EXHIBIT 99.2
Published on January 19, 2006
Exhibit 99.2
Merrill Lynch & Co., Inc. Attachment I
Preliminary Unaudited Earnings Summary
For the Three Percent Inc
Months Ended /(Dec)
--------------------------- --------------
December September December 4Q05 4Q05
30, 30, 31, vs. vs.
(in millions, except per 2005 2005 2004 3Q05 4Q04
share amounts) -------- -------- -------- ------ ------
(13 weeks)(13 weeks)(14 weeks)
Net Revenues
Asset management and
portfolio service fees $1,638 $1,527 $1,439 7 % 14 %
Commissions 1,441 1,342 1,301 7 11
Investment banking 981 880 1,002 11 (2)
Principal transactions 715 917 309 (22) 131
Revenues from
consolidated
investments 85 142 139 (40) (39)
Other 613 548 311 12 97
-------- -------- --------
Subtotal 5,473 5,356 4,501 2 22
Interest and dividend
revenues 8,027 7,039 5,179 14 55
Less interest expense 6,720 5,717 3,774 18 78
-------- -------- --------
Net interest profit 1,307 1,322 1,405 (1) (7)
-------- -------- --------
Total Net Revenues 6,780 6,678 5,906 2 15
-------- -------- --------
Non-Interest Expenses
Compensation and benefits 2,927 3,270 2,709 (10) 8
Communications and
technology 412 405 400 2 3
Occupancy and related
depreciation 243 235 255 3 (5)
Brokerage, clearing, and
exchange fees 217 190 208 14 4
Professional fees 193 173 208 12 (7)
Advertising and market
development 175 138 152 27 15
Expenses of consolidated
investments 47 91 103 (48) (54)
Office supplies and
postage 59 48 56 23 5
Other 306 192 263 59 16
-------- -------- --------
Total Non-Interest
Expenses 4,579 4,742 4,354 (3) 5
-------- -------- --------
Earnings Before Income
Taxes 2,201 1,936 1,552 14 42
Income tax expense 706 560 359 26 97
-------- -------- --------
Net Earnings $1,495 $1,376 $1,193 9 25
======== ======== ========
Preferred Stock Dividends $ 28 $ 18 $ 13 56 115
======== ======== ========
Earnings Per Common Share
Basic $ 1.67 $ 1.54 $ 1.32 8 27
Diluted $ 1.51 $ 1.40 $ 1.19 8 27
Average Shares Used in
Computing Earnings Per
Common Share
Basic 876.2 881.4 896.6 (1) (2)
Diluted 970.7 968.5 992.7 0 (2)
Annualized Return on
Average Common Equity 18.2% 17.2% 15.7%
- ----------------------------------------------------------------------
Note: Certain prior period amounts have been reclassified to
conform to the current period presentation.
12
Merrill Lynch & Co., Inc. Attachment II
Preliminary Unaudited Earnings Summary
For the Year Ended
------------------
December December Percent
30, 31, Inc /
(in millions, except per share 2005 2004 (Dec)
amounts) ------- -------- -------
(52 (53
weeks) weeks)
Net Revenues
Asset management and
portfolio service fees $6,031 $5,440 11 %
Commissions 5,371 4,874 10
Principal transactions 3,583 2,248 59
Investment banking 3,594 3,268 10
Revenues from consolidated
investments 438 346 27
Other 2,195 1,454 51
------ ------
Subtotal 21,212 17,630 20
Interest and dividend
revenues 26,571 14,989 77
Less interest expense 21,774 10,560 106
------ ------
Net interest profit 4,797 4,429 8
------ ------
Total Net Revenues 26,009 22,059 18
------ ------
Non-Interest Expenses
Compensation and benefits 12,441 10,663 17
Communications and technology 1,608 1,461 10
Occupancy and related
depreciation 938 893 5
Brokerage, clearing, and
exchange fees 842 773 9
Professional fees 727 715 2
Advertising and market
development 599 533 12
Expenses of consolidated
investments 258 231 12
Office supplies and postage 210 203 3
Other 985 751 31
------ ------
Total Non-Interest Expenses 18,608 16,223 15
------ ------
Earnings Before Income Taxes 7,401 5,836 27
Income tax expense 2,183 1,400 56
------ ------
Net Earnings $5,218 $4,436 18
====== ======
Preferred Stock Dividends $ 70 $ 41 71
====== ======
Earnings Per Common Share
Basic $ 5.78 $ 4.81 20
Diluted $ 5.27 $ 4.38 20
Average Shares Used in
Computing Earnings Per Common
Share
Basic 890.7 912.9 (2)
Diluted 977.7 1,003.8 (3)
Return on Average Common Equity 16.3% 14.9%
- ----------------------------------------------------------------------
Note: Certain prior period amounts have been reclassified to
conform to the current period presentation.
