EX-99 3 r3q01ex99.txt EX-99 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: ----- --------- Robert T. Grieves, SVP John M. Roy, MD (212) 635-1590 (212) 635-8005 Cary J. Giacalone, VP Richard P. Stanley, SVP (212) 635-1590 (212) 635-1854 Thomas C. McCrohan, VP (212) 635-1578 THE BANK OF NEW YORK COMPANY, INC. REPORTS Third Quarter Normalized E.P.S. of 52 Cents Impact of WTC Disaster Reduces Reported E.P.S. to 33 Cents Normalized Return on Equity of 23.8% NEW YORK, N.Y., October 18, 2001 -- The Bank of New York Company, Inc. (NYSE: BK) reports third quarter normalized earnings per share of 52 cents, up 6% over the 49 cents earned in the third quarter of 2000. Normalized net income for the third quarter was $383 million, compared with $363 million earned in the same period last year. The third quarter normalized results exclude the 19 cents per share impact of the World Trade Center disaster (the "WTC disaster"). On a reported basis, the Company earned 33 cents, or $243 million, in the third quarter. (See "Normalized Results" section.) Normalized earnings per share were $1.55 for the first nine months of 2001, up 9% over $1.42 last year. Normalized net income for the first nine months was $1,152 million compared with last year's $1,057 million, up 9%. On a reported basis, the Company earned $1,012 million, or $1.36 per share in the first nine months of 2001. 2 "The tragic events of September 11th resulted in one of the most challenging operating environments that the Company has ever experienced," said Thomas A. Renyi, Chairman and CEO. "I am proud of our successful business recovery, which is a direct result of the tireless and dedicated efforts of all our employees, many of whom were directly affected by the disaster. "Notwithstanding a difficult market environment made worse by the World Trade Center disaster, we have achieved a 6% normalized EPS increase for the quarter and a 9% increase year-to-date. Given the uncertain economic environment, our near-term outlook must remain cautious. We continue to be highly confident in our business strategy and in our longer-term earnings outlook." NORMALIZED RESULTS A summary of reported and normalized Consolidated Statements of Income for the three months ended September 30, 2001 are presented below. The normalization reflects the Company's results excluding the impact of the WTC disaster. The estimated impact of the WTC disaster reduced third quarter net income by approximately $140 million reflecting one time costs, reductions in revenue and other related expenses. This estimate is up from the Company's previous September 28th estimate of $125 million based on more current information. (See Appendix A for a more detailed analysis of the WTC disaster impact.) 3 THE BANK OF NEW YORK COMPANY, INC. Consolidated Statements of Income (In millions, except per share amounts)
For the three months ended September 30, 2001 ------------------------------------- Disaster Reported Normalized Impact -------- ---------- -------- Net Interest Income After Provision for Credit Losses $ 371 $ 416 $ (45) Total Noninterest Income 823 852 (29) Total Noninterest Expense 814 646 168 ------ ------ ------ Income Before Income Taxes 380 622 (242) Income Taxes 113 215 (102) Distribution on Preferred Trust Securities 24 24 - ------ ------ ------ Net Income Available to Common Shareholders $ 243 $ 383 $(140) ====== ====== ====== Per Common Share Data: --------------------- Basic Earnings $0.33 $0.52 $(0.19) Diluted Earnings 0.33 0.52 (0.19) Cash Dividends Paid 0.18 0.18 - Diluted Shares Outstanding 741 741 -
