-----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, J6GeJNncLpl//bpNxjL4MFzKMFdH2rxmAj3dAeQkbCGTb46azeaTvYY1IzBWC1lz eUqjfnmrCjXn2nTVCZ/2bw== 0000009626-01-000012.txt : 20010417 0000009626-01-000012.hdr.sgml : 20010417 ACCESSION NUMBER: 0000009626-01-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010331 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010416 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: 1602638 BUSINESS ADDRESS: STREET 1: ONE WALL ST 10TH FL CITY: NEW YORK STATE: NY ZIP: 10286 BUSINESS PHONE: 212-495-1784 MAIL ADDRESS: STREET 1: ONE WALL STREET 31ST FLOOR CITY: NEW YORK STATE: NY ZIP: 10286 8-K 1 0001.txt FIRST QUARTER 2001 EARNINGS 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): April 16, 2001 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 5. Other Events ------------ First Quarter of 2001 Financial Results --------------------------------------- On April 16, 2001, The Bank of New York Company, Inc. issued a press release containing unaudited interim financial information and accompanying discussion for the first quarter of 2001. Exhibit 99 is a copy of such press release and is incorporated herein by reference. ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits ------------------------------------------------------------------ (c) Exhibit Description ------- ----------- 99 Unaudited interim financial information and accompanying discussion for the first quarter of 2001 contained in the press release dated April 16, 2001, of The Bank of New York Company, Inc. 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. Dated: April 16, 2001 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 Unaudited interim financial information and accompanying discussion for the first quarter of 2001 contained in the press release dated April 16, 2001, of The Bank of New York Company, Inc. EX-99 2 0002.txt 1ST QUARTER 2001 EARNINGS 1 EXHIBIT 99 The Bank of New York Company, Inc. NEWS - ------------------------------------------------------------------------------ One Wall Street, New York, NY 10286 ----------------------------------- Contact: PUBLIC AND INVESTOR RELATIONS IMMEDIATELY - ----------- Media: Investors: - ----- --------- Frank H. Scarangella, SVP Richard P. Stanley, SVP (212) 635-1590 (212) 635-1854 Cary J. Giacalone, VP Thomas C. McCrohan, VP (212) 635-1590 (212) 635-1578 THE BANK OF NEW YORK COMPANY, INC. REPORTS Record First Quarter Diluted E.P.S. of 52 Cents, Up 13% Securities Servicing Fee Revenue Up 23% NEW YORK, N.Y., April 16, 2001 -- The Bank of New York Company, Inc. (NYSE: BK) reports record first quarter diluted earnings per share of 52 cents, up 13% from the 46 cents earned in the first quarter of 2000. Net income for the first quarter was a record $384 million, up 14% from the $338 million earned in the same period last year. "Our first quarter results reflect the strength of our strategy in an uncertain business climate. Despite declining equity values in the past quarter, our business model continues to perform well given the diversity of markets, products and client bases we serve throughout the world. Absent a further slowdown in the global markets, our 12% to 14% EPS growth remains compatible with the current economic environment," said Thomas A. Renyi, Chairman and CEO. In securities servicing, fee revenues increased to a record $458 million, up 23% for the quarter. Private client services and asset 2 management fees grew 14% in the quarter. Foreign exchange and other trading revenues were $83 million, up 9% from last year's first quarter. The Company's continued focus on fee-based businesses resulted in noninterest income growing to 65% of total revenue in the first quarter, up from 62% a year ago. Return on average common equity for the first quarter of 2001 was 25.92% compared with 24.82% and 27.07% in the fourth and first quarters of 2000, respectively. Return on average assets for the first quarter of 2001 was 2.03% compared with 1.92% and 1.78% in the fourth and first quarters of 2000, respectively. Fees from the Company's securities servicing businesses reached $458 million for the first quarter compared with $372 million in the prior year. Fee revenue was particularly strong in depositary receipts ("DRs"), unit investment trust, global liquidity services, corporate trust and global execution services. The Company continues to be the world's leading custodian with assets of $6.8 trillion, including $2 trillion of cross-border custody assets. With respect to global liquidity services, average funds invested off-balance-sheet were $34 billion in the first quarter of 2001, up 39% compared with last year's first quarter. Private client services and asset management fees were $79 million for the quarter, up 14% from $70 million last year, led by the Company's build out in the equity-value management and alternative investment product lines. Within global payment services, cash management and funds transfer fees were up 10% for the first quarter of 2001. This growth continues to be driven by new business wins in the domestic financial service industry as well as increased cash management revenue associated with CA$H-Register Plus (registered trademark), the Company's internet-based electronic banking service. Foreign exchange and other trading revenues for the quarter were $83 million, up from $56 million in the fourth quarter of 2000 and $76 million in the first quarter of 2000 principally due to strong foreign exchange 3 transaction flows from the Company's securities servicing client franchise as well as strength in the Company's fixed income businesses. The increased penetration of the European and Asian securities servicing client base continues to provide growth opportunities. Net interest income on a taxable equivalent basis for the first quarter increased to $469 million from $460 million in the first quarter of 2000. Tangible diluted earnings per share (earnings before the amortization of goodwill and intangibles) were 54 cents per share in the first quarter of 2001, compared with 48 cents per share in the first quarter of 2000. On the same basis, tangible return on average common equity was 39.28% in the first quarter of 2001 compared with 43.03% in 2000; and tangible return on average assets was 2.19% in the first quarter of 2001 compared with 1.93% in 2000. Amortization of intangibles for the first quarter of 2001 was $29 million compared with $28 million in the first quarter of 2000. The Company's estimated Tier 1 capital and Total capital ratios were 8.42% and 12.54% at March 31, 2001, compared with 8.60% and 12.92% at December 31, 2000, and 7.39% and 11.49% at March 31, 2000. The leverage ratio was 7.41% at March 31, 2001, compared with 7.49% at December 31, 2000, and 6.66% one year ago. The Company's tangible common equity as a percent of total assets was 5.87% at March 31, 2001, compared with 5.78% at December 31, 2000, and 4.74% at March 31, 2000. In the first quarter of 2001, the Company repurchased 7 million shares under its common stock repurchase programs. 4 NONINTEREST INCOME
1st 4th 1st Quarter Quarter Quarter ------- ------- ------- (In millions) 2001 2000 2000 ---- ---- ---- Servicing Fees Securities $458 $448 $372 Global Payment Services 69 65 66 ---- ---- ---- 527 513 438 Private Client Services and Asset Management Fees 79 77 70 Service Charges and Fees 90 85 90 Foreign Exchange and Other Trading Activities 83 56 76 Securities Gains 45 44 40 Other 34 30 23 ---- ---- ---- Total Noninterest Income $858 $805 $737 ==== ==== ====
Total noninterest income reached $858 million, up 16% from $737 million in last year's first quarter. Securities servicing fees grew 23% reaching $458 million compared with $372 million from a year ago. Global payment services fees for the quarter were $69 million reflecting lower trade finance fees, which were offset by higher cash management and funds transfer fees, which grew 10% over last year's first quarter. Fees from private client services and asset management were $79 million, up 14% from the first quarter of 2000. Securities gains were $45 million, which compares to $44 million in the fourth quarter of 2000 and $40 million a year ago. 5 NET INTEREST INCOME
1st 4th 1st Quarter Quarter Quarter ------- ------- ------- (Dollars in millions on 2001 2000 2000 a tax equivalent basis) ---- ---- ---- Net Interest Income $469 $496 $460 Net Interest Rate Spread 1.88% 1.88% 1.96% Net Yield on Interest Earning Assets 2.93 3.01 2.89