13
Merrill Lynch & Co., Inc. Attachment III
Preliminary Segment Data (unaudited)
For the Three Percent
Months Ended Inc /(Dec)
-------------------------- -------------
December September December 4Q05 4Q05
30, 30, 31, vs. vs.
(dollars in millions) 2005 2005 2004 3Q05 4Q04
-------- -------- ------- ------ ------
(13 (13 (14
weeks) weeks) weeks)
Global Markets &
Investment Banking
Global Markets
Debt Markets $ 1,376 $ 1,680 $1,221 (18) % 13 %
Equity Markets 1,196 1,192 861 0 39
-------- -------- -------
Total Global
Markets net revenues 2,572 2,872 2,082 (10) 24
Investment Banking(a)
Origination:
Debt 278 396 325 (30) (14)
Equity 268 219 305 22 (12)
Strategic Advisory
Services 350 158 246 122 42
-------- -------- -------
Total Investment
Banking net
revenues 896 773 876 16 2
-------- -------- -------
Total net revenues 3,468 3,645 2,958 (5) 17
-------- -------- -------
Pre-tax earnings 1,517 1,289 990 18 53
Pre-tax profit margin 43.7% 35.4% 33.5%
- --------------------------------------------------------------------
Global Private Client
Fee-based revenues $ 1,432 $ 1,351 $1,256 6 14
Transactional and
origination revenues 868 800 884 9 (2)
Net interest profit and
related hedges(b) 519 461 376 13 38
Other revenues 83 79 102 5 (19)
-------- -------- -------
Total net revenues 2,902 2,691 2,618 8 11
-------- -------- -------
Pre-tax earnings 620 590 519 5 19
Pre-tax profit margin 21.4% 21.9% 19.8%
- --------------------------------------------------------------------
Merrill Lynch Investment
Managers
Total net revenues $ 533 $ 456 $ 426 17 25
Pre-tax earnings 176 162 130 9 35
Pre-tax profit margin 33.0% 35.5% 30.5%
- --------------------------------------------------------------------
Corporate
Total net revenues $ (123) $ (114) $ (96) (8) (28)
Pre-tax earnings
(loss) (112) (105) (87) (7) (29)
- --------------------------------------------------------------------
Total
Total net revenues $ 6,780 $ 6,678 $5,906 2 15
Pre-tax earnings 2,201 1,936 1,552 14 42
Pre-tax profit margin 32.5% 29.0% 26.3%
- --------------------------------------------------------------------
For the Year
Ended
----------------- -------
December December Percent
30, 31, Inc /
(dollars in millions) 2005 2004 (Dec)
-------- -------- -------
(52 weeks)(53 weeks)
Global Markets &
Investment Banking
Global Markets
Debt Markets $ 6,324 $ 5,213 21 %
Equity Markets 4,381 3,036 44
-------- --------
Total Global
Markets net
revenues 10,705 8,249 30
Investment Banking(a)
Origination:
Debt 1,330 1,135 17
Equity 952 1,001 (5)
Strategic Advisory
Services 882 678 30
-------- --------
Total Investment
Banking net
revenues 3,164 2,814 12
-------- --------
Total net revenues 13,869 11,063 25
-------- --------
Pre-tax earnings 5,028 3,869 30
Pre-tax profit margin 36.3% 35.0%
- -----------------------------------------------------------
Global Private Client
Fee-based revenues $ 5,340 $ 4,801 11
Transactional and
origination revenues 3,311 3,293 1
Net interest profit and
related hedges(b) 1,801 1,293 39
Other revenues 312 440 (29)
-------- --------
Total net revenues 10,764 9,827 10
-------- --------
Pre-tax earnings 2,177 1,873 16
Pre-tax profit margin 20.2% 19.1%
- -----------------------------------------------------------
Merrill Lynch Investment
Managers
Total net revenues $ 1,807 $ 1,580 14
Pre-tax earnings 586 460 27
Pre-tax profit margin 32.4% 29.1%
- -----------------------------------------------------------
Corporate
Total net revenues $ (431) (411) (5)
Pre-tax earnings (loss) (390) (366) (7)
- -----------------------------------------------------------
Total
Total net revenues $26,009 $22,059 18
Pre-tax earnings 7,401 5,836 27
Pre-tax profit margin 28.5% 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.
