Exhibit 99 (i)
MERRILL LYNCH & CO., INC.
PRELIMINARY UNAUDITED EARNINGS SUMMARY
For the Three Months Ended Percent Inc / (Dec)
--------------------------------------------- --------------------------
June 29, March 30, June 30, 2Q01 vs. 2Q01 vs.
(in millions, except per share amounts) 2001 2001 2000 1Q01 2Q00
------------- ------------- ------------- ------------ -----------
NET REVENUES
Commissions $ 1,362 $ 1,505 $ 1,647 (9.5)% (17.3)%
Principal transactions 911 1,740 1,548 (47.6) (41.1)
Investment banking
Underwriting 662 629 734 5.2 (9.8)
Strategic advisory 313 284 353 10.2 (11.3)
Asset management and portfolio service fees 1,356 1,379 1,413 (1.7) (4.0)
Other 153 164 282 (6.7) (45.7)
------------- ------------- -------------
Subtotal 4,757 5,701 5,977 (16.6) (20.4)
Interest and dividend revenues 5,563 6,233 5,067 (10.7) 9.8
Less interest expense 4,747 5,524 4,204 (14.1) 12.9
------------- ------------- -------------
Net interest profit 816 709 863 15.1 (5.4)
TOTAL NET REVENUES 5,573 6,410 6,840 (13.1) (18.5)
------------- ------------- -------------
NON-INTEREST EXPENSES
Compensation and benefits 2,977 3,244 3,508 (8.2) (15.1)
Communications and technology 568 598 584 (5.0) (2.7)
Occupancy and related depreciation 270 270 258 - 4.7
Advertising and market development 202 208 263 (2.9) (23.2)
Brokerage, clearing, and exchange fees 243 235 233 3.4 4.3
Professional fees 151 142 168 6.3 (10.1)
Goodwill amortization 51 52 54 (1.9) (5.6)
Other 259 310 359 (16.5) (27.9)
------------- ------------- -------------
TOTAL NON-INTEREST EXPENSES 4,721 5,059 5,427 (6.7) (13.0)
------------- ------------- -------------
EARNINGS BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 852 1,351 1,413 (36.9) (39.7)
Income tax expense 262 428 443 (38.8) (40.9)
Dividends on preferred securities issued by subsidiaries 49 49 49 - -
------------- ------------- -------------
NET EARNINGS $ 541 $ 874 $ 921 (38.1) (41.3)
============= ============= =============
Preferred stock dividends 9 10 9 - -
------------- ------------- -------------
NET EARNINGS APPLICABLE TO COMMON STOCKHOLDERS $ 532 $ 864 $ 912 (38.4) (41.7)
============= ============= =============
EARNINGS PER COMMON SHARE
Basic $ 0.63 $ 1.04 $ 1.15 (39.4) (45.2)
Diluted $ 0.56 $ 0.92 $ 1.01 (39.1) (44.6)
AVERAGE SHARES
Basic 841.4 832.2 795.1 1.1 5.8
Diluted 943.8 938.0 904.2 0.6 4.4
Note: Certain prior period amounts have been restated to conform to the current period presentation.
11
Exhibit 99(i)
MERRILL LYNCH & CO., INC.
