Exhibit 99(i)
MERRILL LYNCH & CO., INC.
PRELIMINARY UNAUDITED EARNINGS SUMMARY
For the Three Months Ended Percent Inc / (Dec)
----------------------------------------- --------------------------
September 29, June 30, September 24, 3Q00 vs. 3Q00 vs.
(in millions, except per share amounts) 2000 2000 1999 2Q00 3Q99
------------- ---------- ------------- ------------ ------------
NET REVENUES
Commissions $ 1,624 $ 1,647 $ 1,444 (1.4)% 12.5 %
Principal transactions 1,160 1,548 1,130 (25.1) 2.7
Investment banking 858 1,087 949 (21.1) (9.6)
Asset management and portfolio service fees 1,414 1,413 1,183 0.1 19.5
Other 318 282 122 12.8 160.7
------- ------- -------
Subtotal 5,374 5,977 4,828 (10.1) 11.3
Interest and dividend revenues 5,479 5,073 3,669 8.0 49.3
Less interest expense 4,704 4,204 3,145 11.9 49.6
------- ------- -------
Net interest profit 775 869 524 (10.8) 47.9
TOTAL NET REVENUES 6,149 6,846 5,352 (10.2) 14.9
------- ------- -------
NON-INTEREST EXPENSES
Compensation and benefits 3,146 3,508 2,783 (10.3) 13.0
Communications and technology 542 584 487 (7.2) 11.3
Occupancy and related depreciation 250 259 232 (3.5) 7.8
Advertising and market development 205 263 191 (22.1) 7.3
Brokerage, clearing, and exchange fees 206 233 193 (11.6) 6.7
Professional fees 147 168 145 (12.5) 1.4
Goodwill amortization 52 54 57 (3.7) (8.8)
Other 290 364 360 (20.3) (19.4)
------- ------- -------
TOTAL NON-INTEREST EXPENSES 4,838 5,433 4,448 (11.0) 8.8
------- ------- -------
EARNINGS BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 1,311 1,413 904 (7.2) 45.0
Income tax expense 378 443 276 (14.7) 37.0
Dividends on preferred securities issued by subsidiaries 48 49 49 (2.0) (2.0)
------- ------- -------
NET EARNINGS $ 885 $ 921 $ 579 (3.9) 52.8
======= ======= =======
Preferred stock dividends $ 10 $ 9 $ 8 11.1 25.0
------- ------- -------
NET EARNINGS APPLICABLE TO COMMON STOCKHOLDERS $ 875 $ 912 $ 571 (4.1) 53.2
======= ======= =======
EARNINGS PER COMMON SHARE
Basic $ 1.09 $ 1.15 $ 0.75 (5.2) 45.3
Diluted 0.94 1.01 0.67 (6.9) 40.3
AVERAGE SHARES
Basic 805.9 795.1 757.9 1.4 6.3
Diluted 929.0 904.2 855.3 2.7 8.6
Note: Prior period amounts have been restated to reflect the merger with Herzog,
Heine, Geduld, Inc. as required under pooling-of-interests accounting
and the 2-for-1 common stock split paid on August 31, 2000.
11
Exhibit 99(i)
MERRILL LYNCH & CO., INC.
PRELIMINARY UNAUDITED EARNINGS SUMMARY
For the Nine Months Ended
-----------------------------
September 29, September 24, Percent
(in millions, except per share amounts) 2000 1999 Inc / (Dec)
------------- ------------- -------------
NET REVENUES
Commissions $ 5,431 $ 4,613 17.7 %
Principal transactions 4,746 3,831 23.9
Investment banking 2,941 2,489 18.2
Asset management and portfolio service fees 4,217 3,451 22.2
Other 849 442 92.1
------- -------
Subtotal 18,184 14,826 22.6
Interest and dividend revenues 15,025 11,095 35.4
Less interest expense 12,690 9,643 31.6
------- -------
Net interest profit 2,335 1,452 60.8
TOTAL NET REVENUES 20,519 16,278 26.1
------- -------
NON-INTEREST EXPENSES
Compensation and benefits 10,572 8,363 26.4
Communications and technology 1,710 1,508 13.4
Occupancy and related depreciation 762 698 9.2
Advertising and market development 713 546 30.6
Brokerage, clearing, and exchange fees 672 563 19.4
Professional fees 462 407 13.5
Goodwill amortization 162 170 (4.7)
Other 1,057 1,024 3.2
------- -------
TOTAL NON-INTEREST EXPENSES 16,110 13,279 21.3
------- -------
EARNINGS BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 4,409 2,999 47.0
Income tax expense 1,356 953 42.3
Dividends on preferred securities issued by subsidiaries 146 146 -
------- -------
NET EARNINGS $ 2,907 $ 1,900 53.0
======= =======
Preferred stock dividends $ 29 $ 28 3.6
------- -------
NET EARNINGS APPLICABLE TO COMMON STOCKHOLDERS $ 2,878 $ 1,872 53.7
======= =======
EARNINGS PER COMMON SHARE
Basic $ 3.63 $ 2.49 45.8
Diluted 3.18 2.19 45.2
AVERAGE SHARES
Basic 793.7 752.4 5.5
Diluted 905.0 854.7 5.9
Note: Prior period amounts have been restated to reflect the merger with Herzog,
Heine, Geduld, Inc. as required under pooling-of-interests accounting
and the 2-for-1 common stock split paid on August 31, 2000.
