-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FPaUtqGoXpv4VBSTFUvg5NJSHgeYgEWYBtC3zdYk7SHVkfoedyn+KitQcnQCFDd7 YkGqWzqCmURH905BaC/jCw== 0000009626-00-000075.txt : 20001215 0000009626-00-000075.hdr.sgml : 20001215 ACCESSION NUMBER: 0000009626-00-000075 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001214 ITEM INFORMATION: FILED AS OF DATE: 20001214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANK OF NEW YORK CO INC CENTRAL INDEX KEY: 0000009626 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 132614959 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06152 FILM NUMBER: 789010 BUSINESS ADDRESS: STREET 1: ONE WALL ST 10TH FL CITY: NEW YORK STATE: NY ZIP: 10286 BUSINESS PHONE: 2124951784 MAIL ADDRESS: STREET 1: 100 CHURCH STREET 9TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10286 8-K 1 0001.txt PROJECTIONS AND EARNINGS ESTIMATES 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8 - K CURRENT REPORT Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): December 14, 2000 THE BANK OF NEW YORK COMPANY, INC. ---------------------------------- (exact name of registrant as specified in its charter) NEW YORK -------- (State or other jurisdiction of incorporation) 001-06152 13-2614959 --------- ---------- (Commission file number) (I.R.S. employer identification number) One Wall Street, New York, NY 10286 ----------------------------- ----- (Address of principal executive offices) (Zip code) 212-495-1784 ------------ (Registrant's telephone number, including area code) 2 ITEM 9. Regulation FD Disclosure ------------------------- Projections and Earnings Estimates ---------------------------------- On December 14, 2000, The Bank of New York Company, Inc. released the projections and earnings estimates contained in the materials filed herewith, at a presentation to financial analysts which are filed herewith as Exhibit 99. 3 SIGNATURE --------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: December 14, 2000 The Bank of New York Company, Inc. ---------------------------------- (Registrant) By: /s/ Thomas J. Mastro ---------------------------------- Name: Thomas J. Mastro Title: Comptroller 4 EXHIBIT INDEX ------------- Exhibit No. Description - ----------- ----------- 99 Materials containing projections and earnings estimates of Bank of New York Company, Inc. as presented to financial analysts on December 14, 2000. EX-99 2 0002.txt PROJECTIONS AND EARNINGS ESTIMATES EXHIBIT 99 ==================================(SLIDE 1)=================================== The Bank of New York Company, Inc. ==================================(SLIDE 2)=================================== Cautionary Language The forward looking statements presented today including, among other things, projections with respect to revenue and earnings growth and the Company's plans and objectives are subject to risks and uncertainties that could cause actual results to differ materially from the projections. These include lower than expected performance or higher than expected costs in connection with acquisitions and integration of acquired businesses, the level of capital market activity, inaccuracies in management projections or market forecasts, the actions that management could take in response to these changes and other factors described in the SEC filings referred to below. For additional detailed information, we refer you to the discussions under the heading "Forward Looking Statements" in the Company's 1999 10-K and Third Quarter 2000 10-Q, both of which have been filed with the SEC. ==================================(SLIDE 3)=================================== Technology for Global Markets - -Straight through processing - -Scalable - -Internet enabled BNY is engineered today! ==================================(SLIDE 4)================================== Securities Transaction STP Rates 1997 1998 1999 2000E ---- ---- ---- ----- - -Cross Border 17.7 29.5 43.3 61.0 - -U.S. 92.0 (Slide depicts