EXHIBIT 99.2 - PRELIMINARY UNAUDITED EARNINGS
Published on July 19, 2005
Exhibit 99.2
Merrill Lynch & Co., Inc. Attachment I
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Preliminary Unaudited Earnings Summary
For the Three Months Ended Percent Inc / (Dec)
-------------------------- -------------------
July 1, April 1, June 25, 2Q05 vs. 2Q05 vs.
(in millions, except per
share amounts) 2005 2005 2004 1Q05 2Q04
------- -------- -------- -------- --------
Net Revenues
Asset management and
portfolio service
fees $1,431 $1,435 $1,344 (0.3) % 6.5 %
Commissions 1,243 1,345 1,160 (7.6) 7.2
Principal transactions 921 879 634 4.8 45.3
Investment banking 894 811 764 10.2 17.0
Revenues from
consolidated
investments 84 127 46 (33.9) 82.6
Other 641 345 274 85.8 133.9
------- -------- --------
Subtotal 5,214 4,942 4,222 5.5 23.5
Interest and dividend
revenues 5,978 5,541 3,112 7.9 92.1
Less interest expense 4,875 4,262 2,084 14.4 133.9
------- -------- --------
Net interest profit 1,103 1,279 1,028 (13.8) 7.3
------- -------- --------
Total Net Revenues 6,317 6,221 5,250 1.5 20.3
------- -------- --------
Non-Interest Expenses
Compensation and
benefits 3,130 3,084 2,587 1.5 21.0
Communications and
technology 395 396 358 (0.3) 10.3
Occupancy and related
depreciation 227 233 202 (2.6) 12.4
Brokerage, clearing,
and exchange fees 216 219 187 (1.4) 15.5
Professional fees 183 178 163 2.8 12.3
Advertising and market
development 160 126 132 27.0 21.2
Expenses of
consolidated
investments 35 85 39 (58.8) (10.3)
Office supplies and
postage 51 52 49 (1.9) 4.1
Other 325 179 147 81.6 121.1
------- -------- --------
Total Non-Interest
Expenses 4,722 4,552 3,864 3.7 22.2
------- -------- --------
Earnings Before Income
Taxes 1,595 1,669 1,386 (4.4) 15.1
Income tax expense 460 457 316 0.7 45.6
------- -------- --------
Net Earnings $1,135 $1,212 $1,070 (6.4) 6.1
======= ======== ========
Preferred Stock
Dividends $17 $7 $9 142.9 88.9
======= ======== ========
Earnings Per Common
Share
Basic $1.25 $1.33 $1.15 (6.0) 8.7
Diluted $1.14 $1.21 $1.05 (5.8) 8.6
Average Shares Used in
Computing Earnings Per
Common Share
Basic 897.5 907.8 923.0 (1.1) (2.8)
Diluted 978.5 993.3 1,015.9 (1.5) (3.7)
Annualized Return on
Average Common Equity 14.3% 15.5% 14.4%
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Merrill Lynch & Co., Inc. Attachment II
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Preliminary Unaudited Earnings Summary
For the Six
Months Ended
----------------
July 1, June 25, Percent
(in millions, except per share amounts) 2005 2004 Inc / (Dec)
------- -------- -----------
Net Revenues
Asset management and portfolio service
fees $2,866 $2,657 7.9 %
Commissions 2,588 2,499 3.6
Principal transactions 1,800 1,663 8.2
Investment banking 1,705 1,601 6.5
Revenues from consolidated investments 211 103 104.9
Other 986 606 62.7
------- --------
Subtotal 10,156 9,129 11.2
Interest and dividend revenues 11,519 6,168 86.8
Less interest expense 9,137 3,986 129.2
------- --------
Net interest profit 2,382 2,182 9.2
------- --------
Total Net Revenues 12,538 11,311 10.8
