MERRILL LYNCH EXHIBIT 99.2
Published on July 15, 2003
Exhibit 99.2
Attachment I
Merrill Lynch & Co., Inc.
Preliminary Unaudited Earnings Summary
For the Three
Months Ended Percent Inc/(Dec)
-------------------- ----------------
June March June 2Q03 2Q03
(in millions, except 27, 28, 28, vs. vs.
per share amounts) 2003 2003 2002 1Q03 2Q02
-------------------- ------- --------
Net Revenues
Commissions $1,044 $1,069 $1,212 (2.3)% (13.9)%
Principal transactions 1,100 1,010 728 8.9 51.1
Investment banking
Underwriting 565 368 501 53.5 12.8
Strategic advisory 133 125 194 6.4 (31.4)
Asset management and
portfolio service fees 1,154 1,127 1,298 2.4 (11.1)
Other 271 205 219 32.2 23.7
------ ------ ------
Subtotal 4,267 3,904 4,152 9.3 2.8
Interest and dividend revenues 3,028 3,021 3,198 0.2 (5.3)
Less interest expense 1,976 2,071 2,399 (4.6) (17.6)
------ ------ ------
Net interest profit 1,052 950 799 10.7 31.7
------ ------ ------
Total Net Revenues 5,319 4,854 4,951 9.6 7.4
------ ------ ------
Non-Interest Expenses
Compensation and benefits 2,678 2,496 2,569 7.3 4.2
Communications and technology 357 403 412 (11.4) (13.3)
Occupancy and
related depreciation 221 216 228 2.3 (3.1)
Brokerage, clearing,
and exchange fees 169 170 172 (0.6) (1.7)
Advertising and
market development 113 121 151 (6.6) (25.2)
Professional fees 140 144 132 (2.8) 6.1
Office supplies and postage 50 58 65 (13.8) (23.1)
Other 186 224 163 (17.0) 14.1
Research and other
settlement-related expenses - - 111 N/M (100.0)
Net recoveries
related to September 11 (61) - - N/M N/M
------ ------ ------
Total Non-Interest Expenses 3,853 3,832 4,003 0.5 (3.7)
------ ------ ------
Earnings Before Income
Taxes and Dividends on
Preferred Securities
Issued by Subsidiaries 1,466 1,022 948 43.4 54.6
Income tax expense 398 289 267 37.7 49.1
Dividends on preferred
securities issued
by subsidiaries 47 48 47 (2.1) -
------ ------ ------
Net Earnings $1,021 $685 $634 49.1 61.0
====== ====== ======
Preferred Stock Dividends $10 $9 $10 11.1 -
====== ====== ======
Earnings Per Common Share
Basic $1.13 $0.76 $0.72 48.7 56.9
Diluted $1.05 $0.72 $0.66 45.8 59.1
Average Shares Used in Computing
Earnings Per Common Share
Basic 897.2 887.6 861.7 1.1 4.1
Diluted 965.3 939.2 942.6 2.8 2.4
Annualized Return on
Average Common Equity 17.0% 11.8% 12.0%
- ----------------------------------------------------------------------
Note: Certain prior period amounts have been reclassified to conform
to the current period presentation.
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Attachment II
Merrill Lynch & Co., Inc.