PRELIMINARY UNAUDITED EARNINGS SUMMARY
For the Six Months Ended
-------------------------------------------------
June 29, June 30, Percent
(in millions, except per share amounts) 2001 2000 Inc / (Dec)
-------------- --------------- ------------
NET REVENUES
Commissions $ 2,867 $ 3,807 (24.7)%
Principal transactions 2,651 3,586 (26.1)
Investment banking
Underwriting 1,291 1,404 (8.0)
Strategic advisory 597 679 (12.1)
Asset management and portfolio service fees 2,735 2,803 (2.4)
Other 317 531 (40.3)
-------------- ---------------
Subtotal 10,458 12,810 (18.4)
Interest and dividend revenues 11,796 9,533 23.7
Less interest expense 10,271 7,986 28.6
-------------- ---------------
Net interest profit 1,525 1,547 (1.4)
TOTAL NET REVENUES 11,983 14,357 (16.5)
-------------- ---------------
NON-INTEREST EXPENSES
Compensation and benefits 6,221 7,426 (16.2)
Communications and technology 1,166 1,168 (0.2)
Occupancy and related depreciation 540 511 5.7
Advertising and market development 410 508 (19.3)
Brokerage, clearing, and exchange fees 478 466 2.6
Professional fees 293 315 (7.0)
Goodwill amortization 103 110 (6.4)
Other 569 755 (24.6)
-------------- ---------------
TOTAL NON-INTEREST EXPENSES 9,780 11,259 (13.1)
-------------- ---------------
EARNINGS BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 2,203 3,098 (28.9)
Income tax expense 690 978 (29.4)
Dividends on preferred securities issued by subsidiaries 98 98 -
-------------- ---------------
NET EARNINGS $ 1,415 $ 2,022 (30.0)
============== ===============
Preferred stock dividends $ 19 $ 19 -
-------------- ---------------
NET EARNINGS APPLICABLE TO COMMON STOCKHOLDERS $ 1,396 $ 2,003 (30.3)
============== ===============
EARNINGS PER COMMON SHARE
Basic $ 1.67 $ 2.54 (34.3)
Diluted $ 1.48 $ 2.24 (33.9)
AVERAGE SHARES
Basic 836.8 787.6 6.2
Diluted 940.9 893.0 5.4
Note: Certain prior period amounts have been restated to conform to the current period presentation.
12
Exhibit 99(i)
MERRILL LYNCH & CO., INC. PRELIMINARY SEGMENT DATA
- ------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions - unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
----------------------------------------- ------------------------------
JUN. 29, MAR. 30, JUN. 30, JUN. 29, JUN. 30,
2001 2001 2000 2001 2000
----------------------------------------- ------------------------------
PRELIMINARY SEGMENT DATA
CORPORATE AND INSTITUTIONAL CLIENT GROUP
Non-interest revenues $ 2,115 $ 2,955 $ 2,838 $ 5,070 $ 6,170
Net interest profit 404 282 485 686 804
----------------------------------------------------------------------------------------------------------------------------
Total net revenues 2,519 3,237 3,323 5,756 6,974
----------------------------------------------------------------------------------------------------------------------------
Earnings before income taxes and
dividends on preferred securities
issued by subsidiaries 534 971 1,044 1,505 2,254
----------------------------------------------------------------------------------------------------------------------------
Pre-tax profit margin 21.2% 30.0% 31.4% 26.1% 32.3%
----------------------------------------------------------------------------------------------------------------------------
PRIVATE CLIENT GROUP
Non-interest revenues $ 2,166 $ 2,276 $ 2,593 $ 4,442 $ 5,589
Net interest profit 409 425 384 834 765
----------------------------------------------------------------------------------------------------------------------------
Total net revenues 2,575 2,701 2,977 5,276 6,354
----------------------------------------------------------------------------------------------------------------------------
Earnings before income taxes and
dividends on preferred securities
issued by subsidiaries 293 359 311 652 795
----------------------------------------------------------------------------------------------------------------------------
Pre-tax profit margin 11.4% 13.3% 10.4% 12.4% 12.5%
----------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH INVESTMENT MANAGERS
Non-interest revenues $ 544 $ 553 $ 587 $ 1,097 $ 1,184
Net interest profit 15 16 19 31 34
----------------------------------------------------------------------------------------------------------------------------
Total net revenues 559 569 606 1,128 1,218
----------------------------------------------------------------------------------------------------------------------------
Earnings before income taxes and
dividends on preferred securities
issued by subsidiaries 106 103 137 209 239
----------------------------------------------------------------------------------------------------------------------------
Pre-tax profit margin 19.0% 18.1% 22.6% 18.5% 19.6%