Comparing reported to normalized results, the decrease in reported net interest income for the quarter primarily results from higher than normal levels of excess liquidity which could not be invested and unsettled trades resulting from the disruption of markets and payments processing immediately following the WTC disaster. The decrease in reported noninterest income for the quarter is principally due to a reduction in securities servicing and related revenues during the temporary closure of markets following the WTC disaster. The increase in reported noninterest expense for the quarter reflects certain additional costs associated with: the disabling of two facilities close to the World Trade Center; full outfitting of contingency locations and associated infrastructure links; reoccupying its headquarters building at 4 One Wall Street; and other expenses, including overtime, professional services, outside vendors, and additional security. The Company believes that a substantial portion of the impact of the disaster is covered under its insurance policies. These insurance recoveries are expected to be received in future quarters. SUMMARY OF RESULTS In the Company's securities servicing businesses, normalized fee revenues were $430 million in the third quarter, up slightly from $427 million last year. For the first nine months of 2001, normalized fees from these businesses totaled $1,323 million, a 10% increase compared with $1,202 million in 2000. Despite the slowdown in the global capital markets, the Company recorded strong results in execution services, corporate trust, broker dealer services and global liquidity services. The Company continues to be the world's leading custodian with quarter- end assets of $6.4 trillion, including $1.8 trillion of cross-border custody assets. Normalized foreign exchange and other trading revenues were $84 million for the quarter, up 42% from $59 million last year. In the first nine months of 2001, normalized foreign exchange and other trading revenues were $265 million, up from $206 million last year. Third quarter results reflect continued strong foreign exchange transaction flows from the Company's securities servicing clients and market share gains through e-commerce products such as iFX Manager(servicemark). In addition, strong demand for interest rate risk management products were driven by higher volatility and declining interest rates. Normalized global payment services fees were $78 million, up 20% over last year. Fees increased as a result of customers electing to pay for services in fees rather than maintaining higher compensating balances in a declining rate environment. In addition, this growth reflects higher cash management and trade service fees. New cash management business wins 5 continued among the Company's regional commercial and corporate banking clients driven, in part, by the continued success of CA$H-Register Plus (registered trademark), the Company's internet-based electronic banking service. Normalized private client services and asset management fees were $75 million for the quarter, down slightly from last year. Lower asset price levels have been partially offset by strength in alternative investment and short-term money market product lines. The Company's continued focus on fee-based businesses resulted in normalized noninterest income growing to 65% of total revenue in the third quarter, up from 62% last year. The WTC disaster resulted in a disruption of the markets, including payment and securities processing, which affected both the Company and other market participants. In addition, significant levels of liquidity were injected into the markets immediately following the disaster. These factors resulted in excess liquidity and unsettled trades at the Company, causing a temporary expansion of the Company's balance sheet. As a result, the Company's capital ratios reflect this temporary expansion. The Company's estimated Tier 1 capital and Total capital ratios were 7.32% and 10.86% at September 30, 2001, compared with 8.07% and 12.07% at June 30, 2001, and 8.29% and 12.67% at September 30, 2000. The leverage ratio was 6.67% at September 30, 2001, compared with 7.40% at June 30, 2001, and 7.42% one year ago. Tangible common equity as a percent of total assets was 4.96% at September 30, 2001, compared with 5.56% at June 30, 2001, and 5.75% one year ago. In the first nine months of 2001, the Company repurchased 11 million shares under its common stock repurchase programs. Normalized return measures have been computed using both normalized net income and balance sheet. (See Appendix B for normalized balance sheet.) On a normalized basis, return on average common equity for the third quarter of 2001 was 23.83% compared with 25.75% in the third