12
Exhibit 99(i)
MERRILL LYNCH & CO., INC. PRELIMINARY SEGMENT DATA
- -----------------------------------------------------------------------------------------------------------------------
(dollars in millions - unaudited)
- -----------------------------------------------------------------------------------------------------------------------
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
SEPT. 29, JUNE 30, SEPT. 24, SEPT. 29, SEPT. 24,
2000 2000 1999 2000 1999
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PRELIMINARY SEGMENT DATA
CORPORATE AND INSTITUTIONAL CLIENT
Non-interest revenues $ 2,383 $ 2,829 $ 2,157 $ 8,536 $ 6,570
Net interest profit 379 503 296 1,240 833
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Total net revenues 2,762 3,332 2,453 9,776 7,403
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Earnings before income taxes and
dividends on preferred securities
issued by subsidiaries 839 1,066 622 3,136 2,017
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PRIVATE CLIENT GROUP
Non-interest revenues 2,434 2,596 2,196 8,032 6,877
Net interest profit 407 383 259 1,145 728
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Total net revenues 2,841 2,979 2,455 9,177 7,605
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Earnings before income taxes and
dividends on preferred securities
issued by subsidiaries 402 293 279 1,159 1,005
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MERRILL LYNCH INVESTMENT MANAGERS
Non-interest revenues 587 589 516 1,775 1,537
Net interest profit 17 11 (3) 35 (7)
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Total net revenues 604 600 513 1,810 1,530
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Earnings before income taxes and
dividends on preferred securities
issued by subsidiaries 143 132 84 374 242
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CORPORATE
Non-interest revenues (30) (37) (41) (159) (158)
Net interest profit (28) (28) (28) (85) (102)
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Total net revenues (58) (65) (69) (244) (260)
--------------------------------------------------------------------------------------------------------------------
Earnings (loss) before income taxes and
dividends on preferred securities
issued by subsidiaries (73) (78) (81) (260) (265)
--------------------------------------------------------------------------------------------------------------------
TOTAL
Non-interest revenues 5,374 5,977 4,828 18,184 14,826
Net interest profit 775 869 524 2,335 1,452
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Total net revenues 6,149 6,846 5,352 20,519 16,278
--------------------------------------------------------------------------------------------------------------------
Earnings before income taxes and
dividends on preferred securities
issued by subsidiaries $ 1,311 $ 1,413 $ 904 $ 4,409 $ 2,999
- -----------------------------------------------------------------------------------------------------------------------
Note: Prior period amounts have been restated to reflect the merger with Herzog,
Heine, Geduld, Inc. as required under pooling-of-interests accounting
and to conform to the current period presentation.
13
Exhibit 99(i)
MERRILL LYNCH & CO., INC.
