Exhibit 99.3
Merrill Lynch & Co., Inc. Attachment I
===============================================================================================
Consolidated Annual Earnings Statements
(unaudited) Year Ended Last Friday in December
--------------------------------------------------
(dollars in millions) 1999 2000 2001* 2002* 2003*
--------------------------------------------------------------------------------------------
Net Revenues
Asset management and portfolio service
fees $ 4,753 $ 5,688 $ 5,351 $ 4,914 $ 4,696
Commissions 6,355 6,977 5,266 4,657 4,396
Principal transactions 4,671 5,964 3,930 2,331 3,236
Investment banking 3,695 4,080 3,539 2,413 2,628
Other 778 999 560 783 1,143
--------------------------------------------------
Subtotal 20,252 23,708 18,646 15,098 16,099
Interest and dividend revenues 15,116 21,180 20,146 13,210 11,682
Less interest expense 13,249 18,317 17,108 9,872 7,818
--------------------------------------------------
Net interest profit 1,867 2,863 3,038 3,338 3,864
--------------------------------------------------
Total Net Revenues 22,119 26,571 21,684 18,436 19,963
--------------------------------------------------
Non-Interest Expenses
Compensation and benefits 11,771 14,259 12,685 10,677 9,810
Communications and technology 2,053 2,320 2,232 1,741 1,457
Occupancy and related depreciation 953 1,006 1,077 909 889
Brokerage, clearing, and exchange fees 779 893 895 727 722
Advertising and marketing development 783 939 703 540 429
Professional fees 571 637 545 552 581
Office supplies and postage 346 404 349 258 197
Goodwill amortization 227 217 207 - -
Other 1,058 903 901 630 787
Net (recoveries) expenses related to
September 11 - - 131 (212) (147)
Net restructuring and other charges - - 2,193 8 20
Research and other settlement-related
expenses - - - 291 -
--------------------------------------------------
Total Non-Interest Expenses 18,541 21,578 21,918 16,121 14,745
--------------------------------------------------
Earnings (Loss) before income taxes 3,578 4,993 (234) 2,315 5,218
Income tax expense 1,164 1,549 101 605 1,384
--------------------------------------------------
Net Earnings (Loss) $ 2,414 $ 3,444 $ (335) $ 1,710 $ 3,834
==================================================
- -----------------------------------------------------------------------------------------------
Note: Prior period amounts have been restated to reflect stock option expensing
under SFAS No. 123 and the deconsolidation of TOPrSSM.
For further information, including Notes to Consolidated Financial Statements,
please see the 2001-2003 annual reports.
* Reported results for certain periods include the impact of restructuring
and other charges, research and other settlement-related expenses, and
September 11-related recoveries and expenses. Management also examines
results excluding those items, which are our operating basis results.
Operating basis results should not be considered an alternative to results
as determined in accordance with generally accepted accounting principles
("GAAP") in the United States, but rather as non-GAAP measures considered
relevant by management in comparing current year results with prior year
results. Management believes these measures are valuable tools for
investors to judge the quality of Merrill Lynch's finanacial performance as
they allow investors to more readily gauge earnings and identify trends.
Items which would be excluded from operating results in the periods above
include the following after-tax amounts: in 2001, $83 million of September
11-related expenses ($131 million pre-tax) and $1.7 billion of
restructuring and other charges ($2.2 billion pre-tax), in 2002, $207
million of research and other settlement-related expenses ($291 million
pre-tax), $126 million of September 11-related net insurance recoveriees
($212 million pre-tax) and $42 million of net benefits from restructuring
and other charges ($8 million charge pre-tax); in 2003, $91 million of
September 11-related net insurance recoveries ($147 million pre-tax) and $3
million of net benefits from restructuring and other charges ($20 million
charge pre-tax).