------- --------
Non-Interest Expenses
Compensation and benefits 6,214 5,634 10.3
Communications and technology 791 698 13.3
Occupancy and related depreciation 460 419 9.8
Brokerage, clearing, and exchange fees 435 372 16.9
Professional fees 361 340 6.2
Advertising and market development 286 254 12.6
Expenses of consolidated investments 120 81 48.1
Office supplies and postage 103 100 3.0
Other 504 337 49.6
------- --------
Total Non-Interest Expenses 9,274 8,235 12.6
------- --------
Earnings Before Income Taxes 3,264 3,076 6.1
Income tax expense 917 755 21.5
------- --------
Net Earnings $2,347 $2,321 1.1
======= ========
Preferred Stock Dividends $24 $19 26.3
======= ========
Earnings Per Common Share
Basic $2.57 $2.48 3.6
Diluted $2.36 $2.26 4.4
Average Shares Used in Computing
Earnings Per Common Share
Basic 902.7 926.6 (2.6)
Diluted 985.9 1,019.4 (3.3)
Annualized Return on Average Common
Equity 14.9% 15.7%
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Merrill Lynch & Co., Inc. Attachment III
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Preliminary Segment Data (unaudited)
For the Three Months Ended Percent Inc/ (Dec)
------------------------- ------------------
July 1, April 1, June 25, 2Q05 vs. 2Q05 vs.
(dollars in millions) 2005 2005 2004 1Q05 2Q04
------- -------- -------- -------- --------
Global Markets &
Investment Banking
Global Markets
Debt Markets $1,632 $1,670 $1,256 (2.3)% 29.9 %
Equity Markets 1,021 961 734 6.2 39.1
------- -------- --------
Total Global Markets
net revenues 2,653 2,631 1,990 0.8 33.3
Investment Banking(a)
Origination:
Debt 350 282 301 24.1 16.3
Equity 223 242 210 (7.9) 6.2
Strategic Advisory
Services 213 160 141 33.1 51.1
------- -------- --------
Total Investment
Banking net
revenues 786 684 652 14.9 20.6
------- -------- --------
Total net revenues 3,439 3,315 2,642 3.7 30.2
------- -------- --------
Pre-tax earnings 1,098 1,124 989 (2.3) 11.0
Pre-tax profit
margin 31.9% 33.9% 37.4%
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Global Private Client
Fee-based revenues $1,287 $1,271 $1,195 1.3 7.7
Transactional and
origination revenues 779 852 765 (8.6) 1.8
Net interest profit 427 398 299 7.3 42.8
Other revenues 74 72 131 2.8 (43.5)
------- -------- --------
Total net revenues 2,567 2,593 2,390 (1.0) 7.4
------- -------- --------
Pre-tax earnings 457 510 435 (10.4) 5.1
Pre-tax profit
margin 17.8% 19.7% 18.2%
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Merrill Lynch Investment
Managers
Total net revenues $404 $414 $380 (2.4) 6.3
Pre-tax earnings 121 127 111 (4.7) 9.0
Pre-tax profit
margin 30.0% 30.7% 29.2%
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Corporate
Total net revenues $(93) $(101) $(162) 7.9 42.6
Pre-tax earnings
(loss) (81) (92) (149) 12.0 45.6
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Total
Total net revenues $6,317 $6,221 $5,250 1.5 20.3
Pre-tax earnings 1,595 1,669 1,386 (4.4) 15.1
Pre-tax profit
margin 25.2% 26.8% 26.4%
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(a) A portion of Origination revenue is recorded in the Global Private
Client segment.
