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Bank of New York

Bank of New York

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Bank of New York

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Presentation Transcript

  1. Bank of New York Presenters Robert Klein Sohail Cheema Jennifer Reich Mike Klopack

  2. Company Vision From the vantage point of an institution that financed merchants whose vessels carried goods throughout the world two centuries ago, The Bank of New York looks forward to meeting the challenges and opportunities of today’s rapidly changing global financial services marketplace.

  3. History 1784 - The Bank of New York (BNY) is founded (Alexander Hamilton writes the bank’s Constitution) 1789 - The BNY gives U.S. Government its first loan 1792 - BNY is the first corporate stock traded on NYSE 1853 - BNY helps to establish the Clearing House of New York 1918 - U.S. becomes the world’s largest creditor & the world’s money center 1922 - BNY & New York Life Insurance & Trust Company merge 1966 - BNY begins global expansion 1988 - BNY Acquires the Irving Bank Corporation

  4. Currently at BNY PRIMARY Businesses - Securities servicing & Global payment services - - Corporate Banking - - Retail Banking - - Private Client Services & Asset Management - - Financial Market Services - $ $

  5. Closer Look at BNY Total Assets = $77.1 Billion Shareholders Equity > $6.2 Billion 350 Branches in New York metropolitan area National Offices in: - Georgia - - Alabama - - Florida - - California (L.A. & S.F.) - - Missouri - - New Jersey - - Illinois - - Washington - Internationally: 29 Branch & Representative in 26 Countries 2300 Correspondent Banks

  6. Recent Acquisitions 2000 March - Harris Trust & Savings in Chicago September - Dai-Ichi Kangyo Bank of California 2001 March - Summit Bancorp August - Greenwich Advisory Associates, Inc. October - Westminster Research Associates Inc. December - Autranet 2002 February - G-Trade Services Ltd.

  7. FINANCIAL OUTLOOK

  8. Stock Price and Dividend

  9. Financial Highlights 2000 - 2001 2001 2000 1999 1998 1997 Net Interest Income $1,681B $1,870B $1,701B $1,651B $1,855B Non Interest Income $3,540B $3,109B $3,493B $2,283B $2,137B Non Interest Expense $2,788B $2,510B $2,107B $1,928B $1,874B Net Income (Available to all stockholders) $1,343B $1,429B $1,739B $1,192B $1,095B Dividends Paid $ 0.45 $ 0.66 $ 0.58 $ 0.54 $ 0.49 Market Value at Year End $40.25 $55.19 $40.00 $40.25 $28.91 Assets $81,028B $77,114B $66,777B $63,141B $59,242B Common Shares Outstanding ($Millions) 729.5 739.9 738.7 771.3 747.7 Employees 18,861 18,861 17,735 17,157 16,494 52 Week Low $29.75 (9-21-2001) 52 Week High $55.35 (6-01-2001) Total World Wide Assets $7 Trillion Profit Margin 36.80% Return on Equity 21.47% Return on Assets 1.69%

  10. Segment Profitability Segment Profitability (in $Millions) Segment 2001 Securities 1,750 Global Payment Services 287 Client and Asset Mgmt Service 308 Service Charges and Fees 356 Foreign Exchange and Trading 338 Securities Gain 154 Interest 1,741 Others 347 Total 5,281

  11. Financial Impact of “9-11” (In $Millions) Loss of Net Interest Income $45 Extra Provision for Credit Losses $190 Insurance Recovery $175 Employee (Overtime) $34 Net Occupancy $38 Furniture and Equipment $55 Other $41 LOSS FROM WTC ATTACK $578 (approximate)

  12. "Notwithstanding the very difficult operating environment in 2001, exacerbated by the WTC disaster, we met the challenges through continued success on the new business front as well as careful expense management. We are poised to benefit as the global market recovers.“ Thomas A. Renyi CEO and Chairman

  13. Ratios Compared to Industry RATIO BNY Industry What it means P/E 22.39 21.80 BNY is properly "valued" compared to industry. Payout Ratio 39.13 40.48 BNY retains more earnings for re-investment. EPS (5-yr growth) 8.61 12.21 Earnings is steady, slightly slower than industry. Sales (5-yr growth) 0.38 9.63 BNY continues to grow despite poor economy. Net Profit Margin 36.77 18.45 Runs much more than efficiently than industry. ROI 13.85 5.83 Higher yield in stock (makes up for higher risk). ROE 21.47 14.44 BNY manages retained earnings better than industry. NI/ Employee 71,205 45,472 Employees at BNY run more efficient than industry.

  14. Industry Analysis Threat of new entrants Due to the size of BNY (and competitors), very few would be willing to try to compete against them Competition within industry Competition is very fierce in banking Substitution to banking There is no substitution to putting money in the bank Bargaining power of suppliers. The only supplier they have is the Fed and the government Bargaining power of customers Next to none

  15. PRODUCTS SERVICES & TECHNOLOGY

  16. Products and Services Individual Multitude of quality products & services Business Corporate & Institutions

  17. Services for Individuals Personal Banking BNY Mortgage Company LLC Priority Value Banking Check Invest Select Investments Insurance Private Client Services

  18. Services for Small Businesses Checking and Savings Accounts Investment Products BNY Investment Center Insurance Private Client Services

  19. Services for Corporations and Institutions - Corporate Banking Services - - International Banking Services - - Investor & Issuer Securities Services - - Asset Management - ($61 billion in assets) - Global Payment Services - $ $

  20. Technology Ranking among U.S. Big Four Providers : #1 Technology #1 Technology Resilience and Scalability #1 Internet Access BNY iFX Manager named Best FX trading site BNY ONLINE Bank of New York Direct 24 Debit Business Card

  21. JOBS & TRAINING

  22. Bank of New York - Employment - Diverse population of employees Individuals with undergraduate and advanced degrees Interns High school students

  23. SOCIAL INVOLVEMENT GROUPS

  24. Volunteerism Employees encouraged to participate in community service activities Employees support: - United Way - - New York Blood Center - - Junior Achievement - - Big Brothers and Big Sisters - - Salvation Army - - March of Dimes - Officers on boards of community organizations

  25. Financial Literacy Programming Workshops for: First time homebuyers Small businesses seeking to expand Consumers

  26. September 11th Recovery Rebuild New York Business Program - Created Small Business Recovery Center - WTC Disaster Recovery Bridge Loan Program - Emergency loans - - Small Business Administration Disaster Loan - Euro Currency for New York - Benefits City of New York’s Twin Towers Fund (February 28, 2002) -

  27. COMMERCIAL

  28. Dennis Neumann U.S. Air Force University of Hawaii UIC CBA graduate in Management and Finance J.L. Kellogg School of Management, Master of Management First Chicago Tiger Financial Bank of New York Capital Funding LLC, Chairman