(b) Includes interest component of non-qualifying derivatives which
are included in Other Revenues in Attachments I and II.
14
Merrill Lynch & Co., Inc. Attachment IV
Consolidated Quarterly (in millions)
Earnings (unaudited)
4Q04 1Q05 2Q05 3Q05 4Q05
------- ------- ------- ------- -------
(14 (13 (13 (13 (13
weeks) weeks) weeks) weeks) weeks)
Net Revenues
Asset management and
portfolio service fees
Portfolio service fees $ 614 $ 650 $ 670 $ 689 $ 760
Asset management fees 522 481 472 527 556
Account fees 126 124 121 123 123
Other fees 177 180 168 188 199
------- ------- ------- ------- -------
Total 1,439 1,435 1,431 1,527 1,638
Commissions
Listed and over-
the-counter
securities 818 842 747 823 878
Mutual funds 343 364 353 383 401
Other 140 135 147 136 162
------- ------- ------- ------- -------
Total 1,301 1,341 1,247 1,342 1,441
Investment banking
Underwriting 755 652 706 720 632
Strategic advisory 247 161 214 160 349
------- ------- ------- ------- -------
Total 1,002 813 920 880 981
Principal transactions 309 945 1,006 917 715
Revenues from
consolidated
investments 139 127 84 142 85
Other 311 370 664 548 613
------- ------- ------- ------- -------
Subtotal 4,501 5,031 5,352 5,356 5,473
Interest and dividend
revenues 5,179 5,531 5,974 7,039 8,027
Less interest expense 3,774 4,330 5,007 5,717 6,720
------- ------- ------- ------- -------
Net interest profit 1,405 1,201 967 1,322 1,307
------- ------- ------- ------- -------
Total Net Revenues 5,906 6,232 6,319 6,678 6,780
------- ------- ------- ------- -------
Non-Interest Expenses
Compensation and
benefits 2,709 3,096 3,148 3,270 2,927
Communications and
technology 400 396 395 405 412
Occupancy and related
depreciation 255 233 227 235 243
Brokerage, clearing,
and exchange fees 208 219 216 190 217
Professional fees 208 178 183 173 193
Advertising and market
development 152 126 160 138 175
Expenses of
consolidated
investments 103 85 35 91 47
Office supplies and
postage 56 52 51 48 59
Other 263 178 309 192 306
------- ------- ------- ------- -------
Total Non-Interest
Expenses 4,354 4,563 4,724 4,742 4,579
------- ------- ------- ------- -------
Earnings Before Income
Taxes 1,552 1,669 1,595 1,936 2,201
Income tax expense 359 457 460 560 706
------- ------- ------- ------- -------
Net Earnings $1,193 $1,212 $1,135 $1,376 $1,495
- ----------------------------------------------------------------------
Per Common Share Data
4Q04 1Q05 2Q05 3Q05 4Q05
------- ------- ------- ------- -------
Earnings - Basic $ 1.32 $ 1.33 $ 1.25 $ 1.54 $ 1.67
Earnings - Diluted 1.19 1.21 1.14 1.40 1.51
Dividends paid 0.16 0.16 0.20 0.20 0.20
Book value 32.99 32.91 33.63 34.66 35.98
Est.