Preliminary Segment Data (unaudited)
For the Six Months Ended
------------------------ ---------
July 1, June 25, Percent
(dollars in millions) 2005 2004 Inc/(Dec)
------------- ---------- ---------
Global Markets & Investment Banking
Global Markets
Debt Markets $3,302 $2,862 15.4%
Equity Markets 1,982 1,634 21.3
------------ ----------
Total Global Markets net
revenues 5,284 4,496 17.5
Investment Banking(a)
Origination:
Debt 632 552 14.5
Equity 465 499 (6.8)
Strategic Advisory Services 373 304 22.7
------------ ----------
Total Investment Banking net
revenues 1,470 1,355 8.5
------------ ----------
Total net revenues 6,754 5,851 15.4
------------ ----------
Pre-tax earnings 2,222 2,108 5.4
Pre-tax profit margin 32.9% 36.0%
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Global Private Client
Fee-based revenues $2,558 $2,353 8.7
Transactional and origination
revenues 1,631 1,679 (2.9)
Net interest profit 825 639 29.1
Other revenues 146 227 (35.7)
------------ ----------
Total net revenues 5,160 4,898 5.3
------------ ----------
Pre-tax earnings 967 942 2.7
Pre-tax profit margin 18.7% 19.2%
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Merrill Lynch Investment Managers
Total net revenues $818 $781 4.7
Pre-tax earnings 248 219 13.2
Pre-tax profit margin 30.3% 28.0%
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Corporate
Total net revenues $(194) (219) 11.4
Pre-tax earnings (loss) (173) (193) 10.4
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Total
Total net revenues $12,538 $11,311 10.8
Pre-tax earnings 3,264 3,076 6.1
Pre-tax profit margin 26.0% 27.2%
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(a) A portion of Origination revenue is recorded in the Global Private
Client segment.
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Merrill Lynch & Co., Inc. Attachment IV
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Consolidated Quarterly Earnings (unaudited) (in millions)
2Q04 3Q04 4Q04 1Q05 2Q05
--------- --------- --------- --------- ----------
(13 weeks)(13 weeks)(14 weeks)(13 weeks)(13 weeks)
Net Revenues
Asset management
and portfolio
service fees
Asset
management
fees $440 $443 $522 $481 $472
Portfolio
service fees 606 611 614 650 670
Account fees 131 128 126 124 121
Other fees 167 162 177 180 168
--------- --------- --------- --------- ----------
Total 1,344 1,344 1,439 1,435 1,431
Commissions
Listed and
over-the-
counter
securities 605 563 705 727 631
Mutual funds 322 306 343 364 353
Other 233 207 254 254 259
--------- --------- --------- --------- ----------
Total 1,160 1,076 1,302 1,345 1,243
Principal
transactions 634 341 296 879 921
Investment banking
Underwriting 622 537 747 650 680
Strategic
advisory 142 129 247 161 214
--------- --------- --------- --------- ----------
Total 764 666 994 811 894
Revenues from
consolidated
investments 46 104 139 127 84
Other 274 392 272 345 641
--------- --------- --------- --------- ----------
Subtotal 4,222 3,923 4,442 4,942 5,214
Interest and
dividend revenues 3,112 3,630 5,175 5,541 5,978
Less interest
expense 2,084 2,730 3,728 4,262 4,875
--------- --------- --------- --------- ----------
Net interest
profit 1,028 900 1,447 1,279 1,103
--------- --------- --------- --------- ----------
Total Net Revenues 5,250 4,823 5,889 6,221 6,317
--------- --------- --------- --------- ----------
Non-Interest
Expenses
Compensation and
benefits 2,587 2,273 2,689 3,084 3,130
Communications and
technology 358 363 400 396 395
Occupancy and
related
depreciation 202 219 255 233 227
Brokerage,
clearing, and
exchange fees 187 193 208 219 216
Professional fees 163 162 203 178 183
Advertising and
market
development 132 127 152 126 160
Expenses of
consolidated
investments 39 47 103 85 35
Office supplies
and postage 49 47 56 52 51
Other 147 184 271 179 325
--------- --------- --------- --------- ----------
Total Non-Interest
Expenses 3,864 3,615 4,337 4,552 4,722
--------- --------- --------- --------- ----------
Earnings Before
Income Taxes 1,386 1,208 1,552 1,669 1,595
Income tax expense 316 286 359 457 460
--------- --------- --------- --------- ----------
Net Earnings $1,070 $922 $1,193 $1,212 $1,135
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Per Common Share Data
2Q04 3Q04 4Q04 1Q05 2Q05
--------- --------- --------- --------- ----------
Earnings - Basic $1.15 $1.01 $1.32 $1.33 $1.25
Earnings - Diluted 1.05 0.93 1.19 1.21 1.14
Dividends paid 0.16 0.16 0.16 0.16 0.20
Book value 30.97 31.75 32.99 32.91 33.64 Est.
