MERRILL LYNCH & CO., INC. EXHIBIT 99.2
Published on July 13, 2004
Exhibit 99.2
Merrill Lynch & Co., Inc. Attachment I
Preliminary Unaudited Earnings Summary
For the Three Months Ended Percent Inc/(Dec)
-------------------------- ------------------
(in millions, except June 25, March 26, June 27, 2Q04 vs. 2Q04 vs.
per share amounts) 2004 2004 2003 1Q04 2Q03
-------- --------- -------- -------- ---------
Net Revenues
Asset management
and portfolio
service fees $1,357 $1,315 $1,154 3.2 % 17.6 %
Commissions 1,189 1,361 1,044 (12.6) 13.9
Principal transactions 630 1,046 1,127 (39.8) (44.1)
Investment banking 764 837 698 (8.7) 9.5
Other 308 367 279 (16.1) 10.4
-------- --------- ---------
Subtotal 4,248 4,926 4,302 (13.8) (1.3)
Interest and dividend
revenues 3,128 3,061 2,999 2.2 4.3
Less interest expense 2,078 1,897 2,032 9.5 2.3
-------- --------- ---------
Net interest profit 1,050 1,164 967 (9.8) 8.6
-------- --------- ---------
Total Net Revenues 5,298 6,090 5,269 (13.0) 0.6
-------- --------- ---------
Non-Interest Expenses
Compensation and
benefits 2,587 3,047 2,749 (15.1) (5.9)
Communications and
technology 357 341 357 4.7 0.0
Occupancy and related
depreciation 202 217 221 (6.9) (8.6)
Brokerage, clearing,
and exchange fees 214 204 169 4.9 26.6
Professional fees 163 177 140 (7.9) 16.4
Advertising and market
development 132 122 113 8.2 16.8
Office supplies and
postage 49 51 50 (3.9) (2.0)
Other 195 239 183 (18.4) 6.6
Net recoveries related
to September 11 - - (61) 0.0 (100.0)
-------- --------- ---------
Total Non-Interest
Expenses 3,899 4,398 3,921 (11.3) (0.6)
-------- --------- ---------
Earnings Before Income
Taxes 1,399 1,692 1,348 (17.3) 3.8
Income tax expense 321 440 371 (27.0) (13.5)
-------- --------- ---------
Net Earnings $1,078 $1,252 $977 (13.9) 10.3
======== ========= =========
Preferred Stock
Dividends $9 $10 $10
======== ========= =========
Earnings Per Common Share
Basic $1.16 $1.34 $1.08 (13.4) 7.4
Diluted $1.06 $1.22 $1.00 (13.1) 6.0
Average Shares Used in
Computing Earnings
Per Common Share
Basic 923.0 930.2 897.2 (0.8) 2.9
Diluted 1,012.8 1,019.7 967.4 (0.7) 4.7
Annualized Return on
Average Common Equity 14.5% 17.0% 15.4%
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Merrill Lynch & Co., Inc. Attachment II
Preliminary Unaudited Earnings Summary
For the Six Months Ended
-------------------------
(in millions, except per June 25, June 27,
share amounts) 2004 2003 Percent Inc/(Dec)
------------ ------------ -----------------
Net Revenues
Asset management and
portfolio service fees $2,672 $2,281 17.1 %
Commissions 2,550 2,113 20.7
Principal transactions 1,676 2,152 (22.1)
Investment banking 1,601 1,191 34.4
Other 675 492 37.2
------------ ------------
Subtotal 9,174 8,229 11.5
Interest and dividend
revenues 6,189 6,004 3.1
Less interest expense 3,975 4,160 (4.4)
------------ ------------
Net interest profit 2,214 1,844 20.1
------------ ------------
Total Net Revenues 11,388 10,073 13.1
------------ ------------
Non-Interest Expenses
Compensation and benefits 5,634 5,310 6.1
Communications and
technology 698 760 (8.2)
Occupancy and related
depreciation 419 437 (4.1)
Brokerage, clearing,
and exchange fees 418 339 23.3
Professional fees 340 284 19.7
Advertising and market
development 254 234 8.5
Office supplies and postage 100 108 (7.4)
Other 434 405 7.2
Net recoveries related
to September 11 - (61) (100.0)
------------ ------------
Total Non-Interest
Expenses 8,297 7,816 6.2
------------ ------------
Earnings Before Income Taxes 3,091 2,257 37.0
Income tax expense 761 637 19.5
------------ ------------
Net Earnings $2,330 $1,620 43.8
============ ============
Preferred Stock Dividends $19 $19
============ ============
Earnings Per Common Share