quarter of 2000. Normalized return on average assets for the third quarter of 2001 was 1.90% compared with 6 1.89% in the third quarter of 2000. For the first nine months of 2001, normalized return on average common equity was 25.03% compared with 26.55% in 2000. Normalized return on average assets was 1.98% for the first nine months of 2001 compared with 1.83% in 2000. For the third quarter of 2001, the reported return on average common equity was 15.11% and the reported return on average assets was 1.11%. For the first nine months of 2001, reported return on average common equity was 21.99% and the reported return on average assets was 1.69%. On a normalized basis, tangible diluted earnings per share (earnings before the amortization of goodwill and intangibles) were 54 cents per share in the third quarter of 2001, up 4% from 52 cents per share in the third quarter of 2000. On the same basis, tangible return on average common equity was 37.56% in the third quarter of 2001 compared with 38.89% in 2000; and tangible return on average assets was 2.04% in the third quarter of 2001 compared with 2.05% in 2000. Normalized tangible diluted earnings per share were $1.62 per share for the first nine months of 2001, up 8%, compared with $1.50 per share in 2000. Normalized tangible return on average common equity was 39.30% in 2001 compared with 41.11% in 2000; and normalized tangible return on average assets was 2.13% in the first nine months of 2001 compared with 1.98% last year. Amortization of intangibles for the third quarter and the first nine months of 2001 was $29 million and $83 million compared with $29 million and $85 million in 2000. On a per share basis, after-tax amortization of intangibles was 3 cents per share in the third quarters of 2001 and 2000 and 7 cents per share in the first nine months of 2001 and 2000. 7 NONINTEREST INCOME
3rd 3rd Quarter Quarter 2nd 3rd Reported Normalized Quarter Quarter Year-to-date -------- ---------- ------- ------- --------------------------- 2001 2001 (In millions) 2001 2001 2001 2000 Reported Normalized 2000 ---- ---- ---- ---- -------- ---------- ---- Servicing Fees Securities $416 $430 $436 $427 $1,309 $1,323 $1,202 Global Payment Services 75 78 72 65 216 219 196 ---- ---- ---- ---- ------ ------ ------ 491 508 508 492 1,525 1,542 1,398 Private Client Services and Asset Management Fees 74 75 78 77 231 232 219 Service Charges and Fees 81 87 95 84 267 273 278 Foreign Exchange and Other Trading Activities 79 84 98 59 260 265 206 Securities Gains 22 22 46 20 113 113 105 Other 76 76 31 53 140 140 96 ---- ---- ---- ---- ------ ------ ------ Total Noninterest Income $823 $852 $856 $785 $2,536 $2,565 $2,302 ==== ==== ==== ==== ====== ====== ======
Normalized total noninterest income reached $852 million, up 9% from $785 million in last year's third quarter, and resulted in normalized noninterest income growing to 65% of total revenue in the third quarter, up from 62% last year. Normalized securities servicing fees were $430 million for the third quarter, compared with $427 million last year. Normalized global payment services fees for the quarter were $78 million, up 20% over last year. Normalized private client services and asset management fees were $75 million for the quarter, down slightly from last year. Normalized foreign exchange and other trading revenues were $84 million for the quarter, up 42% from $59 million last year. Securities gains were $22 million for the quarter, which were up slightly from last year but down from $46 million in the prior quarter. Other income includes a $43 million gain this quarter that the Company recognized from the sale of its interest in the New York Cash Exchange ("NYCE"). 8 NET INTEREST INCOME
3rd 3rd Quarter Quarter 2nd 3rd Reported Normalized Quarter Quarter Year-to-date -------- ---------- ------- ------- --------------------------- (Dollars in millions on 2001 2001 a tax equivalent basis) 2001 2001 2001 2000 Reported Normalized 2000 ---- ---- ---- ---- -------- ---------- ----- Net Interest Income $ 426 $ 471 $472 $492 $1,366 $1,411 $1,429 Net Interest Rate Spread 1.60% 2.02% 2.10% 1.93% 1.84% 2.00% 1.94% Net Yield on Interest Earning Assets 2.37 2.75 2.96 3.05 2.74 2.88 2.95
