<PAGE>
                         SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, D.C.  20549
                                          
                                     FORM 10-Q
                                          
(Mark One)

[X]           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                        THE SECURITIES EXCHANGE ACT OF 1934
                                          
                  FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1996
                                          
                                         OR
[  ]          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                        THE SECURITIES EXCHANGE ACT OF 1934
                                          
           FOR THE TRANSITION PERIOD FROM ______________ TO _____________
                                          
                          COMMISSION FILE NUMBER: 33-45417
                                          
                               THE BISYS GROUP, INC.
                                          
               (Exact name of registrant as specified in its charter)
                                          
              DELAWARE                                13-3532663

 (State or other jurisdiction of                 (I.R.S. Employer 
   incorporation or organization)                Identification No.)  

                       150 CLOVE ROAD, LITTLE FALLS, NEW JERSEY
                                        07424

                       (Address of principal executive offices)
                                      (Zip Code)

                                     201-812-8600

                 (Registrant's telephone number, including area code)


INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS 
REQUIRED TO BE FILED BY SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 
1934 DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE 
REGISTRANT WAS REQUIRED TO FILE SUCH REPORT(S), AND (2) HAS BEEN SUBJECT TO 
SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS.

YES   X    NO ____

INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF 
COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE:

      Class                            Shares Outstanding at January 27, 1997
-------------------------------------- --------------------------------------

Common Stock, par value $.02 per share                25,127,042

                         This document contains   15   pages.

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                                THE BISYS GROUP, INC.

                                  INDEX TO FORM 10-Q


PART I.  FINANCIAL INFORMATION                                         PAGE




    Item 1.  Financial Statements

         Condensed Consolidated Balance Sheet as of 
              December 31, 1996 and June 30, 1996. . . . . .. . . . .    3

         Condensed Consolidated Statement of Operations for the 
              three and six months ended December 31, 1996 and 1995 .    4

         Condensed Consolidated Statement of Cash Flows for the 
              six months ended December 31, 1996 and 1995 . . . . . .    5

         Notes to Condensed Consolidated Financial Statements . . . .    6


    Item 2.  Management's Discussion and Analysis of Results of 
             Operations and Financial Condition . . . . . . . . . . .    7



PART II.  OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . .   10

    Item 1.   Legal Proceedings

    Item 4.   Submission of Matters to a Vote of Security Holders

    Item 6.   Exhibits and Reports on Form 8-K

SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   12

EXHIBIT INDEX  . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13

<PAGE>
                                       PART I
                                          
                           ITEM 1.  FINANCIAL STATEMENTS
                                          
                       THE BISYS GROUP, INC. AND SUBSIDIARIES
                        CONDENSED CONSOLIDATED BALANCE SHEET
                                   (IN THOUSANDS)
                                    (UNAUDITED)
                                          
                                                      December 31,   June 30,
                                                         1996         1996
                                                     ---------      ---------
ASSETS        
Current assets:    
   Cash and cash equivalents                         $  47,873      $  39,284
   Accounts receivable, net                             59,516         47,846
   Deferred tax asset                                    5,728         12,159
   Prepaid expenses and other                            5,375          5,126
                                                     ---------      ---------
                                                              
Total current assets                                   118,492        104,415
Property and equipment, net                             27,967         25,264
Intangible assets, net                                  77,470         80,850
Other assets                                             4,086          4,096
                                                     ---------      ---------
     Total assets                                    $ 228,015      $ 214,625
                                                     ---------      ---------
                                                     ---------      ---------
                                                                             
LIABILITIES AND STOCKHOLDERS' EQUITY                                         
Current liabilities:                                                         
   Current maturities of long-term debt              $     236      $     306
   Accounts payable                                      8,293          7,277
   Accrued liabilities                                  51,104         56,384
                                                     ---------      ---------
Total current liabilities                               59,633         63,967
Long-term debt                                           1,623          1,668
Deferred tax liability                                   2,391          5,425
Other liabilities                                          361            393
                                                     ---------      ---------
     Total liabilities                                  64,008         71,453
                                                     ---------      ---------
                                                                             
Stockholders' equity:                                                        
   Common stock, $.02 par value, 80,000,000 
    shares authorized, 25,052,596 and 
    24,782,101 shares issued and outstanding,
    respectively                                           501            496
   Additional paid-in capital                          149,995        145,788
   Retained earnings (accumulated deficit)              13,511         (3,112)
                                                     ---------      ---------
     Total stockholders' equity                        164,007        143,172
                                                     ---------      ---------
     Total liabilities and stockholders' equity      $ 228,015      $ 214,625
                                                     ---------      ---------
                                                     ---------      ---------

The accompanying notes are an integral part of the condensed consolidated   
financial statements.

