Exhibit 99(i)
MERRILL LYNCH & CO., INC.
PRELIMINARY UNAUDITED EARNINGS SUMMARY
For the Three Months Ended Percent Inc / (Dec)
----------------------------------------- ----------------------
Sept. 28, June 29, Sept. 29, 3Q01 vs. 3Q01 vs.
(in millions, except per share amounts) 2001 2001 2000 2Q01 3Q00
------------ ------------ ------------ ----------- ---------
NET REVENUES
Commissions $ 1,204 $ 1,362 $ 1,624 (11.6)% (25.9)%
Principal transactions 759 911 1,160 (16.7) (34.6)
Investment banking
Underwriting 543 662 590 (18.0) (8.0)
Strategic advisory 294 313 268 (6.1) 9.7
Asset management and portfolio service fees 1,337 1,356 1,414 (1.4) (5.4)
Other 129 153 318 (15.7) (59.4)
------------ ------------ ------------
Subtotal 4,266 4,757 5,374 (10.3) (20.6)
Interest and dividend revenues 4,663 5,563 5,474 (16.2) (14.8)
Less interest expense 3,784 4,747 4,704 (20.3) (19.6)
------------ ------------ ------------
Net interest profit 879 816 770 7.7 14.2
------------ ------------ ------------
TOTAL NET REVENUES 5,145 5,573 6,144 (7.7) (16.3)
------------ ------------ ------------
NON-INTEREST EXPENSES
Compensation and benefits 2,757 2,977 3,146 (7.4) (12.4)
Communications and technology 529 568 542 (6.9) (2.4)
Occupancy and related depreciation 280 270 251 3.7 11.6
Advertising and market development 165 202 205 (18.3) (19.5)
Brokerage, clearing, and exchange fees 219 243 206 (9.9) 6.3
Professional fees 115 151 147 (23.8) (21.8)
Goodwill amortization 53 51 52 3.9 1.9
Other 253 259 284 (2.3) (10.9)
------------ ------------ ------------
TOTAL NON-INTEREST EXPENSES 4,371 4,721 4,833 (7.4) (9.6)
------------ ------------ ------------
OPERATING EARNINGS BEFORE INCOME TAXES AND
DIVIDENDS ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 774 852 1,311 (9.2) (41.0)
Income tax expense 251 262 378 (4.2) (33.6)
Dividends on preferred securities issued by subsidiaries 48 49 48 - -
------------ ------------ ------------
OPERATING EARNINGS, BEFORE SEPTEMBER 11 EXPENSES $ 475 $ 541 $ 885 (12.2) (46.3)
============ ============ ============
Expenses related to September 11, net of tax 53 - - N/M N/M
------------ ------------ ------------
NET EARNINGS $ 422 $ 541 $ 885 (22.0) (52.3)
============ ============ ============
PREFERRED STOCK DIVIDENDS $ 10 $ 9 $ 10 - -
============ ============ ============
OPERATING EARNINGS PER COMMON SHARE
Basic $ 0.55 $ 0.63 $ 1.09 (12.7) (49.5)
Diluted $ 0.50 $ 0.56 $ 0.94 (10.7) (46.8)
EARNINGS PER COMMON SHARE
Basic $ 0.49 $ 0.63 $ 1.09 (22.2) (55.0)
Diluted $ 0.44 $ 0.56 $ 0.94 (21.4) (53.2)
AVERAGE SHARES
Basic 845.8 841.4 805.9 0.5 5.0
Diluted 934.5 943.8 929.0 (1.0) 0.6
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY-OPERATING BASIS 9.1% 10.7% 21.6%
------------------------------------------------------------------------------------------------------------------------------
Note: Certain prior period amounts have been restated to conform to the current period presentation.
12
Exhibit 99(i)
MERRILL LYNCH & CO., INC.