Normalized net interest income on a taxable equivalent basis was $471 million in the third quarter of 2001 compared with $472 million in the second quarter of 2001 and $492 million in the third quarter of 2000. On a normalized basis, net interest income was essentially flat compared with the prior quarter. The effect of the lower interest rate environment this quarter was largely offset by an increase in the Company's investment securities portfolio, which is part of an ongoing strategy to shift the Company's asset mix from loans towards highly rated investment securities and short-term liquid assets. On a normalized basis, the net interest rate spread was 2.02% in the third quarter of 2001, compared with 2.10% in the second quarter of 2001 and 1.93% one year ago. The normalized net yield on interest earning assets was 2.75% compared with 2.96% in the second quarter of 2001 and 3.05% in last year's third quarter. For the first nine months of 2001, normalized net interest income on a taxable equivalent basis amounted to $1,411 million compared with $1,429 million in the first nine months of 2000. The year-to-date normalized net interest rate spread was 2.00% in 2001 compared with 1.94% in 2000, while the normalized net yield on interest earning assets was 2.88% in 2001 and 2.95% in 2000. NONINTEREST EXPENSE AND INCOME TAXES Normalized noninterest expense for the third quarter of 2001 was $646 million compared with $655 million in the second quarter and 9 $635 million in 2000. The decrease versus the prior quarter reflects continued emphasis on staff levels and other related expenses, as well as lower variable expenses such as clearing, sub-custody and incentive compensation. The normalized efficiency ratio for the third quarter of 2001 was 51.4% compared with 51.2% in the second quarter of 2001 and 50.4% in the third quarter of 2000. For the first nine months of 2001, the normalized efficiency ratio was 51.1% compared with 51.4% last year. The normalized effective tax rate for the third quarter and the first nine months of 2001 was 34.5% compared with 35.1% and 35.0% in the third quarter and the first nine months of 2000. NONPERFORMING ASSETS
Change 9/30/01 vs. (Dollars in millions) 9/30/01 6/30/01 6/30/01 -------- -------- -------- Category of Loans: Other Commercial $214 $190 $24 Foreign 42 34 8 Regional Commercial 20 19 1 ---- ---- --- Total Nonperforming Loans 276 243 33 Other Real Estate 2 2 - ---- ---- --- Total Nonperforming Assets $278 $245 $33 ==== ==== === Nonperforming Assets Ratio 0.7% 0.7% Allowance/Nonperforming Loans 223.3 252.9 Allowance/Nonperforming Assets 222.0 251.0
Nonperforming assets totaled $278 million at September 30, 2001, compared with $245 million at June 30, 2001. The increase in nonperforming loans primarily reflects a loan to a customer in the emerging telecommunications industry. Given the uncertain economic climate, the Company anticipates further deterioration in the creditworthiness of corporate borrowers. In particular, the Company continues to closely assess its emerging telecommunications portfolio. 10 CREDIT LOSS PROVISION AND NET CHARGE-OFFS
3rd 2nd 3rd Quarter Quarter Quarter Year-to-date ------- ------- ------- ------------ (In millions) 2001 2001 2000 2001 2000 ---- ---- ---- ---- ---- Provision $ 40 $ 30 $ 25 $ 100 $ 70 ==== ==== ==== ===== ==== Net Charge-offs: Other Commercial (35) (26) (14) (89) (39) Consumer (4) (3) (1) (9) (3) Foreign - - (3) - (3) Other (1) (1) - (2) (3) ----- ----- ----- ------ ----- Total $(40) $(30) $(18) $(100) $(48) ===== ===== ===== ====== ===== Other Real Estate Expenses $ - $ - $ 1 $ 2 $ 3