                                          3
<PAGE>

                        THE BISYS GROUP, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                        (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                     (UNAUDITED)


                                 Three Months Ended          Six Months Ended
                                     December 31,              December 31,
                               ----------------------     --------------------
                                   1996         1995          1996        1995  
                               --------      --------     --------    --------
Revenues                       $ 74,797      $ 55,943     $147,192    $108,215
                               --------      --------     --------    --------

Operating costs and expenses:                                                 
   Service and operating         40,782        29,403       80,797      56,907
   General and administrative    13,033         9,722       26,755      19,920
   Selling and conversion         3,125         2,344        5,965       4,577
   Research and development       2,522         2,493        5,130       5,032
   Amortization of intangible 
    assets                          902           942        1,838       1,884
                               --------      --------     --------    --------
Operating earnings               14,433        11,039       26,707      19,895
Interest (income) expense, 
  net                              (493)          (12)        (997)        102
                               --------      --------     --------    --------
Earnings before income tax 
  provision                      14,926        11,051       27,704      19,793
Income tax provision              5,969         4,200       11,081       7,521
                               --------      --------     --------    --------
Net earnings                   $  8,957      $  6,851     $ 16,623    $ 12,272
                               --------      --------     --------    --------
                               --------      --------     --------    --------
                                                                              
Net earnings per common share  $   0.34      $   0.28     $   0.63    $   0.50
                               --------      --------     --------    --------
                               --------      --------     --------    --------
Weighted average common and 
  common equival equivalent 
  shares outstanding             26,394        24,676       26,279      24,551
                               --------      --------     --------    --------
                               --------      --------     --------    --------


The accompanying notes are an integral part of the condensed consolidated
financial statements.

                                          4

<PAGE>

                        THE BISYS GROUP, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                    (IN THOUSANDS)
                                     (UNAUDITED)

                                                         Six Months Ended
                                                            December 31,   
                                                         ----------------
                                                      1996             1995
                                                   ---------         ---------
Cash flows from operating activities:                                        
Net earnings                                      $  16,623         $  12,272
Adjustments to reconcile net earnings to net 
   cash provided by operating activities:                                    
   Depreciation and amortization                      5,682             4,619
   Deferred income taxes                              3,397             5,200
   Change in operating assets and liabilities       (16,660)           (5,376)
                                                -----------        ----------
Net cash provided by operating activities             9,042            16,715
                                                -----------        ----------
Cash flows from investing activities:                                        
   Capital expenditures                              (7,675)           (6,678)
   Proceeds from maturities and sales of 
     short-term investments                           3,000             2,341
   Purchase of short-term investments                (3,000)             --  
  Proceeds from sale of businesses                    3,827              --  
      Other                                             291             1,529
                                                -----------        ----------
Net cash used in investing activities                (3,557)           (2,808)
                                                -----------        ----------
                                                                             
Cash flows from financing activities:                                        
   Proceeds from debt                                  --               6,800
   Repayment of debt                                   (115)          (15,205)
   Proceeds from exercise of stock options            3,219             1,806
                                                -----------        ----------
Net cash provided by  (used in) financing 
  activities                                          3,104            (6,599)
                                                -----------        ----------
                                                           
Net increase in cash and cash equivalents             8,589             7,308
                                                                             
Cash and cash equivalents at beginning of period     39,284             7,296
                                                -----------        ----------
                                                                             
Cash and cash equivalents at end of period      $    47,873        $   14,604
                                                -----------        ----------
                                                -----------        ----------

The accompanying notes are an integral part of the condensed consolidated
financial statements.

                                          5
<PAGE>

                        THE BISYS GROUP, INC. AND SUBSIDIARIES
                 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                     (UNAUDITED)


1.  THE COMPANY

    The BISYS -Registered Trademark- Group, Inc. and subsidiaries (the 
    "Company") is a leading national provider of outsourcing solutions to 
    and through financial organizations.