17
Merrill Lynch & Co., Inc. Attachment II
=================================================================================================
Consolidated Quarterly Earnings (unaudited) All Quarters ended on the last Friday of the period
----------------------------------------------------
(dollars in millions, except per share Full Year
amounts) 1Q03 2Q03* 3Q03* 4Q03* 2003*
- -------------------------------------------------------------------------------------------------
NET REVENUES
Asset management and portfolio service
fees $ 1,127 $ 1,154 $ 1,184 $ 1,231 $ 4,696
Commissions 1,069 1,044 1,120 1,163 4,396
Principal transactions 1,025 1,127 704 380 3,236
Investment banking 493 698 678 759 2,628
Other 213 279 308 343 1,143
----------------------------------------------------
Subtotal 3,927 4,302 3,994 3,876 16,099
Interest and dividend revenues 3,005 2,999 2,872 2,806 11,682
Less interest expense 2,128 2,032 1,851 1,807 7,818
----------------------------------------------------
Net interest profit 877 967 1,021 999 3,864
----------------------------------------------------
Total net revenues 4,804 5,269 5,015 4,875 19,963
----------------------------------------------------
Non-Interest Expenses
Compensation and benefits 2,561 2,749 2,448 2,052 9,810
Communications and technology 403 357 352 345 1,457
Occupancy and related depreciation 216 221 226 226 889
Brokerage, clearing, and exchange fees 170 169 188 195 722
Advertising and market development 121 113 89 106 429
Professional fees 144 140 146 151 581
Office supplies and postage 58 50 46 43 197
Other 222 183 135 247 787
Net (recoveries) related to September 11 - (61) (21) (65) (147)
Net restructuring and other charges - - - 20 20
----------------------------------------------------
Total non-interest expenses 3,895 3,921 3,609 3,320 14,745
----------------------------------------------------
Earnings before income taxes 909 1,348 1,406 1,555 5,218
Income tax expense 266 371 403 344 1,384
----------------------------------------------------
Net Earnings $ 643 $ 977 $ 1,003 $ 1,211 $ 3,834
====================================================
Preferred stock dividends 9 10 10 9 38
----------------------------------------------------
Net earnings applicable to common
stockholders $ 634 $ 967 $ 993 $ 1,202 $ 3,796
====================================================
Earnings Per Common Share
Basic $ 0.71 $ 1.08 $ 1.10 $ 1.32 $ 4.21
Diluted $ 0.67 $ 1.00 $ 1.00 $ 1.19 $ 3.88
- -------------------------------------------------------------------------------------------------
Selected Financial Ratios
Compensation and benefits to net revenues 53.3% 52.2% 48.8% 42.1% 49.1%
All other non-interest expense to net
revenues 27.8% 22.2% 23.2% 26.0% 24.8%
Pre-tax profit margin 18.9% 25.6% 28.0% 31.9% 26.1%
Effective tax rate 29.3% 27.5% 28.7% 22.1% 26.5%
Net earnings to net revenues 13.4% 18.5% 20.0% 24.8% 19.2%
Return on average common stockholders'
equity (annualized) 10.5% 15.4% 15.2% 17.4% 14.7%
- -------------------------------------------------------------------------------------------------
Note: Prior period amounts have been restated to reflect stock option expensing
under SFAS No. 123 and the deconsolidation of TOPrSSM.
For further information, including Notes to Consolidated Financial Statements,
please see the 2003 annual report.
* Reported results for certain periods include the impact of September
11-related net recoveries and expenses and net restructuring and other
charges. Management also examines results excluding those items, which are
our operating basis results. Operating basis results should not be
considered an alternative to results as determined in accordance with
generally accepted accounting principles ("GAAP") in the United States, but
rather as non-GAAP measures considered relevant by management in comparing
current year results with prior year results. Management believes these
measures are valuable tools for investors to judge the quality of Merrill
Lynch's financial performance as they allow investors to more readily gauge
earnings and identify trends. Items which would be excluded from operating
results in the periods above include the following after-tax amounts: in
2Q03, $36 million of September 11-related net recoveries ($61 million
pre-tax); in 3Q03, $13 million of September 11-related net recoveries ($21
million pre-tax); in 4Q03, $42 million of September 11-related net
recoveries ($65 million pre-tax) and $3 million of net benefits from
restructuring and other charges ($20 million charge pre-tax); in full year
2003, $91 million of September 11-related net insurance recoveries ($147
million pre-tax) and $3 million of net benefits from restructuring and
other charges ($20 million charge pre-tax).