The allowance for credit losses was $616 million, or 1.54% of normalized loans at September 30, 2001, compared with $616 million, or 1.68% of loans at June 30, 2001, and $617 million, or 1.65% of loans at September 30, 2000. The ratio of the allowance to nonperforming assets was 222.0% at September 30, 2001, compared with 251.0% at June 30, 2001, and 367.5% at September 30, 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, contribution to future results of various business lines 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. In addition to risks and uncertainties incident to our industry such as interest rate fluctuations and borrower defaults, these also include lower than expected performance or higher than expected costs in connection with acquisitions and integration of acquired businesses, our ability to attract and retain customers, 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 and June 30, 2001 Form 10-Q which have been filed with the SEC and are 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.) 11 Appendix A, Page 1 THE BANK OF NEW YORK COMPANY, INC. Consolidated Statements of Income (In millions, except per share amounts)
For the three months ended September 30, 2001 ------------------------------------- Disaster Reported Normalized Impact -------- ---------- -------- Net Interest Income $ 411 $ 456 $ (45) Provision for Credit Losses 40 40 - ----- ----- ------- Net Interest Income After Provision for Credit Losses 371 416 (45) Noninterest Income ------------------ Servicing Fees Securities 416 430 (14) Global Payment Services 75 78 (3) Private Client Services and Asset Management Fees 74 75 (1) Service Charges and Fees 81 87 (6) Foreign Exchange and Other Trading 79 84 (5) Securities Gains 22 22 - Other 76 76 - ----- ----- ------- Total Noninterest Income 823 852 (29) Noninterest Expense ------------------- Salaries and Employee Benefits 418 384 34 Net Occupancy 87 49 38 Furniture and Equipment 87 32 55 Other 222 181 41 ----- ----- ------- Total Noninterest Expense 814 646 168 ----- ----- ------- Income Before Income Taxes 380 622 (242) Income Taxes 113 215 (102) Distribution on Preferred Trust Securities 24 24 - ----- ----- ------- Net Income Available to Common Shareholders $ 243 $ 383 $ (140) ===== ===== ======= Per Common Share Data: --------------------- Basic Earnings $0.33 $0.52 $(0.19) Diluted Earnings 0.33 0.52 (0.19) Cash Dividends Paid 0.18 0.18 - Diluted Shares Outstanding 741 741 -
12 Appendix A, Page 2 THE BANK OF NEW YORK COMPANY, INC. Consolidated Statements of Income (In millions, except per share amounts)
For the nine months ended September 30, 2001 ------------------------------------- Disaster Reported Normalized Impact -------- ---------- -------- Net Interest Income $1,322 $1,367 $ (45) Provision for Credit Losses 100 100 - ------ ------ ------- Net Interest Income After Provision for Credit Losses 1,222 1,267 (45) Noninterest Income ------------------ Servicing Fees Securities 1,309 1,323 (14) Global Payment Services 216 219 (3) Private Client Services and Asset Management Fees 231 232 (1) Service Charges and Fees 267 273 (6) Foreign Exchange and Other Trading 260 265 (5) Securities Gains 113 113 - Other 140 140 - ------ ------ ------- Total Noninterest Income 2,536 2,565 (29) Noninterest Expense ------------------- Salaries and Employee Benefits 1,202 1,168 34 Net Occupancy 184 146 38 Furniture and Equipment 148 93 55 Other 587 546 41 ------ ------ ------- Total Noninterest Expense 2,121 1,953 168 ------ ------ ------- Income Before Income Taxes 1,637 1,879 (242) Income Taxes 546 648 (102) Distribution on Preferred Trust Securities 79 79 - ------ ------ ------- Net Income Available to Common Shareholders $1,012 $1,152 $ (140) ====== ====== ======= Per Common Share Data: --------------------- Basic Earnings $1.38 $1.58 $(0.20) Diluted Earnings 1.36 1.55 (0.19) Cash Dividends Paid 0.54 0.54 - Diluted Shares Outstanding 742 742 -
13 Appendix B THE BANK OF NEW YORK COMPANY, INC. Consolidated Balance Sheets (Dollars in millions)
September 30, 2001 ------------------------ Reported Normalized -------- ---------- Assets ------ Cash and Due from Banks $ 3,289 $ 3,289 Interest-Bearing Deposits in Banks 5,961 5,961 Securities 13,370 13,370 Trading Assets at Fair Value 9,014 9,014 Federal Funds Sold and Securities Purchased Under Resale Agreements 338 338 Loans (less allowance for credit losses of $616) 44,920 39,356 Other Assets 12,498 8,498 ------- ------- Total Assets $89,390 $79,826 ======= ======= Liabilities and Shareholders' Equity ------------------------------------ Total Deposits $60,261 $55,598 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 5,719 2,419 Other Borrowed Funds 4,157 4,157 Other Liabilities 11,286 9,685 ------- ------- Total Liabilities 81,423 71,859 Company-Obligated Mandatory Redeemable Preferred Trust Securities of Subsidiary Trust Holding Solely Junior Subordinated Debentures 1,500 1,500 Total Shareholders' Equity 6,467 6,467 ------- ------- Total Liabilities and Shareholders' Equity $89,390 $79,826 ======= =======