Basic $2.49 $1.79 39.1
Diluted $2.27 $1.68 35.1
Average Shares Used in
Computing Earnings
Per Common Share
Basic 926.6 892.4 3.8
Diluted 1,016.2 954.7 6.4
Annualized Return on
Average Common Equity 15.7% 13.0%
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Merrill Lynch & Co., Inc. Attachment III
Preliminary Segment Data (unaudited)
For the Three Months Ended For the Six Months Ended
-------------------------- ------------------------
June 25, March 26, June 27, June 25, June 27,
(dollars in 2004 2004 2003 2004 2003
millions) -------- --------- -------- -------- ---------
Global Markets &
Investment Banking
Global Markets
Debt Markets $1,260 $1,623 $1,516 $2,883 $2,884
Equity
Markets 723 935 840 1,658 1,496
-------- -------- -------- -------- --------
Total
Global Markets
net revenues 1,983 2,558 2,356 4,541 4,380
Investment Banking(a)
Origination:
Debt 304 236 228 540 404
Equity 244 276 167 520 299
Strategic
Advisory
Services 142 165 133 307 258
-------- -------- -------- ------- -------
Total
Investment
Banking net
revenues 690 677 528 1,367 961
-------- -------- -------- ------- -------
Total net
revenues 2,673 3,235 2,884 5,908 5,341
-------- -------- -------- ------- -------
Pre-tax
earnings 994 1,115 1,069 (b) 2,109 1,818 (b)
Pre-tax
profit
margin 37.2% 34.5% 37.1% (b) 35.7% 34.0%(b)
- ----------------------------------------------------------------------
Global Private Client
Asset management
and portfolio
service fees $ 988 $ 948 $ 833 $ 1,936 $ 1,645
Commissions 674 788 541 1,462 1,079
Principal
transactions
and new issue
revenues 310 333 349 643 648
Net interest
profit 298 339 333 637 657
Other revenues 128 92 71 220 201
-------- -------- -------- ------- -------
Total net
revenues 2,398 2,500 2,127 4,898 4,230
-------- -------- -------- ------- -------
Pre-tax
earnings 444 510 319 954 568
Pre-tax
profit
margin 18.5% 20.4% 15.0% 19.5% 13.4%
- ----------------------------------------------------------------------
Merrill Lynch Investment Managers
Total net
revenues $ 389 $ 412 $ 330 $ 801 $ 667
Pre-tax
earnings 110 111 62 221 101
Pre-tax
profit
margin 28.3% 26.9% 18.8% 27.6% 15.1%
- ----------------------------------------------------------------------
Corporate
Total net
revenues $(162) $(57) $(72) $(219) $(165)
Pre-tax loss (149) (44) (102) (c) (193) (230)(c)
- ----------------------------------------------------------------------
Total
Total net
revenues $ 5,298 $ 6,090 $ 5,269 $ 11,388 $ 10,073
Pre-tax
earnings 1,399 1,692 1,348 (d) 3,091 2,257 (d)
Pre-tax
profit
margin 26.4% 27.8% 25.6% (d) 27.1% 22.4%(d)
- ----------------------------------------------------------------------
(a) A portion of origination revenue is recorded in the Global Private
Client segment.
(b) Includes the impact of insurance recoveries related to September
11, which have been recorded as a contra-expense of $75 million.
Excluding this item, GMI's pre-tax earnings were $994 million
($1,069 million minus $75 million) and the pre-tax profit margin
was 34.5% ($994 million/$2,884 million). For the year-to-date
period, excluding this item, GMI's pre-tax earnings were $1,743
million ($1,818 million minus $75 million) and the pre-tax profit
margin was 32.6% ($1,743 million/$5,341 million).
(c) Includes September 11-related expenses of $14 million.
(d) Excluding the impact of net insurance recoveries related to
September 11, total pre-tax earnings were $1,287 million ($1,348
million minus $61 million) and the pre-tax profit margin was 24.4%
($1,287 million/$5,269 million). For the year-to-date period,
excluding these items, pre-tax earnings were $2,196 million
($2,257 million minus $61 million) and the pre-tax profit margin
was 21.8% ($2,196 million/$10,073 million).