PRELIMINARY UNAUDITED EARNINGS SUMMARY
For the Nine Months Ended
------------------------------
Sept. 28, Sept. 29, Percent
(in millions, except per share amounts) 2001 2000 Inc / (Dec)
------------- ------------- -----------
NET REVENUES
Commissions $ 4,071 $ 5,431 (25.0)%
Principal transactions 3,410 4,746 (28.2)
Investment banking
Underwriting 1,834 1,994 (8.0)
Strategic advisory 891 947 (5.9)
Asset management and portfolio service fees 4,072 4,217 (3.4)
Other 446 849 (47.5)
------------- -------------
Subtotal 14,724 18,184 (19.0)
Interest and dividend revenues 16,459 15,007 9.7
Less interest expense 14,055 12,690 10.8
------------- -------------
Net interest profit 2,404 2,317 3.8
------------- -------------
TOTAL NET REVENUES 17,128 20,501 (16.5)
------------- -------------
NON-INTEREST EXPENSES
Compensation and benefits 8,978 10,572 (15.1)
Communications and technology 1,695 1,710 (0.9)
Occupancy and related depreciation 820 762 7.6
Advertising and market development 575 713 (19.4)
Brokerage, clearing, and exchange fees 697 672 3.7
Professional fees 408 462 (11.7)
Goodwill amortization 156 162 (3.7)
Other 822 1,039 (20.9)
------------- -------------
TOTAL NON-INTEREST EXPENSES 14,151 16,092 (12.1)
------------- -------------
OPERATING EARNINGS BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 2,977 4,409 (32.5)
Income tax expense 941 1,356 (30.6)
Dividends on preferred securities issued by subsidiaries 146 146 -
------------- -------------
OPERATING EARNINGS , BEFORE SEPTEMBER 11 EXPENSES $ 1,890 $ 2,907 (35.0)
============= =============
Expenses related to September 11, net of tax 53 - N/M
------------- -------------
NET EARNINGS $ 1,837 $ 2,907 (36.8)
============= =============
PREFERRED STOCK DIVIDENDS $ 29 $ 29 -
============= =============
OPERATING EARNINGS PER COMMON SHARE
Basic $ 2.21 $ 3.63 (39.1)
Diluted $ 1.99 $ 3.18 (37.4)
EARNINGS PER COMMON SHARE
Basic $ 2.15 $ 3.63 (40.8)
Diluted $ 1.93 $ 3.18 (39.3)
AVERAGE SHARES
Basic 839.8 793.7 5.8
Diluted 938.8 905.0 3.7
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY-OPERATING BASIS 12.6% 25.9%
-----------------------------------------------------------------------------------------------------------
Note: Certain prior period amounts have been restated to conform to the current period presentation.
13
Exhibit 99(i)
MERRILL LYNCH & CO., INC.
---------------------------------------------------------------------------------------------------------------------------
PRELIMINARY SEGMENT DATA (UNAUDITED)
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
--------------------------------------- ----------------------------
SEPT. 28, JUN. 29, SEPT. 29, SEPT. 28, SEPT. 29,
(dollars in millions) 2001 2001 2000 2001 2000
------------------------------------------------------------------------
CORPORATE AND INSTITUTIONAL CLIENT GROUP
Non-interest revenues $ 1,866 $ 2,109 $ 2,391 $ 6,926 $ 8,504
Net interest profit 382 401 352 1,064 1,156
------------------------------------------------------------------------
Total net revenues 2,248 2,510 2,743 7,990 9,660
------------------------------------------------------------------------
Operating earnings before income taxes and
dividends on preferred securities
issued by subsidiaries 485 515 847 1,975 3,041
Pre-tax profit margin 21.6% 20.5% 30.9% 24.7% 31.5%
---------------------------------------------------------------------------------------------------------------------------
PRIVATE CLIENT GROUP
Non-interest revenues $ 1,952 $ 2,170 $ 2,432 $ 6,402 $ 8,064
Net interest profit 500 410 413 1,335 1,178
------------------------------------------------------------------------
Total net revenues 2,452 2,580 2,845 7,737 9,242
------------------------------------------------------------------------
Operating earnings before income taxes and
dividends on preferred securities
issued by subsidiaries 274 307 388 937 1,228
Pre-tax profit margin 11.2% 11.9% 13.6% 12.1% 13.3%
---------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH INVESTMENT MANAGERS
Non-interest revenues $ 500 $ 546 $ 592 $ 1,600 $ 1,790
Net interest profit 15 15 23 45 57
-----------------------------------------------------------------------
Total net revenues 515 561 615 1,645 1,847
-----------------------------------------------------------------------
