In 1996 Bankers Trust finally put the Procter & Gamble derivatives fiasco behind it. After a horrible year in 1995 when the market was still unsure whether the bank would make it onto the comeback trail, it surprised even itself in 1996. Earnings per share have tripled to $6.78, return on equity increased from 4% in 1995 to 13% in 1996 and revenues came in at the second-highest in the bank's 94-year history, at $4.16 billion.
Banker Trust's stated objectives were to rebuild the confidence of clients, shareholders and regulators and to improve its financial performance. Success was apparent in all these areas. The acquisition of Wolfensohn & Co in 1995 greatly strengthened Bankers Trust's M&A business and it is hoped that the pending acquisition of brokers Alex Brown will complement Bankers' large bond and loan business by bolstering its trading and underwriting areas.
In the more traditional areas of derivatives or risk advisory, Bankers is maintaining a strong position in the upper echelons of the business.
As for its clients, memos are frequently passed around the bank reminding employees that the customer always takes priority. Having learnt from the past, the bank has put in place a policy of increasing the level of transparency when reporting its results, with breakdowns by product and also by geographic region.