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Merrill Lynch & Co., Inc. Attachment IV
Consolidated Quarterly Earnings (unaudited) (in millions)
2Q03 3Q03 4Q03 1Q04 2Q04
------- ------- -------- ------- ----------
Net Revenues
Asset management and
portfolio service fees
Asset management fees $394 $401 $429 $448 $440
Portfolio service fees 469 511 534 578 606
Account fees 136 128 128 133 144
Other fees 155 144 140 156 167
------- ------- -------- ------- ----------
Total 1,154 1,184 1,231 1,315 1,357
Commissions
Listed and
over-the-counter
securities 617 634 626 817 611
Mutual funds 234 291 314 340 322
Other 193 195 223 204 256
------- ------- -------- ------- ----------
Total 1,044 1,120 1,163 1,361 1,189
Principal transactions 1,127 704 380 1,046 630
Investment banking
Underwriting 565 545 599 672 622
Strategic advisory 133 133 160 165 142
------- ------- -------- ------- ----------
Total 698 678 759 837 764
Other 279 308 343 367 308
------- ------- -------- ------- ----------
Subtotal 4,302 3,994 3,876 4,926 4,248
Interest and dividend
revenues 2,999 2,872 2,806 3,061 3,128
Less interest expense 2,032 1,851 1,807 1,897 2,078
------- ------- -------- ------- ----------
Net interest profit 967 1,021 999 1,164 1,050
------- ------- -------- ------- ----------
Total Net Revenues 5,269 5,015 4,875 6,090 5,298
------- ------- -------- ------- ----------
Non-Interest Expenses
Compensation and
benefits 2,749 2,448 2,052 3,047 2,587
Communications and
technology 357 352 345 341 357
Occupancy and related
depreciation 221 226 226 217 202
Brokerage, clearing,
and exchange fees 169 188 195 204 214
Professional fees 140 146 151 177 163
Advertising and market
development 113 89 106 122 132
Office supplies and postage 50 46 43 51 49
Other 183 135 267 239 195
Net recoveries related
to September 11 (61) (21) (65) - -
------- ------- -------- ------- ----------
Total Non-Interest
Expenses 3,921 3,609 3,320 4,398 3,899
------- ------- -------- ------- ----------
Earnings Before Income
Taxes 1,348 1,406 1,555 1,692 1,399
Income tax expense 371 403 344 440 321
------- ------- -------- ------- ----------
Net Earnings $977 $1,003 $1,211 $1,252 $1,078
- ----------------------------------------------------------------------
Per Common Share Data
2Q03 3Q03 4Q03 1Q04 2Q04
------- ------- -------- ------- ----------
Earnings - Basic $1.08 $1.10 $1.32 $1.34 $1.16
Earnings - Diluted 1.00 1.00 1.19 1.22 1.06
Dividends paid 0.16 0.16 0.16 0.16 0.16
Book value 27.44 28.59 30.03 30.75 31.04 est.
- ----------------------------------------------------------------------
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Merrill Lynch & Co., Inc. Attachment V
Percentage of Quarterly Net Revenues (unaudited)
2Q03 3Q03 4Q03 1Q04 2Q04
------- ------- -------- -------- --------
Net Revenues
Asset management and
portfolio service fees
Asset management fees 7.5% 8.0% 8.8% 7.4% 8.3%
Portfolio service fees 8.9% 10.2% 11.0% 9.5% 11.4%
Account fees 2.6% 2.6% 2.6% 2.2% 2.7%
Other fees 2.9% 2.8% 2.9% 2.5% 3.2%
------- ------- -------- -------- --------
Total 21.9% 23.6% 25.3% 21.6% 25.6%
Commissions
Listed and
over-the-counter
securities 11.7% 12.6% 12.8% 13.4% 11.5%
Mutual funds 4.4% 5.8% 6.4% 5.6% 6.1%
Other 3.7% 3.9% 4.7% 3.3% 4.8%
------- ------- -------- -------- --------
Total 19.8% 22.3% 23.9% 22.3% 22.4%
Principal transactions 21.4% 14.0% 7.8% 17.2% 11.9%
Investment banking
Underwriting 10.7% 10.9% 12.3% 11.0% 11.7%
Strategic advisory 2.5% 2.7% 3.3% 2.7% 2.7%
------- ------- -------- -------- --------
Total 13.2% 13.6% 15.6% 13.7% 14.4%
Other 5.3% 6.1% 6.9% 6.1% 5.9%
------- ------- -------- -------- --------
Subtotal 81.6% 79.6% 79.5% 80.9% 80.2%
Interest and dividend
revenues 57.0% 57.3% 57.6% 50.3% 59.0%
Less interest expense 38.6% 36.9% 37.1% 31.2% 39.2%
------- ------- -------- -------- --------
Net interest profit 18.4% 20.4% 20.5% 19.1% 19.8%
------- ------- -------- -------- --------
Total Net Revenues 100.0% 100.0% 100.0% 100.0% 100.0%