18
Merrill Lynch & Co., Inc. Attachment II - 1
==================================================================================================
Consolidated Quarterly Earnings (unaudited) All Quarters ended on the last Friday of the period
----------------------------------------------------
(dollars in millions, except per share Full Year
amounts) 1Q02 2Q02* 3Q02* 4Q02* 2002*
- --------------------------------------------------------------------------------------------------
NET REVENUES
Asset management and portfolio service fees $ 1,293 $ 1,298 $ 1,217 $ 1,106 $ 4,914
Commissions 1,242 1,212 1,125 1,078 4,657
Principal transactions 877 728 377 349 2,331
Investment banking 649 695 492 577 2,413
Other 227 227 173 156 783
----------------------------------------------------
Subtotal 4,288 4,160 3,384 3,266 15,098
Interest and dividend revenues 3,278 3,183 3,508 3,241 13,210
Less interest expense 2,532 2,456 2,554 2,330 9,872
----------------------------------------------------
Net interest profit 746 727 954 911 3,338
----------------------------------------------------
Total net revenues 5,034 4,887 4,338 4,177 18,436
----------------------------------------------------
Non-Interest Expenses
Compensation and benefits 3,096 3,114 2,436 2,031 10,677
Communications and technology 474 412 421 434 1,741
Occupancy and related depreciation 238 228 218 225 909
Brokerage, clearing, and exchange fees 198 172 182 175 727
Advertising and market development 150 151 125 114 540
Professional fees 130 132 135 155 552
Office supplies and postage 69 65 62 62 258
Other 166 146 154 164 630
Net (recoveries) related to September 11 - - (191) (21) (212)
Net restructuring and other charges - - (2) 10 8
Research and other settlement-related
expenses - 111 - 180 291
----------------------------------------------------
Total non-interest expenses 4,521 4,531 3,540 3,529 16,121
----------------------------------------------------
Earnings before income taxes 513 356 798 648 2,315
Income tax expense 154 73 238 140 605
----------------------------------------------------
Net Earnings $ 359 $ 283 $ 560 $ 508 $ 1,710
====================================================
Preferred stock dividends 10 9 10 9 38
----------------------------------------------------
Net earnings applicable to common
stockholders $ 349 $ 274 $ 550 $ 499 $ 1,672
====================================================
Earnings Per Common Share
Basic $ 0.41 $ 0.32 $ 0.64 $ 0.58 $ 1.94
Diluted $ 0.37 $ 0.29 $ 0.59 $ 0.53 $ 1.77
- --------------------------------------------------------------------------------------------------
Selected Financial Ratios
Compensation and benefits to net revenues 61.5% 63.7% 56.2% 48.6% 57.9%
All other non-interest expense to net
revenues 28.3% 29.0% 25.4% 35.9% 29.5%
Pre-tax profit margin 10.2% 7.3% 18.4% 15.5% 12.6%
Effective tax rate 30.0% 20.5% 29.8% 21.6% 26.1%
Net earnings to net revenues 7.1% 5.8% 12.9% 12.2% 9.3%
Return on average common stockholders'
equity (annualized) 6.7% 5.0% 9.7% 8.5% 7.5%
- --------------------------------------------------------------------------------------------------
Note: Prior period amounts have been restated to reflect stock option expensing
under SFAS No. 123 and the deconsolidation of TOPrSSM.
For further information, including Notes to Consolidated Financial Statements,
please see the 2003 annual report.
* Reported results for certain periods include the impact of restructuring
and other charges, research and other settlement-related expenses, and
September 11-related recoveries and expenses. Management also examines
results excluding those items, which are our operating basis results.
Operating basis results should not be considered an alternative to results
as determined in accordance with generally accepted accounting principles
("GAAP") in the United States, but rather as non-GAAP measures considered
relevant by management in comparing current year results with prior year
results. Management believes these measures are valuable tools for
investors to judge the quality of Merrill Lynch's financial performance as
they allow investors to more readily gauge earnings and identify trends.
Items which would be excluded from operating results in the periods above
include the following after-tax amounts: in 2Q02, $78 million of research
and other settlement-related expenses ($111 million pre-tax); in 3Q02, $114
million of September 11-related net recoveries ($191 million pre-tax) and
$1 million of net benefits from restructuring and other charges ($2 million
pre-tax); in 4Q02, $129 million of research and other settlement-related
expenses ($180 million pre-tax), $12 million of September 11-related net
recoveries ($21 million pre-tax) and $41 million of net benefits from
restructuring and other charges ($10 million charge pre-tax); in full year
2002, $207 million of research and other settlement-related expenses ($291
million pre-tax), $126 million of September 11-related net insurance
recoveries ($212 million pre-tax) and $42 million of net benefits from
restructuring and other charges ($8 million charge pre-tax).