- -------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED QUARTERLY EARNINGS [UNAUDITED] (in millions)
- -------------------------------------------------------------------------------------------------------------------------------
3Q99 4Q99 1Q00 2Q00 3Q00
----------------------------------------------------------
NET REVENUES
Commissions $1,444 $1,742 $2,160 $1,647 $1,624
Principal transactions 1,130 921 2,038 1,548 1,160
Investment banking 949 1,125 996 1,087 858
Asset management and portfolio service fees 1,183 1,302 1,390 1,413 1,414
Other 122 304 249 282 318
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Subtotal 4,828 5,394 6,833 5,977 5,374
Interest and dividend revenues 3,669 4,025 4,473 5,073 5,479
Less interest expense 3,145 3,376 3,782 4,204 4,704
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Net interest profit 524 649 691 869 775
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TOTAL NET REVENUES 5,352 6,043 7,524 6,846 6,149
NON-INTEREST EXPENSES
Compensation and benefits 2,783 2,974 3,918 3,508 3,146
Communications and technology 487 545 584 584 542
Occupancy and related depreciation 232 255 253 259 250
Advertising and market development 191 237 245 263 205
Brokerage, clearing, and exchange fees 193 216 233 233 206
Professional fees 145 164 147 168 147
Goodwill amortization 57 57 56 54 52
Other 360 388 403 364 290
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TOTAL NON-INTEREST EXPENSES 4,448 4,836 5,839 5,433 4,838
EARNINGS BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 904 1,207 1,685 1,413 1,311
Income tax expense 276 366 535 443 378
Dividends on preferred securities issued by subsidiaries 49 48 49 49 48
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NET EARNINGS $ 579 $ 793 $1,101 $ 921 $ 885
Preferred stock dividends 8 11 10 9 10
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NET EARNINGS APPLICABLE TO COMMON STOCKHOLDERS $ 571 $ 782 $1,091 $ 912 $ 875
- -------------------------------------------------------------------------------------------------------------------------------
PER COMMON SHARE DATA
- -------------------------------------------------------------------------------------------------------------------------------
3Q99 4Q99 1Q00 2Q00 3Q00
----------------------------------------------------------
Basic earnings $ 0.75 $ 1.03 $ 1.40 $ 1.15 $ 1.09
Diluted earnings 0.67 0.91 1.24 1.01 0.94
Dividends paid 0.14 0.14 0.14 0.15 0.16
Book value 15.62 16.49 18.13 19.47 20.70 est.
- -------------------------------------------------------------------------------------------------------------------------------
Note: Prior period amounts have been restated to reflect the merger with Herzog,
Heine, Geduld, Inc. as required under pooling-of-interests accounting
and the 2-for-1 common stock split paid on August 31, 2000.
14
Exhibit 99(i)
MERRILL LYNCH & CO., INC.
- -------------------------------------------------------------------------------------------------------------------------
PERCENTAGE OF QUARTERLY NET REVENUES [UNAUDITED]
- -------------------------------------------------------------------------------------------------------------------------
3Q99 4Q99 1Q00 2Q00 3Q00
--------------------------------------------------------
NET REVENUES
Commissions 27.0% 28.8% 28.7% 24.1% 26.4%
Principal transactions 21.1% 15.2% 27.1% 22.6% 18.9%
Investment banking 17.7% 18.6% 13.2% 15.9% 14.0%
Asset management and portfolio service fees 22.1% 21.5% 18.5% 20.6% 23.0%
Other 2.3% 5.2% 3.3% 4.1% 5.1%
--------------------------------------------------------------------------------------------------------------------
Subtotal 90.2% 89.3% 90.8% 87.3% 87.4%
Interest and dividend revenues 68.6% 66.6% 59.4% 74.1% 89.1%
Less interest expense 58.8% 55.9% 50.2% 61.4% 76.5%
--------------------------------------------------------------------------------------------------------------------
Net interest profit 9.8% 10.7% 9.2% 12.7% 12.6%
--------------------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 100.0% 100.0% 100.0% 100.0% 100.0%
NON-INTEREST EXPENSES
Compensation and benefits 52.0% 49.2% 52.1% 51.2% 51.2%
Communications and technology 9.1% 9.0% 7.8% 8.5% 8.8%
Occupancy and related depreciation 4.3% 4.2% 3.4% 3.8% 4.1%
Advertising and market development 3.6% 3.9% 3.3% 3.8% 3.3%
