MERRILL LYNCH & CO., INC. EXHIBIT 99.2
Published on April 19, 2005
Exhibit 99.2
Merrill Lynch & Co., Inc. Attachment I
Preliminary Unaudited
Earnings Summary
Percent Inc
For the Three Months Ended / (Dec)
-------------------------- --------------
April December March 1Q05 1Q05
1, 31, 26, vs. vs.
(in millions, except per 2005 2004 2004 4Q04 1Q04
share amounts) ------- -------- ------- ------ ------
(13 (14 (13
weeks) weeks) weeks)
Net Revenues
Asset management and
portfolio service fees $1,435 $1,439 $1,313 (0.3)% 9.3%
Commissions 1,345 1,302 1,339 3.3 0.4
Principal transactions 879 296 1,029 197.0 (14.6)
Investment banking 811 994 837 (18.4) (3.1)
Revenues from
consolidated investments 127 139 57 (8.6) 122.8
Other 345 272 332 26.8 3.9
------- -------- -------
Subtotal 4,942 4,442 4,907 11.3 0.7
Interest and dividend
revenues 5,541 5,175 3,056 7.1 81.3
Less interest expense 4,262 3,728 1,902 14.3 124.1
------- -------- -------
Net interest profit 1,279 1,447 1,154 (11.6) 10.8
------- -------- -------
Total Net Revenues 6,221 5,889 6,061 5.6 2.6
------- -------- -------
Non-Interest Expenses
Compensation and benefits 3,084 2,689 3,047 14.7 1.2
Communications and
technology 396 400 340 (1.0) 16.5
Occupancy and related
depreciation 233 255 217 (8.6) 7.4
Brokerage, clearing, and
exchange fees 219 208 185 5.3 18.4
Professional fees 178 203 177 (12.3) 0.6
Advertising and market
development 126 152 122 (17.1) 3.3
Expenses of consolidated
investments 85 103 42 (17.5) 102.4
Office supplies and
postage 52 56 51 (7.1) 2.0
Other 179 271 190 (33.9) (5.8)
------- -------- -------
Total Non-Interest
Expenses 4,552 4,337 4,371 5.0 4.1
------- -------- -------
Earnings Before Income
Taxes 1,669 1,552 1,690 7.5 (1.2)
Income tax expense 457 359 439 27.3 4.1
------- -------- -------
Net Earnings $1,212 $1,193 $1,251 1.6 (3.1)
======= ======== =======
Preferred Stock Dividends $7 $13 $10 (46.2) (30.0)
======= ======== =======
Earnings Per Common Share
Basic $1.33 $1.31 $1.33 1.5 0.0
Diluted $1.21 $1.19 $1.21 1.7 0.0
Average Shares Used in Computing
Earnings Per Common Share
Basic 907.8 896.6 930.2 1.2 (2.4)
Diluted 993.3 992.7 1,022.8 0.1 (2.9)
Annualized Return on
Average Common Equity 15.5% 15.7% 17.0%
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Merrill Lynch & Co., Inc. Attachment II
Preliminary Segment Data (unaudited)
For the Three Months Ended
---------------------------
April December March
1, 31, 26,
(dollars in millions) 2005 2004 2004
------- -------- ----------
(13 (14 (13
weeks) weeks) weeks)
Global Markets & Investment Banking
Global Markets
Debt Markets $1,643 $1,249 $1,613
Equity Markets 990 822 921
------- -------- ----------
Total Global Markets net revenues 2,633 2,071 2,534
Investment Banking(a)
Origination:
Debt 342 346 236
Equity 180 279 276
Strategic Advisory Services 160 247 163
------- -------- ----------
Total Investment Banking net revenues 682 872 675
------- -------- ----------
Total net revenues 3,315 2,943 3,209
------- -------- ----------
Pre-tax earnings 1,124 990 1,119
Pre-tax profit margin 33.9% 33.6% 34.9%
- ----------------------------------------------------------------------
Global Private Client
Fee-based revenues $1,268 $1,256 $1,158
Transactional and origination revenues 852 878 914
Net interest profit 398 382 340
Other revenues 75 100 96
------- -------- ----------
Total net revenues 2,593 2,616 2,508
------- -------- ----------
Pre-tax earnings 510 519 507
Pre-tax profit margin 19.7% 19.8% 20.2%
- ----------------------------------------------------------------------
Merrill Lynch Investment Managers
Total net revenues $414 $426 $401
Pre-tax earnings 127 130 108
Pre-tax profit margin 30.7% 30.5% 26.9%
- ----------------------------------------------------------------------
Corporate
Total net revenues $(101) $(96) $(57)
Pre-tax earnings (loss) (92) (87) (44)
- ----------------------------------------------------------------------
Total
Total net revenues $6,221 $5,889 $6,061
Pre-tax earnings 1,669 1,552 1,690
Pre-tax profit margin 26.8% 26.4% 27.9%
- ----------------------------------------------------------------------
(a) A portion of Origination revenue is recorded in the Global Private
Client segment.