Operating earnings before income taxes and
dividends on preferred securities
issued by subsidiaries 91 109 150 301 403
Pre-tax profit margin 17.7% 19.4% 24.4% 18.3% 21.8%
---------------------------------------------------------------------------------------------------------------------------
CORPORATE
Non-interest revenues $ (52) $ (68) $ (41) $ (204) $ (174)
Net interest profit (18) (10) (18) (40) (74)
----------------------------------------------------------------------
Total net revenues (70) (78) (59) (244) (248)
----------------------------------------------------------------------
Operating earnings (loss) before income taxes
and dividends on preferred securities
issued by subsidiaries (76) (79) (74) (236) (263)
---------------------------------------------------------------------------------------------------------------------------
TOTAL
Non-interest revenues $ 4,266 $ 4,757 $ 5,374 $ 14,724 $ 18,184
Net interest profit 879 816 770 2,404 2,317
-----------------------------------------------------------------------
Total net revenues 5,145 5,573 6,144 17,128 20,501
-----------------------------------------------------------------------
Operating earnings before income taxes and
dividends on preferred securities
issued by subsidiaries 774 852 1,311 2,977 4,409
Pre-tax profit margin 15.0% 15.3% 21.3% 17.4% 21.5%
---------------------------------------------------------------------------------------------------------------------------
Note: Certain prior period amounts have been restated to conform to the current period presentation.
14
Exhibit 99(i)
MERRILL LYNCH & Co., Inc.
CONSOLIDATED QUARTERLY EARNINGS [UNAUDITED] (in millions)
3Q00 4Q00 1Q01 2Q01 3Q01
--------- ---------- ---------- --------- ----------
NET REVENUES
Commissions
Listed and over-the-counter securities $ 901 $ 884 $ 885 $ 779 $ 673
Mutual funds 518 475 441 408 355
Other 205 187 179 175 176
--------- ---------- ---------- --------- ----------
Total 1,624 1,546 1,505 1,362 1,204
Principal transactions 1,160 1,249 1,740 911 759
Investment banking
Underwriting 590 674 629 662 543
Strategic advisory 268 434 284 313 294
--------- ---------- ---------- --------- ----------
Total 858 1,108 913 975 837
Asset management and portfolio service fees
Asset management fees 578 585 545 548 514
Portfolio service fees 567 596 574 544 559
Account fees 127 123 124 126 125
Other fees 142 167 136 138 139
--------- ---------- ---------- --------- ----------
Total 1,414 1,471 1,379 1,356 1,337
Other 318 118 164 153 129
--------- ---------- ---------- --------- ----------
Subtotal 5,374 5,492 5,701 4,757 4,266
Interest and dividend revenues 5,474 6,169 6,233 5,563 4,663
Less interest expense 4,704 5,396 5,524 4,747 3,784
--------- ---------- ---------- --------- ----------
Net interest profit 770 773 709 816 879
--------- ---------- ---------- --------- ----------
TOTAL NET REVENUES 6,144 6,265 6,410 5,573 5,145
--------- ---------- ---------- --------- ----------
NON-INTEREST EXPENSES
Compensation and benefits 3,146 3,158 3,244 2,977 2,757
Communications and technology 542 610 598 568 529
Occupancy and related depreciation 251 244 270 270 280
Advertising and market development 205 226 208 202 165
Brokerage, clearing, and exchange fees 206 221 235 243 219
Professional fees 147 175 142 151 115
Goodwill amortization 52 55 52 51 53
Other 284 268 310 259 253
--------- ---------- ---------- --------- ----------
TOTAL NON-INTEREST EXPENSES 4,833 4,957 5,059 4,721 4,371
--------- ---------- ---------- --------- ----------
OPERATING EARNINGS BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 1,311 1,308 1,351 852 774
Income tax expense 378 382 428 262 251
Dividends on preferred securities issued by subsidiaries 48 49 49 49 48
--------- ---------- ---------- --------- ----------
OPERATING EARNINGS, BEFORE SEPTEMBER 11 EXPENSES $ 885 $ 877 $ 874 $ 541 $ 475
------------------------------------------------------------------------------------------------------------------
PER COMMON SHARE DATA
3Q00 4Q00 1Q01 2Q01 3Q01
--------- ---------- ---------- --------- ----------
Operating earnings - Basic $ 1.09 $ 1.07 $ 1.04 $ 0.63 $ 0.55
Operating earnings - Diluted 0.94 0.93 0.92 0.56 0.50
Dividends paid 0.16 0.16 0.16 0.16 0.16
Book value 20.70 21.95 23.28 24.02 24.38 est.
