Exhibit 99(i)
Attachment I
MERRILL LYNCH & CO., INC.
PRELIMINARY UNAUDITED EARNINGS SUMMARY
For the Three Months Ended Percent Inc / (Dec)
------------------------------------- -------------------------
June 28, March 29, June 29, 2Q02 vs. 2Q02 vs.
(in millions, except per share amounts) 2002 2002 2001 1Q02 2Q01
------- -------- ------- ----------- -----------
NET REVENUES
Commissions $ 1,204 $ 1,229 $ 1,362 (2.0)% (11.6)%
Principal transactions 728 877 888 (17.0) (18.0)
Investment banking
Underwriting 511 478 685 6.9 (25.4)
Strategic advisory 194 183 313 6.0 (38.0)
Asset management and portfolio service fees 1,298 1,293 1,356 0.4 (4.3)
Other 219 219 153 - 43.1
------- ------- -------
Subtotal 4,154 4,279 4,757 (2.9) (12.7)
Interest and dividend revenues 3,198 3,284 5,563 (2.6) (42.5)
Less interest expense 2,401 2,473 4,747 (2.9) (49.4)
------- ------- -------
Net interest profit 797 811 816 (1.7) (2.3)
------- ------- -------
TOTAL NET REVENUES 4,951 5,090 5,573 (2.7) (11.2)
------- ------- -------
NON-INTEREST EXPENSES
Compensation and benefits 2,569 2,646 2,977 (2.9) (13.7)
Communications and technology 412 474 568 (13.1) (27.5)
Occupancy and related depreciation 228 238 270 (4.2) (15.6)
Brokerage, clearing, and exchange fees 172 198 243 (13.1) (29.2)
Advertising and market development 151 150 202 0.7 (25.2)
Professional fees 132 130 151 1.5 (12.6)
Office supplies and postage 65 69 92 (5.8) (29.3)
Goodwill amortization - - 51 N/M (100.0)
Other 274 173 167 58.4 64.1
------- ------- -------
TOTAL NON-INTEREST EXPENSES 4,003 4,078 4,721 (1.8) (15.2)
------- ------- -------
EARNINGS BEFORE INCOME TAXES AND DIVIDENDS ON PREFERRED
SECURITIES ISSUED BY SUBSIDIARIES 948 1,012 852 (6.3) 11.3
Income tax expense 267 316 262 (15.5) 1.9
Dividends on preferred securities issued by subsidiaries 47 49 49 (4.1) (4.1)
------- ------- -------
NET EARNINGS $ 634 $ 647 $ 541 (2.0) 17.2
======= ======= =======
PREFERRED STOCK DIVIDENDS $ 10 $ 9 $ 9 - -
======= ======= =======
EARNINGS PER COMMON SHARE
Basic $ 0.72 $ 0.75 $ 0.63 (4.0) 14.3
Diluted $ 0.66 $ 0.67 $ 0.56 (1.5) 17.9
AVERAGE SHARES USED IN COMPUTING EARNINGS PER COMMON SHARE
Basic 861.7 854.8 841.4 0.8 2.4
Diluted 942.6 949.2 943.8 (0.7) (0.1)
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY 12.0% 12.7% 10.7%
- ---------------------------------------------------------------------------------------------------------------------------------
Note: Certain prior period amounts have been reclassified to conform to the current period presentation.
14
Exhibit 99(i)
Attachment II
MERRILL LYNCH & CO., INC.