Net interest income on a taxable equivalent basis was $469 million in the first quarter of 2001 compared with $496 million in the fourth quarter of 2000 and $460 million in the first quarter of 2000. The net interest rate spread was 1.88% in the first quarter of 2001, compared with 1.88% in the fourth quarter of 2000 and 1.96% one year ago. The net yield on interest earning assets was 2.93% compared with 3.01% in the fourth quarter of 2000 and 2.89% in last year's first quarter. The decline from the fourth quarter in net interest income and net yield is primarily due to a lower interest rate environment and reflects the Company's ongoing strategy of managing loan growth and culling its loan portfolio to reduce credit exposures that no longer meet risk/return criteria. NONINTEREST EXPENSE AND INCOME TAXES Noninterest expense for the first quarter of 2001 was $653 million, up from $644 million in the fourth quarter of 2000 and $602 million in the first quarter of 2000. The increase in expenses was primarily attributable to acquisitions, technology investments, and variable costs associated with increased trading volumes. The efficiency ratio for the first quarter of 2001 was 50.8% compared with 51.2% in the fourth quarter of 2000 and 52.1% in the first quarter of 2000. 6 The effective tax rate for the first quarter of 2001 was 34.5% compared with 34.8% in the first quarter of 2000. NONPERFORMING ASSETS
Change 3/31/01 vs. (Dollars in millions) 3/31/01 12/31/00 12/31/00 -------- -------- -------- Category of Loans: Other Commercial $139 $113 $26 Foreign 46 48 (2) Regional Commercial 21 28 (7) ---- ---- --- Total Nonperforming Loans 206 189 17 Other Real Estate 2 4 (2) ---- ---- --- Total Nonperforming Assets $208 $193 $15 ==== ==== === Nonperforming Assets Ratio 0.6% 0.5% Allowance/Nonperforming Loans 298.2 325.6 Allowance/Nonperforming Assets 295.7 319.6
Nonperforming assets totaled $208 million at March 31, 2001, compared with $193 million at December 31, 2000. The increase in nonperforming loans primarily reflects loans to a customer in the movie theater industry and to a specialty chemical maker that sought protection from asbestos claims through a bankruptcy filing. 7 CREDIT LOSS PROVISION AND NET CHARGE-OFFS
1st 4th 1st Quarter Quarter Quarter ------- ------- ------- (In millions) 2001 2000 2000 ---- ---- ---- Provision $ 30 $ 35 $ 20 ==== ==== ==== Net Charge-offs Other Commercial (28) (34) (13) Consumer (2) (2) (1) Other - - (1) ----- ----- ----- Total $(30) $(36) $(15) ===== ===== ===== Other Real Estate Expenses $ 2 $ 1 $ 1
The allowance for credit losses was $616 million, or 1.66% of loans at March 31, 2001, compared with $616 million, or 1.70% of loans at December 31, 2000, and $600 million, or 1.48% of loans at March 31, 2000. The ratio of the allowance to nonperforming assets was 295.7% at March 31, 2001, compared with 319.6% at December 31, 2000, and 378.1% at March 31, 2000. *************************** All statements in this press release other than statements of historical fact are forward looking statements including, among other things, projections with respect to revenue and earnings growth and the Company's plans and objectives and as such are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements. 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 under the heading "Forward Looking Statements" in the Company's 2000 Form 10-K which has been filed with the SEC and is available at the SEC's website (www.sec.gov). Forward looking statements speak only as of the date they are made. The Company will not update forward looking statements to reflect factual assumptions, circumstances or events which have changed after a forward looking statement was made. (Financial highlights and detailed financial statements are attached.) 8 THE BANK OF NEW YORK COMPANY, INC. Financial Highlights (Dollars in millions, except per share amounts) (Unaudited)
2001 2000 Change ---- ---- ------ For the Three Months Ended March 31: - ------------------------------------ Net Income $ 384 $ 338 13.8% Per Common Share: Basic $ 0.53 $ 0.46 15.2 Diluted 0.52 0.46 13.0 Cash Dividends Paid 0.18 0.16 12.5 Return on Average Common Shareholders' Equity 25.92% 27.07% Return on Average Assets 2.03 1.78 As of March 31: - ------------------ Assets $73,002 $76,041 (4.0)% Loans 37,124 40,657 (8.7) Securities 6,815 6,955 (2.0) Deposits - Domestic 26,188 27,812 (5.8) - Foreign 24,726 27,624 (10.5) Long-Term Debt 3,008 2,829 6.3 Minority Interest - Preferred Securities 1,500 1,500 - Common Shareholders' Equity 6,054 5,223 15.9 Common Shareholders' Equity Per Share 8.22 7.09 15.9 Market Value Per Share of Common Stock 49.24 41.56 18.5 Allowance for Credit Losses as a Percent of Loans 1.66% 1.48% Tier 1 Capital Ratio 8.42 7.39 Total Capital Ratio 12.54 11.49 Leverage Ratio 7.41 6.66 Tangible Common Equity Ratio 5.87 4.74