----------------------------------------------------------------------------------------------------------------------------
CORPORATE
Non-interest revenues $ (68) $ (83) $ (41) $ (151) $ (133)
Net interest profit (12) (14) (25) (26) (56)
----------------------------------------------------------------------------------------------------------------------------
Total net revenues (80) (97) (66) (177) (189)
----------------------------------------------------------------------------------------------------------------------------
Earnings (loss) before income taxes and
dividends on preferred securities
issued by subsidiaries (81) (82) (79) (163) (190)
----------------------------------------------------------------------------------------------------------------------------
TOTAL
Non-interest revenues $ 4,757 $ 5,701 $ 5,977 $ 10,458 $ 12,810
Net interest profit 816 709 863 1,525 1,547
----------------------------------------------------------------------------------------------------------------------------
Total net revenues 5,573 6,410 6,840 11,983 14,357
----------------------------------------------------------------------------------------------------------------------------
Earnings before income taxes and
dividends on preferred securities
issued by subsidiaries 852 1,351 1,413 2,203 3,098
----------------------------------------------------------------------------------------------------------------------------
Pre-tax profit margin 15.3% 21.1% 20.7% 18.4% 21.6%
----------------------------------------------------------------------------------------------------------------------------
13
Exhibit 99(i)
MERRILL LYNCH & CO., INC.
-----------------------------------------------------------------------------------------------------------
CONSOLIDATED QUARTERLY EARNINGS [UNAUDITED] (in millions)
-----------------------------------------------------------------------------------------------------------
2Q00 3Q00 4Q00 1Q01 2Q01
---------------------------------------------------
NET REVENUES
Commissions
Listed and over-the-counter securities $907 $901 $884 $885 $779
Mutual funds 525 518 475 441 408
Other 215 205 187 179 175
---------------------------------------------------
Total 1,647 1,624 1,546 1,505 1,362
Principal transactions 1,548 1,160 1,249 1,740 911
Investment banking
Underwriting 734 590 674 629 662
Strategic advisory 353 268 434 284 313
---------------------------------------------------
Total 1,087 858 1,108 913 975
Asset management and portfolio service fees
Asset management fees 596 578 585 545 548
Portfolio service fees 546 567 596 574 544
Account fees 134 127 123 124 126
Other fees 137 142 167 136 138
---------------------------------------------------
Total 1,413 1,414 1,471 1,379 1,356
Other 282 318 118 164 153
----------------------------------------------------------------------------------------------------------
Subtotal 5,977 5,374 5,492 5,701 4,757
Interest and dividend revenues 5,067 5,474 6,169 6,233 5,563
Less interest expense 4,204 4,704 5,396 5,524 4,747
----------------------------------------------------------------------------------------------------------
Net interest profit 863 770 773 709 816
----------------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 6,840 6,144 6,265 6,410 5,573
NON-INTEREST EXPENSES
Compensation and benefits 3,508 3,146 3,158 3,244 2,977
Communications and technology 584 542 610 598 568
Occupancy and related depreciation 258 251 244 270 270
Advertising and market development 263 205 226 208 202
Brokerage, clearing, and exchange fees 233 206 221 235 243
Professional fees 168 147 175 142 151
Goodwill amortization 54 52 55 52 51
Other 359 284 268 310 259
----------------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST EXPENSES 5,427 4,833 4,957 5,059 4,721
EARNINGS BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 1,413 1,311 1,308 1,351 852
Income tax expense 443 378 382 428 262
Dividends on preferred securities issued by subsidiaries 49 48 49 49 49
----------------------------------------------------------------------------------------------------------
NET EARNINGS $921 $885 $877 $874 $541
Preferred stock dividends 9 10 10 10 9
----------------------------------------------------------------------------------------------------------
NET EARNINGS APPLICABLE TO COMMON STOCKHOLDERS $912 $875 $867 $864 $532
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PER COMMON SHARE DATA
-----------------------------------------------------------------------------------------------------------
2Q00 3Q00 4Q00 1Q01 2Q01
---------------------------------------------------
Basic earnings $1.15 $1.09 $1.07 $1.04 $0.63
Diluted earnings 1.01 0.94 0.93 0.92 0.56
Dividends paid 0.15 0.16 0.16 0.16 0.16
Book value 19.47 20.70 21.95 23.28 24.02 est.