------------------------------------------------------------------------------------------------------------------
Note: Certain prior period amounts have been restated to conform to the current period presentation.
15
Exhibit 99(i)
MERRILL LYNCH & Co., Inc.
PERCENTAGE OF QUARTERLY NET REVENUES [UNAUDITED]
3Q00 4Q00 1Q01 2Q01 3Q01
---------- ---------- ---------- ---------- ----------
NET REVENUES
Commissions
Listed and over-the-counter securities 14.7% 14.1% 13.8% 14.0% 13.1%
Mutual funds 8.4% 7.6% 6.9% 7.3% 6.9%
Other 3.3% 3.0% 2.8% 3.1% 3.4%
---------- ---------- ---------- ---------- ----------
Total 26.4% 24.7% 23.5% 24.4% 23.4%
Principal transactions 18.9% 19.9% 27.1% 16.3% 14.8%
Investment banking
Underwriting 9.6% 10.8% 9.8% 11.9% 10.6%
Strategic advisory 4.4% 6.9% 4.4% 5.6% 5.7%
---------- ---------- ---------- ---------- ----------
Total 14.0% 17.7% 14.2% 17.5% 16.3%
Asset management and portfolio service fees
Asset management fees 9.4% 9.3% 8.5% 9.8% 10.0%
Portfolio service fees 9.2% 9.5% 9.0% 9.8% 10.9%
Account fees 2.1% 2.0% 1.9% 2.3% 2.4%
Other fees 2.3% 2.7% 2.1% 2.4% 2.7%
---------- ---------- ---------- ---------- ----------
Total 23.0% 23.5% 21.5% 24.3% 26.0%
Other 5.2% 1.9% 2.6% 2.9% 2.4%
---------- ---------- ---------- ---------- ----------
Subtotal 87.5% 87.7% 88.9% 85.4% 82.9%
Interest and dividend revenues 89.1% 98.5% 97.2% 99.8% 90.6%
Less interest expense 76.6% 86.2% 86.1% 85.2% 73.5%
---------- ---------- ---------- ---------- ----------
Net interest profit 12.5% 12.3% 11.1% 14.6% 17.1%
---------- ---------- ---------- ---------- ----------
TOTAL NET REVENUES 100.0% 100.0% 100.0% 100.0% 100.0%
---------- ---------- ---------- ---------- ----------
NON-INTEREST EXPENSES
Compensation and benefits 51.2% 50.4% 50.6% 53.4% 53.6%
Communications and technology 8.8% 9.7% 9.3% 10.2% 10.3%
Occupancy and related depreciation 4.1% 3.9% 4.2% 4.8% 5.4%
Advertising and market development 3.3% 3.6% 3.2% 3.6% 3.2%
Brokerage, clearing, and exchange fees 3.4% 3.5% 3.7% 4.4% 4.3%
Professional fees 2.4% 2.8% 2.2% 2.7% 2.2%
Goodwill amortization 0.8% 0.9% 0.8% 0.9% 1.0%
Other 4.7% 4.3% 4.9% 4.7% 5.0%
---------- ---------- ---------- ---------- ----------
TOTAL NON-INTEREST EXPENSES 78.7% 79.1% 78.9% 84.7% 85.0%
---------- ---------- ---------- ---------- ----------
OPERATING EARNINGS BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 21.3% 20.9% 21.1% 15.3% 15.0%
Income tax expense 6.1% 6.1% 6.7% 4.7% 4.9%
Dividends on preferred securities issued by subsidiaries 0.8% 0.8% 0.8% 0.9% 0.9%
---------- ---------- ---------- ---------- ----------
OPERATING EARNINGS, BEFORE SEPTEMBER 11 EXPENSES 14.4% 14.0% 13.6% 9.7% 9.2%
----------------------------------------------------------------------------------------------------------------
OTHER FINANCIAL DATA
3Q00 4Q00 1Q01 2Q01 3Q01
---------- ---------- ---------- ---------- ----------
Non-interest expenses excluding compensation
and benefits to net revenues 27.5% 28.7% 28.3% 31.3% 31.4%
Compensation and benefits to pre-tax operating earnings
before compensation and benefits 70.6% 70.7% 70.6% 77.7% 78.1%
----------------------------------------------------------------------------------------------------------------
Common shares outstanding (in millions):
Weighted-average - basic 805.9 811.9 832.2 841.4 845.8
Weighted-average - diluted 929.0 930.7 938.0 943.8 934.5
Period-end 809.1 814.6 838.4 843.8 847.5
----------------------------------------------------------------------------------------------------------------
16
Exhibit 99(i)
MERRILL LYNCH & CO., INC.
