-----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, Pel5R98fka4YBmKUJq3xb6qhnqtj3vvvlPMegPqjxHmKW+g3ReUu8u8LtFx7Hmm5 dWsNyo2DGODBVkR9fg57/A== 0000009626-99-000054.txt : 19991217 0000009626-99-000054.hdr.sgml : 19991217 ACCESSION NUMBER: 0000009626-99-000054 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991216 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991216 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: 99775778 BUSINESS ADDRESS: STREET 1: ONE WALL STREET 10TH FLOOR 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 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 16, 1999 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 ------------ Projections and Earnings Estimates ---------------------------------- On December 16, 1999, The Bank of New York Company, Inc. released the projections and earnings estimates contained in the materials filed herewith, as Exhibit 99, which are incorporated herein by reference. ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits ------------------------------------------------------------------ (c) Exhibit Description ------- ----------- 99 Materials containing projections and earnings estimates of The Bank of New York Company, Inc. as presented to financial analysts on December 16,1999. 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 thereunto duly authorized. Date: December 16, 1999 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 16, 1999. EX-99 2 PROJECTIONS AND EARNINGS ESTIMATES EXHIBIT 99 Cautionary Statement The forward looking statements presented today including projections with respect to earnings growth and the Company's plans and objectives are subject to risks and uncertainties that could cause actual results to differ materially from projected results discussed. These include inaccuracies in management projections or market forecasts and the actions that management could take in response to these changes. For additional detailed information, we refer you to the discussions under the heading "Forward Looking Statements" in the Company's 1998 10-K and Third Quarter 1999 10-Q, both of which have been filed with the SEC. ==================================(SLIDE 1)=================================== The Bank of New York Company, Inc. ==================================(SLIDE 2)=================================== Earnings Contribution Percent
Pro Forma 1995 1996 1997 1998 1999E 1999E ------- -------- ------- ------- -------- ------- Securities Serv. And Cash Proc. 22 30 35 37 41 44 Private Client Services 5 6 8 9 9 10 ------- ------- ------- ------- -------- ------- Fiduciary/Securities Servicing 27 36 43 46 50 54 ======= ======= ======= ======= ======== ======= Corporate Banking 20 22 24 23 21 22 Retail Banking 15 14 12 12 12 12 Financial Market Services 13 12 11 11 11 12 Asset Based Lending 7 7 8 8 6 0 Credit Card 18 9 2 0 0 0 ------- ------- ------- ------- -------- ------- 100 100 100 100 100 100 ======= ======= ======= ======= ======== =======
==================================(SLIDE 3)=================================== Transformation Continues - -Strategic focus on fiduciary and asset servicing businesses - -Sale of BNY Financial - -RBS Trust Bank acquisition - -Continued realignment of lending strategy - -Trend will continue ==================================(SLIDE 4)=================================== Momentum Accelerates Enhancing revenue growth -Benefiting from favorable secular trends -Continuing industry consolidation -Structural pressures on asset managers and providers ==================================(SLIDE 5)=================================== Momentum Accelerates Sustaining technology leadership -Real-time web-based services Enhancing investor returns -Active capital management ==================================(SLIDE 6)=================================== BK Investment Thesis Proven business model -Sustainable, high growth, fee-based businesses Breadth of product -Integrated -Single-source provider Leader in technology -Scalable -Functional -Low cost of delivery ==================================(SLIDE 7)=================================== BK Investment Thesis (continued) Relationship orientation -Successful cross-selling -Outsourcing opportunities Organizational expertise -Integration of acquisitions -Managing complex product suite ==================================(SLIDE 8)=================================== Realignment of Loan Portfolio Percent 1994 1999 ---- ---- Securities and Fiduciary Services 41 73 Credit Only 45 10 Retail, Leasing and Other 14 17 ---- ---- Total 100 100 ==== ==== ==================================(SLIDE 9)=================================== Loan Portfolio Mix Percent 1994 1999 ---- ---- Industry: Financial Companies 14 24 Specialized Industries 24 32 Private Banking 3 5 ---- ---- Subtotal 41 61 U.S. Corporate/Regional 17 22 Retail, Leasing and Other 14 17 Credit Card 23 0 Asset Based Lending 5 0 ---- ---- Total 100 100 ==== ==== ==================================(SLIDE 10)================================== Key Capital Ratios Percent 1998 1999E ----- ----- Tier 1 7.89 7.60 Total 11.90 11.70 TCE 6.25 4.70 Leverage 7.46 6.90 ==================================(SLIDE 11)================================== Tier 1 Capital Sources and Uses In Millions of Dollars ---------------------- Earnings projection: Year 2000* $1,400 Plus: Emp. Purch./GW Amort. 