EXHIBIT 99.2 PRELIMINARY UNAUDITED EARNINGS DATA
Published on October 18, 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)
---------------------------------------------
September July September 3Q05 3Q05
30, 1, 24, vs. vs.
2005 2005 2004 2Q05 3Q04
(in millions, except per ------ ------ ------ ----- ------
share amounts)
Net Revenues
Asset management and
portfolio service
fees $1,527 $1,431 $1,344 7 % 14%
Commissions 1,342 1,247 1,076 8 25
Investment banking 880 920 660 (4) 33
Principal transactions 810 975 355 (17) 128
Revenues from
consolidated
investments 142 84 104 69 37
Other 604 658 403 (8) 50
------ ------ ------
Subtotal 5,305 5,315 3,942 (0) 35
Interest and dividend
revenues 7,039 5,974 3,635 18 94
Less interest expense 5,666 4,970 2,748 14 106
------ ------ ------
Net interest profit 1,373 1,004 887 37 55
------ ------ ------
Total Net Revenues 6,678 6,319 4,829 6 38
------ ------ ------
Non-Interest Expenses
Compensation and
benefits 3,251 3,130 2,273 4 43
Communications and
technology 405 395 363 3 12
Occupancy and related
depreciation 235 227 219 4 7
Brokerage, clearing,
and exchange fees 190 216 193 (12) (2)
Professional fees 173 183 164 (5) 5
Advertising and market
development 138 160 127 (14) 9
Expenses of
consolidated
investments 91 35 47 160 94
Office supplies and
postage 48 51 47 (6) 2
Other 211 327 188 (35) 12
------ ------ ------
Total Non-Interest
Expenses 4,742 4,724 3,621 0 31
------ ------ ------
Earnings Before Income
Taxes 1,936 1,595 1,208 21 60
Income tax expense 560 460 286 22 96
------ ------ ------
Net Earnings $1,376 $1,135 $ 922 21 49
====== ====== ======
Preferred Stock
Dividends $ 18 $ 17 $ 9 6 100
====== ====== ======
Earnings Per Common
Share
Basic $ 1.54 $ 1.25 $ 1.01 23 52
Diluted $ 1.40 $ 1.14 $ 0.93 23 51
Average Shares Used in Computing
Earnings Per Common Share
Basic 881.4 897.5 903.2 (2) (2)
Diluted 968.5 978.5 985.0 (1) (2)
Annualized Return on
Average Common Equity 17.2% 14.3% 12.5%
- ----------------------------------------------------------------------
Note: Certain prior period amounts have been reclassified to conform
to the current period presentation.
12
Merrill Lynch & Co., Inc. Attachment II
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Preliminary Unaudited
Earnings Summary
For the Nine Months Ended
-------------------------
September 30, September 24, Percent
(in millions, except per 2005 2004 Inc/(Dec)
share amounts) ------------- ------------- ---------
Net Revenues
Asset management and
portfolio service fees $ 4,393 $ 4,001 10 %
Commissions 3,930 3,573 10
Principal transactions 2,703 2,027 33
Investment banking 2,613 2,266 15
Revenues from
consolidated
investments 353 207 71
Other 1,631 1,030 58
--------- --------
Subtotal 15,623 13,104 19
Interest and dividend
revenues 18,544 9,810 89
Less interest expense 14,938 6,761 121
--------- --------
Net interest profit 3,606 3,049 18
--------- --------
Total Net Revenues 19,229 16,153 19
--------- --------
Non-Interest Expenses
Compensation and benefits 9,465 7,907 20
Communications and technology 1,196 1,061 13
Occupancy and related
depreciation 695 638 9
Brokerage, clearing, and
exchange fees 625 565 11
Professional fees 534 507 5
Advertising and market development 424 381 11
Expenses of consolidated
investments 211 128 65
Office supplies and postage 151 147 3
Other 728 535 36
--------- --------
Total Non-Interest
Expenses 14,029 11,869 18
--------- --------
Earnings Before Income
Taxes 5,200 4,284 21
Income tax expense 1,477 1,041 42
--------- --------
Net Earnings $ 3,723 $ 3,243 15
========= ========
Preferred Stock Dividends $ 42 $ 28 50
========= ========
Earnings Per Common Share
Basic $ 4.11 $ 3.50 17
Diluted $ 3.76 $ 3.19 18
Average Shares Used in
Computing Earnings Per
Common Share
Basic 895.6 918.8 (3)
Diluted 980.1 1,007.9 (3)
Annualized Return on
Average Common Equity 15.7% 14.6%
- ----------------------------------------------------------------------
Note: Certain prior period amounts have been reclassified to conform
to the current period presentation.