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Merrill Lynch & Co., Inc. Attachment III
Consolidated Quarterly Earnings (in millions)
(unaudited)
1Q04 2Q04 3Q04 4Q04 1Q05
--------------------------------------
(13 (13 (13 (14 (13
weeks) weeks) weeks) weeks) weeks)
Net Revenues
Asset management and portfolio
service fees
Asset management fees $448 $440 $443 $522 $481
Portfolio service fees 578 606 611 614 650
Account fees 131 131 128 126 124
Other fees 156 167 162 177 180
--------------------------------------
Total 1,313 1,344 1,344 1,439 1,435
Commissions
Listed and over-the-
counter securities 816 605 563 705 727
Mutual funds 340 322 306 343 364
Other 183 233 207 254 254
--------------------------------------
Total 1,339 1,160 1,076 1,302 1,345
Principal transactions 1,029 634 341 296 879
Investment banking
Underwriting 672 622 537 747 650
Strategic advisory 165 142 129 247 161
--------------------------------------
Total 837 764 666 994 811
Revenues from consolidated
investments 57 46 104 139 127
Other 332 274 392 272 345
--------------------------------------
Subtotal 4,907 4,222 3,923 4,442 4,942
Interest and dividend revenues 3,056 3,112 3,630 5,175 5,541
Less interest expense 1,902 2,084 2,730 3,728 4,262
--------------------------------------
Net interest profit 1,154 1,028 900 1,447 1,279
--------------------------------------
Total Net Revenues 6,061 5,250 4,823 5,889 6,221
--------------------------------------
Non-Interest Expenses
Compensation and benefits 3,047 2,587 2,273 2,689 3,084
Communications and technology 340 358 363 400 396
Occupancy and related
depreciation 217 202 219 255 233
Brokerage, clearing, and
exchange fees 185 187 193 208 219
Professional fees 177 163 162 203 178
Advertising and market
development 122 132 127 152 126
Expenses of consolidated
investments 42 39 47 103 85
Office supplies and postage 51 49 47 56 52
Other 190 147 184 271 179
--------------------------------------
Total Non-Interest Expenses 4,371 3,864 3,615 4,337 4,552
--------------------------------------
Earnings Before Income Taxes 1,690 1,386 1,208 1,552 1,669
Income tax expense 439 316 286 359 457
--------------------------------------
Net Earnings $1,251 $1,070 $922 $1,193 $1,212
- ----------------------------------------------------------------------
Per Common Share Data
1Q04 2Q04 3Q04 4Q04 1Q05
--------------------------------------
Earnings - Basic $1.33 $1.15 $1.01 $1.31 $1.33
Earnings - Diluted 1.21 1.05 0.93 1.19 1.21
Dividends paid 0.16 0.16 0.16 0.16 0.16
Book value 30.68 30.97 31.75 32.99 32.91 Est.
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Merrill Lynch & Co., Inc. Attachment IV
Percentage of Quarterly Net
Revenues (unaudited)
1Q04 2Q04 3Q04 4Q04 1Q05
----------------------------------------
(13 (13 (13 (14 (13
weeks) weeks) weeks) weeks) weeks)
Net Revenues
Asset management and
portfolio service fees
Asset management fees 7.4% 8.4% 9.2% 8.9% 7.7%
Portfolio service fees 9.5% 11.5% 12.7% 10.4% 10.4%
Account fees 2.2% 2.5% 2.7% 2.1% 2.0%
Other fees 2.6% 3.2% 3.3% 3.0% 3.0%
----------------------------------------
Total 21.7% 25.6% 27.9% 24.4% 23.1%
Commissions
Listed and over-the-
counter securities 13.5% 11.5% 11.7% 12.0% 11.7%
Mutual funds 5.6% 6.1% 6.3% 5.8% 5.9%
Other 3.0% 4.5% 4.3% 4.3% 4.0%
----------------------------------------
Total 22.1% 22.1% 22.3% 22.1% 21.6%
Principal transactions 17.0% 12.1% 7.1% 5.0% 14.1%
Investment banking
Underwriting 11.1% 11.8% 11.1% 12.7% 10.4%
Strategic advisory 2.7% 2.7% 2.7% 4.2% 2.6%
----------------------------------------
Total 13.8% 14.5% 13.8% 16.9% 13.0%
Revenues from consolidated
investments 0.9% 0.9% 2.2% 2.4% 2.0%
Other 5.5% 5.2% 8.0% 4.6% 5.6%
----------------------------------------
Subtotal 81.0% 80.4% 81.3% 75.4% 79.4%
Interest and dividend
revenues 50.4% 59.3% 75.3% 87.9% 89.1%
Less interest expense 31.4% 39.7% 56.6% 63.3% 68.5%
----------------------------------------
Net interest profit 19.0% 19.6% 18.7% 24.6% 20.6%
----------------------------------------
Total Net Revenues 100.0% 100.0% 100.0% 100.0% 100.0%
----------------------------------------
Non-Interest Expenses
Compensation and benefits 50.3% 49.3% 47.1% 45.7% 49.6%
Communications and
technology 5.6% 6.8% 7.5% 6.8% 6.4%
