Bank of New York anticipates that earnings for the third quarter of 2001 will be negatively impacted by $125 million, or 17 cents per share, as a direct result of the World Trade Center disaster.
In a statement, the bank said that the estimated impact of the disaster reflects costs associated with the disabling of two of its facilities close to the World Trade Center; full outfitting of contingency locations and associated infrastructure links; reoccupying its headquarters building at One Wall Street; and other expenses, including overtime, outside vendors, and extra security.
BoNY also experienced a reduction of revenues in the quarter due to the temporary closure of the markets and higher than normal levels of excess liquidity resulting from the disruption of the markets and payment processing. The bank believes that a substantial portion of the impact of the disaster is covered under its insurance policies. These insurance recoveries will be recorded in future quarters.
"This tragedy of unprecedented proportions has deeply affected us all and we extend our deepest sympathies to the families of two of our own employees and the thousands of others who were lost," said Thomas A. Renyi, chairman and CEO. "At the time of the disaster, we had over 8,300 employees located in four lower Manhattan facilities who were evacuated in a matter of hours.
"I am proud of all our employees' dedicated efforts, working around the clock to restore and now maintain the Bank's operating capacity from our contingency sites. We continue to work closely with our clients and other market participants to resolve any remaining issues arising from market disruptions brought on by this disaster."