19
Merrill Lynch & Co., Inc. Attachment II - 2
================================================================================================
Consolidated Quarterly Earnings (unaudited) All Quarters ended on the last Friday of the period
---------------------------------------------------
(dollars in millions, except per share Full Year
amounts) 1Q01 2Q01 3Q01* 4Q01* 2001*
- ------------------------------------------------------------------------------------------------
NET REVENUES
Asset management and portfolio service
fees $ 1,379 $ 1,356 $ 1,337 $ 1,279 $ 5,351
Commissions 1,505 1,362 1,204 1,195 5,266
Principal transactions 1,717 888 739 586 3,930
Investment banking 936 998 857 748 3,539
Other 172 161 137 90 560
---------------------------------------------------
Subtotal 5,709 4,765 4,274 3,898 18,646
Interest and dividend revenues 6,234 5,564 4,664 3,684 20,146
Less interest expense 5,582 4,805 3,841 2,880 17,108
---------------------------------------------------
Net interest profit 652 759 823 804 3,038
---------------------------------------------------
Total net revenues 6,361 5,524 5,097 4,702 21,684
---------------------------------------------------
Non-Interest Expenses
Compensation and benefits 3,696 3,595 3,016 2,378 12,685
Communications and technology 598 568 529 537 2,232
Occupancy and related depreciation 270 270 280 257 1,077
Brokerage, clearing, and exchange fees 235 243 219 198 895
Advertising and market development 208 202 165 128 703
Professional fees 142 151 115 137 545
Office supplies and postage 96 92 78 83 349
Goodwill amortization 52 51 53 51 207
Other 214 167 175 345 901
Net expenses related to September 11 - - 88 43 131
Net restructuring and other charges - - - 2,193 2,193
---------------------------------------------------
Total non-interest expenses 5,511 5,339 4,718 6,350 21,918
---------------------------------------------------
Earnings (Loss) before income taxes 850 185 379 (1,648) (234)
Income tax expense/(benefit) 266 40 123 (328) 101
---------------------------------------------------
Net Earnings (Loss) $ 584 $ 145 $ 256 $ (1,320)$ (335)
===================================================
Preferred stock dividends 10 10 9 10 39
---------------------------------------------------
Net earnings (loss) applicable to common
stockholders $ 574 $ 135 $ 247 $ (1,330)$ (374)
===================================================
Earnings Per Common Share
Basic $ 0.69 $ 0.16 $ 0.29 $ (1.57)$ (0.45)
Diluted $ 0.61 $ 0.14 $ 0.26 $ (1.57)$ (0.45)
- ------------------------------------------------------------------------------------------------
Selected Financial Ratios
Compensation and benefits to net revenues 58.1% 65.1% 59.2% 50.6% 58.5%
All other non-interest expense to net
revenues 28.5% 31.6% 33.4% 84.5% 42.6%
Pre-tax profit margin 13.4% 3.3% 7.4% N/M N/M
Effective tax rate 31.3% 21.6% 32.5% N/M N/M
Net earnings (loss) to net revenues 9.2% 2.6% 5.0% N/M N/M
Return on average common stockholders'
equity (annualized) 12.0% 2.6% 4.6% N/M N/M
- ------------------------------------------------------------------------------------------------
N/M - Not meaningful
Note: Prior period amounts have been restated to reflect stock option expensing
under SFAS No. 123 and the deconsolidation of TOPrSSM.
For further information, including Notes to Consolidated Financial Statements,
please see the 2003 annual report.
* Reported results for certain periods include the impact of restructuring
and other charges and September 11-related recoveries and expenses.
Management also examines results excluding those items, which are our
operating basis results. Operating basis results should not be considered
an alternative to results as determined in accordance with generally
accepted accounting principles ("GAAP") in the United States, but rather as
non-GAAP measures considered relevant by management in comparing current
year results with prior year results. Management believes these measures
are valuable tools for investors to judge the quality of Merrill Lynch's
financial performance as they allow investors to more readily gauge
earnings and identify trends. Items which would be excluded from operating
results in the periods above include the following after-tax amounts: in
3Q01, $53 million of September 11-related expenses ($88 million pre-tax);
in 4Q01, $30 million of September 11-related expenses ($43 million pre-tax)
and $1.7 billion of restructuring and other charges ($2.2 billion pre-tax);
in full year 2001, $83 million of September 11-related expenses ($131
million pre-tax) and $1.7 billion of restructuring and other charges ($2.2
billion pre-tax).