Brokerage, clearing, and exchange fees 3.6% 3.6% 3.1% 3.4% 3.4%
Professional fees 2.7% 2.7% 2.0% 2.5% 2.4%
Goodwill amortization 1.1% 0.9% 0.7% 0.8% 0.8%
Other 6.7% 6.5% 5.2% 5.4% 4.7%
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TOTAL NON-INTEREST EXPENSES 83.1% 80.0% 77.6% 79.4% 78.7%
EARNINGS BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 16.9% 20.0% 22.4% 20.6% 21.3%
Income tax expense 5.2% 6.1% 7.1% 6.4% 6.1%
Dividends on preferred securities issued by subsidiaries 0.9% 0.8% 0.7% 0.7% 0.8%
--------------------------------------------------------------------------------------------------------------------
NET EARNINGS 10.8% 13.1% 14.6% 13.5% 14.4%
Preferred stock dividends 0.1% 0.2% 0.1% 0.2% 0.2%
--------------------------------------------------------------------------------------------------------------------
NET EARNINGS APPLICABLE TO COMMON STOCKHOLDERS 10.7% 12.9% 14.5% 13.3% 14.2%
- -------------------------------------------------------------------------------------------------------------------------
OTHER FINANCIAL DATA
- -------------------------------------------------------------------------------------------------------------------------
3Q99 4Q99 1Q00 2Q00 3Q00
-------------------------------------------------------
Non-interest expenses excluding compensation
and benefits to net revenues 31.1% 30.8% 25.5% 28.2% 27.5%
Compensation and benefits to pre-tax earnings
before compensation and benefits 75.5% 71.1% 69.9% 71.3% 70.6%
Effective tax rate 30.5% 30.3% 31.8% 31.4% 28.8%
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Common shares outstanding (in millions):
Weighted-average - basic 757.9 760.8 780.2 795.1 805.9
Weighted-average - diluted 855.3 858.1 881.7 904.2 929.0
Period-end 758.7 762.6 789.1 800.9 809.1
- -------------------------------------------------------------------------------------------------------------------------
Note: Prior period amounts have been restated to reflect the merger with Herzog,
Heine, Geduld, Inc. as required under pooling-of-interests accounting
and the 2-for-1 common stock split paid on August 31, 2000.
15
Exhibit 99(i)
MERRILL LYNCH & CO., INC. SUPPLEMENTAL DATA
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(dollars in billions - unaudited)
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3Q99 4Q99 1Q00 2Q00 3Q00
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CLIENT ASSETS $1,514 $1,696 $1,792 $1,772 $1,768
ASSETS UNDER MANAGEMENT(1): $553 $594 $602 $585 $571
Retail 291 300 307 283 274
Institutional 226 255 253 257 252
Private Accounts 36 39 42 45 45
U.S. 340 358 364 356 351
Non-U.S. 213 236 238 229 220
Equity 301 333 334 335 330
Fixed Income 108 110 110 111 108
Money Market 144 151 158 139 133
U.S. BANK DEPOSITS $5 $6 $7 $19 $38
ASSETS IN ASSET-PRICED ACCOUNTS $131 $168 $203 $208 $218
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NET NEW MONEY
PRIVATE CLIENT ASSETS
U.S. $15 $36 $48 $11 $27
Non-U.S. 8 12 11 7 7
-----------------------------------------------
TOTAL 23 48 59 18 34
ASSETS UNDER MANAGEMENT(2) $(2) $9 $4 $16 $1
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DEBT AND EQUITY UNDERWRITING(1)(3)
Global Volume $108 $86 $104 $90 $108
Global Market Share 13.5% 14.0% 11.2% 12.1% 14.6%
U.S. Volume $86 $67 $83 $73 $73
U.S. Market Share 16.8% 16.7% 14.0% 15.3% 15.9%
COMPLETED MERGERS AND ACQUISITIONS(1)(3)
Global Value $97 $160 $179 $578 $118
Global Market Share 21.9% 19.2% 29.0% 44.8% 18.8%
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FULL-TIME EMPLOYEES(4) 66,600 67,900 69,400 71,500 72,700
FINANCIAL CONSULTANTS AND
OTHER INVESTMENT PROFESSIONALS 19,200 19,500 19,900 20,600 21,000
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(1) Certain prior period amounts have been restated to conform to the
current period presentation.
(2) Adjusted to exclude the impact of transferring funds to bank
deposits.
(3) Full credit to book manager. Market shares derived from Thomson
Financial Securities Data statistics.
(4) Prior period amounts have been restated to reflect the merger with
Herzog, Heine, Geduld, Inc.
For more information, please contact:
Investor Relations Phone: 212-449-7119
Merrill Lynch & Co., Inc. Fax: 212-449-7461
4 World Financial Center investor_relations@ml.com
New York, NY 10080
16