-----------------------------------------------------------------------------------------------------------
Note: Certain prior period amounts have been restated to conform to the current period presentation.
14
Exhibit 99(i)
MERRILL LYNCH & CO., INC.
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PERCENTAGE OF QUARTERLY NET REVENUES [UNAUDITED]
-------------------------------------------------------------------------------------------------------
2Q00 3Q00 4Q00 1Q01 2Q01
-----------------------------------------------
NET REVENUES
Commissions
Listed and over-the-counter securities 13.3% 14.7% 14.1% 13.8% 14.0%
Mutual funds 7.7% 8.4% 7.6% 6.9% 7.3%
Other 3.1% 3.3% 3.0% 2.8% 3.1%
-----------------------------------------------
Total 24.1% 26.4% 24.7% 23.5% 24.4%
Principal transactions 22.6% 18.9% 19.9% 27.1% 16.3%
Investment banking
Underwriting 10.7% 9.6% 10.8% 9.8% 11.9%
Strategic advisory 5.2% 4.4% 6.9% 4.4% 5.6%
-----------------------------------------------
Total 15.9% 14.0% 17.7% 14.2% 17.5%
Asset management and portfolio service fees
Asset management fees 8.7% 9.4% 9.3% 8.5% 9.8%
Portfolio service fees 8.0% 9.2% 9.5% 9.0% 9.8%
Account fees 2.0% 2.1% 2.0% 1.9% 2.3%
Other fees 2.0% 2.3% 2.7% 2.1% 2.4%
-----------------------------------------------
Total 20.7% 23.0% 23.5% 21.5% 24.3%
Other 4.1% 5.2% 1.9% 2.6% 2.9%
-----------------------------------------------------------------------------------------------------
Subtotal 87.4% 87.5% 87.7% 88.9% 85.4%
Interest and dividend revenues 74.1% 89.1% 98.5% 97.2% 99.8%
Less interest expense 61.5% 76.6% 86.2% 86.1% 85.2%
-----------------------------------------------------------------------------------------------------
Net interest profit 12.6% 12.5% 12.3% 11.1% 14.6%
-----------------------------------------------------------------------------------------------------
TOTAL NET REVENUES 100.0% 100.0% 100.0% 100.0% 100.0%
NON-INTEREST EXPENSES
Compensation and benefits 51.3% 51.2% 50.4% 50.6% 53.4%
Communications and technology 8.5% 8.8% 9.7% 9.3% 10.2%
Occupancy and related depreciation 3.8% 4.1% 3.9% 4.2% 4.8%
Advertising and market development 3.8% 3.3% 3.6% 3.2% 3.6%
Brokerage, clearing, and exchange fees 3.4% 3.4% 3.5% 3.7% 4.4%
Professional fees 2.5% 2.4% 2.8% 2.2% 2.7%
Goodwill amortization 0.8% 0.8% 0.9% 0.8% 0.9%
Other 5.2% 4.7% 4.3% 4.9% 4.7%
-----------------------------------------------------------------------------------------------------
TOTAL NON-INTEREST EXPENSES 79.3% 78.7% 79.1% 78.9% 84.7%
EARNINGS BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 20.7% 21.3% 20.9% 21.1% 15.3%
Income tax expense 6.5% 6.1% 6.1% 6.7% 4.7%
Dividends on preferred securities issued by subsidiaries 0.7% 0.8% 0.8% 0.8% 0.9%
-----------------------------------------------------------------------------------------------------
NET EARNINGS 13.5% 14.4% 14.0% 13.6% 9.7%
Preferred stock dividends 0.2% 0.2% 0.2% 0.1% 0.2%
-----------------------------------------------------------------------------------------------------
NET EARNINGS APPLICABLE TO COMMON STOCKHOLDERS 13.3% 14.2% 13.8% 13.5% 9.5%
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OTHER FINANCIAL DATA
-------------------------------------------------------------------------------------------------------