arrow in an upward motion across years 1997 through 2000E indicating a 300% increase). BNY: Engineered for T + 1 ==================================(SLIDE 5)================================== Scaled Technology for a Connected World Global Custody Transactions (millions) 1998 1999 2000E ---- ---- ----- Total Volume 40.7 45.6 64.7 (Slide depicts arrow in an upward motion across years 1998 through 2000E indicating a 59% increased growth in transactions). Employees (thousands) 1998 1999 2000E ---- ---- ----- BNY Operations Staff 1.3 1.3 1.4 (Slide depicts arrow in an upward motion across years 1998 through 2000E indicating a 40% increased growth in productivity). ==================================(SLIDE 6)================================== INFORM User Growth Number of users in thousands 1996 1997 1998 1999 2000E 2001E 2002E ---- ---- ---- ---- ----- ----- ----- 0.2 0.3 3.3 6.4 11.7 23.3 36.7 ==================================(SLIDE 7)================================== Client Data Warehouse Growth Database updates in millions 1999 2000E 2001E 2002E ----- ----- ----- ----- 0.3 4.9 17.2 49.1 ==================================(SLIDE 8)================================== Securities Master Database Growth (in millions) Global tradable securities: 1997 1998 1999 2000E 2001E 2002E ---- ---- ---- ----- ----- ----- 0.15 0.50 1.7 2.8 3.5 5.0 ==================================(SLIDE 9)================================== Cross-Sell Results - Corporate Clients - -Clients using multiple products: -1998: 80% -2000: 90% - -Average number of products used: -1996: three 1998: six 2000: seven - -Top 10% of clients: -1998: 10 products 2000: 14 products ==================================(SLIDE 10)================================== Cross-Sell Results - Financial Companies - -Clients using multiple products: -1998: 90% 2000: 93% - -Average number of products used: -1996: Three 1998: six 2000: eight - -Top 10% of clients: 1998: 17 products 2000: 19 products ==================================(SLIDE 11)================================== Sustainable Revenue Growth - -Positive secular trends - -Focused strategy - -New business wins - -Accelerating outsourcing trend - -Attractive European growth prospects - -Engineering new products ==================================(SLIDE 12)================================= Global Payment Services Revenues $ millions 1999 2000E 2001E ---- ----- ----- Revenue 389 404 442 % Increase 8% 4% 9% ==================================(SLIDE 13)================================= Private Client Services & BNY Asset Management $ millions 1999 2000E 2001E ---- ----- ----- Fees 244 297 360 % Increase 17% 22% 21% ==================================(SLIDE 14)================================= Financial Market Services - -RBS Trust benefits - -High market volumes and volatility - -2000 highlights: -20% increase in new accounts -Introduced e-solutions: iFX Manager - -Revenue growth 2001E: 15%+ ==================================(SLIDE 15)================================= Retail Banking Fees - -Fee focused strategy - 1998 fees 22% of total revenue - 2001E fees 29% of total revenue - -Non-traditional fees drive growth - 43% growth 2000E - 30% growth 2001E ==================================(SLIDE 16)================================= Corporate Banking - -Global relationship management is key - -Emphasis on cross-selling core fee-based services - Positioned credit as tactical product - Providing liquidity - -BNY focuses on asset quality - Transforming risk profile - De-emphasized broad-based loan growth - Using all forms of risk management ==================================(SLIDE 17)================================= Proactive Risk Management - -Sold/Exited $ billions --------- Credit Cards 4.0 Asset Based Lending 4.0 Non-Strategic Exposures 1.0 - -Credit Only Relationships 1994 1999 2000 ---- ---- ---- 45% 10% 8% - -Financial Service Companies 1994 1999 2000 ---- ---- ---- 14% 24% 27% ==================================(SLIDE 