    The condensed consolidated financial statements include the accounts of The
    BISYS Group, Inc. and its subsidiaries and have been prepared consistent
    with the accounting policies reflected in the 1996 Annual Report on Form
    10-K filed with the Securities and Exchange Commission and should be read
    in conjunction therewith. The condensed consolidated financial statements
    include all adjustments (consisting only of normal recurring adjustments)
    which are, in the opinion of management, necessary to present fairly this
    information.

2.  DISPOSITION OF ITEM PROCESSING DIVISION

    On October 30, 1996, the Company sold, pursuant to a stock purchase
    agreement, all of the outstanding stock of its Item Processing Division to
    a third party transaction processing company.  The Item Processing Division
    provides item processing services to financial institutions across the
    country through a number of processing facilities.  The stock purchase
    agreement provides for an initial cash payment  and additional
    consideration payable to the Company contingent upon the level of revenues
    generated by existing and new customers of the Item Processing Division
    during the two years following the sale.  The sale had no material impact
    on the Company's financial position or results of operations for the three
    months ended December 31, 1996.

3.  USE OF ESTIMATES

    The preparation of financial statements in conformity with generally
    accepted accounting principles requires management to make certain
    estimates and assumptions that affect the reported amounts of assets and
    liabilities and disclosure of contingent assets and liabilities at the date
    of the financial statements and the reported amounts of revenue and
    expenses during the reporting period.  The most significant estimates are
    related to the allowance for doubtful accounts, intangible assets, merger
    expenses and other charges, income taxes and contingencies.  Actual results
    could differ from these estimates in the near term. 

4.  CONTINGENCIES

    For a description of certain legal proceedings related to the Company,
    refer to Part II, Item 1 - "Legal Proceedings" and the 1996 Annual Report
    on Form 10-K.

                                          6
<PAGE>

ITEM 2.             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The Company provides outsourcing solutions to and through financial
organizations which is reported as a single segment.  The operating margins for
each business unit of the Company are not significantly different.  The
following table presents the percentage of revenues represented by each item in
the Company's condensed consolidated statement of operations for the periods
indicated:

                                        Three Months Ended     Six Months Ended
                                            December 31,          December 31,
                                        ------------------     ----------------
                                            1996    1995       1996      1995 
                                          ------   ------     ------    ------
Revenues                                  100.0%  100.0%      100.0%    100.0%
Operating costs and expenses:                                                
  Service and operating                    54.5    52.6        54.9      52.6
  General and administrative               17.4    17.4        18.2      18.4
  Selling and conversion                    4.2     4.2         4.0       4.2
  Research and development                  3.4     4.4         3.5       4.7
  Amortization of intangible assets         1.2     1.7         1.3       1.7
                                          ------   ------     ------    ------
Operating earnings                         19.3    19.7        18.1      18.4
Interest (income) expense, net             (0.7)   --          (0.7)      0.1
                                          ------   ------     ------    ------
Earnings before income tax provision       20.0    19.7        18.8      18.3
Income tax provision                        8.0     7.5         7.5       7.0
                                          ------   ------     ------    ------
Net earnings                               12.0%   12.2%       11.3%     11.3%
                                          ------   ------     ------    ------
                                          ------   ------     ------    ------

COMPARISON OF THE THREE MONTHS ENDED DECEMBER 31, 1996 WITH THE THREE MONTHS
ENDED DECEMBER 31, 1995.

    Revenues increased 33.7% from $55.9 million for the three months ended
    December 31, 1995 to $74.8 million for the three months ended December 31,
    1996.  This growth was derived from sales to new clients, existing client
    growth, cross sales to existing clients and revenues from acquired
    businesses,  partially offset by lost business.

    Service and operating expenses increased 38.7% from $29.4 million during
    the three months ended December 31, 1995 to $40.8 million for three months
    ended December 31, 1996, and increased as a percentage of revenues from
    52.6% to 54.5%.  These increases resulted from additional costs associated
    with greater revenues.

    General and administrative expenses increased 34.1% from $9.7 million
    during the three months ended December 31, 1995, to $13.0 million for the
    three months ended December 31, 1996, and remained flat as a  percentage of
    revenues at approximately 17.4%.  The dollar increase resulted from
    additional costs associated with additional revenues.