2Q00 3Q00 4Q00 1Q01 2Q01
-----------------------------------------------
Non-interest expenses excluding compensation
and benefits to net revenues 28.0% 27.5% 28.7% 28.3% 31.3%
Compensation and benefits to pre-tax earnings
before compensation and benefits 71.3% 70.6% 70.7% 70.6% 77.7%
Effective tax rate 31.4% 28.8% 29.2% 31.7% 30.8%
-------------------------------------------------------------------------------------------------------
Common shares outstanding (in millions):
Weighted-average - basic 795.1 805.9 811.9 832.2 841.4
Weighted-average - diluted 904.2 929.0 930.7 938.0 943.8
Period-end 800.9 809.1 814.6 838.4 843.8
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15
Exhibit 99(i)
MERRILL LYNCH & CO., INC. SUPPLEMENTAL DATA
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(dollars in billions - unaudited)
------------------------------------------------------------------------------------------------------
2Q00 3Q00 4Q00 1Q01 2Q01
-------------------------------------------------------
CLIENT ASSETS
Private Client
U.S. $ 1,415 $ 1,417 $ 1,337 $ 1,254 $ 1,318
Non - U.S. 146 148 140 131 136
-------------------------------------------------------
Total Private Client Assets 1,561 1,565 1,477 1,385 1,454
MLIM direct sales (1) 211 203 204 179 181
-------------------------------------------------------
Total Client Assets $ 1,772 $ 1,768 $ 1,681 $ 1,564 $ 1,635
ASSETS UNDER MANAGEMENT $585 $571 $557 $525 $533
Retail 282 274 250 233 230
Institutional 258 252 262 250 260
Private Investors 45 45 45 42 43
U.S. 356 351 333 319 325
Non-U.S. 229 220 224 206 208
Equity 343 337 321 282 286
Fixed Income 104 101 108 118 118
Money Market 138 133 128 125 129
U.S. BANK DEPOSITS $19 $38 $55 $66 $67
ASSETS IN ASSET-PRICED ACCOUNTS $208 $220 $209 $193 $208
---------------------------------------------------------------------------------------------------
NET NEW MONEY
PRIVATE CLIENT ACCOUNTS
U.S. $11 $28 $32 $24 $1
Non-U.S. 7 7 6 4 4
-------------------------------------------------------
TOTAL 18 35 38 28 5
ASSETS UNDER MANAGEMENT(3) $16 $1 $12 $7 $4
---------------------------------------------------------------------------------------------------
DEBT AND EQUITY UNDERWRITING(2)(4)
Global Volume $92 $108 $76 $134 $121
Global Market Share 12.1% 13.8% 11.8% 12.9% 11.9%
U.S. Volume $69 $77 $55 $113 $100
U.S. Market Share 14.2% 14.7% 12.6% 15.9% 13.8%
COMPLETED MERGERS AND ACQUISITIONS(2)(4)
Global Value $580 $196 $202 $265 $110
Global Market Share 43.5% 26.2% 20.8% 38.0% 23.7%
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FULL-TIME EMPLOYEES 71,500 72,700 72,000 70,300 68,200
FINANCIAL ADVISORS AND
OTHER INVESTMENT PROFESSIONALS 20,700 21,200 21,200 20,500 19,600
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(1)Reflects funds managed by MLIM not sold through Private Client channels.
(2)Certain prior period amounts have been restated to conform to the current period presentation.
(3)Adjusted to exclude the impact of transferring funds to U.S. bank deposits.
(4)Full credit to book manager. Market shares derived from Thomson Financial Securities Data statistics.
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