13
Merrill Lynch & Co., Inc. Attachment III
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Preliminary Segment Data
(unaudited)
For the Three Months Ended Percent Inc/(Dec)
---------------------------------------------
September July September 3Q05 3Q05
30, 1, 24, vs. vs.
(dollars in millions) 2005 2005 2004 2Q05 3Q04
--------- ------- --------- ------ -------
Global Markets &
Investment Banking
Global Markets
Debt Markets $1,672 $1,602 $1,068 4 % 57%
Equity Markets 1,200 1,026 589 17 104
--------- -------- -------
Total Global Markets
net revenues 2,872 2,628 1,657 9 73
Investment Banking(a)
Origination:
Debt 396 373 255 6 55
Equity 219 223 197 (2) 11
Strategic Advisory
Services 158 215 128 (27) 23
--------- -------- -------
Total Investment
Banking net revenues 773 811 580 (5) 33
--------- -------- -------
Total net revenues 3,645 3,439 2,237 6 63
--------- -------- -------
Pre-tax earnings 1,289 1,098 771 17 67
Pre-tax profit margin 35.4% 31.9% 34.5%
---------------------------------------------------------------------
Global Private Client
Fee-based revenues $1,351 $1,285 $1,191 5 13
Transactional and
origination revenues 803 788 717 2 12
Net interest profit 448 378 292 19 53
Other revenues 89 117 115 (24) (23)
--------- -------- -------
Total net revenues 2,691 2,568 2,315 5 16
--------- -------- -------
Pre-tax earnings 590 457 412 29 43
Pre-tax profit margin 21.9% 17.8% 17.8%
---------------------------------------------------------------------
Merrill Lynch Investment
Managers
Total net revenues $456 $405 $373 13 22
Pre-tax earnings 162 121 111 34 46
Pre-tax profit margin 35.5% 29.9% 29.8%
---------------------------------------------------------------------
Corporate
Total net revenues $(114) $(93) $(96) (23) (19)
Pre-tax earnings
(loss) (105) (81) (86) (30) (22)
- ----------------------------------------------------------------------
Total
Total net revenues $6,678 $6,319 $4,829 6 38
Pre-tax earnings 1,936 1,595 1,208 21 60
Pre-tax profit margin 29.0% 25.2% 25.0%
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Preliminary Segment Data
(unaudited)
For the Nine Months Ended
-------------------------
September 30, September 24, Percent
2005 2004 Inc / (Dec)
(dollars in millions) ----------- ---------- ------------
Global Markets &
Investment Banking
Global Markets
Debt Markets $4,934 $3,989 24 %
Equity Markets 3,199 2,177 47
----------- ----------
Total Global
Markets net revenues 8,133 6,166 32
Investment Banking(a)
Origination:
Debt 1,051 811 30
Equity 684 696 (2)
Strategic Advisory Services 533 432 23
----------- ----------
Total Investment
Banking net revenues 2,268 1,939 17
----------- ----------
Total net revenues 10,401 8,105 28
----------- ----------
Pre-tax earnings 3,511 2,879 22
Pre-tax profit margin 33.8% 35.5%
---------------------------------------------------------------------
Global Private Client
Fee-based revenues $3,907 $3,543 10
Transactional and
origination revenues 2,449 2,408 2
Net interest profit 1,197 911 31
Other revenues 309 347 (11)
----------- ----------
Total net revenues 7,862 7,209 9
----------- ----------
Pre-tax earnings 1,557 1,354 15
Pre-tax profit margin 19.8% 18.8%
---------------------------------------------------------------------
Merrill Lynch Investment
Managers
Total net revenues $1,274 $1,154 10
Pre-tax earnings 410 330 24
Pre-tax profit margin 32.2% 28.6%
---------------------------------------------------------------------
Corporate
Total net revenues $(308) (315) 2
Pre-tax earnings (loss) (278) (279) 0
- ----------------------------------------------------------------------
Total
Total net revenues $19,229 $16,153 19
Pre-tax earnings 5,200 4,284 21
Pre-tax profit margin 27.0% 26.5%
---------------------------------------------------------------------
Note: Certain prior period amounts have been reclassified to conform
to the current period presentation.