PRELIMINARY UNAUDITED EARNINGS SUMMARY
For the Six Months Ended
------------------------
June 28, June 29, Percent
(in millions, except per share amounts) 2002 2001 Inc/(Dec)
------- ------- --------
NET REVENUES
Commissions $ 2,433 $ 2,867 (15.1)%
Principal transactions 1,605 2,605 (38.4)
Investment banking
Underwriting 989 1,337 (26.0)
Strategic advisory 377 597 (36.9)
Asset management and portfolio service fees 2,591 2,735 (5.3)
Other 438 317 38.2
------- ------
Subtotal 8,433 10,458 (19.4)
Interest and dividend revenues 6,482 11,796 (45.0)
Less interest expense 4,874 10,271 (52.5)
------- ------
Net interest profit 1,608 1,525 5.4
------- ------
TOTAL NET REVENUES 10,041 11,983 (16.2)
------- ------
NON-INTEREST EXPENSES
Compensation and benefits 5,215 6,221 (16.2)
Communications and technology 886 1,166 (24.0)
Occupancy and related depreciation 466 540 (13.7)
Brokerage, clearing, and exchange fees 370 478 (22.6)
Advertising and market development 301 410 (26.6)
Professional fees 262 293 (10.6)
Office supplies and postage 134 188 (28.7)
Goodwill amortization - 103 (100.0)
Other 447 381 17.3
------- ------
TOTAL NON-INTEREST EXPENSES 8,081 9,780 (17.4)
------- ------
EARNINGS BEFORE INCOME TAXES AND DIVIDENDS ON PREFERRED
SECURITIES ISSUED BY SUBSIDIARIES 1,960 2,203 (11.0)
Income tax expense 583 690 (15.5)
Dividends on preferred securities issued by subsidiaries 96 98 (2.0)
------- ------
NET EARNINGS $ 1,281 $ 1,415 (9.5)
======= =======
PREFERRED STOCK DIVIDENDS $ 19 $ 19 -
======= =======
EARNINGS PER COMMON SHARE
Basic $ 1.47 $ 1.67 (12.0)
Diluted $ 1.33 $ 1.48 (10.1)
AVERAGE SHARES USED IN COMPUTING EARNINGS PER COMMON SHARE
Basic 858.2 836.8 2.6
Diluted 945.9 940.9 0.5
ANNUALIZED RETURN ON AVERAGE COMMON EQUITY 12.3% 14.5%
- --------------------------------------------------------------------------------------------------
Note: Certain prior period amounts have been reclassified to conform to the current period
presentation.
15
Exhibit 99(i)
Attachment III
MERRILL LYNCH & CO., INC.
PRELIMINARY SEGMENT DATA (UNAUDITED)
For the Three Months Ended For the Six Months Ended
------------------------------------- ------------------------
Jun. 28, Mar. 29, Jun. 29, Jun. 28, Jun. 29,
(dollars in millions) 2002 2002 2001 2002 2001
------------------------------------- -----------------------
GLOBAL MARKETS & INVESTMENT BANKING
Non-interest revenues $ 1,868 $ 1,935 $ 2,223 $ 3,803 $ 5,211
Net interest profit 463 476 468 939 808
------------------------------------- -----------------------
Total net revenues 2,331 2,411 2,691 4,742 6,019
------------------------------------- -----------------------
Pre-tax earnings 647 644 680 1,291 1,740
Pre-tax profit margin 27.8% 26.7% 25.3% 27.2% 28.9%
- ------------------------------------------------------------------------------------------------------------------------------------
PRIVATE CLIENT GROUP
Non-interest revenues $ 1,919 $ 1,949 $ 2,115 $ 3,868 $ 4,403
Net interest profit 349 348 358 697 744
------------------------------------- -----------------------
Total net revenues 2,268 2,297 2,473 4,565 5,147
------------------------------------- -----------------------
Pre-tax earnings 339 267 172 606 459
Pre-tax profit margin 14.9% 11.6% 7.0% 13.3% 8.9%
- -----------------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH INVESTMENT MANAGERS
Non-interest revenues $ 413 $ 443 $ 494 $ 856 $ 1,011
Net interest profit 6 5 6 11 10
------------------------------------- -----------------------
Total net revenues 419 448 500 867 1,021
------------------------------------- -----------------------
Pre-tax earnings 96 119 81 215 172
Pre-tax profit margin 22.9% 26.6% 16.2% 24.8% 16.8%
- -----------------------------------------------------------------------------------------------------------------------------------
CORPORATE
Non-interest revenues $ (46) $ (48) $ (75) $ (94) $ (167)
Net interest profit (21) (18) (16) (39) (37)
------------------------------------- -----------------------
Total net revenues (67) (66) (91) (133) (204)
------------------------------------- -----------------------
Pre-tax earnings (loss) (134) (18) (81) (152) (168)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL
Non-interest revenues $ 4,154 $ 4,279 $ 4,757 $ 8,433 $10,458
Net interest profit 797 811 816 1,608 1,525
------------------------------------- -----------------------
Total net revenues 4,951 5,090 5,573 10,041 11,983
------------------------------------- -----------------------
Pre-tax earnings 948 1,012 852 1,960 2,203
Pre-tax profit margin 19.1% 19.9% 15.3% 19.5% 18.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Note: Certain prior period amounts have been restated to conform to the current period presentation.