20
Merrill Lynch & Co., Inc. Attachment III
==================================================================
Preliminary Segment Data
(unaudited)
Year Ended Last Friday in
December
------------------------------
2003 2002 2001
--------- --------- ---------
(dollars in millions)
Global Markets & Investment
Banking
Non-interest revenues $ 7,223 $ 6,167 $ 8,460
Net interest profit 2,853 2,261 1,808
--------- --------- ---------
Total net revenues 10,076 8,428 10,268
--------- --------- ---------
Pre-tax earnings (a) 3,775 1,468 1,039
Pre-tax profit margin (a) 37.5% 17.4% 10.1%
----------------------------------------------------------------
Global Private Client
Non-interest revenues $ 7,505 $ 7,447 $ 8,379
Net interest profit 1,358 1,333 1,518
--------- --------- ---------
Total net revenues 8,863 8,780 9,897
--------- --------- ---------
Pre-tax earnings (loss) (b) 1,517 1,066 (480)
Pre-tax profit margin (b) 17.1% 12.1% N/M
----------------------------------------------------------------
Merrill Lynch Investment Managers
Non-interest revenues $ 1,377 $ 1,526 $ 1,902
Net interest profit 24 24 21
--------- --------- ---------
Total net revenues 1,401 1,550 1,923
--------- --------- ---------
Pre-tax earnings (loss) (c) 268 219 (134)
Pre-tax profit margin (c) 19.1% 14.1% N/M
----------------------------------------------------------------
Corporate
Non-interest revenues $ (6) $ (42) $ (95)
Net interest profit (371) (280) (309)
--------- --------- ---------
Total net revenues (377) (322) (404)
--------- --------- ---------
Pre-tax loss (342) (438) (659)
- -----------------------------------------------------------------
Total
Non-interest revenues $ 16,099 $ 15,098 $ 18,646
Net interest profit 3,864 3,338 3,038
--------- --------- ---------
Total net revenues 19,963 18,436 21,684
--------- --------- ---------
Pre-tax earnings (loss) (d) 5,218 2,315 (234)
Pre-tax profit margin (d) 26.1% 12.6% N/M
----------------------------------------------------------------
Note: Prior period amounts have been restated to reflect stock option expensing
under SFAS No. 123 and the deconsolidation of TOPrSSM.
(a) Includes the impact of insurance recoveries related to September 11, which
have been recorded as a contra-expense, of $155 million and $90 million for
the years ended December 26, 2003, and December 27, 2002, respectively.
Also includes net restructuring and other charges of $18 million, $51
million and $833 million for the full years ended December 26, 2003,
December 27, 2002 and December 28, 2001, respectively. Excluding these
items, GMI's pre-tax earnings were $3,638 million ($3,775 million minus
$137 million), $1,429 million ($1,468 million minus $39 million) and $1,872
million ($1,039 million plus $833 million) for the full years ended
December 26, 2003, December 27, 2002 and December 28 2001, respectively.
Excluding these items, GMI's pre-tax profit margin was 36.1% ($3,638
million/$10,076 million), 17.0% ($1,429 million/$8,428 million), and 18.2%
($1,872 million/$10,268 million) for the full years ended December 26,
2003, December 27, 2002 and December 28, 2001, respectively.
(b) Includes the impact of insurance recoveries related to September 11, which
have been recorded as a contra-expense, of $15 million and $25 million for
the years ended December 26, 2003, and December 27, 2002, respectively.
Also includes net restructuring and other charges/(credits) of $(2)
million,$(66) million and $1,077 million for the full years ended December
26, 2003, December 27, 2002 and December 28, 2001, respectively. Excluding
these items, GPC's pre-tax earnings were $1,500 million ($1,517 million
minus $17 million), $975 million ($1,066 million minus $91 million) and
$597 million ($480 million loss plus $1,077 million) for the full years
ended December 26, 2003, December 27, 2002 and December 28, 2001,
respectively. Excluding these items, GPC's pre-tax profit margin was 16.9%
($1,500 million/$8,863 million), 11.1% ($975 million/$8,780 million), and
6.0% ($597 million/$9,897 million) for the full years ended December 26,
2003, December 27, 2002 and December 28, 2001, respectively.
(c) Includes net restructuring and other charges of $4 million, $23 million and
$283 million for the full years ended December 26, 2003, December 27, 2002
and December 28, 2001, respectively. Excluding these items, MLIM's pre-tax
earnings were $272 million ($268 million plus $4 million), $242 million
($219 plus $23 million) and $149 million ($134 million loss plus $283
million) for the full years ended December 26, 2003, December 27, 2002 and
December 28, 2001, respectively. Excluding these items, MLIM's pre-tax
profit margin was 19.4% ($272 million/$1,401 million), 15.6% ($242
million/$1,550 million), and 7.7% ($149 million/$1,923 million) for the
full years ended December 26, 2003, December 27, 2002 and December 28,
2001, respectively.