400 Less: Dividends (500) Acquisitions (400) Balance sheet growth (100) ------ Capital available for further acquisitions/ TCE improvement/stock buyback $ 800 ====== * Based on Yr. 2000 First Call estimates ==================================(SLIDE 12)================================== Technology Investment In Millions 1996 1997 1998 1999E 2000E ---- ---- ---- ----- ----- $290 $308 $360 $400 $455 12% Average Growth ==================================(SLIDE 13)================================== Acquisitions will Continue Consolidation pressures increasing -Scale players benefit -Refocusing on core competencies Year 2000 opportunities -Corporate Trust -Investor Services -Private Client Services -Execution and Clearing Services ==================================(SLIDE 14)================================== Securities Servicing Market Sustainable Growth Rank Product 2000 - 2003 - ------- ------- ------------------ 2 International Custody 25% + 2 Mutual Funds 20% + 1 Securities Clearance 20% + 1 Depositary Receipts 15% + 2 Corporate Trust 15% + 2 Domestic Custody 10% + 2 Securities Lending 10% + 2 Unit Investment Trust 10% + 3 Stock Transfer 10% + ----- Overall 15% + ==================================(SLIDE 15)================================== Growth Rates Depositary Receipt Services Sustainable revenue growth: 15%+ Significant upside potential: 30%+ -Volatility -Corporate actions Increases in recurring fees New products -Basket depositary receipts ==================================(SLIDE 16)================================== Corporate Trust Growth Rates Sustainable revenue growth: 15%+ Significant upside potential: 25%+ -Continued global expansion -BNY Asset Solutions -Ongoing acquisitions -32 since 1993 -6 in 1999 ==================================(SLIDE 17)================================== Securities Servicing Fee Revenues In Millions of Dollars
Est. 1999 Est. 2000 1999 Growth 2000 Growth ------- -------- ------- ------- ADRs Corporate Trust $ 507 20% $ 620+ 22% Stock Transfer International Custody Domestic Custody $ 431 28% 595+ 38% Securities Lending Mutual Funds Securities Clearance $ 307 28% 360+ 18% UIT ------ ------- Total Fee Revenue $1,245 24% $1,575+ 27% ======= =======
==================================(SLIDE 18)================================== Earnings Contribution Percent
1995 1998 1999E 2000E ------- -------- ------- ------- Securities Serv. And Cash Proc. 22 37 41 46 Private Client Services 5 9 9 10 ------- -------- ------- ------- Fiduciary/Securities Servicing 27 46 50 56 ======= ======== ======= ======= Corporate Banking 20 23 21 20 Retail Banking 15 12 12 12 Financial Market Services 13 11 11 12 Asset Based Lending 7 8 6 0 Credit Card 18 0 0 0 ------- -------- ------- ------- 100 100 100 100 ======= ======== ======= =======
==================================(SLIDE 19)================================== Cash Processing Revenues In Millions of Dollars 1999E 2000E ----- ----- Revenue $389 $419 %Increase 6% 8% ==================================(SLIDE 20)================================== Private Client Services In Millions of Dollars 1999E 2000E ----- ----- Fees $243 $292 % Increase 16%+ 20%+ ==================================(SLIDE 21)================================== Corporate Banking - -Expected loan growth for 1999E: 5.5%+ - -Expected loan growth for 2000E: 8.0%+ - -Strong asset quality continues - -Capital market capabilities - -Fee income focus ==================================(SLIDE 22)================================== Financial Market Services - -Increased customer volumes - -Improved penetration of European customer base - -Significant upside: RBS Trust - -Revenue growth for 1999E: 20%+ - -Revenue growth for 2000E: 30%+ ==================================(SLIDE 23)================================== Non-Interest Income % of Revenues 1995 1998 1999E 2000E - ---- ---- ----- ----- 41% 58% 61% 63% ==================================(SLIDE 24)================================== Financial Goals 2000-2003 Target Goal ------ --------- Return on Equity 24%+ Return on Assets 2% Efficiency Ratio 48% EPS Growth Rate 12 to 14% ====================================(END)==================================== -----END PRIVACY-ENHANCED MESSAGE-----