16
Exhibit 99(i)
Attachment IV
MERRILL LYNCH & CO., INC.
CONSOLIDATED QUARTERLY EARNINGS (UNAUDITED) (in millions)
2Q01 3Q01 4Q01 1Q02 2Q02
------ ------ ------ ------ ------
NET REVENUES
Commissions
Listed and over-the-counter securities $ 779 $ 673 $ 672 $ 732 $ 718
Mutual funds 408 355 356 341 327
Other 175 176 167 156 159
------ ------ ------ ------ ------
Total 1,362 1,204 1,195 1,229 1,204
Principal transactions 888 739 586 877 728
Investment banking
Underwriting 685 563 538 478 511
Strategic advisory 313 294 210 183 194
------ ------ ------ ------ ------
Total 998 857 748 661 705
Asset management and portfolio service fees
Asset management fees 548 514 498 469 430
Portfolio service fees 544 559 525 557 571
Account fees 126 125 120 133 135
Other fees 138 139 136 134 162
------ ------ ------ ------ ------
Total 1,356 1,337 1,279 1,293 1,298
Other 153 129 82 219 219
------ ------ ------ ------ ------
Subtotal 4,757 4,266 3,890 4,279 4,154
Interest and dividend revenues 5,563 4,663 3,684 3,284 3,198
Less interest expense 4,747 3,784 2,822 2,473 2,401
------ ------ ------ ------ ------
Net interest profit 816 879 862 811 797
------ ------ ------ ------ ------
TOTAL NET REVENUES 5,573 5,145 4,752 5,090 4,951
------ ------ ------ ------ ------
NON-INTEREST EXPENSES
Compensation and benefits 2,977 2,757 2,291 2,646 2,569
Communications and technology 568 529 537 474 412
Occupancy and related depreciation 270 280 257 238 228
Brokerage, clearing, and exchange fees 243 219 198 198 172
Advertising and market development 202 165 128 150 151
Professional fees 151 115 137 130 132
Office supplies and postage 92 78 83 69 65
Goodwill amortization 51 53 51 - -
Other 167 175 346 173 274
September 11th - related - 88 43 (1) - -
Restructuring and other charges - - 2,193 (1) - -
------ ------ ------ ------ ------
TOTAL NON-INTEREST EXPENSES 4,721 4,459 6,264 4,078 4,003
------ ------ ------ ------ ------
EARNINGS (LOSS) BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 852 686 (1,512) 1,012 948
Income tax expense (benefit) 262 216 (297) 316 267
Dividends on preferred securities issued by
subsidiaries 49 48 49 49 47
------ ------ ------ ------ ------
NET EARNINGS (LOSS) $ 541 $ 422 $(1,264) $ 647 $ 634
-----------------------------------------------------------------------------------------------------------
PER COMMON SHARE DATA
2Q01 3Q01 4Q01 1Q02 2Q02
------ ------ ------ ------ ------
Earnings - Basic $ 0.63 $ 0.49 $ (1.51)(1) $ 0.75 $ 0.72
Earnings - Diluted 0.56 0.44 (1.51)(1) 0.67 0.66
Dividends paid 0.16 0.16 0.16 0.16 0.16
Book value 24.02 24.38 23.03 23.73 24.46 est.
------------------------------------------------------------------------------------------------------------
Notes:
(1) September 11th-related expenses were $30 million after-tax and
Restructuring and other charges were $1,725 million after-tax in the
fourth quarter of 2001. Excluding these items basic and diluted
earnings per share were $0.57 and $0.51, respectively.
Certain prior period amounts have been reclassified to conform to the
current period presentation.
17
Exhibit 99(i)
Attachment V
MERRILL LYNCH & CO., INC.