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Merrill Lynch & Co., Inc. Attachment V
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Percentage of Quarterly Net Revenues (unaudited)
2Q04 3Q04 4Q04 1Q05 2Q05
--------- --------- --------- --------- ----------
(13 weeks)(13 weeks)(14 weeks)(13 weeks)(13 weeks)
Net Revenues
Asset management
and portfolio
service fees
Asset
management
fees 8.4% 9.2% 8.9% 7.7% 7.5%
Portfolio
service fees 11.5% 12.7% 10.4% 10.4% 10.6%
Account fees 2.5% 2.7% 2.1% 2.0% 1.9%
Other fees 3.2% 3.3% 3.0% 3.0% 2.7%
--------- --------- --------- --------- ----------
Total 25.6% 27.9% 24.4% 23.1% 22.7%
Commissions
Listed and
over-the-
counter
securities 11.5% 11.7% 12.0% 11.7% 10.0%
Mutual funds 6.1% 6.3% 5.8% 5.9% 5.6%
Other 4.5% 4.3% 4.3% 4.0% 4.1%
--------- --------- --------- --------- ----------
Total 22.1% 22.3% 22.1% 21.6% 19.7%
Principal
transactions 12.1% 7.1% 5.0% 14.1% 14.6%
Investment
banking
Underwriting 11.8% 11.1% 12.7% 10.4% 10.8%
Strategic
advisory 2.7% 2.7% 4.2% 2.6% 3.4%
--------- --------- --------- --------- ----------
Total 14.5% 13.8% 16.9% 13.0% 14.2%
Revenues from
consolidated
investments 0.9% 2.2% 2.4% 2.0% 1.3%
Other 5.2% 8.0% 4.6% 5.6% 10.0%
--------- --------- --------- --------- ----------
Subtotal 80.4% 81.3% 75.4% 79.4% 82.5%
Interest and
dividend
revenues 59.3% 75.3% 87.9% 89.1% 94.6%
Less interest
expense 39.7% 56.6% 63.3% 68.5% 77.1%
--------- --------- --------- --------- ----------
Net interest
profit 19.6% 18.7% 24.6% 20.6% 17.5%
--------- --------- --------- --------- ----------
Total Net
Revenues 100.0% 100.0% 100.0% 100.0% 100.0%
--------- --------- --------- --------- ----------
Non-Interest
Expenses
Compensation and
benefits 49.3% 47.1% 45.7% 49.6% 49.5%
Communications
and technology 6.8% 7.5% 6.8% 6.4% 6.3%
Occupancy and
related
depreciation 3.8% 4.5% 4.3% 3.7% 3.6%
Brokerage,
clearing, and
exchange fees 3.6% 4.0% 3.5% 3.5% 3.4%
Professional fees 3.1% 3.4% 3.4% 2.9% 2.9%
Advertising and
market
development 2.5% 2.6% 2.6% 2.0% 2.5%
Expenses of
consolidated
investments 0.7% 1.0% 1.7% 1.4% 0.6%
Office supplies
and postage 0.9% 1.0% 1.0% 0.8% 0.8%
Other 2.9% 3.9% 4.6% 2.9% 5.2%
--------- --------- --------- --------- ----------
Total Non-
Interest
Expenses 73.6% 75.0% 73.6% 73.2% 74.8%
--------- --------- --------- --------- ----------
Earnings Before
Income Taxes 26.4% 25.0% 26.4% 26.8% 25.2%
Income tax expense 6.0% 5.9% 6.1% 7.3% 7.2%
--------- --------- --------- --------- ----------
Net Earnings 20.4% 19.1% 20.3% 19.5% 18.0%
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Common shares
outstanding (in
millions):
2Q04 3Q04 4Q04 1Q05 2Q05
--------- --------- --------- --------- ----------
Weighted-
average -
basic (1) 923.0 903.2 896.6 907.8 897.5
Weighted-
average -
diluted 1,015.9 985.0 992.7 993.3 978.5
Period-end (1) 948.9 932.9 931.8 948.7 930.9
- ----------------------------------------------------------------------
(1) Weighted-average basic shares do not include unvested restricted
shares; however they are included in period-end shares.