Preliminary Unaudited Earnings Summary
For the Six
Months Ended
-------------
(in millions, except June June
per share amounts) 27, 28, Percent
2003 2002 Inc/(Dec)
------- ----- ---------
Net Revenues
Commissions $2,113 $2,454 (13.9)%
Principal transactions 2,110 1,605 31.5
Investment banking
Underwriting 933 967 (3.5)
Strategic advisory 258 377 (31.6)
Asset management and
portfolio service fees 2,281 2,591 (12.0)
Other 476 438 8.7
------- -------
Subtotal 8,171 8,432 (3.1)
Interest and dividend revenues 6,049 6,482 (6.7)
Less interest expense 4,047 4,873 (17.0)
------- -------
Net interest profit 2,002 1,609 24.4
------- -------
Total Net Revenues 10,173 10,041 1.3
------- -------
Non-Interest Expenses
Compensation and benefits 5,174 5,215 (0.8)
Communications and technology 760 886 (14.2)
Occupancy and related depreciation 437 466 (6.2)
Brokerage, clearing, and exchange fees 339 370 (8.4)
Advertising and market development 234 301 (22.3)
Professional fees 284 262 8.4
Office supplies and postage 108 134 (19.4)
Other 410 336 22.0
Research and other
settlement-related expenses - 111 (100.0)
Net recoveries related to September 11 (61) - N/M
------- -------
Total Non-Interest Expenses 7,685 8,081 (4.9)
------- -------
Earnings Before Income Taxes
and Dividends on Preferred
Securities Issued by Subsidiaries 2,488 1,960 26.9
Income tax expense 687 583 17.8
Dividends on preferred
securities issued by subsidiaries 95 96 (1.0)
------- -------
Net Earnings $1,706 $1,281 33.2
======= =======
Preferred Stock Dividends $19 $19 -
======= =======
Earnings Per Common Share
Basic $1.89 $1.47 28.6
Diluted $1.77 $1.33 33.1
Average Shares Used in Computing
Earnings Per Common Share
Basic 892.4 858.2 4.0
Diluted 952.3 945.9 0.7
Annualized Return on Average Common Equity 14.4% 12.3%
- ----------------------------------------------------------------------
Note: Certain prior period amounts have been reclassified to conform
to the current period presentation.
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Attachment III
Merrill Lynch & Co., Inc.
Preliminary Segment Data (unaudited)
For the Three Months For the Six Months
Ended Ended
------------------------- ------------------
(dollars in June March June June June
millions) 27, 28, 28, 27, 28,
2003 2003 2002 2003 2002
------- ------ ------- ------- -------
Global Markets &
Investment Banking
Non-interest
revenues $2,154 $1,807 $1,848 $3,961 $3,756
Net interest profit 732 654 462 1,386 938
------- ------ ------ ------- -------
Total net revenues 2,886 2,461 2,310 5,347 4,694
------- ------ ------ ------- -------
Pre-tax earnings 1,113 (a) 789 647 1,902 (a) 1,291
Pre-tax profit margin 38.6%(a) 32.1% 28.0% 35.6%(a) 27.5%
- ----------------------------------------------------------------------
Global Private Client
Non-interest
revenues $1,795 $1,779 $1,922 $3,574 $3,875
Net interest profit 333 322 346 655 692
------- ------ ------ ------- -------
Total net revenues 2,128 2,101 2,268 4,229 4,567
------- ------ ------ ------- -------
Pre-tax earnings 341 267 340 608 611
Pre-tax profit margin 16.0% 12.7% 15.0% 14.4% 13.4%
- ----------------------------------------------------------------------
Merrill Lynch
Investment Managers
Non-interest
revenues $325 $330 $406 $655 $845
Net interest profit 5 7 5 12 9
------- ------ ------ ------- -------
Total net revenues 330 337 411 667 854
------- ------ ------ ------- -------
Pre-tax earnings 67 46 89 113 203
Pre-tax profit margin 20.3% 13.6% 21.7% 16.9% 23.8%
- ----------------------------------------------------------------------
Corporate
Non-interest
revenues $(7) $(12) $(24) $(19) $(44)
Net interest profit (18) (33) (14) (51) (30)
------- ------ ------ ------- -------
Total net revenues (25) (45) (38) (70) (74)
------- ------ ------ ------- -------
Pre-tax loss (55)(b) (80) (128)(c) (135)(b) (145)(c)
- ----------------------------------------------------------------------
Total
Non-interest
revenues $4,267 $3,904 $4,152 $8,171 $8,432
Net interest profit 1,052 950 799 2,002 1,609
------- ------ ------ ------- -------
Total net revenues 5,319 4,854 4,951 10,173 10,041
------- ------ ------ ------- -------
Pre-tax earnings 1,466 (d) 1,022 948 (e) 2,488 (d) 1,960 (e)
Pre-tax profit margin 27.6%(d) 21.1% 19.1%(e) 24.5%(d) 19.5% (e)
- ----------------------------------------------------------------------
Note: Certain prior period amounts have been restated to conform to
the current period presentation.