14 THE BANK OF NEW YORK COMPANY, INC. Financial Highlights (Dollars in millions, except per share amounts) (Unaudited)
Change 2001 2001 2001 Normalized Reported Normalized 2000 vs. 2000 -------- ---------- ---- ------------ For the Three Months Ended September 30: ---------------------------------------- Net Income $ 243 $ 383 $ 363 5.5% Per Common Share: Basic $ 0.33 $ 0.52 $0.50 4.0 Diluted 0.33 0.52 0.49 6.1 Cash Dividends Paid 0.18 0.18 0.16 12.5 Return on Average Common Shareholders' Equity 15.11% 23.83% 25.75% Return on Average Assets 1.11 1.90 1.89 For the Nine Months Ended September 30: --------------------------------------- Net Income $ 1,012 $ 1,152 $ 1,057 9.0% Per Common Share: Basic $ 1.38 $ 1.58 $ 1.44 9.7 Diluted 1.36 1.55 1.42 9.2 Cash Dividends Paid 0.54 0.54 0.48 12.5 Return on Average Common Shareholders' Equity 21.99% 25.03% 26.55% Return on Average Assets 1.69 1.98 1.83 Change 2001 Reported vs. 2000 ---------- As of September 30: ------------------- Assets $89,390 $75,409 18.5% Loans 45,536 37,398 21.8 Securities 13,370 6,775 97.3 Deposits - Domestic 28,398 27,078 4.9 - Foreign 31,863 26,221 21.5 Long-Term Debt 3,127 2,957 5.7 Minority Interest - Preferred Securities 1,500 1,500 - Common Shareholders' Equity 6,466 5,918 9.3 Common Shareholders' Equity Per Share 8.78 8.01 9.6 Market Value Per Share of Common Stock 35.00 56.50 (38.1) Allowance for Credit Losses as a Percent of Loans 1.35% 1.65% Tier 1 Capital Ratio 7.32 8.29 Total Capital Ratio 10.86 12.67 Leverage Ratio 6.67 7.42 Tangible Common Equity Ratio 4.96 5.75
15 THE BANK OF NEW YORK COMPANY, INC. Consolidated Statements of Income (In millions, except per share amounts) (Unaudited)
For the three For the nine months ended months ended September 30, September 30, 2001 2000 2001 2000 ---- ---- ---- ---- Interest Income --------------- Loans $ 555 $ 732 $1,827 $2,183 Securities Taxable 143 79 320 236 Exempt from Federal Income Taxes 19 16 56 47 ----- ------ ------ ------ 162 95 376 283 Deposits in Banks 68 67 200 203 Federal Funds Sold and Securities Purchased Under Resale Agreements 53 80 142 198 Trading Assets 84 133 334 380 ----- ------ ------ ------ Total Interest Income 922 1,107 2,879 3,247 ----- ------ ------ ------ Interest Expense ---------------- Deposits 351 501 1,185 1,494 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 27 38 82 107 Other Borrowed Funds 92 37 151 108 Long-Term Debt 41 52 139 149 ----- ------ ------ ------ Total Interest Expense 511 628 1,557 1,858 ----- ------ ------ ------ Net Interest Income 411 479 1,322 1,389 ------------------- Provision for Credit Losses 40 25 100 70 ----- ------ ------ ------ Net Interest Income After Provision for Credit Losses 371 454 1,222 1,319 ----- ------ ------ ------ Noninterest Income ------------------ Servicing Fees Securities 416 427 1,309 1,202 Global Payment Services 75 65 216 196 ----- ------ ------ ------ 491 492 1,525 1,398 Private Client Services and Asset Management Fees 74 77 231 219 Service Charges and Fees 81 84 267 278 Securities Gains 22 20 113 105 Other 155 112 400 302 ----- ------ ------ ------ Total Noninterest Income 823 785 2,536 2,302 ----- ------ ------ ------ Noninterest Expense ------------------- Salaries and Employee Benefits 418 371 1,202 1,097 Net Occupancy 87 47 184 137 Furniture and Equipment 87 27 148 80 Other 222 190 587 551 ----- ------ ------ ------ Total Noninterest Expense 814 635 2,121 1,865 ----- ------ ------ ------ Income Before Income Taxes 380 604 1,637 1,756 Income Taxes 113 213 546 614 Distribution on Preferred Trust Securities 24 28 79 85 ----- ------ ------ ------ Net Income $ 243 $ 363 $1,012 $1,057 ---------- ===== ====== ====== ====== Net Income Available to Common Shareholders $ 243 $ 363 $1,012 $1,057 ------------------------------------------- ===== ====== ====== ====== Per Common Share Data: ---------------------- Basic Earnings $0.33 $0.50 $1.38 $1.44 Diluted Earnings 0.33 0.49 1.36 1.42 Cash Dividends Paid 0.18 0.16 0.54 0.48 Diluted Shares Outstanding 741 747 742 744