18)================================= Loan Portfolio Mix Industry 1994 1999 2000 - -------- ---- ---- ---- Financial Companies 14% 24% 27% Specialized Industries 24% 32% 29% Private Banking 3% 5% 5% ---- ---- ---- Subtotal 41% 61% 61% U.S. Corporate/Regional 17% 22% 20% Retail/Leasing/Other 14% 17% 19% Credit Card 23% 0% 0% Asset Based Lending 5% 0% 0% ---- ---- ---- 100% 100% 100% ==== ==== ==== ==================================(SLIDE 19)================================= Risk Profile Improves 1997 2000E ---- ----- Non-Investment Grade 47% 40% Investment Grade 53% 60% - - 50% of non-investment grade is < 1 year in maturity - - Avg. exposure size of non-investment grade is $8MM ==================================(SLIDE 20)================================= Domestic Financial Services Companies - - 89% investment grade - - 11% Non-investment grade - 69% matures in less than one year - 50%+ collateralized ==================================(SLIDE 21)================================= Media & Telecommunications Ent/prog/mm 20% Publishing 14% Cable 14% Wireline excl clec 14% Wireless 14% Broadcasting 10% Clec 4% Cinema 3% All other 7% Well diversified portfolio ==================================(SLIDE 22)================================= Media & Telecommunications - -50% investment grade - 50%+ matures less than one year - -50% non-investment grade - 40% matures less than one year - 70% collateralized ==================================(SLIDE 23)================================= Corporate Banking Loan Growth 2000E 2001E ----- ----- Growth Rate (4%) 4% ==================================(SLIDE 24)================================= Securities Servicing Market Leadership Market Sustainable Growth Rank Product 2001-2004 ------ ------- ------------------- 1 International Custody 25%+ 2 Mutual Funds 20%+ 1 Securities Clearance 20%+ 1 Depositary Receipts 15%+ 1 Corporate Trust 15%+ 2 Unit Investment Trust 15%+ 2 Securities Lending 10%+ 2 Domestic Custody 10%+ 3 Stock Transfer 10%+ ---- Overall 15%+ ==================================(SLIDE 25)================================= Securities Servicing Fee Revenues $ millions `99% `00E% `01E% `99 Change `00E Change `01E Change --- ------ ---- ------ ---- ------ ADRs Corporate Trust Stock Transfer $ 503 19% $ 647 29% $ 775+ 20%+ International Custody Domestic Custody Securities Lending 436 29% 635 46% 740+ 17%+ Mutual Funds Securities Clearance UIT 306 28% 368 20% 445+ 21%+ Total Fee Revenue $1,245 24% $1,650 33% $1,960+ 19%+ ==================================(SLIDE 26)================================= Earnings Contribution Percent 1995 1998 1999 2000E 2001E ---- ---- ---- ----- ----- Securities Serv. & Global Paymts. 22 37 42 46 48 BNY Asset Mgmt. & Private Client 5 9 9 9 9 --- --- --- --- --- Fiduciary/Securities Servicing 27 46 51 55 57 === === === === === Corporate Banking 20 23 21 19 18 Retail Banking 15 12 12 12 12 Financial Market Services 13 11 12 14 13 Asset Based Lending 7 8 4 - - Credit Card 18 - - - - --- --- --- --- --- 100 100 100 100 100 === === === === === ==================================(SLIDE 27)================================= Non-U.S. Revenues 1995 1999 2000 ---- ---- ---- Non-U.S. 12% 25% 32% U.S. 88% 75% 68% Continued Global Expansion ==================================(SLIDE 28)================================= Non-Interest Income % of Revenues 1995 1998 1999* 2000E 2001E ---- ---- ----- ----- ----- 41% 58% 61% 63% 65% * Excludes gain on sale of BNY Financial and liquidity charge ==================================(SLIDE 29)================================= Quality of Revenue Non-Interest Income Percent 1995 1998 1999 2000E 2001E ---- ---- ---- ----- ----- Securities Serv. & Global Paymts. 