(a) Includes the impact of an insurance recovery related to
September 11 of $75 million which is recorded as a
contra-expense. Excluding this item, GMI's pre-tax earnings
were $1,038 million ($1,113 million minus $75 million) and
GMI's pre-tax profit margin was 36.0% ($1,038 million/$2,886
million). For the year-to-date period, excluding this item,
GMI's pre-tax earnings were $1,827 million ($1,902 million
minus $75 million) and GMI's pre-tax profit margin was 34.2%
($1,827 million/$5,347 million).
(b) Includes September 11- related expenses of $14 million.
(c) Includes research settlement-related expenses of $111 million.
(d) Excluding the September 11-related items, total pre-tax
earnings were $1,405 million ($1,466 million minus $61
million) and total pre-tax profit margin was 26.4% ($1,405
million/$5,319 million). For the year-to-date period,
excluding this item, total pre-tax earnings were $2,427
million ($2,488 million minus $61 million) and total pre-tax
profit margin was 23.9% ($2,427 million/$10,173 million).
(e) Includes research settlement-related expenses of $111 million.
Excluding this item, total pre-tax earnings were $1,059
million ($948 million plus $111 million) and total pre-tax
profit margin was 21.4% ($1,059 million/$4,951 million). For
the year-to-date period, excluding this item, total pre-tax
earnings were $2,071 million ($1,960 million plus $111
million) and total pre-tax profit margin was 20.6% ($2,071
million/$10,041 million).
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Attachment IV
Merrill Lynch & Co., Inc.
Consolidated Quarterly
Earnings (unaudited) (in millions)
2Q02 3Q02 4Q02 1Q03 2Q03
----- ----- ----- ----- -----
Net Revenues
Commissions
Listed and
over-the-counter securities $718 $653 $623 $618 $617
Mutual funds 327 277 274 266 234
Other 167 195 181 185 193
----- ----- ----- ----- -----
Total 1,212 1,125 1,078 1,069 1,044
Principal transactions 728 377 358 1,010 1,100
Investment banking
Underwriting 501 329 414 368 565
Strategic advisory 194 163 163 125 133
----- ----- ----- ----- -----
Total 695 492 577 493 698
Asset management and
portfolio service fees
Asset management fees 430 402 386 385 394
Portfolio service fees 571 526 480 476 469
Account fees 135 138 122 135 136
Other fees 162 151 118 131 155
----- ----- ----- ----- -----
Total 1,298 1,217 1,106 1,127 1,154
Other 219 165 148 205 271
----- ----- ----- ----- -----
Subtotal 4,152 3,376 3,267 3,904 4,267
Interest and dividend revenues 3,198 3,484 3,212 3,021 3,028
Less interest expense 2,399 2,498 2,274 2,071 1,976
----- ----- ----- ----- -----
Net interest profit 799 986 938 950 1,052
----- ----- ----- ----- -----
Total Net Revenues 4,951 4,362 4,205 4,854 5,319
----- ----- ----- ----- -----
Non-Interest Expenses
Compensation and benefits 2,569 2,228 1,983 2,496 2,678
Communications and technology 412 421 434 403 357
Occupancy and related depreciation 228 218 225 216 221
Brokerage, clearing,
and exchange fees 172 182 175 170 169
Advertising and market development 151 125 114 121 113
Professional fees 132 135 155 144 140
Office supplies and postage 65 62 62 58 50
Other 163 130 145 224 186
Research and other
settlement-related expenses 111 - 180 - -
Net recoveries related
to September 11 - (191) (21) - (61)
Restructuring and other charges - (2) 10 - -
----- ----- ----- ----- -----
Total Non-Interest Expenses 4,003 3,308 3,462 3,832 3,853
----- ----- ----- ----- -----
Earnings Before Income Taxes
and Dividends on Preferred
Securities Issued by Subsidiaries 948 1,054 743 1,022 1,466
Income tax expense 267 313 157 289 398
Dividends on preferred securities
issued by subsidiaries 47 48 47 48 47
----- ----- ----- ----- -----
Net Earnings $634 $693 $539 $685 $1,021
- ----------------------------------------------------------------------
Per Common Share Data
2Q02 3Q02 4Q02 1Q03 2Q03
----- ----- ----- ----- -----
Earnings - Basic $0.72 $0.79 $0.61 $0.76 $1.13
Earnings - Diluted 0.66 0.73 0.56 0.72 1.05
Dividends paid 0.16 0.16 0.16 0.16 0.16
Book value
24.46 25.17 25.69 24.97 26.04 est.