9 THE BANK OF NEW YORK COMPANY, INC. Consolidated Statements of Income (In millions, except per share amounts) (Unaudited)
For the three months ended March 31, 2001 2000 ---- ---- Interest Income - --------------- Loans $ 676 $ 716 Securities Taxable 78 80 Exempt from Federal Income Taxes 17 15 ------ ----- 95 95 Deposits in Banks 70 71 Federal Funds Sold and Securities Purchased Under Resale Agreements 51 49 Trading Assets 141 102 ------ ----- Total Interest Income 1,033 1,033 ------ ----- Interest Expense - ---------------- Deposits 463 472 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 32 36 Other Borrowed Funds 31 29 Long-Term Debt 52 49 ------ ----- Total Interest Expense 578 586 ------ ----- Net Interest Income 455 447 - ------------------- Provision for Credit Losses 30 20 ------ ----- Net Interest Income After Provision for Credit Losses 425 427 ------ ----- Noninterest Income - ------------------ Servicing Fees Securities 458 372 Cash 69 66 ------ ----- 527 438 Private Client Services and Asset Management Fees 79 70 Service Charges and Fees 90 90 Securities Gains 45 40 Other 117 99 ------ ----- Total Noninterest Income 858 737 ------ ----- Noninterest Expense - ------------------- Salaries and Employee Benefits 394 359 Net Occupancy 50 45 Furniture and Equipment 30 26 Other 179 172 ------ ----- Total Noninterest Expense 653 602 ------ ----- Income Before Income Taxes 630 562 Income Taxes 218 196 Distribution on Preferred Trust Securities 28 28 ------ ----- Net Income $ 384 $ 338 - ---------- ====== ===== Net Income Available to Common Shareholders $ 384 $ 338 - ------------------------------------------- ====== ===== Per Common Share Data: - ---------------------- Basic Earnings $ 0.53 $0.46 Diluted Earnings 0.52 0.46 Cash Dividends Paid 0.18 0.16 Diluted Shares Outstanding 743 741
10 THE BANK OF NEW YORK COMPANY, INC. Consolidated Balance Sheets (Dollars in millions, except per share amounts) (Unaudited)
March 31, December 31, 2001 2000 ---- ---- Assets - ------ Cash and Due from Banks $ 2,847 $ 3,125 Interest-Bearing Deposits in Banks 3,568 5,337 Securities: Held-to-Maturity 147 752 Available-for-Sale 6,668 6,649 ------- ------- Total Securities 6,815 7,401 Trading Assets at Fair Value 11,915 12,051 Federal Funds Sold and Securities Purchased Under Resale Agreements 3,469 5,790 Loans (less allowance for credit losses of $616 in 2001 and $616 in 2000) 36,508 35,645 Premises and Equipment 928 924 Due from Customers on Acceptances 622 447 Accrued Interest Receivable 297 354 Other Assets 6,033 6,040 ------- ------- Total Assets $73,002 $77,114 ======= ======= Liabilities and Shareholders' Equity - ------------------------------------ Deposits Noninterest-Bearing (principally domestic offices) $11,061 $13,255 Interest-Bearing Domestic Offices 15,480 15,774 Foreign Offices 24,373 27,347 ------- ------- Total Deposits 50,914 56,376 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 1,080 1,108 Trading Liabilities 2,371 2,070 Other Borrowed Funds 1,961 1,687 Acceptances Outstanding 623 450 Accrued Taxes and Other Expenses 3,289 3,283 Accrued Interest Payable 122 127 Other Liabilities 2,079 1,325 Long-Term Debt 3,008 3,036 ------- ------- Total Liabilities 65,447 69,462 ------- ------- Company-Obligated Mandatory Redeemable Preferred Trust Securities of Subsidiary Trust Holding Solely Junior Subordinated Debentures 1,500 1,500 ------- ------- Shareholders' Equity Class A Preferred Stock - par value $2.00 per share, authorized 5,000,000 shares, outstanding 16,320 shares in 2001 and 2000 1 1 Common Stock-par value $7.50 per share, authorized 1,600,000,000 shares, issued 988,042,412 shares in 2001 and 985,528,475 shares in 2000 7,410 7,391 Additional Capital 586 521 Retained Earnings 3,819 3,566 Accumulated Other Comprehensive Income 130 207 ------- ------- 11,946 11,686 Less: Treasury Stock (250,318,423 shares in 2001 and 244,460,032 shares in 2000), at cost 5,883 5,526 Loan to ESOP (1,142,939 shares in 2001 and 2000), at cost 8 8 ------- ------- Total Shareholders' Equity 6,055 6,152 ------- ------- Total Liabilities and Shareholders' Equity $73,002 $77,114 ======= ======= - ---------------------------------------------------------------------------------------- Note: The balance sheet at December 31, 2000 has been derived from the audited financial statements at that date.