- ----------------------------------------------------------------------
Note: Certain prior period amounts have been reclassified to
conform to the current period presentation.
15
Merrill Lynch & Co., Inc. Attachment V
Percentage of Quarterly Net
Revenues (unaudited)
4Q04 1Q05 2Q05 3Q05 4Q05
------- ------- ------- ------- -------
(14 (13 (13 (13 (13
weeks) weeks) weeks) weeks) weeks)
Net Revenues
Asset management and
portfolio service fees
Portfolio service fees 10.4% 10.4% 10.6% 10.3% 11.2%
Asset management fees 8.8% 7.7% 7.5% 7.9% 8.2%
Account fees 2.1% 2.0% 1.9% 1.8% 1.8%
Other fees 3.1% 2.9% 2.6% 2.9% 3.0%
------- ------- ------- ------- -------
Total 24.4% 23.0% 22.6% 22.9% 24.2%
Commissions
Listed and over-the-
counter securities 13.9% 13.5% 11.8% 12.3% 12.9%
Mutual funds 5.8% 5.8% 5.6% 5.7% 5.9%
Other 2.3% 2.2% 2.3% 2.1% 2.5%
------- ------- ------- ------- -------
Total 22.0% 21.5% 19.7% 20.1% 21.3%
Investment banking
Underwriting 12.8% 10.5% 11.2% 10.8% 9.3%
Strategic advisory 4.2% 2.6% 3.4% 2.4% 5.1%
------- ------- ------- ------- -------
Total 17.0% 13.1% 14.6% 13.2% 14.4%
Principal transactions 5.2% 15.2% 15.9% 13.7% 10.5%
Revenues from
consolidated investments 2.4% 2.0% 1.3% 2.1% 1.3%
Other 5.2% 5.9% 10.6% 8.2% 9.0%
------- ------- ------- ------- -------
Subtotal 76.2% 80.7% 84.7% 80.2% 80.7%
Interest and dividend
revenues 87.7% 88.8% 94.5% 105.4% 118.4%
Less interest expense 63.9% 69.5% 79.2% 85.6% 99.1%
------- ------- ------- ------- -------
Net interest profit 23.8% 19.3% 15.3% 19.8% 19.3%
------- ------- ------- ------- -------
Total Net Revenues 100.0% 100.0% 100.0% 100.0% 100.0%
------- ------- ------- ------- -------
Non-Interest Expenses
Compensation and benefits 45.9% 49.7% 49.8% 49.0% 43.2%
Communications and
technology 6.8% 6.4% 6.3% 6.1% 6.1%
Occupancy and related
depreciation 4.3% 3.7% 3.6% 3.5% 3.6%
Brokerage, clearing, and
exchange fees 3.5% 3.5% 3.4% 2.8% 3.2%
Professional fees 3.5% 2.9% 2.9% 2.6% 2.8%
Advertising and market
development 2.6% 2.0% 2.5% 2.1% 2.6%
Expenses of consolidated
investments 1.7% 1.4% 0.6% 1.4% 0.7%
Office supplies and
postage 0.9% 0.8% 0.8% 0.7% 0.9%
Other 4.5% 2.8% 4.9% 2.8% 4.4%
------- ------- ------- ------- -------
Total Non-Interest
Expenses 73.7% 73.2% 74.8% 71.0% 67.5%
------- ------- ------- ------- -------
Earnings Before Income
Taxes 26.3% 26.8% 25.2% 29.0% 32.5%
Income tax expense 6.1% 7.4% 7.2% 8.4% 10.4%
------- ------- ------- ------- -------
Net Earnings 20.2% 19.4% 18.0% 20.6% 22.1%
- ----------------------------------------------------------------------
Common shares outstanding
(in millions):
4Q04 1Q05 2Q05 3Q05 4Q05
------- ------- ------- ------- -------
Weighted-average -
basic (1) 896.6 907.8 897.5 881.4 876.2
Weighted-average -
diluted 992.7 993.3 978.5 968.5 970.7
Period-end (1) 931.8 948.7 930.9 921.7 919.2
- ----------------------------------------------------------------------
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.