- ----------------------------------------------------------------------
Certain prior period amounts have been reclassified to conform to the
current period presentation.
17
Attachment V
Merrill Lynch & Co., Inc.
Percentage of Quarterly
Net Revenues (unaudited)
2Q02 3Q02 4Q02 1Q03 2Q03
------ ------ ------ ------ ------
Net Revenues
Commissions
Listed and
over-the-counter securities 14.5% 15.0% 14.8% 12.7% 11.6%
Mutual funds 6.6% 6.4% 6.5% 5.5% 4.4%
Other 3.4% 4.4% 4.3% 3.8% 3.6%
------ ----- ----- ----- ------
Total 24.5% 25.8% 25.6% 22.0% 19.6%
Principal transactions 14.7% 8.6% 8.5% 20.8% 20.7%
Investment banking
Underwriting 10.1% 7.6% 9.8% 7.6% 10.6%
Strategic advisory 3.9% 3.7% 3.9% 2.6% 2.5%
------ ----- ----- ----- ------
Total 14.0% 11.3% 13.7% 10.2% 13.1%
Asset management and portfolio
service fees
Asset management fees 8.7% 9.2% 9.2% 7.9% 7.4%
Portfolio service fees 11.5% 12.1% 11.4% 9.8% 8.8%
Account fees 2.7% 3.2% 2.9% 2.8% 2.6%
Other fees 3.3% 3.4% 2.8% 2.7% 2.9%
------ ----- ----- ----- ------
Total 26.2% 27.9% 26.3% 23.2% 21.7%
Other 4.5% 3.8% 3.6% 4.2% 5.1%
------ ----- ----- ----- ------
Subtotal 83.9% 77.4% 77.7% 80.4% 80.2%
Interest and dividend revenues 64.6% 79.9% 76.4% 62.3% 56.9%
Less interest expense 48.5% 57.3% 54.1% 42.7% 37.1%
------ ----- ----- ----- ------
Net interest profit 16.1% 22.6% 22.3% 19.6% 19.8%
------ ----- ----- ----- ------
Total Net Revenues 100.0% 100.0% 100.0% 100.0% 100.0%
------ ------ ------ ------ ------
Non-Interest Expenses
Compensation and benefits 51.9% 51.1% 47.2% 51.4% 50.3%
Communications and technology 8.3% 9.7% 10.3% 8.3% 6.7%
Occupancy and related depreciation 4.6% 5.0% 5.4% 4.4% 4.2%
Brokerage, clearing, and exchange
fees 3.5% 4.2% 4.2% 3.5% 3.2%
Advertising and market development 3.0% 2.9% 2.7% 2.5% 2.1%
Professional fees 2.7% 3.1% 3.7% 3.0% 2.6%
Office supplies and postage 1.3% 1.4% 1.5% 1.2% 0.9%
Other 3.3% 2.9% 3.3% 4.6% 3.5%
Research and other
settlement-related expenses 2.3% - 4.3% - -
Net recoveries
related to September 11 - -4.4% -0.5% - -1.1%
Restructuring and other charges - -0.1% 0.2% - -
------ ----- ----- ----- ------
Total Non-Interest Expenses 80.9% 75.8% 82.3% 78.9% 72.4%
------ ----- ----- ----- ------
Earnings Before Income Taxes and
Dividends on Preferred Securities
Issued by Subsidiaries 19.1% 24.2% 17.7% 21.1% 27.6%
Income tax expense 5.4% 7.2% 3.7% 6.0% 7.5%
Dividends on preferred securities
issued by subsidiaries 0.9% 1.1% 1.2% 1.0% 0.9%
------ ----- ----- ----- ------
Net Earnings 12.8% 15.9% 12.8% 14.1% 19.2%
- ----------------------------------------------------------------------
Common shares outstanding
(in millions):
2Q02 3Q02 4Q02 1Q03 2Q03
---- ---- ---- ---- ----
Weighted-average - basic 861.7 864.6 868.2 887.6 897.2
Weighted-average - diluted 942.6 934.5 942.9 939.2 965.3
Period-end 865.4 869.0 873.8 929.8 935.2
- ----------------------------------------------------------------------
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Attachment VI
Merrill Lynch & Co., Inc.