(d) Excluding the impact of September 11, net restructuring and other charges,
and research-related items, total pre-tax earnings were $5,091 million
($5,218 million minus $127 million), $2,402 million ($2,315 million plus
$87 million), and $2,090 million ($234 million loss plus $2,324 million)
for the full years ended December 26, 2003, December 27, 2002, and December
28, 2001, respectively. Excluding these items, total pre-tax profit margins
were 25.5% ($5,091million/$19,963 million), 13.0% ($2,402 million/$18,436
million), and 9.6% ($2,090 million/$21,684 million) for the full years
ended December 26, 2003, December 27, 2002 and December 28, 2001,
respectively.
21
Merrill Lynch & Co., Inc. Attachment IV
===================================================================================================================
Consolidated Balance Sheets (unaudited)
December 31, December 29, December 28, December 27, December 26,
(dollars in millions) 1999 2000 2001 2002 2003
- -------------------------------------------------------------------------------------------------------------------
Assets
Cash and cash equivalents $ 12,155 $ 23,205 $ 11,070 $ 10,211 $ 10,150
Cash and securities segregated for
regulatory purposes
or deposited with clearing
organizations 6,078 6,092 4,467 7,375 15,171
Receivables under resale agreements and
securities borrowed transactions 96,596 113,190 121,153 116,881 117,228
Trading assets, at fair value 96,814 99,700 104,967 111,560 134,309
Investment securities 18,198 58,731 88,211 82,327 74,809
Securities received as collateral - - 3,234 3,693 9,156
Other receivables (net) 56,414 76,541 55,615 55,473 55,445
Loans, notes, and mortgages (net) 14,428 20,495 22,937 38,833 50,993
Separate accounts assets 17,442 16,631 15,965 13,042 17,034
Equipment and facilities (net) 3,140 3,444 2,873 3,080 2,612
Goodwill (net) 4,952 4,407 4,071 4,446 4,814
Other assets 1,836 2,284 2,478 4,454 4,595
--------------------------------------------------------------------
Total Assets $ 328,053 $ 424,720 $ 437,041 $ 451,375 $ 496,316
====================================================================
Liabilities
Payables under repurchase agreements and
securities loaned transactions $ 72,509 $ 104,345 $ 87,195 $ 93,018 $ 107,219
Commercial paper and other short-term
borrowings 25,596 15,183 5,141 5,353 5,000
Deposits 17,602 67,648 85,819 81,842 79,457
Trading liabilities, at fair value 67,276 68,857 75,917 79,196 89,333
Obligation to return securities received
as collateral - - 3,234 3,693 9,156
Other payables 52,997 56,000 59,384 65,804 70,312
Liabilities of insurance subsidiaries 4,086 3,908 3,737 3,566 3,353
Separate accounts liabilities 17,442 16,631 15,965 13,042 17,034
Long-term borrowings 54,043 70,223 76,572 78,524 83,299
Long-term debt issued to TOPrSSM trusts 3,206 3,193 3,181 3,189 3,203
--------------------------------------------------------------------
Total Liabilities 314,757 405,988 416,145 427,227 467,366
--------------------------------------------------------------------
Preferred Securities Issued by Subsidiaries 52 52 44 - -
Stockholders' Equity
Preferred stockholders' equity 425 425 425 425 425
Common stockholders' equity 12,819 18,255 20,427 23,723 28,525
--------------------------------------------------------------------
Total Stockholders' Equity 13,244 18,680 20,852 24,148 28,950
--------------------------------------------------------------------
Total Liabilities, Preferred Securities
Issued by
Subsidiaries, and Stockholders' Equity $ 328,053 $ 424,720 $ 437,041 $ 451,375 $ 496,316
====================================================================
- -------------------------------------------------------------------------------------------------------------------
Leverage Ratios (unaudited)
(dollars in millions, except ratio amounts)
Total assets $ 328,053 $ 424,720 $ 437,041 $ 451,375 $ 496,316
Less: Receivables under resale agreements 54,157 77,849 66,223 71,338 71,756
Receivables under securities borrowed
transactions 42,439 35,341 54,930 45,543 45,472
Securities received as collateral - - 3,234 3,693 9,156
--------------------------------------------------------------------
Adjusted assets $ 231,457 $ 311,530 $ 312,654 $ 330,801 $ 369,932
--------------------------------------------------------------------
Stockholders' equity $ 13,244 $ 18,680 $ 20,852 $ 24,148 $ 28,950
Long-term debt issued to TOPrSSM trusts, net
of investment in partnerships (1) 2,664 2,653 2,642 2,649 2,661
--------------------------------------------------------------------
Equity capital $ 15,908 $ 21,333 $ 23,494 $ 26,797 $ 31,611
--------------------------------------------------------------------
Leverage Ratio (2) 20.6x 19.9x 18.6x 16.8x 15.7x
Adjusted Leverage Ratio (3) 14.5x 14.6x 13.3x 12.3x 11.7x
- -------------------------------------------------------------------------------------------------------------------
Note: Prior period amounts have been restated to reflect stock option expensing
under SFAS No. 123 and the deconsolidation of TOPrSSM.