11 THE BANK OF NEW YORK COMPANY, INC. Average Balances and Rates on a Taxable Equivalent Basis (Preliminary) (Dollars in millions)
For the three months For the three months ended March 31, 2001 ended March 31, 2000 ------------------------------ ------------------------------ Average Average Average Average Balance Interest Rate Balance Interest Rate ------- -------- ------- ------- -------- ------- ASSETS - ------ Interest-Bearing Deposits in Banks (primarily foreign) $ 5,833 $ 70 4.85% $ 6,395 $ 71 4.47% Federal Funds Sold and Securities Purchased Under Resale Agreements 3,731 51 5.54 3,647 49 5.40 Loans Domestic Offices 19,116 338 7.18 20,113 361 7.22 Foreign Offices 19,111 338 7.17 20,156 355 7.09 ------- ----- ------- ----- Total Loans 38,227 676 7.18 40,269 716 7.15 ------- ----- ------- ----- Securities U.S. Government Obligations 1,275 18 5.73 2,774 42 6.08 U.S. Government Agency Obligations 1,794 31 6.78 826 14 6.62 Obligations of States and Political Subdivisions 682 13 7.91 592 12 8.01 Other Securities, including Trading Securities 13,468 188 5.65 9,614 142 5.93 ------- ----- ------- ----- Total Securities 17,219 250 5.87 13,806 210 6.09 ------- ----- ------- ----- Total Interest-Earning Assets 65,010 1,047 6.53% 64,117 1,046 6.56% ----- ----- Allowance for Credit Losses (614) (609) Cash and Due from Banks 2,632 3,283 Other Assets 9,653 9,747 ------- ------- TOTAL ASSETS $76,681 $76,538 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY - ------------------------------------ Interest-Bearing Deposits Money Market Rate Accounts $ 6,204 71 4.61% $ 5,522 65 4.75% Savings 7,493 49 2.65 7,647 47 2.46 Certificates of Deposit $100,000 & Over 407 6 6.19 465 6 5.44 Other Time Deposits 1,905 24 4.96 2,204 26 4.73 Foreign Offices 26,814 313 4.74 27,691 328 4.75 ------- ----- ------- ----- Total Interest-Bearing Deposits 42,823 463 4.38 43,529 472 4.36 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 2,473 32 5.22 2,792 36 5.25 Other Borrowed Funds 2,029 31 6.26 1,996 29 5.80 Long-Term Debt 3,018 52 6.94 2,823 49 6.84 ------- ----- ------- ----- Total Interest-Bearing Liabilities 50,343 578 4.65% 51,140 586 4.60% ----- ----- Noninterest-Bearing Deposits 11,010 11,291 Other Liabilities 7,811 7,587 Minority Interest-Preferred Securities 1,500 1,500 Preferred Stock 1 1 Common Shareholders' Equity 6,016 5,019 ------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $76,681 $76,538 ======= ======= Net Interest Earnings and Interest Rate Spread $ 469 1.88% $ 460 1.96% ===== ==== ===== ==== Net Yield on Interest-Earning Assets 2.93% 2.89% ==== ====
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