Supplemental Data (dollars in billions)
(unaudited)
2Q02 3Q02 4Q02 1Q03 2Q03
------ ------ ------ ------ ------
Client Assets
Private Client
U.S. $1,076 $997 $1,021 $1,009 $1,076
Non - U.S. 94 87 89 86 92
------ ------ ------ ------ ------
Total Private
Client Assets 1,170 1,084 1,110 1,095 1,168
MLIM direct
sales (1) 233 205 201 193 205
------ ------ ------ ------ ------
Total Client Assets $1,403 $1,289 $1,311 $1,288 $1,373
====== ====== ====== ====== ======
Assets in
Asset-Priced Accounts $192 $177 $182 $181 $200
Assets
Under Management $499 $452 $462 $442 $471
Retail 203 182 189 187 195
Institutional 257 234 235 220 239
Private Investors 39 36 38 35 37
U.S. 319 305 313 303 320
Non-U.S. 180 147 149 139 151
Equity 234 190 191 183 209
Fixed Income 121 119 122 108 108
Money Market 144 143 149 151 154
- ----------------------------------------------------------------------
Net New Money
Private Client Accounts
U.S. $4 $4 $11 $(4) $(2)
Non-U.S. - (2) - (1) 1
------ ------ ------ ------ ------
Total 4 2 11 (5) (1)
------ ------ ------ ------ ------
Assets Under Management $(5) $(12) $5 $(11) $4
------ ------ ------ ------ ------
- ----------------------------------------------------------------------
Balance Sheet
Information (estimated)
Commercial Paper
and Other
Short-term Borrowings $6.0 $6.6 $5.4 $3.5 $5.5
Deposits 81.1 80.8 81.8 81.9 80.5
Long-term Borrowings 75.5 73.9 78.5 77.0 79.8
Preferred Securities
Issued by Subsidiaries 2.7 2.7 2.7 2.7 2.7
Total
Stockholders' Equity 21.6 22.3 22.9 23.6 24.8
- ----------------------------------------------------------------------
Global Equity and Equity-
Linked Underwriting(2)(3)
Volume $10 $3 $6 $4 $8
Market Share 9.4% 5.9% 10.5% 8.0% 7.8%
Ranking 3 5 2 5 6
Global Debt
Underwriting(2)(3)
Volume $86 $65 $59 $95 $84
Market Share 8.3% 7.7% 6.5% 7.1% 6.6%
Ranking 3 3 6 3 4
Global Completed Mergers
and Acquisitions(2)(3)
Volume $64 $79 $117 $38 $28
Market Share 19.8% 23.7% 29.8% 15.7% 10.4%
Ranking 4 3 5 3 8
- ----------------------------------------------------------------------
Full-Time
Employees(4) 54,400 53,200 50,900 49,600 48,300
Private Client
Financial Advisors 15,100 14,600 14,000 13,600 13,300
- ----------------------------------------------------------------------
(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) Full credit to book manager. Market shares derived from Thomson Financial
Securities Data statistics.
(4) Excludes 500, 500, 1,500, 700 and 1,000 full-time employees on salary
continuation severance at the end of 2Q03, 1Q03, 4Q02, 3Q02 and 2Q02,
respectively.
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
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