16 THE BANK OF NEW YORK COMPANY, INC. Consolidated Balance Sheets (Dollars in millions, except per share amounts) (Unaudited)
September 30, December 31, 2001 2000 ---- ---- Assets ------ Cash and Due from Banks $ 3,289 $ 3,125 Interest-Bearing Deposits in Banks 5,961 5,337 Securities: Held-to-Maturity 127 752 Available-for-Sale 13,243 6,649 ------- ------- Total Securities 13,370 7,401 Trading Assets at Fair Value 9,014 12,051 Federal Funds Sold and Securities Purchased Under Resale Agreements 338 5,790 Loans (less allowance for credit losses of $616 in 2001 and $616 in 2000) 44,920 35,645 Premises and Equipment 940 924 Due from Customers on Acceptances 338 447 Accrued Interest Receivable 334 354 Other Assets 10,886 6,040 ------- ------- Total Assets $89,390 $77,114 ======= ======= Liabilities and Shareholders' Equity ------------------------------------ Deposits Noninterest-Bearing (principally domestic offices) $11,926 $13,255 Interest-Bearing Domestic Offices 17,477 15,774 Foreign Offices 30,858 27,347 ------- ------- Total Deposits 60,261 56,376 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 5,719 1,108 Trading Liabilities 2,083 2,070 Other Borrowed Funds 2,074 1,687 Acceptances Outstanding 467 450 Accrued Taxes and Other Expenses 3,913 3,283 Accrued Interest Payable 124 127 Other Liabilities 3,655 1,325 Long-Term Debt 3,127 3,036 ------- ------- Total Liabilities 81,423 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 16,320 shares in 2000 1 1 Common Stock-par value $7.50 per share, authorized 2,400,000,000 shares, issued 990,468,650 shares in 2001 and 985,528,475 shares in 2000 7,429 7,391 Additional Capital 703 521 Retained Earnings 4,181 3,566 Accumulated Other Comprehensive Income 152 207 ------- ------- 12,466 11,686 Less: Treasury Stock (252,743,041 shares in 2001 and 244,460,032 shares in 2000), at cost 5,991 5,526 Loan to ESOP (1,142,939 shares in 2001 and 1,142,939 in 2000), at cost 8 8 ------- ------- Total Shareholders' Equity 6,467 6,152 ------- ------- Total Liabilities and Shareholders' Equity $89,390 $77,114 ======= ======= ---------------------------------------------------------------------------------------- Note: The balance sheet at December 31, 2000 has been derived from the audited financial statements at that date.
17 THE BANK OF NEW YORK COMPANY, INC. Average Balances and Rates on a Taxable Equivalent Basis (Preliminary) (Dollars in millions)
Normalized for the three months For the three months ended September 30, 2001 ended September 30, 2000 --------------------------------- ------------------------------ Average Average Average Average Balance Interest Rate Balance Interest Rate ---------- -------- -------- ------- -------- ------- ASSETS ------ Interest-Bearing Deposits in Banks (primarily foreign) $ 6,417 $ 68 4.20% $ 4,941 $ 67 5.36% Federal Funds Sold and Securities Purchased Under Resale Agreements 2,779 25 3.47 4,863 80 6.55 Loans Domestic Offices 22,381 330 5.85 18,862 355 7.49 Foreign Offices 17,139 225 5.23 19,676 377 7.62 ------- ----- ------- ------ Total Loans 39,520 555 5.58 38,538 732 7.56 ------- ----- ------- ------ Securities U.S. Government Obligations 951 13 5.24 1,604 24 5.90 U.S. Government Agency Obligations 3,772 58 6.14 1,614 28 6.92 Obligations of States and Political Subdivisions 686 12 7.24 629 13 8.12 Other Securities 6,390 94 5.85 2,838 44 6.16 Trading Securities 7,415 84 4.49 8,941 132 5.94 ------- ----- ------- ------ Total Securities 19,214 261 5.40 15,626 241 6.16 ------- ----- ------- ------ Total Interest-Earning Assets 67,930 909 5.31% 63,968 1,120 6.97% ----- ------ Allowance for Credit Losses (612) (609) Cash and Due from Banks 2,056 3,003 Other Assets 10,573 10,153 ------- ------- NORMALIZED ASSETS 79,947 76,515 Impact of WTC Disaster 7,093 - ------- ------- TOTAL ASSETS $87,040 $76,515 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Interest-Bearing Deposits Money Market Rate Accounts $ 6,132 $ 48 3.08% $ 