    Operating earnings increased 30.8% from $11.0 million during the three
    months ended December 31, 1995, to $14.4 million for the three months ended
    December 31, 1996, and decreased as a percentage of revenues from 19.7% to
    19.3%. 
    
    Interest income was $0.5 million greater for the three months ended
    December 31, 1996 compared to the same period in the prior fiscal year due
    to higher levels of invested cash and cash equivalents.

    The income tax provision of $6.0 million for the three months ended
    December 31, 1996 increased from $4.2 million for the three months ended
    December 31, 1995.  The provision represents an effective tax rate of 40.0%
    for the three months ended December 31, 1996 compared to 38.0% for the
    three months ended December 31, 1995.  The lower rate in the prior year was
    primarily due to the impact of an adjustment to the deferred tax asset
    valuation allowance during the three months ended December 31, 1995.

                                          7
<PAGE>

COMPARISON OF THE SIX MONTHS ENDED DECEMBER 31, 1996 WITH THE SIX MONTHS ENDED
DECEMBER 31, 1995.

    Revenues increased 36.0% from $108.2 million for the six months ended
    December 31, 1995 to $147.2 million for the six months ended December 31,
    1996.  This revenue growth was derived from sales to new clients,existing
    client growth, cross sales to existing clients and revenues from acquired
    businesses, partially offset by lost business.

    Service and operating expenses increased 38.7% from $56.9 million during
    the six months ended December 31, 1995 to $80.8 million for the six months
    ended December 31, 1996, and increased as a percentage of revenues from
    52.6% to 54.5%.  These increases resulted from additional costs associated
    with greater revenues. 

    General and administrative expenses increased 34.3% from $19.9 million
    during the six months ended December 31, 1995 to $26.8 million for the six
    months ended December 31, 1996, and decreased as a percentage of revenues
    from 18.4% to 18.2%.  The dollar increase resulted from additional costs
    associated with greater revenues.  The decrease as a percentage of revenues
    resulted from further utilization of existing general and administrative
    support resources.

    Operating earnings of  $26.7 million for the six months ended December 31,
    1996 increased from $19.9 million for the six months ended December 31,
    1995, and decreased as a percentage of revenues from 18.4% to 18.1%. 

    Interest income was $1.0 million for the six months ended December 31, 1996
    compared to interest expense of $0.1 million for the six months ended
    December 31, 1995 due to higher levels of invested cash and cash
    equivalents.

    The income tax provision of $11.1 million for the six months ended December
    31, 1996  increased from $7.5 million for the six months ended December 31,
    1995.  The provision represents an effective tax rate of 40.0% for the six
    months ended December 31, 1996, compared to 38.0% for the six months ended
    December 31, 1996.  The lower rate in the prior year was primarily due to
    the impact of an adjustment to the deferred tax asset valuation allowance
    during the six months ended December 31, 1995. 

LIQUIDITY AND CAPITAL RESOURCES

    At December 31, 1996, the Company had cash and cash equivalents of $47.9
    million and working capital of approximately $58.9 million.  The Company
    has been able to finance its cash requirements through its cash flows from
    operations.  The Company is in discussion with its lenders to obtain a
    $100.0 million revolving credit facility, and terminated its existing 
    $10.0 million revolving line of credit facility in October 1996.  At
    December 31, 1996, the Company had $0.2 million outstanding in the form of
    letters of credit.  The interest rate on other outstanding long-term
    borrowings of $1.6 million at December 31, 1996 was 7.75%.

    For the six months ended December 31, 1996, operating activities provided
    cash of $9.0 million primarily through net earnings of $16.6 million. 
    Investing activities used cash of $3.6 million primarily for capital
    expenditures of $7.7 million offset by net proceeds from sale of businesses
    of $3.8 million.   Financing activities provided cash of $3.1 million, $3.2
    million from the exercise of stock options, offset by $.01 million for the
    repayment of debt.



                                          8

<PAGE>

MERGER EXPENSES AND OTHER CHARGES

    At December 31, 1996, approximately $5.9 million of costs to integrate new
    operations arising from prior acquisitions and costs relating to the
    combining of certain data center operations are included in accrued
    liabilities on the accompanying balance sheet.  Approximately $2.0 million
    of such expenses were paid during the three months ended December 31, 1996.