------- ------- -------- -------- --------
Non-Interest Expenses
Compensation and
benefits 52.2% 48.8% 42.1% 50.0% 48.8%
Communications and
technology 6.8% 7.0% 7.1% 5.6% 6.7%
Occupancy and related
depreciation 4.2% 4.5% 4.6% 3.6% 3.8%
Brokerage, clearing, and
exchange fees 3.2% 3.7% 4.0% 3.3% 4.0%
Professional fees 2.7% 2.9% 3.1% 2.9% 3.1%
Advertising and market
development 2.1% 1.8% 2.2% 2.0% 2.5%
Office supplies and
postage 0.9% 0.9% 0.9% 0.8% 0.9%
Other 3.5% 2.8% 5.4% 4.0% 3.8%
Net recoveries related
to September 11 -1.2% -0.4% -1.3% - -
------- ------- -------- -------- --------
Total Non-Interest
Expenses 74.4% 72.0% 68.1% 72.2% 73.6%
------- ------- -------- -------- --------
Earnings Before Income
Taxes 25.6% 28.0% 31.9% 27.8% 26.4%
Income tax expense 7.1% 8.0% 7.1% 7.2% 6.1%
Net Earnings 18.5% 20.0% 24.8% 20.6% 20.3%
- ----------------------------------------------------------------------
Common shares outstanding (in millions):
2Q03 3Q03 4Q03 1Q04 2Q04
------- ------- -------- -------- --------
Weighted-average - basic 897.2 904.8 913.3 930.2 923.0
Weighted-average - diluted 967.4 991.9 1,009.9 1,019.7 1,012.8
Period-end 935.2 942.6 949.9 967.7 948.9
- ----------------------------------------------------------------------
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Merrill Lynch & Co., Inc. Attachment VI
Supplemental Data (unaudited) (dollars in billions)
2Q03 3Q03 4Q03 1Q04 2Q04
-------- ------- ------- ------- ---------
Client Assets
Private Client
U.S. $1,076 $1,093 $1,165 $1,187 $1,176
Non - U.S. 92 92 97 105 105
-------- ------- ------- ------- ---------
Total Private Client
Assets 1,168 1,185 1,262 1,292 1,281
MLIM direct sales(1) 205 202 222 229 230
-------- ------- ------- ------- ---------
Total Client Assets $1,373 $1,387 $1,484 $1,521 $1,511
======== ======= ======= ======= =========
Assets in Asset-Priced
Accounts $200 $206 $226 $235 $237
Assets Under Management $471 $473 $500 $513 $488
Retail 195 194 207 212 211
Institutional 239 241 253 259 235
Private Investors 37 38 40 42 42
U.S. 320 327 337 349 330
Non-U.S. 151 146 163 164 158
Equity 209 202 225 229 229
Fixed Income 108 125 132 146 137
Money Market 154 146 143 138 122
- ----------------------------------------------------------------------
Net New Money
Private Client
Accounts(2)(4) $(5) $6 $4 $5 $4
Assets Under
Management 4 (4) - 7 (22)
- ----------------------------------------------------------------------
Balance Sheet Information (estimated)
Commercial Paper
and Other Short-term
Borrowings $5.5 $3.0 $5.0 $4.6 $3.2
Deposits 80.5 79.3 79.5 78.1 76.1
Long-term Borrowings 79.1 80.7 83.3 96.9 93.4
Long-term debt
issued to TOPrS(SM) 3.2 3.2 3.2 3.2 3.2
Total
Stockholders'
Equity 26.1 27.4 29.0 30.2 29.9
- ----------------------------------------------------------------------
Global Equity and Equity-Linked Underwriting(2)(3)
Volume $8 $8 $11 $12 $7
Market Share 7.6% 7.7% 8.4% 8.6% 6.5%
Ranking 6 6 5 4 6
Global Debt Underwriting(2)(3)
Volume $88 $90 $82 $122 $75
Market Share 6.6% 7.8% 7.3% 7.9% 6.3%
Ranking 5 4 2 2 6
Global Completed Mergers and Acquisitions(2)(3)
Volume $31 $61 $66 $41 $39
Market Share 9.9% 20.7% 20.4% 17.6% 11.1%
Ranking 8 3 3 2 7
- ----------------------------------------------------------------------
Full-Time Employees(5) 48,200 47,800 48,100 48,200 49,300
Private Client
Financial Advisors 13,300 13,400 13,500 13,700 14,000
- ----------------------------------------------------------------------
(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) Full credit to book manager. Market shares derived from Thomson
Financial Securities Data statistics.
(4) GPC net new money excludes flows associated with the Institutional
Advisory Division which serves certain small and middle market
companies.
(5) Excludes 100, 100, 200, 300, and 500 full-time employees on salary
continuation severance at the end of 2Q04, 1Q04, 4Q03, 3Q03, and
2Q03, 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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