PERCENTAGE OF QUARTERLY NET REVENUES (UNAUDITED)
2Q01 3Q01 4Q01 1Q02 2Q02
----- ----- ----- ----- -----
NET REVENUES
Commissions
Listed and over-the-counter securities 14.0% 13.1% 14.1% 14.4% 14.5%
Mutual funds 7.3% 6.9% 7.5% 6.7% 6.6%
Other 3.1% 3.4% 3.5% 3.0% 3.2%
------ ------ ------ ------ ------
Total 24.4% 23.4% 25.1% 24.1% 24.3%
Principal transactions 15.9% 14.4% 12.3% 17.2% 14.7%
Investment banking
Underwriting 12.3% 11.0% 11.3% 9.4% 10.3%
Strategic advisory 5.6% 5.7% 4.4% 3.6% 3.9%
------ ------ ------ ------ ------
Total 17.9% 16.7% 15.7% 13.0% 14.2%
Asset management and portfolio service fees
Asset management fees 9.8% 10.0% 10.5% 9.2% 8.7%
Portfolio service fees 9.8% 10.9% 11.0% 10.9% 11.5%
Account fees 2.3% 2.4% 2.5% 2.6% 2.7%
Other fees 2.4% 2.7% 2.9% 2.7% 3.3%
------ ------ ------ ------ ------
Total 24.3% 26.0% 26.9% 25.4% 26.2%
Other 2.9% 2.4% 1.9% 4.4% 4.5%
------ ------ ------ ------ ------
Subtotal 85.4% 82.9% 81.9% 84.1% 83.9%
Interest and dividend revenues 99.8% 90.6% 77.5% 64.5% 64.6%
Less interest expense 85.2% 73.5% 59.4% 48.6% 48.5%
------ ------ ------ ------ ------
Net interest profit 14.6% 17.1% 18.1% 15.9% 16.1%
------ ------ ------ ------ ------
TOTAL NET REVENUES 100.0% 100.0% 100.0% 100.0% 100.0%
------ ------ ------ ------ ------
NON-INTEREST EXPENSES
Compensation and benefits 53.4% 53.6% 48.2% 52.0% 51.9%
Communications and technology 10.2% 10.3% 11.3% 9.3% 8.3%
Occupancy and related depreciation 4.8% 5.4% 5.4% 4.7% 4.6%
Brokerage, clearing, and exchange fees 4.4% 4.3% 4.2% 3.9% 3.5%
Advertising and market development 3.6% 3.2% 2.7% 2.9% 3.0%
Professional fees 2.7% 2.2% 2.9% 2.6% 2.7%
Office supplies and postage 1.7% 1.5% 1.7% 1.4% 1.3%
Goodwill amortization 0.9% 1.0% 1.1% - -
Other 3.0% 3.5% 7.3% 3.3% 5.6%
September 11th - related - 1.7% 0.9% - -
Restructuring and other charges - - 46.1% - -
------ ------ ------ ------ ------
TOTAL NON-INTEREST EXPENSES 84.7% 86.7% 131.8% 80.1% 80.9%
------ ------ ------ ------ ------
EARNINGS (LOSS) BEFORE INCOME TAXES AND DIVIDENDS
ON PREFERRED SECURITIES ISSUED BY SUBSIDIARIES 15.3% 13.3% -31.8% 19.9% 19.1%
Income tax expense (benefit) 4.7% 4.2% -6.2% 6.2% 5.4%
Dividends on preferred securities
issued by subsidiaries 0.9% 0.9% 1.0% 1.0% 0.9%
------ ------ ------ ------ ------
NET EARNINGS (LOSS) 9.7% 8.2% -26.6% 12.7% 12.8%
- -----------------------------------------------------------------------------------------------------------------
OTHER FINANCIAL DATA
2Q01 3Q01 4Q01 1Q02 2Q02
------ ------ ------ ------ ------
Non-interest expenses excluding compensation
and benefits to net revenues 31.3% 33.1% 83.6% 28.1% 29.0%
Compensation and benefits to pre-tax earnings
before compensation and benefits 77.7% 80.1% 294.1% 72.3% 73.0%
- -----------------------------------------------------------------------------------------------------------------
Common shares outstanding (in millions):
Weighted-average - basic 841.4 845.8 845.7 854.8 861.7
Weighted-average - diluted 943.8 934.5 845.7 949.2 942.6
Period-end 843.8 847.5 850.2 862.9 865.4
- -----------------------------------------------------------------------------------------------------------------
18
Exhibit 99(i)
Attachment VI
MERRILL LYNCH & CO., INC.