Occupancy and related
depreciation 3.6% 3.8% 4.5% 4.3% 3.7%
Brokerage, clearing, and
exchange fees 3.1% 3.6% 4.0% 3.5% 3.5%
Professional fees 2.9% 3.1% 3.4% 3.4% 2.9%
Advertising and market
development 2.0% 2.5% 2.6% 2.6% 2.0%
Expenses of consolidated
investments 0.7% 0.7% 1.0% 1.7% 1.4%
Office supplies and postage 0.8% 0.9% 1.0% 1.0% 0.8%
Other 3.1% 2.9% 3.9% 4.6% 2.9%
----------------------------------------
Total Non-Interest Expenses 72.1% 73.6% 75.0% 73.6% 73.2%
----------------------------------------
Earnings Before Income Taxes 27.9% 26.4% 25.0% 26.4% 26.8%
Income tax expense 7.3% 6.0% 5.9% 6.1% 7.3%
----------------------------------------
Net Earnings 20.6% 20.4% 19.1% 20.3% 19.5%
- ----------------------------------------------------------------------
Common shares outstanding
(in millions):
1Q04 2Q04 3Q04 4Q04 1Q05
----------------------------------------
Weighted-average - basic 930.2 923.0 903.2 896.6 907.8
Weighted-average -
diluted 1,022.8 1,015.9 985.0 992.7 993.3
Period-end 967.7 948.9 932.9 931.8 948.7
- ----------------------------------------------------------------------
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Merrill Lynch & Co., Inc. Attachment V
Supplemental Data (dollars in billions)
(unaudited)
1Q04 2Q04 3Q04 4Q04 1Q05
--------------------------------------
Client Assets
Private Client
U.S. $1,187 $1,176 $1,179 $1,244 $1,226
Non - U.S. 105 105 109 115 116
--------------------------------------
Total Private Client
Assets 1,292 1,281 1,288 1,359 1,342
MLIM direct sales (1) 249 235 225 237 233
--------------------------------------
Total Client Assets $1,541 $1,516 $1,513 $1,596 $1,575
======================================
Assets in Asset-Priced
Accounts $235 $237 $243 $257 $256
Assets Under Management $513 $488 $478 $501 $479
Retail 212 212 208 218 218
Institutional 259 235 228 240 217
Retail Separate
Accounts 42 41 42 43 44
U.S. 349 330 322 332 312
Non-U.S. 164 158 156 169 167
Equity 229 229 223 245 244
Retail Money Market 58 56 53 50 49
Institutional
Liquidity Funds 117 97 91 90 70
Fixed Income 109 106 111 116 116
---------------------------------------------------------------
Net New Money
Private Client
Accounts (2) $5 $4 $9 $6 $11
Assets Under
Management $7 $(22) $(10) $(5) $(16)
---------------------------------------------------------------
Balance Sheet Information
(estimated)
Commercial Paper and
Other Short-term
Borrowings $4.6 $3.2 $6.0 $4.0 $2.7
Deposits 78.1 76.1 77.3 79.7 80.0
Long-term Borrowings 96.9 93.4 102.6 116.5 112.3
Long-term debt
issued to TOPrSSM
Partnerships 3.2 3.2 3.1 3.1 3.1
Total Stockholders'
Equity 30.1 29.8 30.0 31.4 32.9
---------------------------------------------------------------
Global Equity and Equity-
Linked Underwriting (3)
Volume $12 $7 $12 $12 $12
Market Share 8.3% 6.1% 11.1% 8.5% 10.8%
Ranking 4 6 1 3 1
Global Debt Underwriting (3)
Volume $123 $78 $66 $75 $66
Market Share 7.9% 6.2% 5.4% 6.3% 4.4%
Ranking 2 7 7 6 10
Global Completed Mergers
and Acquisitions (3)
Volume $41 $50 $115 $114 $54
Market Share 16.8% 11.9% 24.0% 26.1% 15.9%
Ranking 2 7 4 3 6
---------------------------------------------------------------
Full-Time Employees (4) 48,200 49,300 49,900 50,600 50,900
Private Client Financial
Advisors 13,700 14,000 14,100 14,100 14,100
- ------------------------------------------------------------------
Note: Certain prior period amounts have been restated to conform to
the current period presentation.
(1) Reflects funds managed by MLIM not sold through Private Client
channels.
(2) GPC net new money excludes flows associated with the Institutional
Advisory Division which serves certain small- and middle-market
companies.
(3) Full credit to book manager. Market shares derived from Thomson
Financial Securities Data statistics.
(4) Excludes 100 full-time employees on salary continuation severance
at the end of each period.
Merrill Lynch & Co., Inc.
Investor Relations
Phone: 866-607-1234
Fax: 212-449-7461
investor_relations@ml.com
www.ir.ml.com
CONTACT: Merrill Lynch & Co., Inc.
Media Relations:
Jessica Oppenheim, 212-449-2107
jessica_oppenheim@ml.com
or
Investor Relations:
Tina Madon, 866-607-1234
investor_relations@ml.com
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