(1) Investment in partnerships amounted to $542 million; $540 million; $539
million; $540 million; and $542 million at year-end 1999, 2000, 2001, 2002,
and 2003, respectively.
(2) Total assets divided by equity capital.
(3) Adjusted assets divided by equity capital. Merrill Lynch believes that a
leverage ratio adjusted to exclude certain assets considered to have a low
risk profile provides a more meaningful measure of balance sheet leverage
in the securities industry than an unadjusted ratio.
22
Merrill Lynch & Co., Inc. Attachment V
==========================================================================================================================
Common Share Data (unaudited)
Annual Data
SHARES OUTSTANDING
-----------------------------------
(in millions)
EARNINGS PER SHARE WEIGHTED AVERAGE COMMON STOCK PRICE(1)
----------------------- DIVIDENDS BOOK ----------------------- END OF ----------------------------------
Basic Diluted PAID VALUE Basic Diluted PERIOD Close High Low
- --------------------------------------------------------------------------------------------------------------------------
1999 $3.15 $2.80 $0.53 $16.81 754.7 848.9 762.6 $41.66 $51.25 $31.00
2000 4.27 3.75 0.61 22.41 798.3 909.1 814.6 68.19 74.63 36.31
2001 (0.45) (0.45) 0.64 24.03 838.7 838.7 850.2 52.12 80.00 33.50
2002 1.94 1.77 0.64 27.15 862.3 944.3 873.8 37.95 59.32 28.21
2003 4.21 3.88 0.64 30.03 900.7 977.8 949.9 58.65 60.47 30.75
Quarterly Data
SHARES OUTSTANDING
-----------------------------------
(in millions)
EARNINGS PER SHARE WEIGHTED AVERAGE COMMON STOCK PRICE(1)
----------------------- DIVIDENDS BOOK ----------------------- END OF --------------------------------
Basic Diluted PAID VALUE Basic Diluted PERIOD Close High Low
- --------------------------------------------------------------------------------------------------------------------------
1Q01 $0.69 $0.61 $0.16 $23.89 832.2 935.3 838.4 $55.40 $80.00 $50.31
2Q01 0.16 0.14 0.16 24.88 841.4 942.1 843.8 59.25 71.50 51.15
3Q01 0.29 0.26 0.16 25.34 845.8 934.4 847.5 40.60 59.85 33.50
4Q01 (1.57) (1.57) 0.16 24.03 845.7 845.7 850.2 52.12 54.65 38.49
1Q02 0.41 0.37 0.16 24.89 854.8 948.8 862.9 55.38 59.32 44.15
2Q02 0.32 0.29 0.16 25.83 861.7 946.2 865.4 40.50 55.20 36.50
3Q02 0.64 0.59 0.16 26.62 864.6 936.9 869.0 32.95 40.71 30.99
4Q02 0.58 0.53 0.16 27.15 868.2 945.7 873.8 37.95 44.91 28.21
1Q03 0.71 0.67 0.16 26.35 887.6 941.9 929.8 35.40 43.75 30.75
2Q03 1.08 1.00 0.16 27.44 897.2 967.4 935.2 46.68 49.20 35.30
3Q03 1.10 1.00 0.16 28.59 904.8 991.9 942.6 53.53 57.50 45.83
4Q03 1.32 1.19 0.16 30.03 913.3 1,009.9 949.9 58.65 60.47 53.85
- --------------------------------------------------------------------------------------------------------------------------
Note: Prior period amounts have been restated to reflect stock option expensing
under SFAS No. 123 and the deconsolidation of TOPrSSM.
(1) Based on calendar period end.