SUPPLEMENTAL DATA (UNAUDITED) (dollars in billions)
2Q01 3Q01 4Q01 1Q02 2Q02
------- ------- ------- ------- -------
CLIENT ASSETS
Private Client
U.S. $ 1,318 $ 1,171 $ 1,185 $ 1,179 $ 1,101
Non - U.S. 136 127 101 96 94
------- ------- ------- ------- -------
Total Private Client Assets 1,454 1,298 1,286 1,275 1,195
MLIM direct sales (1) 181 170 172 167 158
------- ------- ------- ------- -------
Total Client Assets $ 1,635 $ 1,468 $ 1,458 $ 1,442 $ 1,353
======== ======= ======= ======= =======
ASSETS UNDER MANAGEMENT $ 533 $ 507 $ 529 $ 518 $ 499
Retail 230 214 220 215 206
Institutional 260 252 266 262 254
Private Investors 43 41 43 41 39
U.S. 325 310 327 323 319
Non-U.S. 208 197 202 195 180
Equity 286 253 263 257 234
Fixed Income 118 119 119 119 121
Money Market 129 135 147 142 144
ASSETS IN ASSET-PRICED ACCOUNTS $ 207 $ 189 $ 205 $ 211 $ 197
---------------------------------------------------------------------------------------------------
NET NEW MONEY
PRIVATE CLIENT ACCOUNTS(6)
U.S. $ 1 $ 10 $ 14 $ - $ 4
Non-U.S. 4 3 2 1 -
------- ------- ------- ------- -------
TOTAL 5 13 16 1 4
------- ------- ------- ------- -------
ASSETS UNDER MANAGEMENT(3)(6) $ 4 $ 4 $ 4 $ (7) $ (5)
---------------------------------------------------------------------------------------------------
BALANCE SHEET INFORMATION (ESTIMATED)
Commercial Paper and
Other Short-term Borrowings $ 6.9 $ 5.1 $ 5.1 $ 4.6 $ 6.0
Deposits 79.4 83.7 85.8 85.9 81.1
Long-term Borrowings 79.5 79.8 76.6 77.3 75.5
Preferred Securities Issued
by Subsidiaries 2.7 2.7 2.7 2.7 2.7
Total Stockholders' Equity 20.7 21.1 20.0 20.9 21.6
--------------------------------------------------------------------------------------------------
GLOBAL EQUITY AND EQUITY-LINKED UNDERWRITING(2)(4)
Volume $ 17 $ 15 $ 15 $ 15 $ 10
Market Share 13.4% 21.3% 12.1% 15.0% 9.6%
Ranking 2 1 2 2 3
GLOBAL DEBT UNDERWRITING(2)(4)
Volume $ 109 $ 81 $ 67 $ 92 $ 80
Market Share 11.3% 9.9% 7.2% 8.6% 8.7%
Ranking 1 2 5 2 3
GLOBAL COMPLETED MERGERS AND ACQUISITIONS(2)(4)
Volume $ 115 $ 134 $ 78 $ 61 $ 61
Market Share 22.5% 25.6% 18.4% 23.3% 21.6%
Ranking 3 3 5 3 4
--------------------------------------------------------------------------------------------------
FULL-TIME EMPLOYEES(5) 68,200 65,900 57,400 56,400 54,600
PRIVATE CLIENT FINANCIAL ADVISORS 18,600 18,000 16,400 15,900 15,100
----------------------------------------------------------------------------------------------------
(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.
(5) Excludes 900, 400, and 3,200 full-time employees on salary continuation severance at the end of
2Q02, 1Q02, and 4Q01, respectively.
(6) Excluding the impact related to the restructuring of the Non-U.S. businesses.
For more information, please contact:
Investor Relations Phone: 866-607-1234
Merrill Lynch & Co., Inc. Fax: 212-449-7461
investor_relations@ml.com
www.ir.ml.com
19