(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 (in millions)
Earnings (unaudited)
3Q04 4Q04 1Q05 2Q05 3Q05
------- ------- ------- ------- ----------
(13 (14 (13 (13 (13
weeks) weeks) weeks) weeks) weeks)
Net Revenues
Asset management and
portfolio service fees
Portfolio service fees $611 $614 $650 $670 $689
Asset management fees 443 522 481 472 527
Account fees 128 126 124 121 123
Other fees 162 177 180 168 188
------- ------- ------- ------- ----------
Total 1,344 1,439 1,435 1,431 1,527
Commissions
Listed and over-the-
counter securities 562 706 727 631 691
Mutual funds 306 343 364 353 383
Other 208 252 250 263 268
------- ------- ------- ------- ----------
Total 1,076 1,301 1,341 1,247 1,342
Investment banking
Underwriting 531 755 652 706 720
Strategic advisory 129 247 161 214 160
------- ------- ------- ------- ----------
Total 660 1,002 813 920 880
Principal transactions 355 296 918 975 810
Revenues from consolidated
investments 104 139 127 84 142
Other 403 304 369 658 604
------- ------- ------- ------- ----------
Subtotal 3,942 4,481 5,003 5,315 5,305
Interest and dividend
revenues 3,635 5,179 5,531 5,974 7,039
Less interest expense 2,748 3,754 4,302 4,970 5,666
------- ------- ------- ------- ----------
Net interest profit 887 1,425 1,229 1,004 1,373
------- ------- ------- ------- ----------
Total Net Revenues 4,829 5,906 6,232 6,319 6,678
------- ------- ------- ------- ----------
Non-Interest Expenses
Compensation and benefits 2,273 2,689 3,084 3,130 3,251
Communications and
technology 363 400 396 395 405
Occupancy and related
depreciation 219 255 233 227 235
Brokerage, clearing, and
exchange fees 193 208 219 216 190
Professional fees 164 208 178 183 173
Advertising and market
development 127 152 126 160 138
Expenses of consolidated
investments 47 103 85 35 91
Office supplies and
postage 47 56 52 51 48
Other 188 283 190 327 211
------- ------- ------- ------- ----------
Total Non-Interest
Expenses 3,621 4,354 4,563 4,724 4,742
------- ------- ------- ------- ----------
Earnings Before Income Taxes 1,208 1,552 1,669 1,595 1,936
Income tax expense 286 359 457 460 560
------- ------- ------- ------- ----------
Net Earnings $922 $1,193 $1,212 $1,135 $1,376
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Per Common Share Data
3Q04 4Q04 1Q05 2Q05 3Q05
------- ------- ------- ------- ----------
Earnings - Basic $1.01 $1.32 $1.33 $1.25 $1.54
Earnings - Diluted 0.93 1.19 1.21 1.14 1.40
Dividends paid 0.16 0.16 0.16 0.20 0.20
Book value 31.75 32.99 32.91 33.63 34.66 Est.
