992 1993 1992
 Provision $ 75 $ 90 $ 106 $165 $239
 Regular Net Charge-offs:
 HLT (6) (7) (61) (13) (66)
 Commercial Real Estate (15) (18) (21) (33) (43)
 Other Commercial (2) (32) 7 (34) (65)
 Consumer (36) (36) (40) (72) (82)
 Foreign (35) (2) -- (37) (6)
 Other (8) (5) (5) (13) (15)
 Total (102) (100) (120) (202) (277)
 Decrease in Regular
 Allowance $ (27) $(10) $ (14) $(37) $(38)
 Other Real Estate
 Expense $ 18 $ 4 $ 9 $ 22 $ 28
 The total allowance for loan losses, which includes the medium- term LDC allowance, was $966 million, or 3.42 percent of loans at June 30, compared with $993 million, or 3.65 percent of loans at March 31, 1993.
 NET INTEREST INCOME
 On a taxable equivalent basis, net interest income amounted to $341 million in the second quarter of 1993, compared with $303 million in the same period of 1992. The net interest rate spread was 3.07 percent in the second quarter of 1993 compared with 2.98 percent in the first quarter and 2.80 percent one year ago. The net yield on interest earning assets rose to 3.76 percent in the second quarter of 1993 up from 3.69 percent in the first quarter and 3.43 percent in the same period last year.
 For the first six months of 1993, net interest income on a taxable equivalent basis was $675 million, compared with $611 million in the same period of 1992. The year to date net interest rate spread was 3.03 percent in 1993 compared with 2.76 percent in 1992, while the net yield on interest-earning assets was 3.73 percent in 1993 and 3.44 percent in 1992.
 NONINTEREST INCOME
 Noninterest income increased 19% to $326 million in the second quarter, compared with $274 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. Other noninterest income in the second quarter 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. In the first half of 1993, noninterest income totaled $647 million, compared with $562 million in 1992.
 Securities gains were $13 million and $14 million in the second quarters of 1993 and 1992; year to date securities gains totaled $39 million and $29 million in 1993 and 1992.
 Second quarter and year to date foreign exchange profits and trading activities totaled $19 million and $42 million in 1993, compared with $14 million and $49 million in 1992.
 THE BANK OF NEW YORK COMPANY, INC.
 TRUST, INVESTMENT, AND PROCESSING FEES
 (Dollars in millions)
 2nd 2nd Year-to-date
 Qtr. Qtr. Pct. Pct.
 1993 1992 Change 1993 1992 Change
 Trust and Investment $ 31 $ 29 7 $ 62 $ 57 9
 Processing:
 Securities $ 76 $ 66 15 $152 $133 14
 Other 36 32 13 72 64 13
 Total Processing $112 $ 98 14 $224 $197 14
 In trust and investment, special strength was noted in personal trust. Significant growth in the securities processing area occurred in government securities clearance, securities lending, mutual fund custody, stock transfer, and corporate trust. In other processing, there was good growth in funds transfer and trade finance.
 SERVICE CHARGES AND FEES
 Service charges and fees, exclusive of other processing fees, grew by 6 percent to $110 million in the second quarter from $104 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 4.3 million, and managed outstandings were up by 23 percent to $5.5 billion from one year ago. In the first half of 1993, service charges and fees, exclusive of other processing fees, were $218 million compared with $200 million in 1992.
 NONINTEREST EXPENSE AND INCOME TAXES
 Total noninterest expense was $369 million and $721 million in the second quarter and first six months of 1993 compared with $323 million and $650 million in 1992. Furniture and equipment expense declined by 3 percent for the quarter. Other real estate expense increased to $18 million from $9 million in the second quarter of 1992.
 Salaries increased 10 percent in the second quarter to $134 million from $122 million in the same period last year, and profit sharing increased to $13 million from $9 million. Other employee benefits -- primarily incentive compensation and health care expenses -- were up 29 percent to $36 million from $28 million in the second 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 second quarter and first six months of 1993 was 38 percent compared with 34 percent for last year.
 THE BANK OF NEW YORK COMPANY, INC.
 Financial Highlights
 (Dollars in millions, except per share amounts, unaudited)
 Three months ended June 30 1993 1992 Pct. Change
 Net income $130 $ 87 49.4
 Per common share:
 Primary earnings 1.49 1.11 34.2
 Fully diluted earnings 1.42 1.05 35.2
 Cash dividends 0.38 0.38 --
 Return on average common
 shareholders' equity 15.15 12.34 --
 Return on average assets 1.24 0.84
 Six months ended June 30
 Net income $256 $167 53.3
 Per common share:
 Primary earnings 2.94 2.13 38.0
 Fully diluted earnings 2.79 2.02 38.1
 Cash dividends 0.76 0.76 --
 Return on average common
 shareholders' equity 15.15 11.96 --
 Return on average assets 1.22 0.81 --
 As of June 30:
 Assets $41,045 $41,494 (1.1)
 Loans 28,216 27,493 2.6
 Securities 3,631 3,685 (1.5)
 Deposits - Domestic 20,296 19,597 3.6
 - Foreign 7,543 9,985 (24.5)
 Long-term debt 1,981 1,223 62.0
 Preferred shareholders' equity 267 387 (31.0)
 Common shareholders' equity 3,326 2,918 14.1
 Common shareholders' equity per share 39.81 36.10 10.3
 Market value per share of common stock 59.38 40.38 47.1
 Allowance for loan losses as a
 percent of loans 3.42 pct. 3.53 pct.
 Tier I Capital ratio 8.07 6.85
 Total capital ratio 13.39 10.53
 Leverage ratio 7.82 7.01
 Tangible common equity ratio 6.58 5.37
 Certain amounts for 1992 have been restated in connection with the adoption of Statement of Financial Accounting Standards No. 109.
 -0- 7/13/93
 /CONTACT: Michael M. Pascale, VP, 212-495-1041, or Pierre S. Brull, VP, 212-495-1721, both of the Bank of New York Company/
 (BK)


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

PS -- NY042 -- 0902 07/13/93 12:58 EDT
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