    Accrued liabilities at December 31, 1996 also include $5.0 million of
    estimated commissions and other expenses arising from the outsourcing
    alliance agreement entered into in June 1996 between the Company and the
    mutual fund division of Furman Selz LLC.  Approximately $9.0 million of
    such expenses were paid by the Company to Furman Selz pursuant to the
    agreement during the three months ended December 31, 1996.

    It is anticipated that the actions to combine and integrate the
    aforementioned operations will be substantially completed by June 30, 1997.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

    Except for the historical information contained herein, the matters
    discussed in this quarterly report are forward-looking statements which
    involve risks and uncertainties, including but not limited to economic,
    competitive, governmental and technological factors affecting the Company's
    operations, markets, services and related products, prices, and other
    factors discussed in the Company's prior filings with the Securities and
    Exchange Commission.

                                          9
<PAGE>
                                      PART II
                                          
                                          
ITEM 1.  LEGAL PROCEEDINGS

         On August 23, 1994, and September 8, 1994, two purchasers of Concord's
         stock, Seymour Lazar and Joshua Teitelbaum, on behalf of themselves
         and all others similarly situated, filed class action complaints in
         the United States District Court for the Northern District of
         California against Concord, its Board of Directors and certain
         officers, Hambrecht & Quist Group, Bank of America NT&SA and
         Montgomery Securities alleging violations of the federal securities
         laws.  The complaints alleged that these individuals and entities
         misrepresented Concord's business and future prospects during
         Concord's initial public offering and in subsequent statements in
         order to successfully consummate the offering and to sustain an
         artificially inflated price for Concord's common stock.  Accordingly,
         the plaintiffs sought to recover losses allegedly sustained by a class
         who purchased Concord's common stock between February 24, 1994, and
         June 17, 1994.  The complaints did not  specify the amount of  damages
         sought.  The two cases were consolidated  into one  case. The parties
         entered into a definitive settlement agreement which was approved by
         the court.  On November 22, 1996, the court issued its order of final
         judgment and dismissed the case with prejudice.  The Company paid the
         amount required in the settlement agreement during the three months
         ended December 31, 1996 and has no further obligations.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         At the Annual Meeting of Stockholders of the Company, held on November
         14, 1996, the Stockholders approved the following matters:

         1.   Re-election of all six Directors named below to hold office until
              the next Annual Meeting of  Stockholders and until their
              successors have been duly elected and qualified:

                                          Number of
                   Name of Director    Votes in Favor
                   ----------------    --------------

                   Lynn J. Mangum         21,921,011
                   Paul H. Bourke         21,908,469
                   Jay DeDapper           21,919,724
                   John J. Lyons          21,921,044
                   Thomas E. McInerney    21,921,044
                   Neil P. Marcous        21,903,708

                                             For          Against    Abstain
         
         2.   1996 Stock Option Plan        16,594,494   4,708,647   16,762

         3.   1997 Employee Stock Purchase  21,214,176      97,263    8,464
              Plan

         4.   Amendment to 1995 Stock       20,651,870     583,764   84,269
              Option Plan    

         5.   Amendment to 1989 Stock       20,489,306     624,891   34,801
              Option and Restricted Stock 
              Purchase Plan

         6.   Appointment of Coopers &      21,930,913       2,873    7,129
              Lybrand, L.L.P. as 
              independent accountants
              for fiscal year 1997

                                          10

<PAGE>

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

    (a)  EXHIBITS

         Exhibit 11.1 - Statement regarding computation of earnings per common 
         share.

    (b)  REPORTS ON FORM 8-K

         None

<PAGE>


                                      SIGNATURES


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.



                      THE BISYS GROUP, INC.



Date:  2/14/97        By:  /s/ Robert J. McMullan
     -------------        ----------------------------------------------------
                          Robert J. McMullan
                          Executive Vice President and Chief Financial Officer
                          (Duly Authorized Officer)


                                          12
<PAGE>

                               THE BISYS GROUP, INC.
                                   EXHIBIT INDEX




EXHIBIT NO.                                                   PAGE

    (11) Computation of Earnings Per Common Share.  . . .     14

    (27) Financial Data Schedule  . . . . . . . . . . .      (electronic only)



                                          
                                          
                                         13