16
Merrill Lynch & Co., Inc. Attachment VI
Supplemental Data (dollars in billions)
(unaudited)
4Q04 1Q05 2Q05 3Q05 4Q05
------- ------- ------- ------- -------
Client Assets
Private Client
U.S. $1,244 $1,226 $1,238 $1,282 $1,356
Non - U.S. 115 116 115 113 117
------- ------- ------- ------- -------
Total Private
Client Assets 1,359 1,342 1,353 1,395 1,473
MLIM direct sales(1) 238 233 236 272 291
------- ------- ------- ------- -------
Total Client Assets $1,597 $1,575 $1,589 $1,667 $1,764
======= ======= ======= ======= =======
Assets in Asset-Priced
Accounts $ 257 $ 256 $ 262 $ 276 $ 284
Assets Under Management $ 501 $ 479 $ 478 $ 524 $ 544
Retail 218 218 218 231 245
Institutional 240 217 215 246 250
Retail Separate Accounts 43 44 45 47 49
U.S. 332 312 311 322 333
Non-U.S. 169 167 167 202 211
Equity 247 245 249 285 299
Retail Money Market 50 49 46 45 45
Institutional Liquidity
Funds 90 70 68 74 77
Fixed Income 114 115 115 120 123
- ----------------------------------------------------------------------
Net New Money
Private Client
Accounts (2) $ 6 $ 11 $ 8 $ 10 $ 17
Assets Under Management $ (5) $ (16) $ (2) $ 12 $ 11
- ----------------------------------------------------------------------
Balance Sheet Information
(estimated)
Commercial Paper and
Other Short-term
Borrowings $ 4.0 $ 2.7 $ 6.8 $ 4.1 $ 3.9
Deposits 79.7 79.9 79.5 77.8 79.7
Long-term
Borrowings 119.5 115.7 117.5 129.6 132.2
Long-term debt issued to
TOPrS(SM) Partnerships 3.1 3.1 3.1 3.1 3.1
Stockholders' Equity
(estimated):
Preferred Stockholders'
Equity 0.6 1.6 1.7 1.7 2.7
Common Stockholders'
Equity 30.8 31.3 31.3 31.9 33.0
------- ------- ------- ------- -------
Total Stockholders' Equity 31.4 32.9 33.0 33.6 35.7
- ----------------------------------------------------------------------
Global Equity and
Equity-Linked
Underwriting (3)
Volume $ 13 $ 12 $ 7 $ 10 $ 11
Market Share 8.7% 10.4% 6.5% 6.9% 6.4%
Ranking 3 2 6 5 5
Global Debt
Underwriting (3)
Volume $ 75 $ 66 $ 73 $ 82 $ 82
Market Share 6.2% 4.2% 4.6% 6.0% 5.7%
Ranking 5 10 8 5 5
Global Completed Mergers
and Acquisitions
Volume $ 117 $ 54 $ 56 $ 72 $ 219
Market Share 25.5% 13.2% 13.0% 10.5% 34.0%
Ranking 3 6 7 11 2
Global Announced Mergers
and Acquisitions
Volume $ 71 $ 130 $ 117 $ 136 $ 215
Market Share 10.3% 21.2% 16.9% 22.3% 27.3%
Ranking 10 4 6 5 3
- ----------------------------------------------------------------------
Full-Time Employees (4) 50,600 50,900 51,800 53,100 54,600
Private Client Financial
Advisors 14,140 14,180 14,420 14,690 15,160
- ----------------------------------------------------------------------
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 4Q04, 1Q05, 2Q05, 3Q05, and 200 at the end of 4Q05.
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