42 55 59 61 62 BNY Asset Mgmt. & Priv. Clients 9 9 9 9 10 --- --- --- --- --- Fiduciary / Securities Servicing 51 64 68 70 72 Service Charges 30 14 13 12 11 Foreign Exchange & Other Trading 4 8 7 9 9 Other 15 14 12 9 8 --- --- --- --- --- 100 100 100 100 100 === === === === === ==================================(SLIDE 30)================================= Quality of Revenues Net Interest Income Percent 1998 1999 2000E 2001E ---- ---- ----- ----- Corporate Banking 41 36 31 29 Fiduciary / Sec. Servicing 24 28 35 37 Retail Banking 29 28 27 27 Other 6 8 7 7 --- --- --- --- 100 100 100 100 ==================================(SLIDE 31)================================= Quality of Revenues - -Growing - -Diversified - -Sustainable - -Increasing quality Expanding P/E Multiple (depicted inside an upward arrow) ==================================(SLIDE 32)================================= Key Capital Ratios 1999 2000E 2001E ---- ----- ----- Tier 1 7.5 8.1 7.8 Total 11.7 12.2 11.8 TCE 4.8 5.5 5.5 Leverage 7.2 7.1 6.9 ==================================(SLIDE 33)================================= Tier 1 Capital Sources & Uses $ millions Earnings projection: Yr. 2001* $1,620 Plus: Emp. Purch./GW Amort. 385 ------- 2,005 Less: Dividends (535) Acquisitions (400) Other (270) ------- Capital available for further acquisitions/ stock buyback $ 800 ======= * Based on Yr. 2001 First Call estimates ==================================(SLIDE 34)================================= 2000 Acquisitions New New Customers Products --------- -------- Corporate Trust - --------------- Harris Trust & Savings Bank X Sakura Trust Company X Dai-Ichi Kangyo Bank of CA X Bank of Montreal (Canada) X Execution/Clearing Services - ---------------------------- SG Cowen Securities Corp X Schroder & Co. X X BHF Securities Corp X X GENA X Private Client Services - ----------------------- Ivy Asset Management Corp X X Bank of America Advisory Custody X ==================================(SLIDE 35)================================= Acquisitions Will Continue - -Significant consolidation opportunities - -Build execution and clearing capabilities - BNY ESI - BNY Clearing - -Expand private client services capabilities - Complementary products - Asset managers ==================================(SLIDE 36)================================= BNY Technology Investment millions 1996 290 1997 308 1998 360 1999 400 2000E 495 2001E 595 - -CAGR 16% Accelerating investment for competitive advantage ==================================(SLIDE 37)================================= Positive Operating Leverage - -Distinguishing characteristics of BNY - -Balance current investment spending with tangible future benefits - -Objective is to manage core spread to exceed 200 basis points ==================================(SLIDE 38)================================= First Call Consensus 4th Qtr. 2000YE 2001YE ------ ------ ------ EPS $.50 $1.93 $2.17 ==================================(SLIDE 39)================================= Credit Quality Peer Comparison Third Quarter 2000 Loan Loan NPA's Net C/O's Loss Reserve Loss Reserve as % of as % of as % of as % of Loans & OREO Avg. Loans NPL's Total Loans ------------ ---------- ------------- -------------- BK .45 .19 378% 1.65 Peer Group Avg. .86 .55 207% 1.65 BK Rank (of 25) 5 5 5 6 Reserves and change-off experience strong vs. peers ==================================(SLIDE 40)================================= Earnings Growth Absorbs Rising Costs EPS Provision --- --------- 1998 ---- 1Q 0.36 5 2Q 0.38 5 3Q 0.39 5 4Q 0.40 5 1999 ---- 1Q 0.41 15 2Q 0.42 15 3Q 0.42 15 4Q 0.44 15 2000 ---- 1Q 0.46 20 2Q 0.48 25 3Q 0.49 25 ==================================(SLIDE 41)================================= Summary - -Sustainable revenue growth - -High earnings quality - -Proactive risk management - -Technology leadership Enabling the global capital markets ==================================(SLIDE 42)================================= Financial Goals 2001-2004 Target Goal ------ ----- Return on Equity 25%+ Return on Assets 2% Efficiency Ratio 48% EPS Growth Rate 12 to 14% ====================================(END)===================================== -----END PRIVACY-ENHANCED MESSAGE-----