- ----------------------------------------------------------------------
Note: Certain prior period amounts have been reclassified to conform
to the current period presentation.
15
Merrill Lynch & Co., Inc. Attachment V
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Percentage of Quarterly Net
Revenues (unaudited)
3Q04 4Q04 1Q05 2Q05 3Q05
------- ------- ------- ------- ----------
(13 (14 (13 (13 (13
weeks) weeks) weeks) weeks) weeks)
Net Revenues
Asset management and
portfolio service fees
Portfolio service fees 12.7% 10.4% 10.4% 10.6% 10.3%
Asset management fees 9.2% 8.8% 7.7% 7.5% 7.9%
Account fees 2.7% 2.1% 2.0% 1.9% 1.8%
Other fees 3.2% 1.8% 2.9% 2.6% 2.9%
------- ------- ------- ------ ----------
Total 27.8% 23.1% 23.0% 22.6% 22.9%
Commissions
Listed and over-the-
counter securities 11.6% 12.0% 11.7% 10.0% 10.3%
Mutual funds 6.3% 5.8% 5.8% 5.6% 5.7%
Other 4.4% 4.2% 4.0% 4.1% 4.1%
------- ------- ------- ------ ----------
Total 22.3% 22.0% 21.5% 19.7% 20.1%
Investment banking
Underwriting 11.0% 12.8% 10.5% 11.2% 10.8%
Strategic advisory 2.7% 4.2% 2.6% 3.4% 2.4%
------- ------- ------- ------ ----------
Total 13.7% 17.0% 13.1% 14.6% 13.2%
Principal transactions 7.4% 5.0% 14.7% 15.4% 12.1%
Revenues from consolidated
investments 2.2% 2.4% 2.0% 1.3% 2.1%
Other 8.2% 6.4% 6.0% 10.5% 9.0%
------- ------- ------- ------ ----------
Subtotal 81.6% 75.9% 80.3% 84.1% 79.4%
Interest and dividend
revenues 75.3% 87.7% 88.8% 94.5% 105.4%
Less interest expense 56.9% 63.6% 69.1% 78.6% 84.8%
------- ------- ------- ------ ----------
Net interest profit 18.4% 24.1% 19.7% 15.9% 20.6%
------- ------- ------- ------- ---------
Total Net Revenues 100.0% 100.0% 100.0% 100.0% 100.0%
------- ------- ------- ------ ----------
Non-Interest Expenses
Compensation and
benefits 47.1% 45.5% 49.5% 49.5% 48.7%
Communications and
technology 7.5% 6.8% 6.4% 6.3% 6.1%
Occupancy and related
depreciation 4.5% 4.3% 3.7% 3.6% 3.5%
Brokerage, clearing, and
exchange fees 4.0% 3.5% 3.5% 3.4% 2.8%
Professional fees 3.4% 3.5% 2.9% 2.9% 2.6%
Advertising and market
development 2.6% 2.6% 2.0% 2.5% 2.1%
Expenses of consolidated
investments 1.0% 1.7% 1.4% 0.6% 1.4%
Office supplies and
postage 1.0% 0.9% 0.8% 0.8% 0.7%
Other 3.9% 4.9% 3.0% 5.2% 3.1%
------- ------- ------- ------ ----------
Total Non-Interest
Expenses 75.0% 73.7% 73.2% 74.8% 71.0%
------- ------- ------- ------ ----------
Earnings Before Income
Taxes 25.0% 26.3% 26.8% 25.2% 29.0%
Income tax expense 5.9% 6.1% 7.4% 7.2% 8.4%
------- ------- ------- ------ ----------
Net Earnings 19.1% 20.2% 19.4% 18.0% 20.6%
- ----------------------------------------------------------------------
Common shares outstanding
(in millions):
3Q04 4Q04 1Q05 2Q05 3Q05
------- ------- ------- ------- ---------
Weighted-average -
basic (1) 903.2 896.6 907.8 897.5 881.4
Weighted-average -
diluted 985.0 992.7 993.3 978.5 968.5
Period-end (1) 932.9 931.8 948.7 930.9 921.7
- ------------------------------------ ------- ------- ------- ---------
Note: Certain prior period amounts have been reclassified to conform
to the current period presentation.