SUPPLEMENTAL DATA (UNAUDITED) (dollars in billions)
3Q00 4Q00 1Q01 2Q01 3Q01
----------- ----------- ----------- ----------- -----------
CLIENT ASSETS
Private Client
U.S. $ 1,417 $ 1,337 $ 1,254 $ 1,318 $ 1,171
Non - U.S. 148 140 131 136 127
----------- ----------- ----------- ----------- -----------
Total Private Client Assets 1,565 1,477 1,385 1,454 1,298
MLIM direct sales (1) 203 204 179 181 170
----------- ----------- ----------- ----------- -----------
Total Client Assets $ 1,768 $ 1,681 $ 1,564 $ 1,635 $ 1,468
=========== =========== =========== =========== ===========
ASSETS UNDER MANAGEMENT(2) $ 571 $ 557 $ 525 $ 533 $ 507
Retail 269 250 233 230 214
Institutional 257 262 250 260 252
Private Investors 45 45 42 43 41
U.S. 350 333 319 325 310
Non-U.S. 221 224 206 208 197
Equity 337 321 282 286 253
Fixed Income 101 108 118 118 119
Money Market 133 128 125 129 135
U.S. BANK DEPOSITS $ 38 $ 55 $ 66 $ 67 $ 70
ASSETS IN ASSET-PRICED ACCOUNTS $ 220 $ 209 $ 193 $ 208 $ 189
----------------------------------------------------------------------------------------------------------
NET NEW MONEY
PRIVATE CLIENT ACCOUNTS
U.S. $ 28 $ 32 $ 24 $ 1 $ 10
Non-U.S. 7 6 4 4 3
----------- ----------- ----------- ----------- -----------
Total 35 38 28 5 13
----------- ----------- ----------- ----------- -----------
ASSETS UNDER MANAGEMENT(3) $ 1 $ 12 $ 7 $ 4 $ 4
----------------------------------------------------------------------------------------------------------
DEBT AND EQUITY UNDERWRITING(2)(4)
Global Volume $ 109 $ 79 $ 134 $ 125 $ 93
Global Market Share 13.3% 11.6% 12.5% 11.5% 11.4%
U.S. Volume $ 77 $ 55 $ 113 $ 102 $ 76
U.S. Market Share 15.2% 13.0% 16.1% 13.5% 12.4%
COMPLETED MERGERS AND ACQUISITIONS(2)(4)
Global Value $ 196 $ 203 $ 267 $ 117 $ 116
Global Market Share 26.1% 20.9% 37.3% 23.2% 25.7%
----------------------------------------------------------------------------------------------------------
FULL-TIME EMPLOYEES 72,700 72,000 70,300 68,200 65,900
PRIVATE CLIENT FINANCIAL ADVISORS 20,200 20,200 19,500 18,600 18,000
-------------------------------------------------------------------------------------------------------------
(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: 212-421-0370
Merrill Lynch & Co., Inc. Fax: 212-371-2192
investor_relations@ml.com
17