23
Merrill Lynch & Co., Inc. Attachment VI
===================================================================================================================
Selected Financial Data (unaudited)
Year Ended Last Friday in December
---------------------------------------------------------------------------
(dollars in millions, except per share
amounts) 1999 2000 2001 2002 2003
- -------------------------------------------------------------------------------------------------------------------
Results of Operations
Total Revenues $ 35,368 $ 44,888 $ 38,792 $ 28,308 $ 27,781
Less Interest Expense 13,249 18,317 17,108 9,872 7,818
---------------------------------------------------------------------------
Net Revenues 22,119 26,571 21,684 18,436 19,963
Non-Interest Expenses 18,541 21,578 21,918 16,121 14,745
---------------------------------------------------------------------------
Earnings (Loss) Before Income Taxes 3,578 4,993 (234) 2,315 5,218
Income Tax Expense 1,164 1,549 101 605 1,384
---------------------------------------------------------------------------
Net Earnings (Loss) $ 2,414 $ 3,444 $ (335) $ 1,710 $ 3,834
===========================================================================
Net Earnings (Loss) Applicable to
Common Stockholders(a) $ 2,375 $ 3,406 $ (374) $ 1,672 $ 3,796
===========================================================================
- -------------------------------------------------------------------------------------------------------------------
Financial Position
Total Assets $ 328,053 $ 424,720 $ 437,041 $ 451,375 $ 496,316
Short-Term Borrowings(b) $ 115,707 $ 187,176 $ 178,155 $ 180,213 $ 191,676
Long-Term Borrowings $ 54,043 $ 70,223 $ 76,572 $ 78,524 $ 83,299
Long-Term Debt Issued to TOPrSSM Trusts $ 3,206 $ 3,193 $ 3,181 $ 3,189 $ 3,203
Total Stockholders' Equity $ 13,244 $ 18,680 $ 20,852 $ 24,148 $ 28,950
- -------------------------------------------------------------------------------------------------------------------
Common Share Data(c)
(in thousands, except per share amounts)
Earnings Per Share:
Basic $ 3.15 $ 4.27 $ (0.45) $ 1.94 $ 4.21
Diluted $ 2.80 $ 3.75 $ (0.45) $ 1.77 $ 3.88
Weighted-Average Shares Outstanding:
Basic 754,672 798,273 838,683 862,318 900,711
Diluted 848,891 909,124 838,683 944,299 977,789
Shares Outstanding at Year End(d) 752,501 807,955 843,474 867,291 945,911
Book Value Per Share $ 16.81 $ 22.41 $ 24.03 $ 27.15 $ 30.03
Dividends Paid Per Share $ 0.53 $ 0.61 $ 0.64 $ 0.64 $ 0.64
- -------------------------------------------------------------------------------------------------------------------
Financial Ratios
Pre-tax Profit Margin(e) 16.2% 18.8% N/M 12.6% 26.1%
Common Dividend Payout Ratio 16.8% 14.3% N/M 33.0% 15.2%
Return on Average Assets 0.7% 1.0% N/M 0.4% 0.8%
Return on Average Common Stockholders'
Equity 22.8% 21.6% N/M 7.5% 14.7%
- -------------------------------------------------------------------------------------------------------------------
Other Statistics
Full-Time Employees:
U.S. 49,700 51,700 43,400 40,000 38,200
Non-U.S. 18,200 19,900 13,700 10,900 9,900
---------------------------------------------------------------------------
Total (f) 67,900 71,600 57,100 50,900 48,100
===========================================================================
Private Client Financial Advisors 18,600 20,200 16,400 14,000 13,500
Client Assets (dollars in billions) $ 1,696 $ 1,681 $ 1,556 $ 1,311 $ 1,484
- -------------------------------------------------------------------------------------------------------------------
N/M - Not meaningful.
Note: Prior period amounts have been restated to reflect stock option expensing
under SFAS No. 123 and the deconsolidation of TOPrSSM.
(a) Net earnings less preferred stock dividends.
(b) Consists of Payables under repurchase agreements and securities loaned
transactions, Commercial paper and other short-term borrowings, and
Deposits.
(c) All share and per share data have been restated for the two-for-one common
stock split paid in August 2000.
(d) Does not include 2,900; 3,911; 4,195; 4,654; and 8,019 shares exchangeable
into common stock at year-end 2003, 2002, 2001, 2000, and 1999,
respectively.
(e) Earnings (Loss) Before Income Taxes to Net Revenues.
(f) Excludes 200; 1,500; and 3,500 full-time employees on salary continuation
severance at year-end 2003, 2002 and 2001, respectively.
24