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Merrill Lynch & Co., Inc. Attachment VI
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Supplemental Data (unaudited) (dollars in billions)
2Q04 3Q04 4Q04 1Q05 2Q05
------- ------- ------- ------- ----------
Client Assets
Private Client
U.S. $1,176 $1,179 $1,244 $1,226 $1,238
Non - U.S. 105 109 115 116 115
------- ------- ------- ------- ----------
Total Private Client Assets 1,281 1,288 1,359 1,342 1,353
MLIM direct sales (1) 235 225 237 233 236
------- ------- ------- ------- ----------
Total Client Assets $1,516 $1,513 $1,596 $1,575 $1,589
======= ======= ======= ======= ==========
Assets in Asset-Priced
Accounts $237 $243 $257 $256 $262
Assets Under Management $488 $478 $501 $479 $478
Retail 212 208 218 218 218
Institutional 235 228 240 217 215
Retail Separate
Accounts 41 42 43 44 45
U.S. 330 322 332 312 311
Non-U.S. 158 156 169 167 167
Equity 229 225 247 245 249
Retail Money Market 56 53 50 49 46
Institutional
Liquidity Funds 97 91 90 70 68
Fixed Income 106 109 114 115 115
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Net New Money
Private Client
Accounts (2) $4 $9 $6 $11 $8
Assets Under Management $(22) $(10) $(5) $(16) $(2)
- ----------------------------------------------------------------------
Balance Sheet Information
(estimated)
Commercial Paper and
Other Short-term
Borrowings $3.2 $6.0 $4.0 $2.7 $6.8
Deposits 76.1 77.3 79.7 79.9 79.5
Long-term Borrowings 93.4 102.6 116.5 112.3 113.5
Long-term debt issued
to TOPrS(SM)
Partnerships 3.2 3.1 3.1 3.1 3.1
Stockholders' Equity
(estimated):
Preferred
Stockholders' Equity 0.4 0.4 0.6 1.6 1.7
Common Stockholders'
Equity 29.4 29.6 30.8 31.3 31.4
------- ------- ------- ------- ----------
Total Stockholders' Equity 29.8 30.0 31.4 32.9 33.1
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Global Equity and Equity-
Linked Underwriting (3)
Volume $7 $11 $12 $12 $7
Market Share 6.1% 10.9% 8.6% 10.5% 6.5%
Ranking 6 1 3 1 6
Global Debt Underwriting
(3)
Volume $78 $66 $75 $66 $71
Market Share 6.2% 5.4% 6.2% 4.2% 4.7%
Ranking 7 7 5 10 8
Global Completed Mergers
and Acquisitions (3)
Volume $51 $115 $115 $54 $45
Market Share 12.0% 23.9% 25.8% 14.4% 12.1%
Ranking 7 4 3 6 8
Global Announced Mergers
and Acquisitions (3)
Volume $85 $50 $69 $140 $129
Market Share 22.1% 13.2% 10.3% 23.5% 19.0%
Ranking 2 8 10 4 5
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Full-Time Employees (4) 49,300 49,900 50,600 50,900 51,800
Private Client Financial
Advisors 14,000 14,120 14,140 14,180 14,420
- ----------------------------------------------------------------------
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.
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
CONTACT: Media Relations:
Selena Morris, 212-449-7283
selena_morris@ml.com
OR
Investor Relations:
Jonathan Blum, 866-607-1234
investor_relations@ml.com
14