5,879 $ 73 4.96% Savings 7,639 36 1.88 7,566 52 2.73 Certificates of Deposit $100,000 & Over 402 5 4.74 442 7 6.01 Other Time Deposits 1,831 19 4.06 1,877 25 5.23 Foreign Offices 28,606 243 3.38 26,411 344 5.20 ------- ----- ------- ------ Total Interest-Bearing Deposits 44,610 351 3.12 42,175 501 4.73 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 3,150 27 3.37 2,517 38 6.06 Other Borrowed Funds 1,987 19 3.71 2,154 37 6.91 Long-Term Debt 3,060 41 5.31 2,872 52 7.13 ------- ----- ------- ------ Total Interest-Bearing Liabilities 52,807 438 3.29% 49,718 628 5.04% ----- ------ Noninterest-Bearing Deposits 10,131 11,232 Other Liabilities 9,138 8,448 Minority Interest-Preferred Securities 1,500 1,500 Shareholders' Equity 6,371 5,617 ------- ------- NORMALIZED LIABILITIES AND SHAREHOLDERS' EQUITY 79,947 76,515 Normalized Net Interest Earnings and Interest Rate Spread 471 2.02% ==== Normalized Yield on Interest-Earning Assets 2.75% ==== Impact of WTC Disaster 7,093 (45) - ------- ------ ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $87,040 $76,515 ======= ======= Net Interest Earnings and Interest Rate Spread $ 426 1.60% $ 492 1.93% ===== ==== ====== ==== Net Yield on Interest-Earning Assets 2.37% 3.05% ==== ====
18 THE BANK OF NEW YORK COMPANY, INC. Average Balances and Rates on a Taxable Equivalent Basis (Preliminary) (Dollars in millions)
Normalized for the nine months For the nine months ended September 30, 2001 ended September 30, 2000 ------------------------------ ------------------------------ Average Average Average Average Balance Interest Rate Balance Interest Rate ------- -------- ------- ------- -------- ------- ASSETS ------ Interest-Bearing Deposits in Banks (primarily foreign) $ 5,940 $ 200 4.49% $ 5,499 $ 203 4.94% Federal Funds Sold and Securities Purchased Under Resale Agreements 3,367 114 4.52 4,310 198 6.15 Loans Domestic Offices 20,158 990 6.56 19,477 1,075 7.37 Foreign Offices 18,152 837 6.17 20,039 1,109 7.39 ------- ------ ------- ------ Total Loans 38,310 1,827 6.38 39,516 2,184 7.38 ------- ------ ------- ------ Securities U.S. Government Obligations 1,081 45 5.57 2,165 97 6.01 U.S. Government Agency Obligations 2,823 135 6.36 1,192 61 6.82 Obligations of States and Political Subdivisions 668 38 7.67 612 37 8.04 Other Securities 4,595 202 5.89 2,785 127 6.09 Trading Securities 8,861 334 5.05 8,597 380 5.90 ------- ------ ------- ------ Total Securities 18,028 754 5.60 15,351 702 6.11 ------- ------ ------- ------ Total Interest-Earning Assets 65,645 2,895 5.90% 64,676 3,287 6.79% ------ ------ Allowance for Credit Losses (613) (606) Cash and Due from Banks 2,491 3,239 Other Assets 10,268 10,021 ------- ------- NORMALIZED ASSETS 77,791 77,330 Impact of WTC Disaster 7,093 - ------- ------- TOTAL ASSETS $84,884 $77,330 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Interest-Bearing Deposits Money Market Rate Accounts $ 6,175 $ 171 3.70% $ 5,733 $ 210 4.89% Savings 7,594 126 2.22 7,630 146 2.56 Certificates of Deposit $100,000 & Over 395 16 5.43 443 19 5.59 Other Time Deposits 1,903 64 4.50 2,023 76 5.00 Foreign Offices 27,125 808 3.99 27,755 1,043 5.02 ------- ------ ------- ------ Total Interest-Bearing Deposits 43,192 1,185 3.67 43,584 1,494 4.58 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 2,637 82 4.14 2,569 107 5.57 Other Borrowed Funds 2,015 78 5.13 2,197 108 6.54 Long-Term Debt 3,027 139 6.09 2,839 149 6.97 ------- ------ ------- ------ Total Interest-Bearing Liabilities 50,871 1,484 3.90% 51,189 1,858 4.85% ------ ------ Noninterest-Bearing Deposits 10,609 11,249 Other Liabilities 8,659 8,073 Minority Interest-Preferred Securities 1,500 1,500 Shareholders' Equity 6,152 5,319 ------- ------- NORMALIZED LIABILITIES AND SHAREHOLDERS' EQUITY 77,791 77,330 Normalized Net Interest Earnings and Interest Rate Spread 1,411 2.00% ==== Normalized Yield on Interest-Earning Assets 2.88% ==== Impact of WTC Disaster 7,093 (45) - ------- ------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $84,884 $77,330 ======= ======= Net Interest Earnings and Interest Rate Spread $1,366 1.84% $1,429 1.94% ====== ==== ====== ==== Net Yield on Interest-Earning Assets 2.74% 2.95% ==== ====