(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 (dollars in billions)
(unaudited)
3Q04 4Q04 1Q05 2Q05 3Q05
------- ------- --------- ------- ----------
Client Assets
Private Client
U.S. $1,179 $1,244 $1,226 $1,238 $1,282
Non - U.S. 109 115 116 115 113
------- ------- --------- ------- ----------
Total Private
Client Assets 1,288 1,359 1,342 1,353 1,395
MLIM direct
sales (1) 225 238 233 236 272
------- ------- --------- ------- ----------
Total Client
Assets $1,513 $1,597 $1,575 $1,589 $1,667
======= ======= ========= ======= ==========
Assets in Asset-
Priced Accounts $243 $257 $256 $262 $276
Assets Under
Management $478 $501 $479 $478 $524
Retail 208 218 218 218 231
Institutional 228 240 217 215 246
Retail
Separate
Accounts 42 43 44 45 47
U.S. 322 332 312 311 322
Non-U.S. 156 169 167 167 202
Equity 225 247 245 249 285
Retail Money
Market 53 50 49 46 45
Institutional
Liquidity
Funds 91 90 70 68 74
Fixed Income 109 114 115 115 120
--------------------------------------------------------------
Net New Money
Private Client
Accounts (2) $9 $6 $11 $8 $11
Assets Under
Management $(10) $(5) $(16) $(2) $12
--------------------------------------------------------------
Balance Sheet Information
(estimated)
Commercial Paper
and Other
Short-term
Borrowings $6.0 $4.0 $2.7 $6.8 $4.1
Deposits 77.3 79.7 79.9 79.5 77.8
Long-term
Borrowings 102.6 116.5 112.3 113.5 124.6
Long-term debt
issued to
TOPrSSM
Partnerships 3.1 3.1 3.1 3.1 3.1
Stockholders' Equity
(estimated):
Preferred
Stockholders'
Equity 0.4 0.6 1.6 1.7 1.7
Common
Stockholders'
Equity 29.6 30.8 31.3 31.3 31.9
------- ------- --------- ------- ----------
Total Stockholders'
Equity 30.0 31.4 32.9 33.0 33.6
--------------------------------------------------------------
Global Equity and
Equity-Linked
Underwriting (3)
Volume $11 $13 $12 $7 $10
Market Share 10.9% 8.9% 10.5% 6.6% 7.0%
Ranking 1 3 2 6 5
Global Debt
Underwriting (3)
Volume $66 $75 $66 $73 $80
Market Share 5.4% 6.2% 4.2% 4.6% 6.2%
Ranking 7 5 10 8 5
Global Completed
Mergers and
Acquisitions
Volume $116 $117 $54 $50 $71
Market Share 23.9% 25.8% 13.8% 12.0% 11.1%
Ranking 4 3 6 7 11
Global Announced
Mergers and
Acquisitions
Volume $51 $66 $132 $135 $94
Market Share 13.3% 9.8% 21.7% 19.9% 15.4%
Ranking 8 10 4 4 8
--------------------------------------------------------------
Full-Time
Employees (4) 49,900 50,600 50,900 51,800 53,100
Private Client
Financial
Advisors 14,120 14,140 14,180 14,420 14,690
--------------------------------------------------------------
Note: Certain prior period amounts have been reclassified 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 3Q04, 4Q04, 1Q05, 2Q05, and 200 at the end of 3Q05.
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: Merrill Lynch & Co., Inc.
Media Relations:
Jessica Oppenheim, 212-449-2107
jessica_oppenheim@ml.com
or
Investor Relations:
Jonathan Blum, 866-607-1234
investor_relations@ml.com
17